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Yondenko Corporation (1939) AI Stock Analysis

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JP:1939

Yondenko Corporation

(TSE/TYO:1939)

Select Model
Rating:76Outperform
Price Target:JPY 2,627.00â–²(7.36% Upside)
Action:reiterated
Date:11/03/26

The score is driven primarily by solid financial performance (improving margins and a conservatively leveraged balance sheet), supported by a clear positive price trend. Attractive valuation (low P/E and high dividend yield) further lifts the score, while cash-flow volatility remains the key risk factor.

Positive Factors
Improving ProfitabilityProfit growth and expanding net margins indicate that Yondenko is converting revenue into earnings more effectively. If the improved operating discipline persists, the stronger earnings base can support reinvestment, dividends, and resilience across the next several quarters.
Negative Factors
Volatile Cash ConversionUneven conversion of accounting earnings into cash is the clearest financial weakness. Negative operating and free cash flow in 2025, followed by only partial conversion in 2026, can constrain internally funded investment and make liquidity more dependent on project timing.

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

-20%0%20%40%60%80%JP:1939+76.97%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 117.06B
Dividend Yield
3.88%
Average Volume (3M)
121.87K
Price to Earnings (P/E)
12.3
Beta (1Y)
0.80
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

Overall financial quality is good: profitability improved with higher net and operating margins, and leverage is low and improving (debt-to-equity down to ~0.11). The main drawback is volatile cash generation, including negative operating cash flow and free cash flow in 2025 and only ~50% free-cash-flow-to-net-income conversion in 2026, alongside inconsistent revenue growth.

Income Statement

74Positive

Balance Sheet

83Very Positive

Cash Flow

54Neutral
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 Price2447.00

Price Trends

50DMA2251.86Positive
100DMA2126.51Positive
200DMA2000.82Positive

Market Momentum

MACD39.77Negative
RSI62.65Neutral
STOCH90.70Negative

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 2447.00 is above the 20-day moving average (MA) of 2271.15, above the 50-day MA of 2251.86, and above the 200-day MA of 2000.82, indicating a bullish trend. The MACD of 39.77 indicates Negative momentum. The RSI at 62.65 is Neutral, neither overbought nor oversold. The STOCH value of 90.70 is Negative, 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:1939JP:193976OutperformJPY 116.28B12.32―3.88%6.91%84.84%
JP:1942JP:194275OutperformJPY 900.37B13.9216.79%3.19%3.74%30.42%
JP:1941JP:194174OutperformJPY 279.39B13.738.01%2.76%8.69%-4.66%
JP:1959JP:195971OutperformJPY 527.38B11.62―3.28%5.31%51.56%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
JP:1951JP:195152NeutralJPY 477.23B14.49―3.13%13.11%19.09%

* 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 Corporation2447.001074.8178.33%
JP:1941CHUDENKO CORPORATION5080.00925.8122.29%
JP:1951Kyowa Exeo Corporation2395.50104.224.55%
JP:1942Kandenko Co., Ltd.4519.00-392.97-8.00%
JP:1959Kraftia Corporation7632.00310.134.24%

Yondenko Corporation Corporate Events

Yondenko Raises Full-Year Earnings Forecasts and Dividend Payouts

Oct 30, 2026

Yondenko Corporation has revised its consolidated and non-consolidated forecasts for the fiscal year ending March 31, 2027, projecting higher net sales and profits than previously announced. The company cites smooth construction progress in the first...

Yondenko Lifts Earnings, Upgrades Guidance and Boosts Dividend Payout

Oct 30, 2026

Yondenko Corporation reported a strong rebound in performance for the six months ended September 30, 2026, with net sales rising 16.8% year on year to ¥50.9 billion and operating profit surging 73.9% to ¥6.3 billion. Profit attributable to owners of...

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: Nov 03, 2026