Kyudenko Corporation (1959) AI Stock Analysis

• Market Cap: ¥521.85B
• Dividend Yield: 1.9%
• Average Volume (3M): 207.54K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.27
• Revenue Growth: -4.63%
• EPS Growth: -8.48%
• Country: JP
• Employees: 10,572
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 109.14
• Shares Outstanding: 70,864,960
• 10 Day Avg. Volume: 136,620
• 30 Day Avg. Volume: 207,540
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥7,477.00
• Price Target Upside: 1.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥7,477.00 ▲(1.51% Upside)

Kyudenko Corporation's overall stock score reflects strong financial health and a robust upward trend in stock price. The company benefits from consistent revenue growth and a strong balance sheet with low leverage. However, overbought technical indicators suggest caution in the short term. The valuation is reasonable and supported by a decent dividend yield, making it attractive for long-term investors.

Positive Factors

Strong Balance Sheet

Kyudenko's low leverage and strong equity position provide financial stability, enabling strategic investments and resilience against economic fluctuations.

Operational Efficiency

Efficient cost management and strong profit margins indicate robust operational efficiency, supporting long-term profitability and competitive positioning.

Strategic Rebranding

The rebranding to KRAFTIA CORPORATION reflects strategic growth and diversification, potentially enhancing market presence and aligning with future business goals.

Negative Factors

Revenue Decline

The decline in net sales may indicate challenges in market demand or competitive pressures, potentially impacting future revenue growth and market share.

Cash Flow Management

Weak cash flow management can limit financial flexibility, affecting the company's ability to invest in growth opportunities and manage liabilities effectively.

Earnings Volatility

Corrections in financial reporting can undermine investor confidence and suggest potential volatility in earnings, impacting long-term financial planning.

Kyudenko Corporation Business Overview & Revenue Model

Company Description

Kyudenko Corporation, established in 1959, is a prominent Japanese company specializing in engineering and construction services. The company operates across multiple sectors, including electrical, mechanical, and civil engineering, as well as telecommunications and environmental solutions. Kyudenko is renowned for its expertise in designing, installing, and maintaining infrastructure projects, with a strong emphasis on sustainable and innovative technologies.

How the Company Makes Money

Kyudenko Corporation generates revenue primarily through its engineering and construction services. The company earns money by undertaking large-scale infrastructure projects, offering comprehensive services from design and construction to maintenance and operation. Key revenue streams include electrical facility construction, HVAC systems, renewable energy solutions, and telecommunications infrastructure. Additionally, Kyudenko benefits from partnerships with government bodies and private sector clients, contributing significantly to its earnings. The company's focus on sustainable technologies and renewable energy projects also plays a crucial role in its revenue model, aligning with global trends towards environmental responsibility.

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	473.95B	473.95B	469.06B	395.78B	376.56B	391.90B
Gross Profit	70.70B	70.70B	64.63B	57.89B	57.36B	56.63B
EBITDA	51.53B	51.53B	47.91B	45.57B	43.12B	43.04B
Net Income	28.88B	28.88B	28.02B	26.35B	26.22B	25.04B
Balance Sheet
Total Assets	488.47B	488.47B	503.28B	446.41B	378.40B	366.53B
Cash, Cash Equivalents and Short-Term Investments	71.70B	71.70B	98.55B	67.53B	40.01B	50.91B
Total Debt	22.47B	22.47B	35.34B	36.41B	13.14B	14.63B
Total Liabilities	176.31B	176.31B	212.16B	183.40B	137.20B	144.79B
Stockholders Equity	310.10B	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	8.04B	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: 7366.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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 7366 is above the 20-day moving average (MA) of 7170.25, above the 50-day MA of 6767.62, and above the 200-day MA of 5445.69, indicating a bullish trend. The MACD of 140.66 indicates Positive momentum. The RSI at 71.41 is Negative, neither overbought nor oversold. The STOCH value of 86.30 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1959	74 Outperform	¥521.85B	17.95		1.90%	-4.63%	-8.48%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
CMSYF	―	$2.97B	14.24	8.66%	―	―	―
1951	76 Outperform	¥447.37B	16.70		2.84%	11.20%	36.74%
SDNSF	―	$1.63B	11.87	12.16%	―	―	―
5FO	―	€1.39B	15.68	6.39%	―	―	―
5EY	―	€4.83B	16.33	14.13%	―	―	―

Kyudenko Corporation Corporate Events

Kyudenko Corporation Reports Mixed Financial Results for Q1 2025

Kyudenko Corporation reported a decrease in net sales by 6.2% for the three months ending June 30, 2025, compared to the previous year. Despite the drop in sales, the company saw an increase in operating income by 8.1% and ordinary income by 5.3%. The company also announced a forecasted increase in annual dividends per share, indicating a positive outlook for stakeholders.

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 Corrects Financial Report for FY 2025

Kyudenko Corporation announced corrections to its consolidated financial report for the fiscal year ended March 31, 2025, due to errors in the aggregation method for cash flows from operating and financing activities. The corrections led to a slight increase in cash flows from operating activities and a higher increase in cash outflows from financing activities, reflecting adjustments in accounts payable, income taxes, and long-term borrowings. These corrections are crucial for stakeholders as they provide a more accurate financial position of the company, potentially impacting investor confidence and financial planning.

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

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.