KONDOTEC INC. (7438) AI Stock Analysis

• Market Cap: ¥42.81B
• Dividend Yield: 2.74%
• Average Volume (3M): 18.23K
• Price to Earnings (P/E): 13.2
• 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: 20,460
• 30 Day Avg. Volume: 18,233
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,825.00
• Price Target Upside: 8.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥1,825.00 ▲(8.70% Upside)

KONDOTEC INC. is well-positioned with strong financial performance and favorable valuation metrics. While technical analysis shows strong momentum, caution is warranted due to overbought signals. The absence of notable earnings call insights or corporate events leaves the focus on the company's solid financial foundation and reasonable valuation.

KONDOTEC INC. Business Overview & Revenue Model

Company Description

KONDOTEC INC. (7438) is a Japan-based company primarily engaged in the wholesale distribution of industrial materials and equipment. The company operates in various sectors, including construction, manufacturing, and logistics, providing an extensive range of products such as construction hardware, materials handling equipment, and safety goods. KONDOTEC INC. is known for its diversified product offerings that cater to the needs of different industries, ensuring they have the necessary tools and materials to operate efficiently.

How the Company Makes Money

KONDOTEC INC. generates revenue through the sale of industrial materials and equipment to a wide array of industries. The company's revenue streams are primarily derived from its wholesale distribution network, which supplies construction hardware, materials handling equipment, and safety goods to businesses engaged in construction, manufacturing, and logistics. By maintaining strong relationships with suppliers and clients, KONDOTEC INC. ensures a steady flow of products and services, allowing it to meet market demand effectively. Additionally, the company may engage in strategic partnerships with industry players to enhance its distribution capabilities and expand its market reach, 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	79.17B	79.17B	76.87B	75.45B	66.14B	59.56B
Gross Profit	17.52B	17.52B	17.04B	16.25B	14.73B	13.61B
EBITDA	6.32B	6.58B	6.50B	5.48B	5.09B	3.78B
Net Income	3.27B	3.27B	3.27B	2.41B	2.28B	1.56B
Balance Sheet
Total Assets	65.25B	65.25B	60.98B	58.16B	56.01B	49.43B
Cash, Cash Equivalents and Short-Term Investments	15.48B	15.48B	11.84B	10.73B	10.16B	11.32B
Total Debt	5.84B	5.84B	4.31B	4.35B	5.17B	3.66B
Total Liabilities	26.89B	26.89B	25.06B	24.88B	23.94B	20.41B
Stockholders Equity	36.33B	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: 1679.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 1679 is above the 20-day moving average (MA) of 1662.75, above the 50-day MA of 1604.28, and above the 200-day MA of 1436.32, indicating a bullish trend. The MACD of 23.64 indicates Positive momentum. The RSI at 57.27 is Neutral, neither overbought nor oversold. The STOCH value of 70.79 is Neutral, 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
6144	80 Outperform	32.99B	13.48	7.63%	3.84%	4.62%	39.04%
7438	79 Outperform	¥42.81B	13.23		2.74%	3.84%	0.94%
6490	77 Outperform	97.30B	11.65	11.24%	3.04%	-0.98%	-18.48%
6240	74 Outperform	48.54B	28.31	7.62%	1.73%	9.94%	52.90%
6247	71 Outperform	37.86B	9.82	6.34%	3.24%	20.08%	67.61%
6151	55 Neutral	33.50B	62.27	2.31%	2.18%	1.69%	-67.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

KONDOTEC INC. Corporate Events

KONDOTEC INC. Completes Disposal of Treasury Shares for Director Remuneration

KONDOTEC INC. has completed the payment procedure for the disposal of treasury shares as restricted share-based remuneration. This move involves the disposal of 23,800 common shares at a value of 1,549 yen per share, amounting to a total of 36,866,200 yen, allocated to 8 directors of the company, excluding outside directors and those who are Audit & Supervisory Committee Members.

KONDOTEC INC. Announces Treasury Share Disposal for Director Remuneration

KONDOTEC INC. has announced a resolution to dispose of 23,800 treasury shares as part of a restricted share-based remuneration plan. This initiative aims to align the interests of its directors with shareholders and enhance corporate value over the long term. The disposal involves granting monetary remuneration claims to eight directors, excluding outside directors and audit committee members, with transfer restrictions in place until retirement or resignation.

KONDOTEC INC. Announces Key Personnel Changes

KONDOTEC INC. has announced a series of personnel changes following a resolution by its Board of Directors. These changes include the promotion of Kazuhiro Ishino to Executive Director, General Manager of Sales Headquarters, and the appointment of three new Executive Officers: Yohei Hasegawa, Shinya Takahashi, and Hiroshi Aoki, each taking on significant managerial roles within the company. These changes are expected to strengthen the company’s leadership and operational efficiency.

KONDOTEC INC. Revises Medium-Term Management Plan for Sustainable Growth

KONDOTEC INC. has announced revisions to its medium-term management plan to better align with its long-term vision, focusing on sustainable growth and enhancing corporate value. The company has adjusted its performance targets due to changes in the business environment, including successful cost management and strategic acquisitions, although returns on investment have been lower than expected due to higher planned investments.

KONDOTEC INC. Reports Fiscal Year 2025 Financial Results and Dividend Increase

KONDOTEC INC. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 3% increase in net sales compared to the previous year, despite a slight decline in operating and ordinary income. The company also announced an increase in annual dividends per share, reflecting a positive outlook for the upcoming fiscal year with projected growth in net sales and profits.