Yamato Corporation (1967) AI Stock Analysis

• Market Cap: ¥56.48B
• Dividend Yield: 2.19%
• Average Volume (3M): 29.38K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.66
• Revenue Growth: 5.45%
• EPS Growth: 86.27%
• Country: JP
• Employees: 1,125
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 44.55
• Shares Outstanding: 24,127,651
• 10 Day Avg. Volume: 27,580
• 30 Day Avg. Volume: 29,383
• PEG Ratio: 0.06
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 9.41
• 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: 83 Outperform
• Price Target: ¥2,934.00 ▲(39.98% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by strong financial performance (growth, improving margins, and a very low-leverage balance sheet) and supportive technical momentum with a clear uptrend. Valuation is reasonable with a moderate dividend yield, though near-term technical stretch signals (high Stochastic) slightly temper the outlook.

Positive Factors

Balance sheet strength

Very low leverage (debt/equity 0.03) and a 70% equity ratio provide durable financial resilience. This capital structure supports stable operations, competitive bidding in E&C projects, and the ability to fund capex or weather downturns without relying on volatile debt markets.

Revenue growth and margin improvement

Consistent double-digit top-line growth alongside rising gross and net margins signals improving pricing power and cost control. That combination supports sustainable earnings expansion and long-term cash generation, reinforcing the firm's ability to invest and compete in the engineering & construction sector.

Cash flow conversion

Solid operating cash flow growth and one-to-one conversion of earnings into free cash flow indicate durable cash generation. Reliable cash conversion underpins dividends, reinvestment, and debt flexibility, giving management latitude for capital allocation over the medium term.

Negative Factors

Volatile free cash flow growth

A very high FCF growth rate implies material year-to-year swings in cash generation drivers. Such volatility can complicate budgeting, weaken predictability of shareholder returns, and increase the risk that one-off items drive reported cash outcomes rather than sustainable operating performance.

Modest operating margin

A single-digit EBIT margin limits the buffer against rising input or labor costs in construction. Modest operating leverage constrains the company's ability to absorb price pressure and may limit the pace at which net income can grow absent further efficiency gains or higher-margin contract mix.

Limited disclosure/engagement

Absence of earnings call details and corporate-event disclosures reduces transparency on management's strategic priorities and forward guidance. That limits investors' ability to assess execution risk, capital allocation decisions, and management accountability over the medium term.

Yamato Corporation Business Overview & Revenue Model

Company Description

Yamato Corporation engages in construction business in Japan. It constructs air conditioning and hygiene facilities; civil engineering; and refrigeration, as well as designs, constructs, and manages water and sewerage, and water treatment facilities. The company's project portfolio includes office and government buildings, stores, medical and welfare facilities, hotels, inns, leisure and hot bathing facilities, food supermarkets, and factories and warehouses. It serves pipe construction, water supply facilities construction, civil engineering, electric construction, telecommunication construction, landscape construction, machine equipment installation work, steel structure construction, home work construction, firefighting facility construction, and cleaning facility construction industries. The company was formerly known as Yamato Setsubi Kogyo K.K. and changed its name to Yamato Corporation in 2000. Yamato Corporation was founded in 1945 and is headquartered in Maebashi, Japan.

How the Company Makes Money

Yamato Corporation generates revenue primarily through the sale of its manufacturing equipment, including precision scales and packaging machinery. The company also earns income from providing maintenance services, parts, and software solutions that support its equipment. Key revenue streams include direct sales to end-users in sectors such as food processing, pharmaceuticals, and logistics, as well as partnerships with distributors and resellers that expand its market reach. Additionally, the company benefits from long-term service contracts and upgrades for existing machinery, ensuring a steady flow of recurring revenue.

Yamato Corporation Financial Statement Overview

Summary

Strong fundamentals supported by solid revenue growth (+10.1% from 2024 to 2025) and improved profitability (gross margin up to 14.4%, net margin up to 7.4%). Balance sheet strength is a major positive with very low leverage (debt-to-equity 0.03) and a high equity ratio (70.0%). Cash generation is healthy (operating cash flow +15.8%, FCF/net income 1.0), though free cash flow growth volatility warrants monitoring.

Income Statement

Yamato Corporation exhibits strong revenue growth, with a 10.1% increase from 2024 to 2025. The gross profit margin improved significantly, reaching 14.4% in 2025, indicating better cost management. The net profit margin also improved to 7.4%, showing enhanced profitability. However, the EBIT margin of 9.0% suggests room for operational efficiency improvements.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.03 and a strong equity ratio of 70.0%, indicating financial stability and low leverage. Return on Equity (ROE) increased to 9.6%, reflecting efficient use of equity to generate profits. The solid equity base provides a cushion against economic fluctuations.

Cash Flow

Operating cash flow showed a positive trend, increasing by 15.8% from 2024 to 2025, supporting sustainable operations. The free cash flow to net income ratio of 1.0 demonstrates efficient conversion of earnings into cash flow. However, the free cash flow growth rate of 64.4% suggests potential volatility, necessitating careful monitoring.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	54.79B	53.17B	48.30B	44.50B	45.58B	43.77B
Gross Profit	8.25B	7.65B	4.64B	4.57B	5.63B	4.96B
EBITDA	6.84B	6.57B	3.31B	3.77B	4.45B	3.86B
Net Income	4.24B	3.93B	1.48B	1.87B	2.76B	2.29B
Balance Sheet
Total Assets	57.23B	58.85B	52.89B	47.70B	45.79B	44.41B
Cash, Cash Equivalents and Short-Term Investments	15.60B	12.32B	8.97B	6.77B	9.36B	7.89B
Total Debt	1.19B	1.22B	1.18B	1.52B	1.02B	344.57M
Total Liabilities	16.26B	17.61B	15.55B	13.34B	12.42B	12.78B
Stockholders Equity	40.88B	41.15B	37.28B	34.34B	33.34B	31.59B
Cash Flow
Free Cash Flow	0.00	3.91B	2.38B	-2.65B	1.94B	4.38B
Operating Cash Flow	0.00	4.53B	3.92B	-1.58B	2.90B	5.43B
Investing Cash Flow	0.00	-636.98M	-596.42M	-453.43M	-679.83M	-1.60B
Financing Cash Flow	0.00	-1.17B	-1.09B	-377.88M	-401.42M	-505.01M

Yamato Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2096.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1967, the sentiment is Positive. The current price of 2096 is below the 20-day moving average (MA) of 2322.20, below the 50-day MA of 2267.96, and above the 200-day MA of 1981.60, indicating a bullish trend. The MACD of 44.72 indicates Negative momentum. The RSI at 67.58 is Neutral, neither overbought nor oversold. The STOCH value of 89.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1967.

Yamato Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1967	83 Outperform	¥56.48B	12.62	―	2.19%	5.45%	86.27%
1921	80 Outperform	¥82.01B	37.08	―	0.79%	-8.53%	-83.61%
1929	75 Outperform	¥61.12B	15.67	―	3.78%	11.81%	52.35%
1899	67 Neutral	¥66.90B	11.72	―	2.56%	1.71%	14.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1822	63 Neutral	¥79.65B	19.06	―	3.84%	-8.79%	―
1811	60 Neutral	¥69.90B	16.41	―	1.57%	11.01%	231.83%