Kandenko Co., Ltd. (1942) AI Stock Analysis

• Market Cap: €985.98B
• Dividend Yield: 1.74%
• Average Volume (3M): 856.03K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.57
• Revenue Growth: 16.43%
• EPS Growth: 53.76%
• Country: JP
• Employees: 10,442
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 67.27
• Shares Outstanding: 205,288,330
• 10 Day Avg. Volume: 1,145,720
• 30 Day Avg. Volume: 856,033
• PEG Ratio: 0.24
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 162.24
• 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: €4,515.90
• Price Target Upside: -6.37% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥5,349.00 ▲(10.91% Upside)

Kandenko Co., Ltd. scores well due to strong financial performance, with robust revenue growth and profitability. However, technical indicators suggest overbought conditions, and valuation metrics indicate potential overvaluation. The lack of earnings call and corporate events data limits further insights.

Kandenko Co., Ltd. Business Overview & Revenue Model

Company Description

Kandenko Co.,Ltd. operates as a general infrastructure company in Japan. It engages in the facility installation works, electrical equipment sale, real estate rental and leasing, and electric power sale, as well as electrical, plumbing, and other works. The company also undertakes works on electrical facilities and equipment inside various types of buildings and structures, building interiors, control equipment, and interior network; and environmental facilities and systems, and renovation works on air conditioning and sanitation systems, as well as water, heat, and disaster prevention systems. In addition, it is involved in the construction and maintenance of networks for cable TV and municipalities; and mobile communication base stations, as well as installation of optical fiber cables and related equipment for electric power providers and telecommunications providers. Further, the company undertakes the construction and maintenance of overhead power distribution lines facilities, including power poles with power cables; and underground distribution lines facilities, such as underground power cables. Additionally, it undertakes works on power stations and substations, and renewable energy power generation; overhead transmission lines; and underground transmission lines and civil engineering works, as well as designs and constructs solar and wind power plants; and inspects and maintains nuclear power plant facilities and equipment. Kandenko Co.,Ltd. was incorporated in 1944 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kandenko Co., Ltd. generates revenue through multiple streams, primarily from contracts in electrical installation and engineering services. The company engages in large-scale infrastructure projects, providing electrical systems for buildings, transportation, and public utilities. Key revenue streams include the installation of power generation systems, maintenance services, and the integration of ICT solutions. Additionally, Kandenko collaborates with various partners in the construction and technology sectors, which helps expand its market reach and enhance service offerings. The company's focus on energy efficiency and sustainable solutions also aligns with growing market demands, contributing to its overall financial performance.

Kandenko Co., Ltd. Financial Statement Overview

Summary

Kandenko Co., Ltd. exhibits robust financial performance with strong revenue growth, impressive profitability margins, and a solid balance sheet characterized by low leverage and a high equity ratio. However, there is potential for further improvement in cash conversion efficiency despite positive cash flow growth.

Income Statement

Kandenko Co., Ltd. has demonstrated a strong revenue growth trend, with a 12.26% increase from 2024 to 2025 and consistent growth over the past years. The gross profit margin for 2025 was 13.83%, indicating solid profitability in the construction industry. The net profit margin also improved to 6.31%, reflecting efficient cost management and operational performance. EBIT and EBITDA margins have also shown improvement, reaching 8.68% and 10.66% respectively. These figures highlight the company's ability to grow revenue while maintaining healthy profitability.

Balance Sheet

The balance sheet reflects a healthy financial structure with a debt-to-equity ratio of 0.07, indicating low leverage and a strong equity position. The company has a high equity ratio of 60.96%, which suggests a stable financial foundation with more assets financed by equity than debt. Return on equity improved to 11.52%, showcasing effective utilization of shareholder capital. While the balance sheet shows strong equity and low debt levels, the relatively modest ROE could suggest potential for further efficiency improvements.

