Kyudenko Corporation (1959) AI Stock Analysis

• Market Cap: ¥571.09B
• Dividend Yield: 2.15%
• Average Volume (3M): 148.10K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.45
• Revenue Growth: -5.20%
• EPS Growth: -1.20%
• Country: JP
• Employees: 10,572
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 148.83
• Shares Outstanding: 70,864,960
• 10 Day Avg. Volume: 141,650
• 30 Day Avg. Volume: 148,096
• PEG Ratio: 3.74
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 81.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥9,542.00 ▲(23.97% Upside)

Kyudenko Corporation's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's robust balance sheet and consistent revenue growth provide a solid foundation, while the technical analysis indicates bullish momentum. The valuation is reasonable, with a fair P/E ratio and an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Low leverage / strong balance sheet

A high equity ratio and minimal leverage materially reduce financial risk for a construction contractor, improving ability to bid on large projects, absorb cost overruns, and finance working capital. This structural strength supports resilience through construction cycles and investment flexibility.

Solid operating profitability

Consistent mid-single-digit net margins and double-digit EBITDA indicate durable operating efficiency in engineering and installation services. Sustainable margins provide internal funding for maintenance programs and selective capex, underpinning long-term cash generation and reinvestment capacity.

Recurring maintenance and service revenue

A meaningful portion of revenue from inspection, repair, renewal and maintenance creates repeatable, less cyclical cash flows and backlog. This recurring stream stabilizes revenue volatility inherent in project-based contracting and supports longer-term client relationships and lifetime value.

Negative Factors

Recent negative revenue growth

A decline in revenue growth indicates weakening top-line momentum which, if persistent, erodes utilization and bargaining power on contract pricing. Over several months this can pressure margins, reduce scalability benefits, and necessitate higher bid volumes to replace lost revenue.

Weak free cash flow conversion

Low conversion of earnings into free cash flow signals working-capital or timing issues typical in construction. Structurally weak cash conversion limits ability to self-fund capex, reduce payout risk, or build reserves, forcing reliance on external financing during downturns or growth phases.

Moderate ROE, room to improve capital efficiency

An ROE under double digits suggests capital is generating modest returns relative to peers. Over a multi-month horizon this indicates potential inefficiencies in project selection, pricing, or asset utilization, constraining shareholder return potential unless operational leverage or margin mix improves.

Kyudenko Corporation Business Overview & Revenue Model

Company Description

Kyudenko Corporation engages in the design, construction, and maintenance of electrical facilities in Japan. It offers various types of electrical system installations in public and commercial facilities, such as buildings, factories, schools, hospitals, etc. The company also designs and constructs heating, ventilation, and air conditioning installations and plumbing products in public and commercial facilities, including buildings, factories, schools, hospitals, etc.; and various types of infrastructure development facilities comprising community drainage, water supply and sewerage, waste water treatment, and total energy management saving systems. In addition, it designs and constructs infrastructure development facilities that include information and telecommunication instruments in factories and buildings, and cable television and base stations for mobile communications, as well as installs local area network. Further, the company provides power distribution and underground power facilities consisting of power poles, and overhead and underground distribution lines, as well as lines to homes, electric power meters, etc.; and surveys, designs, and constructs renewable energy facilities, as well as generates solar power and wind power. Kyudenko Corporation was incorporated in 1944 and is headquartered in Fukuoka, Japan.

How the Company Makes Money

Kyudenko Corporation generates revenue through multiple streams, primarily from its core operations in electrical construction and engineering services. The company earns money by contracting projects related to power generation and infrastructure development, particularly in the renewable energy sector. Key revenue sources include installation services for electrical systems, maintenance contracts, and the sale of energy-efficient technologies. Additionally, partnerships with government bodies and private enterprises in large-scale energy projects significantly enhance its revenue potential. The growing demand for sustainable energy solutions further bolsters Kyudenko's financial performance, as it aligns with global trends toward renewable resources and energy efficiency.

Kyudenko Corporation Financial Statement Overview

Summary

Kyudenko Corporation demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is robust with low leverage, providing a secure financial structure. However, the recent dip in cash flow generation suggests the need for better cash management strategies to enhance financial flexibility.

Income Statement

Kyudenko Corporation has shown consistent revenue growth with a steady increase in total revenue from 2024 to 2025. The gross profit margin stands at 14.9%, indicating efficient management of production costs. The net profit margin is strong at 6.1%, reflecting profitability. The EBIT margin is at 8.6% and the EBITDA margin at 10.9%, both showcasing good operational efficiency.

