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KONDOTEC INC.
(7438)
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Rating:73Outperform
Price Target:
¥2,015.00
▲(27.94% Upside)
Action:Upgraded
Date:08/17/26
The score is driven primarily by solid financial fundamentals (steady growth, stable margins, and low leverage) but held back by weak and volatile cash flow in the most recent year. Technicals are supportive with price above key moving averages and positive momentum indicators. Valuation is also favorable, supported by a modest P/E and a 3.24% dividend yield.
Positive Factors
Steady revenue growth
Steady revenue growth indicates continuing demand and market activity rather than a stagnant operating base. The progression through 2026 supports the company’s ability to expand its earnings platform, fund operations, and maintain relevance over the next several quarters.
Negative Factors
Sharp operating cash-flow decline
The sharp decline in operating cash generation means reported earnings converted into substantially less cash in the latest year. If this persists, it could constrain internally funded investment, dividends, and debt reduction even while accounting profitability remains positive.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth
Steady revenue growth indicates continuing demand and market activity rather than a stagnant operating base. The progression through 2026 supports the company’s ability to expand its earnings platform, fund operations, and maintain relevance over the next several quarters.
Read all positive factors
KONDOTEC INC. (7438) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥45.89B
Dividend Yield3.04%
Average Volume (3M)44.94K
Price to Earnings (P/E)13.0
Beta (1Y)0.57
Revenue Growth7.40%
EPS Growth7.68%
CountryJP
Employees1,531
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)136.85
Shares Outstanding26,344,400
10 Day Avg. Volume25,760
30 Day Avg. Volume44,936
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...
KONDOTEC INC. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 86.14B | 83.95B | 79.17B | 76.87B | 75.45B | 66.14B |
| Gross Profit | 19.39B | 18.77B | 17.52B | 17.04B | 16.25B | 14.73B |
| EBITDA | 7.21B | 6.88B | 6.58B | 6.50B | 5.48B | 5.09B |
| Net Income | 3.51B | 3.30B | 3.27B | 3.27B | 2.42B | 2.29B |
Balance Sheet | ||||||
| Total Assets | 66.36B | 69.23B | 65.25B | 60.98B | 58.16B | 56.01B |
| Cash, Cash Equivalents and Short-Term Investments | 12.43B | 15.65B | 15.48B | 11.84B | 10.73B | 10.16B |
| Total Debt | 8.93B | 7.10B | 6.06B | 4.76B | 4.51B | 5.31B |
| Total Liabilities | 25.63B | 28.67B | 26.89B | 25.05B | 24.87B | 23.94B |
| Stockholders Equity | 38.69B | 38.53B | 36.33B | 33.90B | 31.29B | 30.09B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 246.00M | 4.25B | 2.04B | 2.58B | -339.00M |
| Operating Cash Flow | 0.00 | 2.79B | 5.84B | 4.21B | 3.96B | 1.23B |
| Investing Cash Flow | 0.00 | -2.80B | -1.69B | -2.05B | -1.39B | -2.37B |
| Financing Cash Flow | 0.00 | -37.00M | -531.00M | -1.08B | -2.02B | -22.00M |
KONDOTEC INC. Technical Analysis
Positive
1575.00
Price Trends
1633.38
Positive
1552.60
Positive
1524.41
Positive
Market Momentum
47.14
Negative
72.85
Negative
78.89
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 below the 20-day moving average (MA) of 1733.00, below the 50-day MA of 1633.38, and above the 200-day MA of 1524.41, indicating a bullish trend. The MACD of 47.14 indicates Negative momentum. The RSI at 72.85 is Negative, neither overbought nor oversold. The STOCH value of 78.89 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥77.40B | 13.52 | ― | 4.52% | 6.49% | 36.18% | |
76 Outperform | ¥52.28B | 14.80 | ― | 3.94% | -2.07% | 6.34% | |
73 Outperform | ¥45.89B | 13.01 | ― | 3.04% | 7.40% | 7.68% | |
69 Neutral | ¥32.97B | 11.68 | ― | 2.08% | 2.42% | 406.25% | |
67 Neutral | ¥12.68B | 10.85 | ― | 4.85% | -1.68% | -9.54% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥24.47B | 38.95 | ― | 2.75% | -8.01% | -62.48% |
* Industrials Sector Average
JP:7438
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KONDOTEC INC. Corporate Events
KONDOTEC Posts Strong Q1 Earnings and Affirms Steady FY2027 Outlook
Aug 7, 2026
KONDOTEC INC. reported solid growth for the quarter ended June 30, 2026, with net sales rising 10.9% year on year to ¥22.4 billion and profit attributable to owners of parent climbing 33.9% to ¥806 million, lifting basic earnings per sha...
KONDOTEC Completes Treasury Share Disposal for Management Equity Compensation
Jul 15, 2026
KONDOTEC INC. has completed the payment procedures for the disposal of treasury shares under its restricted share-based remuneration program, as previously announced in late June. The transaction involves 47,800 common shares at 1,477 yen per shar...
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.