Yamadai Corporation (7426) AI Stock Analysis

• Market Cap: ¥1.34B
• Dividend Yield: 2.77%
• Average Volume (3M): 3.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 25.73%
• EPS Growth: -282.69%
• Country: JP
• Employees: 71
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -68.08
• Shares Outstanding: 1,187,368
• 10 Day Avg. Volume: 2,380
• 30 Day Avg. Volume: 3,113
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 7.05
• 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: 52 Neutral
• Price Target: ¥1,274.00 ▲(17.10% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily held back by weak financial performance, including declining revenue, margin compression, and sustained losses alongside reduced balance-sheet strength. Technical indicators are mixed with longer-term support but softer short-term momentum. Valuation is constrained by a negative P/E, partially offset by a moderate dividend yield.

Positive Factors

Operating cash flow turned positive

A shift to positive operating cash flow signals durable improvement in core cash generation, reducing reliance on external financing. Over 2–6 months this can stabilize liquidity, support working capital needs, and provide a foundation for gradual operational recovery despite ongoing net losses.

Improved cash-to-income efficiency

An improved free cash flow to net income ratio reflects better cash conversion and cost control. Sustained higher cash efficiency increases ability to fund capex or delever over time, enhancing financial resilience and lowering the need for dilutive or costly financing.

Lean workforce

A small headcount implies a comparatively lean cost structure and operational agility. Over months this can help preserve margins, allow faster restructuring or product mix shifts, and limit fixed-cost burdens while management works to restore growth and profitability.

Negative Factors

Revenue decline & margin compression

Falling revenue combined with compressed gross margins indicates structural pressure on core profitability—either weaker demand or rising input costs. Persisting over several quarters this erodes operating leverage, limits reinvestment, and makes margin recovery harder without structural fixes.

Sustained net losses and negative margins

Multi-year net losses and negative EBIT/EBITDA margins reduce retained earnings and hinder capital accumulation. Over months this constrains strategic investments, weakens ROE, and increases pressure on management to restore profitability or seek external capital, raising execution risk.

Weaker equity position and higher leverage

Rising leverage and a falling equity ratio indicate a deterioration in balance-sheet strength, reducing financial flexibility. Over 2–6 months higher debt servicing and lower equity cushions raise vulnerability to shocks and limit capacity to fund growth or absorb continued weak operating performance.

Yamadai Corporation Business Overview & Revenue Model

Company Description

Yamadai Corporation engages in the wholesale and retail of housing materials and construction materials in Japan. It is also involved in the wood processing business, which includes computer cutting of wood, processing, preservative processing, artificial drying, housing materials, wood processing, drying processing, material making, etc., as well as provides lumber, building materials, housing equipment, plywood, etc. The company engages in planting and cultivation of cedar and cypress; design, construction, supervision, and sale and brokerage of residential construction, large wooden construction, wooden houses, and buildings, condominiums, and real estate properties; ground survey business; and real estate rental business. The company was incorporated in 1964 and is headquartered in Ishinomaki, Japan.

How the Company Makes Money

Yamadai Corporation generates revenue through multiple streams, including the sale of processed food products to retailers and wholesalers, direct sales to consumers, and partnerships with food service companies. The company's revenue model is primarily based on product sales, leveraging its brand reputation for quality and innovation. Significant partnerships with supermarkets and grocery chains enhance distribution capabilities and market reach, contributing to consistent revenue growth. Additionally, Yamadai invests in research and development to introduce new products that meet consumer trends, thereby expanding its market presence and driving sales.

Yamadai Corporation Financial Statement Overview

Summary

Weak fundamentals: revenue declined (-7.61% YoY) and gross margin compressed (13.02% to 9.94%). Losses persist with negative EBIT/EBITDA margins, while leverage rose (debt-to-equity 0.31 to 0.72) and equity ratio fell (59.79% to 41.37%). Operating cash flow turned positive in 2025, but free cash flow remains low.

Income Statement

Yamadai Corporation has faced declining revenue growth, with a negative revenue growth rate of 7.61% from 2024 to 2025. The gross profit margin has also decreased from 13.02% in 2024 to 9.94% in 2025, indicating a reduction in profitability. The company has experienced negative net income for the past three years, resulting in negative net profit margins. EBIT and EBITDA margins have remained negative, further reflecting financial challenges.

Balance Sheet

The company has maintained a stable debt-to-equity ratio, increasing slightly from 0.31 in 2024 to 0.72 in 2025, which suggests moderate leverage. The equity ratio has decreased from 59.79% in 2024 to 41.37% in 2025, indicating a reduction in financial stability. Return on Equity (ROE) has turned negative due to consecutive net losses, pointing to shareholder value erosion.

Cash Flow

Yamadai Corporation has shown signs of improvement in cash flow, with the operating cash flow turning positive in 2025. However, free cash flow remains low, limiting reinvestment capacity. The company managed to improve its free cash flow to net income ratio, reflecting better cash management despite ongoing net losses.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.14B	4.48B	5.06B	4.79B	4.17B
Gross Profit	411.55M	583.66M	886.41M	920.63M	455.18M
EBITDA	-1.35B	14.89M	340.75M	466.14M	-709.00K
Net Income	-1.44B	-152.34M	102.97M	296.34M	-202.44M
Balance Sheet
Total Assets	5.21B	6.06B	6.38B	6.24B	6.06B
Cash, Cash Equivalents and Short-Term Investments	1.23B	1.09B	1.63B	1.38B	1.47B
Total Debt	1.56B	1.14B	1.03B	1.19B	1.35B
Total Liabilities	3.06B	2.44B	2.57B	2.51B	2.60B
Stockholders Equity	2.16B	3.62B	3.80B	3.73B	3.46B
Cash Flow
Free Cash Flow	171.01M	-596.92M	408.60M	104.38M	552.71M
Operating Cash Flow	278.43M	-88.27M	455.79M	118.88M	575.16M
Investing Cash Flow	-243.15M	-508.31M	-11.78M	-14.75M	33.24M
Financing Cash Flow	102.53M	61.64M	-198.36M	-192.34M	154.57M

Yamadai Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1088.00
• 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:7426, the sentiment is Neutral. The current price of 1088 is below the 20-day moving average (MA) of 1279.35, below the 50-day MA of 1202.94, and below the 200-day MA of 1171.22, indicating a neutral trend. The MACD of 10.63 indicates Positive momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of 6.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7426.

Yamadai Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6342	71 Outperform	¥4.43B	17.86	―	4.26%	-23.31%	-89.08%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3896	61 Neutral	¥4.35B	-13.36	―	―	11.79%	-1.56%
7808	61 Neutral	¥5.86B	6.01	―	2.57%	4.01%	-2.62%
7897	54 Neutral	¥3.29B	-87.40	―	1.80%	0.71%	-118.76%
7426	52 Neutral	¥1.34B	-0.98	―	2.77%	25.73%	-282.69%
7815	42 Neutral	¥997.88M	-2.43	―	―	-3.43%	-48.08%