KONDOTEC INC. (7438) AI Stock Analysis

• Market Cap: ¥43.35B
• Dividend Yield: 2.92%
• Average Volume (3M): 21.44K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.62
• Revenue Growth: 3.84%
• EPS Growth: 0.94%
• Country: JP
• Employees: 1,373
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 23.52
• Shares Outstanding: 26,344,400
• 10 Day Avg. Volume: 26,070
• 30 Day Avg. Volume: 21,443
• PEG Ratio: 0.00
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 8.56
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥2,013.00 ▲(19.82% Upside)

KONDOTEC INC. demonstrates strong financial performance with robust cash flow and a solid balance sheet, contributing significantly to the overall score. Positive technical indicators and an attractive valuation further enhance the stock's appeal. The absence of earnings call data and corporate events does not detract from the strong fundamentals and technical outlook.

KONDOTEC INC. Business Overview & Revenue Model

Company Description

Kondotec Inc. engages in the manufacture, procurement, import, sale, wholesale, and export of industrial materials primarily in the retail hardware business in Japan and internationally. The company offers structural steel materials principally for steel fabricators; and electrical equipment for electrical work operators and electrical appliance stores. Its products include turn buckles, braces, scaffolding chains, screws, anchor bolts, construction materials, machinery and equipment, etc.; and merchandise comprising hardware, chains, wire ropes, screws, lighting equipment, panel boards, air-conditioning equipment, eco items, etc., which consists of products procured from domestic and foreign suppliers/OEM products. The company also designs and manufactures various types of machines and equipment, including labor-saving equipment and transport devices, etc.; provides scaffolding construction services for civil engineering and architecture, as well as sells related materials; rents scaffolding equipment; and develops and manufactures aluminum extrusions. The company was formerly known as Kondo Iron Works Co., Ltd. and changed its name to Kondotec Inc. in 1989. Kondotec Inc. was founded in 1947 and is headquartered in Osaka, Japan.

How the Company Makes Money

KONDOTEC INC. generates revenue through the sale of its construction materials and products, which are utilized in various building projects, including residential, commercial, and industrial applications. The company's primary revenue streams include direct sales to construction firms, partnerships with distributors, and collaborations with architects and developers for customized solutions. Additionally, KONDOTEC may benefit from research and development initiatives that lead to patented products, enhancing its market position and potential for higher margins. Strategic partnerships with other companies in the construction sector can also provide opportunities for joint ventures or exclusive contracts, further contributing to its earnings.

KONDOTEC INC. Financial Statement Overview

Summary

KONDOTEC INC. showcases strong financial health with consistent revenue growth, stable profitability, a robust balance sheet, and excellent cash flow generation. While the profitability metrics are solid, there is room for improvement in return on equity to enhance shareholder value.

Income Statement

KONDOTEC INC. has shown steady revenue growth over the past years, with the most recent year reflecting a 3.0% increase. The gross profit margin is healthy at 22.1%, and the net profit margin is stable at 4.1%, although slightly below industry leaders. The EBIT margin is 5.6%, indicating good operational efficiency. Overall, the income statement reflects strong revenue growth and stable profitability.

Balance Sheet

The company maintains a strong balance sheet, with a debt-to-equity ratio of 0.16, reflecting low leverage and conservative financial management. The equity ratio stands at 55.7%, showing a solid equity base. Return on equity (ROE) is modest at 9.0%, suggesting room for improvement in shareholder returns. The balance sheet is stable with low financial risk.

