KONDOTEC INC. (7438) AI Stock Analysis

• Market Cap: ¥38.91B
• Dividend Yield: 3.3%
• Average Volume (3M): 21.44K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.61
• Revenue Growth: 4.54%
• EPS Growth: -1.41%
• Country: JP
• Employees: 1,373
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 33.49
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,650.00 ▲(11.19% Upside)

KONDOTEC INC. demonstrates strong financial performance with robust cash flow and a solid balance sheet, contributing positively to its overall score. However, technical analysis indicates bearish momentum, which weighs down the score. The valuation is favorable with a reasonable P/E ratio and attractive dividend yield, providing some support to the stock's attractiveness.

Positive Factors

Cash Generation Ability

Strong cash generation indicates efficient operations and provides the company with flexibility for investments and debt management.

Balance Sheet Health

Low leverage and a solid equity base enhance financial stability and reduce risk, supporting long-term growth and resilience.

Revenue Growth Trends

Consistent revenue growth highlights the company's ability to expand its market presence and adapt to industry demands.

Negative Factors

Return on Equity

A modest ROE indicates potential inefficiencies in generating shareholder returns, which could impact investor confidence over time.

Net Profit Margin

A lower net profit margin compared to peers may suggest challenges in cost management or pricing power, affecting long-term profitability.

Industry Competition

Being below industry leaders in profitability could indicate competitive pressures, potentially limiting market share and pricing strategies.

KONDOTEC INC. Business Overview & Revenue Model

Company Description

KONDOTEC INC. (7438) is a Japanese company primarily engaged in the manufacturing and sale of advanced construction materials and products. Operating in the construction and building sectors, KONDOTEC offers a range of solutions that include high-performance insulation materials, fireproofing systems, and other specialized building materials designed to enhance safety and energy efficiency in construction. The company focuses on innovation and sustainability, aiming to meet the evolving needs of the modern construction industry.

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. exhibits strong financial health with consistent revenue growth, stable profitability, a robust balance sheet, and excellent cash flow generation. The company is well-positioned in the industrial machinery sector, with low leverage and effective capital management. While profitability metrics are solid, there is potential 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: Negative
• Last Price: 1484.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7438, the sentiment is Negative. The current price of 1484 is below the 20-day moving average (MA) of 1541.75, below the 50-day MA of 1628.78, and below the 200-day MA of 1501.84, indicating a bearish trend. The MACD of -34.37 indicates Negative momentum. The RSI at 33.60 is Neutral, neither overbought nor oversold. The STOCH value of 36.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7438.

KONDOTEC INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6144	75 Outperform	¥32.34B	13.03	―	2.94%	12.75%	96.71%
6247	72 Outperform	¥39.96B	9.53	―	3.30%	18.47%	64.23%
7438	68 Neutral	¥38.91B	12.17	―	3.30%	4.54%	-1.41%
6490	67 Neutral	¥121.53B	14.42	―	2.57%	-2.46%	-10.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6240	61 Neutral	¥43.01B	24.61	―	2.44%	6.56%	23.98%
6151	59 Neutral	¥32.36B	59.02	―	2.24%	1.13%	-66.14%

KONDOTEC INC. Corporate Events

KONDOTEC INC. Announces Disposal of Treasury Shares to Boost Employee Incentives

KONDOTEC INC. announced a resolution to dispose of 21,500 treasury shares as restricted shares to incentivize its executive officers and certain employees. This move is part of a broader plan to align employee interests with shareholder value over the medium term, with a transfer restriction period set for approximately three years. The initiative aims to enhance the company’s operational efficiency and strengthen its market position by fostering a sense of ownership among key personnel.

KONDOTEC INC. Reports Increased Sales but Decline in Profit

KONDOTEC INC. reported a 5.2% increase in net sales for the six months ending September 30, 2025, compared to the previous year. Despite the increase in sales and operating profit, the profit attributable to owners of the parent decreased by 4.3%. The company also announced a dividend increase, reflecting a positive outlook for the fiscal year ending March 31, 2026, with expected growth in net sales and profits.

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.

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.