Balance Sheet

The balance sheet reveals a solid equity position with an equity ratio of 63.5%, indicating a strong financial foundation. The debt-to-equity ratio of 0.07 demonstrates low leverage, reducing financial risk. Return on Equity (ROE) is at 9.3%, which is reasonable, though there is room for improvement in generating higher returns on equity.

Cash Flow

Kyudenko's cash flow statement shows a significant decline in operating cash flow compared to the previous year, impacting free cash flow. The free cash flow to net income ratio is 0.15, which is lower than desired, indicating less cash is retained from earnings. However, the company remains cash flow positive, maintaining financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	467.32B	473.95B	469.06B	395.78B	376.56B	391.90B
Gross Profit	72.44B	70.70B	64.63B	57.89B	57.36B	56.63B
EBITDA	53.34B	51.53B	47.91B	45.57B	43.12B	43.04B
Net Income	28.84B	28.88B	28.02B	26.35B	26.22B	25.04B
Balance Sheet
Total Assets	463.43B	488.47B	503.28B	446.41B	378.40B	366.53B
Cash, Cash Equivalents and Short-Term Investments	75.76B	71.70B	98.55B	67.53B	40.01B	50.91B
Total Debt	24.46B	22.47B	35.34B	36.41B	13.14B	14.63B
Total Liabilities	148.67B	176.31B	212.16B	183.40B	137.20B	144.79B
Stockholders Equity	312.69B	310.10B	288.78B	260.84B	239.13B	219.81B
Cash Flow
Free Cash Flow	0.00	4.18B	41.95B	14.32B	1.11B	6.24B
Operating Cash Flow	0.00	8.66B	43.97B	17.39B	5.25B	9.18B
Investing Cash Flow	0.00	-8.93B	-2.31B	-3.11B	-7.54B	-4.23B
Financing Cash Flow	0.00	-23.93B	-11.03B	11.62B	-10.19B	-10.06B

Kyudenko Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7697.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1959, the sentiment is Positive. The current price of 7697 is below the 20-day moving average (MA) of 8259.20, below the 50-day MA of 7929.68, and above the 200-day MA of 6747.90, indicating a bullish trend. The MACD of 107.97 indicates Positive momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 44.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1959.

Kyudenko Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1959	79 Outperform	¥571.09B	17.01	―	2.15%	-5.20%	-1.20%
1721	76 Outperform	¥559.86B	17.80	8.34%	2.66%	5.14%	12.52%
1417	76 Outperform	¥307.74B	16.28	8.12%	2.28%	6.50%	53.04%
1949	74 Outperform	¥345.09B	19.93	12.41%	1.68%	8.09%	20.78%
1951	73 Outperform	¥519.90B	17.33	―	2.51%	15.47%	64.50%
1942	69 Neutral	¥1.14T	20.05	14.15%	2.00%	16.43%	53.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kyudenko Corporation Corporate Events

KRAFTIA Lifts Year-End Dividend Forecast, Signals Stronger Shareholder Returns

KRAFTIA Corporation’s board has approved an upward revision to its year-end dividend forecast for the fiscal year ending March 2026, raising the planned payout by ¥20 to ¥110 per share. This move lifts the expected annual dividend to ¥200 per share, reflecting stronger earnings projections and the company’s commitment to a progressive dividend policy with a target payout ratio of 40%, signaling enhanced returns and stability for shareholders compared with the previous fiscal year’s ¥140 per share.

The most recent analyst rating on (JP:1959) stock is a Buy with a Yen9241.00 price target. To see the full list of analyst forecasts on Kyudenko Corporation stock, see the JP:1959 Stock Forecast page.

KRAFTIA Lifts Profit Outlook and Dividends on Strong Nine-Month Earnings

KRAFTIA CORPORATION reported a 23.7% year-on-year rise in operating income to ¥36.4 billion and a 22.3% increase in profit attributable to owners of parent to ¥25.5 billion for the nine months ended December 31, 2025, despite a 3.0% decline in net sales to ¥319.3 billion. The company’s equity ratio improved to 68.0% as net assets rose to ¥332.5 billion, supported by higher comprehensive income, while the group added four new entities, including KRAFTIA Innovation Fund Investment Limited Partnership and KATSURAO FURYOKU Co., Ltd., to its consolidation scope. Reflecting robust earnings momentum, KRAFTIA raised its full-year forecast, projecting record profit attributable to owners of parent of ¥36.0 billion and profit per share of ¥508.95, and also revised its dividend outlook upward, targeting a total annual dividend of ¥200 per share, signalling stronger shareholder returns and confidence in sustained profitability.

The most recent analyst rating on (JP:1959) stock is a Buy with a Yen9241.00 price target. To see the full list of analyst forecasts on Kyudenko Corporation stock, see the JP:1959 Stock Forecast page.