Cash Flow

Operating cash flow has increased significantly, with a strong operating cash flow to net income ratio of 1.8, indicating excellent cash generation relative to net income. Free cash flow growth is robust, with a notable increase from previous periods. The free cash flow to net income ratio of 1.3 suggests efficient capital management. The cash flow statement highlights strong cash generation and effective capital deployment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.21B	79.17B	76.87B	75.45B	66.14B	59.56B
Gross Profit	17.71B	17.52B	17.04B	16.25B	14.73B	13.61B
EBITDA	6.31B	6.58B	6.50B	5.48B	5.09B	3.78B
Net Income	3.25B	3.27B	3.27B	2.41B	2.28B	1.56B
Balance Sheet
Total Assets	64.43B	65.25B	60.98B	58.16B	56.01B	49.43B
Cash, Cash Equivalents and Short-Term Investments	13.65B	15.48B	11.84B	10.73B	10.16B	11.32B
Total Debt	4.95B	5.84B	4.76B	4.35B	5.17B	3.66B
Total Liabilities	26.06B	26.89B	25.06B	24.88B	23.94B	20.41B
Stockholders Equity	36.34B	36.33B	33.90B	31.28B	30.09B	29.02B
Cash Flow
Free Cash Flow	0.00	4.25B	2.04B	2.58B	-339.00M	3.12B
Operating Cash Flow	0.00	5.84B	4.21B	3.96B	1.23B	4.20B
Investing Cash Flow	0.00	-1.69B	-2.05B	-1.39B	-2.37B	-2.26B
Financing Cash Flow	0.00	-531.00M	-1.08B	-2.02B	-22.00M	1.06B

KONDOTEC INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1680.00
• 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:7438, the sentiment is Positive. The current price of 1680 is below the 20-day moving average (MA) of 1695.50, above the 50-day MA of 1667.61, and above the 200-day MA of 1470.04, indicating a neutral trend. The MACD of 5.87 indicates Positive momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 12.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7438.

KONDOTEC INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7438	―	¥43.35B	13.39	―	2.92%	3.84%	0.94%
6144	―	¥32.76B	12.97	―	4.00%	4.62%	39.04%
6240	―	¥53.29B	30.77	―	1.97%	9.94%	52.90%
6490	―	¥114.08B	13.53	―	2.48%	-0.98%	-18.48%
6247	―	¥38.46B	9.91	―	3.61%	20.08%	67.61%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6151	―	¥32.19B	58.72	―	2.22%	1.69%	-67.19%

KONDOTEC INC. Corporate Events

KONDOTEC INC. Acquires RYUKYU BRIDGE LTD. to Expand in Okinawa

KONDOTEC INC. announced its decision to acquire RYUKYU BRIDGE LTD., a company engaged in the manufacturing and sales of construction materials, to make it a subsidiary. This acquisition aims to capture growing construction demand in Okinawa and leverage RYUKYU BRIDGE LTD.’s product development and overseas networks, supporting KONDOTEC’s sustainable growth and enhancing its corporate value over the medium to long term.

The most recent analyst rating on (JP:7438) stock is a Buy with a Yen1825.00 price target. To see the full list of analyst forecasts on KONDOTEC INC. stock, see the JP:7438 Stock Forecast page.

KONDOTEC INC. Acquires SUZUTOH CO., LTD. to Boost Growth

KONDOTEC INC. has announced the acquisition of SUZUTOH CO., LTD., a company engaged in manufacturing and sales of construction materials, to make it a subsidiary. This strategic move is part of KONDOTEC’s medium-term management plan to strengthen its growth prospects by enhancing its manufacturing functions and expanding sales methods, including rentals, to support sustainable growth and increase corporate value.

The most recent analyst rating on (JP:7438) stock is a Buy with a Yen1825.00 price target. To see the full list of analyst forecasts on KONDOTEC INC. stock, see the JP:7438 Stock Forecast page.

KONDOTEC INC. Reports Q1 2025 Financial Results with Increased Sales

KONDOTEC INC. reported a 5.4% increase in net sales for the three months ending June 30, 2025, compared to the same period last year. Despite the rise in sales, the company experienced slight declines in operating and ordinary profits, as well as profit attributable to owners of the parent. The equity-to-asset ratio improved slightly, indicating a stable financial position. The company forecasts continued growth in net sales and profits for the fiscal year ending March 31, 2026, with an expected increase in annual dividends per share.