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Kyudenko Corporation (JP:1959)
:1959
Japanese Market

Kyudenko Corporation (1959) AI Stock Analysis

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JP

Kyudenko Corporation

(1959)

Rating:71Outperform
Price Target:
¥6,248.00
▲(10.47%Upside)
Kyudenko Corporation's strong financial performance and upward technical trend are the primary drivers of its stock score. The company is fundamentally solid with consistent revenue growth and low leverage. However, technical indicators suggest the stock might be overbought in the short term, and cash flow management remains an area for improvement.

Kyudenko Corporation (1959) vs. iShares MSCI Japan ETF (EWJ)

Kyudenko Corporation Business Overview & Revenue Model

Company DescriptionKyudenko Corporation, established in 1959, is a prominent Japanese company operating mainly in the construction and engineering sectors. The company specializes in electrical, air conditioning, and plumbing installations, alongside offering comprehensive engineering services. With a strong focus on infrastructure development, Kyudenko Corporation provides innovative solutions for both public and private sector projects, contributing to the modernization and efficiency of urban environments.
How the Company Makes MoneyKyudenko Corporation generates revenue primarily through its construction and engineering services. The company undertakes various infrastructure projects, including electrical installations, air conditioning systems, plumbing, and other essential building services. Revenue streams include contracts from both government entities and private companies seeking specialized engineering solutions. Significant partnerships with construction firms and utility providers further bolster its earnings by expanding its project portfolio and enhancing its service offerings in large-scale developments.

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. Overall, the company's financial performance reflects resilience in the engineering and construction industry.
Income Statement
85
Very Positive
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
78
Positive
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
72
Positive
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
483.06B473.95B469.06B395.78B376.56B391.90B
Gross Profit
72.79B70.70B64.63B57.89B57.36B56.63B
EBIT
44.15B40.99B38.02B32.08B33.14B33.00B
EBITDA
49.01B51.53B47.91B45.57B43.12B43.04B
Net Income Common Stockholders
31.79B28.88B28.02B26.35B26.22B25.04B
Balance SheetCash, Cash Equivalents and Short-Term Investments
56.13B71.70B98.55B67.53B40.01B50.91B
Total Assets
461.60B488.47B503.28B446.41B378.40B366.53B
Total Debt
22.13B22.47B35.34B36.41B13.14B14.63B
Net Debt
-33.99B-49.22B-63.21B-31.13B-25.88B-36.28B
Total Liabilities
158.87B176.31B212.16B183.40B137.20B144.79B
Stockholders Equity
300.77B310.10B288.78B260.84B239.13B219.81B
Cash FlowFree Cash Flow
0.004.18B41.95B14.32B1.11B6.24B
Operating Cash Flow
0.008.04B43.97B17.39B5.25B9.18B
Investing Cash Flow
0.00-8.93B-2.31B-3.11B-7.54B-4.23B
Financing Cash Flow
0.00-23.91B-11.03B11.62B-10.19B-10.06B

Kyudenko Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5656.00
Price Trends
50DMA
5000.48
Positive
100DMA
4879.12
Positive
200DMA
5311.60
Positive
Market Momentum
MACD
156.72
Negative
RSI
78.02
Negative
STOCH
91.03
Negative
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 5656 is above the 20-day moving average (MA) of 5298.60, above the 50-day MA of 5000.48, and above the 200-day MA of 5311.60, indicating a bullish trend. The MACD of 156.72 indicates Negative momentum. The RSI at 78.02 is Negative, neither overbought nor oversold. The STOCH value of 91.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1959.

Kyudenko Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥219.86B17.0011.54%2.78%9.76%28.02%
78
Outperform
$380.41B12.928.05%3.66%7.61%10.95%
77
Outperform
¥629.47B14.8612.02%3.64%12.28%54.97%
75
Outperform
¥365.47B14.07
3.53%9.24%35.82%
72
Outperform
€202.46B12.886.74%3.21%11.62%40.21%
71
Outperform
¥400.70B13.85
2.65%1.04%3.13%
66
Neutral
$4.47B12.225.40%3.65%4.14%-12.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1959
Kyudenko Corporation
5,656.00
17.93
0.32%
JP:1942
Kandenko Co., Ltd.
3,081.00
1,458.97
89.95%
JP:1417
Mirait Holdings Corporation
2,439.50
494.57
25.43%
JP:1951
Kyowa Exeo
1,814.00
302.48
20.01%
JP:1949
Sumitomo Densetsu Co
6,180.00
2,383.97
62.80%
JP:1721
COMSYS Holdings
3,275.00
291.00
9.75%

Kyudenko Corporation Corporate Events

Kyudenko Corporation to Rebrand as KRAFTIA CORPORATION
May 30, 2025

Kyudenko Corporation has announced a proposal to amend its Articles of Incorporation to change its business name to KRAFTIA CORPORATION, reflecting its ongoing business growth and diversification. This change, effective October 1, 2025, signifies the company’s strategic evolution and potential for future development, impacting its brand identity and market presence.

The most recent analyst rating on (JP:1959) stock is a Buy with a Yen6400.00 price target. To see the full list of analyst forecasts on Kyudenko Corporation stock, see the JP:1959 Stock Forecast page.

Kyudenko Corporation to Rebrand as KRAFTIA CORPORATION
Apr 28, 2025

Kyudenko Corporation has announced its decision to change its name to KRAFTIA CORPORATION, pending shareholder approval in June 2025. This change reflects the company’s growth and diversification into various fields beyond its original electrical work, marking its commitment to innovation and global expansion.

Kyudenko Corporation Unveils Vision 2029 Mid-term Management Plan
Apr 28, 2025

Kyudenko Corporation has announced its new Mid-term Management Plan, Vision 2029, which outlines strategic directions for the fiscal years 2025 to 2029. The plan aims to address challenges faced during the previous plan period, such as the COVID-19 pandemic and geopolitical risks, by enhancing technological capabilities and human capital management. The company sets ambitious financial and non-financial targets, including a ¥60 billion ordinary profit and a 10% ROIC by 2029, alongside a commitment to sustainability and shareholder returns. This plan positions Kyudenko to advance to a new stage of growth, focusing on investment strategies and stakeholder engagement to enhance corporate value.

Kyudenko Corporation Revises Dividend Policy to Enhance Shareholder Returns
Apr 28, 2025

Kyudenko Corporation has announced a change in its dividend policy, effective from the fiscal year ending March 2026. The company aims to implement a progressive dividend policy with a target consolidated payout ratio of 40%, up from the previous 25%, to ensure stable shareholder returns and enhance profit distribution.

Kyudenko Corporation Affirms Independence Amidst Shareholder Ties
Apr 28, 2025

Kyudenko Corporation has announced its relationship with its controlling shareholder, Kyushu Electric Power Co., Inc., which holds a 22.75% voting rights stake. Despite this significant shareholding, Kyudenko maintains operational independence due to its distinct business focus on facilities construction. The company is involved in construction work for the Kyushu Electric Power Group, accounting for 12.5% of its annual projects, and has personnel exchanges with the group. These relationships are structured to ensure market-based pricing and operational autonomy, which supports Kyudenko’s strategic positioning in the market.

Kyudenko Corporation Reports Steady Growth and Increased Dividends for FY 2025
Apr 28, 2025

Kyudenko Corporation reported a slight increase in net sales and operating income for the fiscal year ended March 31, 2025, with a notable rise in dividends per share. Despite a decrease in comprehensive income, the company maintained a strong equity ratio, indicating robust financial health and a positive outlook for the upcoming fiscal year.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.