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KONDOTEC INC.
(7438)
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Rating:67Neutral
Price Target:
¥1,624.00
▲(3.11% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by solid financial fundamentals and a conservatively financed balance sheet, but is held back by weak/volatile cash flow (notably the sharp deterioration in 2026). Valuation is supportive with a low P/E and solid dividend yield, while technical signals are mixed with negative MACD and the price still below the 200-day average.
Positive Factors
Conservative balance sheet
Low leverage and growing equity provide durable financial flexibility: they lower refinancing risk, support capital spending or dividends during downturns, and make the company less dependent on external funding for strategic initiatives over the next several quarters.
Negative Factors
Volatile cash generation
Large swings in operating cash and near-zero free cash flow in 2026 undermine financial resilience. Volatile cash conversion can constrain reinvestment, limit sustainable dividends, or force debt issuance in adverse periods, raising structural liquidity risk over coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and growing equity provide durable financial flexibility: they lower refinancing risk, support capital spending or dividends during downturns, and make the company less dependent on external funding for strategic initiatives over the next several quarters.
Read all positive factors
KONDOTEC INC. (7438) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥39.07B
Dividend Yield3.39%
Average Volume (3M)21.44K
Price to Earnings (P/E)11.9
Beta (1Y)0.61
Revenue Growth6.03%
EPS Growth0.73%
CountryJP
Employees1,531
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)128.90
Shares Outstanding26,344,400
10 Day Avg. Volume26,070
30 Day Avg. Volume21,443
Financial Highlights & Ratios
PEG Ratio16.00
Price to Book (P/B)1.00
Price to Sales (P/S)0.46
P/FCF Ratio156.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)138.7
Revenue Forecast (FY)¥89.50B
KONDOTEC INC. Business Overview & Revenue Model
Company Description
Kondotec Inc., headquartered in Osaka, Japan, is a global enterprise specializing in the production, sourcing, and distribution of industrial materials, primarily catering to the retail hardware sector. Founded in 1947 as Kondo Iron Works Co., Ltd...
How the Company Makes Money
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KONDOTEC INC. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
46
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 83.95B | 79.17B | 76.87B | 75.45B | 66.14B |
| Gross Profit | 18.77B | 17.52B | 17.04B | 16.25B | 14.73B |
| EBITDA | 6.88B | 6.58B | 6.50B | 5.48B | 5.09B |
| Net Income | 3.30B | 3.27B | 3.27B | 2.42B | 2.29B |
Balance Sheet | |||||
| Total Assets | 69.23B | 65.25B | 60.98B | 58.16B | 56.01B |
| Cash, Cash Equivalents and Short-Term Investments | 15.65B | 15.48B | 11.84B | 10.73B | 10.16B |
| Total Debt | 7.10B | 6.06B | 4.76B | 4.51B | 5.31B |
| Total Liabilities | 28.67B | 26.89B | 25.05B | 24.87B | 23.94B |
| Stockholders Equity | 38.53B | 36.33B | 33.90B | 31.29B | 30.09B |
Cash Flow | |||||
| Free Cash Flow | 246.00M | 4.25B | 2.04B | 2.58B | -339.00M |
| Operating Cash Flow | 2.79B | 5.84B | 4.21B | 3.96B | 1.23B |
| Investing Cash Flow | -2.80B | -1.69B | -2.05B | -1.39B | -2.37B |
| Financing Cash Flow | -37.00M | -531.00M | -1.08B | -2.02B | -22.00M |
KONDOTEC INC. Technical Analysis
Positive
1575.00
Price Trends
1504.44
Positive
1491.04
Positive
1509.59
Positive
Market Momentum
1.45
Positive
54.58
Neutral
24.27
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 1575 is above the 20-day moving average (MA) of 1538.45, above the 50-day MA of 1504.44, and above the 200-day MA of 1509.59, indicating a bullish trend. The MACD of 1.45 indicates Positive momentum. The RSI at 54.58 is Neutral, neither overbought nor oversold. The STOCH value of 24.27 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥71.75B | 13.25 | ― | 3.95% | 2.75% | 25.74% | |
74 Outperform | ¥48.65B | 12.63 | ― | 3.95% | -4.76% | 20.35% | |
67 Neutral | ¥39.07B | 11.90 | ― | 3.14% | 6.03% | 0.73% | |
66 Neutral | ¥32.02B | 14.94 | ― | 2.13% | 0.12% | 59.35% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥12.43B | 10.65 | ― | 6.70% | -1.89% | -12.52% | |
53 Neutral | ¥22.74B | 78.59 | ― | 2.77% | -11.58% | -82.94% |
* Industrials Sector Average
JP:7438
KONDOTEC INC.
1,550.00
-32.24
-2.04%
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KONDOTEC INC. Corporate Events
KONDOTEC Extends and Refines Takeover Defense to Protect Long-Term Value
May 14, 2026
KONDOTEC INC., a Japanese manufacturer and distributor of infrastructure-related materials, leverages a nationwide sales network, in-house planning and engineering, and extensive inventories to serve diverse sectors from construction and logistics...
KONDOTEC Raises Medium-Term Targets and Maintains Growth Focus Despite Higher Costs
May 14, 2026
KONDOTEC INC. has revised its medium-term management plan, adopting a rolling approach that updates targets annually to align with actual results and shifts in the business environment. The company maintains its core policies of emphasizing human ...
Kondotec to Broaden Corporate Purpose for Construction Business Expansion
May 14, 2026
Kondotec’s board has approved a proposal to partially amend its Articles of Incorporation, specifically revising the stated business purposes to support future expansion and diversification across the company and its subsidiaries. The change...
KONDOTEC Lifts Dividend as Sales Rise and Forecasts Further Growth for FY2027
May 14, 2026
KONDOTEC reported consolidated net sales of ¥83.95 billion for the fiscal year ended March 31, 2026, up 6.0% year on year, with operating profit rising 4.0% to ¥4.64 billion and profit attributable to owners of parent edging up 0.9% to &...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.