Yamadai Corporation (7426) AI Stock Analysis

• Market Cap: ¥1.23B
• Dividend Yield: 2.77%
• Average Volume (3M): 3.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• 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: 47 Neutral
• Price Target: ¥1,192.00 ▲(9.56% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is held down primarily by weak financial performance (declining revenue, shrinking margins, and multi-year net losses alongside reduced equity strength). Technical indicators also point to weak momentum (negative MACD and price below the 20-day average). Valuation provides only partial support via a moderate dividend yield, while the negative P/E reflects ongoing losses.

Positive Factors

Improving operating cash flow

The shift to positive operating cash flow in 2025 indicates the core business is beginning to generate cash from operations. That improvement provides durable liquidity for working capital, reduces reliance on external financing and supports near-term operational stability despite profit shortfalls.

Manageable leverage profile

Although leverage rose, a debt-to-equity around 0.7 remains within a moderate range for a capital-intensive sector. This level can allow strategic use of debt for operations or restructuring without immediate solvency pressure, preserving financial flexibility if cash generation continues to improve.

Dividend provides income support

A consistent, moderate dividend yield signals management willingness to return cash to shareholders and can stabilize investor returns during cyclical periods. For longer-term holders, a sustained dividend policy complements improving cash flow to support total shareholder value.

Negative Factors

Declining revenue and compressed margins

Falling revenue alongside a material drop in gross margin to under 10% indicates weakening pricing power or rising input costs. These trends erode gross profitability and make it harder to restore operating margins, constraining the company's ability to sustain investment and cover fixed costs over the medium term.

Multi-year net losses

Three straight years of net losses have turned ROE negative and reduced retained earnings, eroding equity. Persistent losses impair the capacity to self-fund growth or cushion downturns, increase reliance on external capital, and raise long-term concerns about operational viability if profitability isn't restored.

Limited free cash flow

Low free cash flow constrains the company's ability to fund capex, repay debt or sustainably cover dividends without external financing. Combined with shrinking equity and rising leverage, weak FCF increases funding risk and limits strategic options for product investment or market expansion.

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% from 2024 to 2025), profitability compressed (gross margin down to 9.94%), and the company has posted net losses for three consecutive years with negative EBIT/EBITDA margins. Balance sheet leverage increased (debt-to-equity up to 0.72) and equity ratio fell to 41.37%, though operating cash flow turned positive in 2025, providing some stabilization despite limited free cash flow.

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	562.93M	863.41M	897.90M	432.85M
EBITDA	-251.56M	-12.84M	304.97M	454.44M	102.14M
Net Income	-1.44B	-152.34M	102.97M	296.34M	-202.44M
Balance Sheet
Total Assets	5.22B	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	1.57B	1.13B	1.03B	1.18B	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	-592.34M	408.67M	104.53M	563.59M
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: Negative
• Last Price: 1088.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7426, the sentiment is Negative. The current price of 1088 is below the 20-day moving average (MA) of 1168.05, below the 50-day MA of 1212.76, and below the 200-day MA of 1174.36, indicating a bearish trend. The MACD of -34.58 indicates Positive momentum. The RSI at 42.73 is Neutral, neither overbought nor oversold. The STOCH value of 35.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7426.

Yamadai Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3708	71 Outperform	¥60.26B	8.00	―	2.67%	6.26%	-11.38%
3878	64 Neutral	¥8.53B	7.60	―	1.90%	-0.17%	-37.01%
3877	62 Neutral	¥25.19B	47.50	―	3.72%	-2.18%	-77.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3896	61 Neutral	¥3.91B	-10.91	―	―	11.79%	-1.56%
3864	59 Neutral	¥36.14B	-9.37	-0.13%	2.31%	-10.04%	43.13%
7426	47 Neutral	¥1.23B	-3.99	―	2.77%	25.73%	-282.69%