Cash Flow

The cash flow statement indicates positive free cash flow growth with a 114.94% increase from 2024 to 2025, demonstrating significant improvement in cash generation. The operating cash flow to net income ratio of 0.43 suggests moderate cash conversion efficiency. The free cash flow to net income ratio is 0.08, indicating room for enhancement in free cash flow relative to net income. Overall, the cash flow position is improving but could benefit from further strengthening.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	708.59B	671.89B	598.43B	541.58B	495.57B	556.04B
Gross Profit	100.56B	92.92B	71.19B	60.14B	56.72B	55.15B
EBITDA	92.16B	71.61B	54.09B	40.78B	38.60B	37.70B
Net Income	47.65B	42.38B	27.34B	21.17B	20.32B	20.15B
Balance Sheet
Total Assets	578.88B	603.22B	567.27B	487.83B	470.97B	457.00B
Cash, Cash Equivalents and Short-Term Investments	69.14B	60.99B	66.65B	65.23B	72.61B	63.48B
Total Debt	13.31B	27.11B	27.27B	15.78B	15.80B	16.63B
Total Liabilities	192.10B	222.27B	221.48B	179.37B	177.45B	177.54B
Stockholders Equity	373.26B	367.86B	333.94B	298.40B	283.98B	270.42B
Cash Flow
Free Cash Flow	0.00	3.38B	1.57B	2.00B	19.91B	7.12B
Operating Cash Flow	0.00	18.26B	19.84B	7.46B	27.15B	12.87B
Investing Cash Flow	0.00	-10.17B	-19.08B	-6.63B	-9.22B	-972.00M
Financing Cash Flow	0.00	-12.63B	567.00M	-7.32B	-7.79B	-26.32B

Kandenko Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4823.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1942, the sentiment is Positive. The current price of 4823 is above the 20-day moving average (MA) of 4467.20, above the 50-day MA of 4184.99, and above the 200-day MA of 3223.96, indicating a bullish trend. The MACD of 196.56 indicates Negative momentum. The RSI at 65.70 is Neutral, neither overbought nor oversold. The STOCH value of 65.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1942.

Kandenko Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1976	80 Outperform	¥74.31B	10.19	―	3.63%	-3.62%	9.37%
1959	79 Outperform	¥549.55B	17.90	―	2.08%	-5.20%	-1.21%
1941	78 Outperform	$230.99B	10.73	9.20%	2.99%	1.31%	59.20%
1946	73 Outperform	¥162.26B	10.38	―	3.39%	3.75%	87.00%
1942	69 Neutral	€985.98B	19.15	14.15%	1.74%	16.43%	53.76%
1934	68 Neutral	¥171.40B	14.09	―	2.50%	6.66%	46.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kandenko Co., Ltd. Corporate Events

Kandenko Completes Treasury Stock Disposal for Compensation

Kandenko Co., Ltd. has completed the payment for the disposal of 10,106 shares of treasury stock as part of a restricted stock-based compensation plan. This move is aimed at aligning the interests of its directors with the company’s performance, potentially impacting its governance and stakeholder relations.

The most recent analyst rating on (JP:1942) stock is a Buy with a Yen2720.00 price target. To see the full list of analyst forecasts on Kandenko Co., Ltd. stock, see the JP:1942 Stock Forecast page.

Kandenko Subsidiary Revises Financial Forecasts Upward

Kandenko Co., Ltd.’s subsidiary, Kawasaki Setsubi Kogyo Co., Ltd., has revised its financial forecasts for the fiscal year ending March 31, 2026. The revised projections indicate a significant increase in net sales and profits for both the second quarter and the full fiscal year, reflecting positive business trends and potentially strengthening the company’s market position.

The most recent analyst rating on (JP:1942) stock is a Buy with a Yen2720.00 price target. To see the full list of analyst forecasts on Kandenko Co., Ltd. stock, see the JP:1942 Stock Forecast page.

Kandenko Co., Ltd. Reports Strong Financial Growth in Q1 2025

Kandenko Co., Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 28.5% and profit attributable to owners of the parent increasing by 71.4% compared to the same period last year. This robust growth is indicative of the company’s strong market positioning and operational efficiency, which are likely to positively impact its stakeholders and enhance its competitive edge in the industry.

The most recent analyst rating on (JP:1942) stock is a Buy with a Yen3550.00 price target. To see the full list of analyst forecasts on Kandenko Co., Ltd. stock, see the JP:1942 Stock Forecast page.