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Yondenko Corporation (1939) AI Stock Analysis

JP:1939

Yondenko Corporation

(TSE/TYO:1939)

Select Model
Rating:66Neutral
Price Target:JPY 2,488.00â–²(7.01% Upside)
Action:reiterated
Date:08/06/26

Yondenko earns a moderately positive score of 66, driven primarily by its attractive valuation (P/E of 11.3 and 3.8% dividend yield) and improving profitability trends with a conservatively managed, low-leverage balance sheet. Technical indicators confirm a healthy uptrend, though near-term overbought signals (stochastic at 95.4) suggest caution on timing. The key risk is cash flow volatility — the swing to negative operating cash flow in FY2025 raises questions about earnings quality, and projected revenue decline in FY2026 limits top-line enthusiasm. Overall, Yondenko is a steady, income-oriented holding within the Engineering & Construction sector, offering reasonable value and improving fundamentals, but not a high-conviction growth opportunity.

Positive Factors
Conservative Balance SheetVery low and improving leverage gives Yondenko meaningful financial resilience across construction cycles. The expanding equity base provides support for investment, working-capital needs, and shareholder distributions while reducing dependence on external financing.
Negative Factors
Inconsistent Revenue GrowthUneven revenue performance indicates that demand and project activity remain cyclical or irregular. Even with better margins, repeated top-line declines can limit operating leverage, make earnings less predictable, and complicate resource planning across an engineering and construction business.

Yondenko Corporation (1939) vs. iShares MSCI Japan ETF (EWJ)

-20%0%20%40%60%80%JP:1939+77.38%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 110.05B
Dividend Yield
4.09%
Average Volume (3M)
117.01K
Price to Earnings (P/E)
11.7
Beta (1Y)
1.00
Revenue Growth
6.91%
EPS Growth
84.84%
Country
Japan
Employees
2,693
Sector
Industrials
Sector Strength
63
Industry
Engineering & Construction

Yondenko Corporation Business Overview & Revenue Model

Company Description

Yondenko Corporation, headquartered in Takamatsu, Japan, specializes in the construction of diverse electrical and infrastructure projects throughout the country. Its core activities include building electrical facilities for commercial, public, and...

Yondenko Corporation Financial Statement Overview

Summary

Yondenko shows improving profitability with net margins nearly doubling to ~7.5% and EBIT margins expanding to ~8.9%, supported by a strong balance sheet with declining leverage (D/E at 0.11) and growing equity. However, revenue volatility (projected ~3.3% decline in FY2026) and highly erratic cash flows — including negative operating cash flow in FY2025 — weigh on the overall financial assessment. The cash flow score of 48 significantly drags the composite, as earnings quality remains uncertain despite the FY2026E recovery.

Income Statement

62Positive

Balance Sheet

72Positive

Cash Flow

48Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue103.27B99.45B105.88B92.11B89.12B92.65B
Gross Profit20.13B18.59B18.38B16.13B13.99B14.62B
EBITDA12.45B12.45B9.92B9.34B8.12B8.00B
Net Income8.41B7.50B5.17B4.57B3.76B3.78B
Balance Sheet
Total Assets97.04B103.87B99.63B103.20B97.07B96.52B
Cash, Cash Equivalents and Short-Term Investments16.92B18.27B16.96B23.06B20.60B20.12B
Total Debt5.04B7.89B8.46B10.05B11.48B13.01B
Total Liabilities26.34B32.67B34.74B41.41B41.16B42.34B
Stockholders Equity70.59B71.09B64.81B61.74B55.85B54.12B
Cash Flow
Free Cash Flow02.02B-2.02B4.62B2.45B8.51B
Operating Cash Flow04.01B-536.00M6.04B3.81B9.92B
Investing Cash Flow0947.00M-1.18B-598.00M148.00M-1.59B
Financing Cash Flow0-3.69B-4.28B-3.11B-3.13B-2.55B

Yondenko Corporation Technical Analysis

Technical Analysis SentimentPositive
Last Price2325.00

Price Trends

50DMA2220.92Positive
100DMA2097.08Positive
200DMA1977.09Positive

Market Momentum

MACD12.90Negative
RSI57.35Neutral
STOCH56.26Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1939, the sentiment is Positive. The current price of 2325.00 is above the 20-day moving average (MA) of 2231.05, above the 50-day MA of 2220.92, and above the 200-day MA of 1977.09, indicating a bullish trend. The MACD of 12.90 indicates Negative momentum. The RSI at 57.35 is Neutral, neither overbought nor oversold. The STOCH value of 56.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1939.

Yondenko Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:1939 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:1941JP:194177OutperformJPY 278.29B13.918.01%2.70%8.69%-4.66%
JP:1959JP:195977OutperformJPY 549.41B11.91―3.19%5.31%51.56%
JP:1939JP:193966NeutralJPY 103.65B11.69―4.09%6.91%84.84%
JP:1942JP:194265NeutralJPY 939.40B13.9716.79%3.13%3.74%30.42%
JP:1951JP:195164NeutralJPY 501.04B14.80―3.03%17.67%26.12%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%

* Industrials Sector Average

Performance Comparison

0%20%40%60%JP:1939JP:1941JP:1951JP:1942JP:1959Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:1939 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:1939Yondenko Corporation2325.001015.1877.51%
JP:1941CHUDENKO CORPORATION5190.001108.6927.16%
JP:1951Kyowa Exeo Corporation2476.00282.9112.90%
JP:1942Kandenko Co., Ltd.4594.00-115.95-2.46%
JP:1959Kraftia Corporation7825.00275.393.65%

Yondenko Corporation Corporate Events

Yondenko Delivers Strong Q1 Earnings and Raises Dividend Outlook

Jul 31, 2026

Yondenko Corporation reported strong results for the quarter ended June 30, 2026, with net sales rising 18.9% year on year to ¥24.1 billion and operating profit nearly doubling to ¥2.8 billion. Profit attributable to owners of parent climbe...

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.

Date of analysis: Aug 06, 2026