Yamato Corporation (1967) AI Stock Analysis

• Market Cap: ¥49.74B
• Dividend Yield: 2.19%
• Average Volume (3M): 29.38K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.67
• 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: 73 Outperform
• Price Target: ¥2,559.00 ▲(22.09% Upside)

Yamato Corporation's strong financial performance is the most significant factor, supported by robust revenue growth and a stable balance sheet. Technical analysis indicates potential short-term weakness, but valuation metrics suggest the stock is reasonably priced with a decent dividend yield. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a 70% equity ratio give Yamato structural financial resilience. This durable capital structure reduces refinancing risk, supports investment through cycles, and preserves strategic optionality for M&A or capex without stressing interest coverage.

Sustained Revenue and Margin Improvement

Double-digit revenue growth paired with rising gross and net margins indicates improving competitiveness and cost control. These trends point to sustainable operating leverage and stronger cash generation potential over months, supporting reinvestment and shareholder returns.

Strong Cash Generation

Healthy OCF growth and a one-to-one conversion of net income into free cash flow show durable cash conversion quality. Reliable cash flow underpins dividend capacity, deleveraging or capex funding without external financing, enhancing long-term financial flexibility.

Negative Factors

Volatile Free Cash Flow Growth

While FCF surged recently, the very high growth rate signals potential volatility from timing of receivables, project receipts, or one-off items. Persistent swings in FCF can complicate capital allocation, dividend visibility, and long-term planning for investors and management.

Modest EBIT Margin

An EBIT margin below best-in-class peers highlights limited operational leverage and pricing power. Sustained pressure on margins could restrain earnings growth absent efficiency gains, making long-term profit expansion more dependent on cost restructuring or higher value contracts.

Moderate ROE

ROE under 10% reflects modest returns on a large equity base. While conservative capitalization enhances stability, the trade-off is slower equity returns which could limit shareholder value creation unless the company increases asset efficiency or selectively employs leverage to boost returns.

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

Yamato Corporation demonstrates strong financial performance with significant revenue growth and improved profitability. The balance sheet is robust with low leverage and a high equity ratio, indicating financial stability. Cash flows are healthy, although the high free cash flow growth rate suggests potential volatility.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• Last Price: 2096.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1967, the sentiment is Neutral. The current price of 2096 is below the 20-day moving average (MA) of 2336.95, below the 50-day MA of 2133.20, and above the 200-day MA of 1915.84, indicating a neutral trend. The MACD of 48.04 indicates Positive momentum. The RSI at 44.89 is Neutral, neither overbought nor oversold. The STOCH value of 19.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1967.

Yamato Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1899	79 Outperform	¥69.63B	11.48	―	2.56%	1.71%	14.20%
1929	75 Outperform	¥55.64B	16.65	―	3.78%	11.81%	52.35%
1967	73 Outperform	¥49.74B	11.48	―	2.19%	5.45%	86.27%
1945	73 Outperform	¥59.84B	16.35	―	2.95%	-7.98%	37.92%
1815	69 Neutral	¥77.82B	16.77	―	2.73%	-3.59%	49.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1887	50 Neutral	¥51.44B	23.73	1.27%	3.81%	-4.92%	―