Kawata Mfg. Co., Ltd. (6292) AI Stock Analysis

• Market Cap: ¥5.78B
• Dividend Yield: 5.22%
• Average Volume (3M): 12.76K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.33
• Revenue Growth: -8.98%
• EPS Growth: 4.00%
• Country: JP
• Employees: 809
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 3.41
• Shares Outstanding: 7,210,000
• 10 Day Avg. Volume: 12,720
• 30 Day Avg. Volume: 12,756
• PEG Ratio: -0.25
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 8.64
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥884.00 ▲(14.81% Upside)
• Action: Downgraded Date: 11/01/25
• Date: Action: Downgraded 11/01/25

Kawata Mfg. Co., Ltd. has a stable financial position with some profitability concerns and cash flow volatility. The technical indicators suggest a bearish trend, but the stock appears undervalued with a low P/E ratio and high dividend yield. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Balance Sheet Strength

A healthy equity ratio and contained debt levels provide durable financial resilience. That structural strength preserves borrowing capacity, supports capital spending and engineering projects, and reduces refinancing risk—helpful across industry cycles over months.

Recurring Service Revenue

Recurring after-sales and service revenue creates annuity-like cash flows and strong customer stickiness. For a machinery and plant-solution provider, this steadies revenues across project cycles, supports margins, and underpins long-term aftermarket profitability and lifecycle monetization.

Margin Stability

Stable gross margins indicate enduring pricing power or consistent input-cost control on core equipment sales. Even with net margin pressure, steady gross margins support sustained contribution toward fixed costs and make operating improvements and efficiency gains more achievable.

Negative Factors

Revenue & Profit Decline

Inconsistent revenue and declining net margins point to demand weakness or mix shifts that erode long-term profitability. Over months this reduces reinvestment capacity, limits margin recovery options, and pressures earnings stability for capital-intensive machinery projects.

Cash Flow Volatility

Significant FCF volatility and a disconnect between earnings and cash generation hinder reliable funding for capex, dividends, and working capital. Structural cash unpredictability increases financing needs and constrains strategic investments over the medium term.

Declining ROE

A falling ROE signals weakening efficiency in converting equity into shareholder returns. Persisting declines reduce long-term appeal to investors, limit retained-earnings accumulation for growth, and may force tougher capital-allocation choices under slower top-line trends.

Kawata Mfg. Co., Ltd. Business Overview & Revenue Model

Company Description

Kawata Mfg. Co., Ltd., together with its subsidiaries, designs and manufactures powder and grain processing equipment and systems in Japan and internationally. The company provides dehydrating, nitrogen, hot air, reduced pressure, and large PET resin crystal dryer; blenders, such as weighing, volumetric metering, and simple blending type; and loaders, which consist of pellet transport, powder transport, and plug transport. It also offers heating medium circulation temperature controllers, which consist of water medium temperature controller, water medium cold temperature controller, oil medium temperature controller, chillers, mode rapid cooling, and others; mixers, including high speed fluid mixing, high efficiency dry dispersion, cool mixing, and high speed floating mixing. In addition, the company provides granulators; silo tank, which comprises H series and flexible containment tank; dosage supply machines, nitrogen replacement machines, fine powder removal, pellet sorting, nitrogen gas generation, magnet, and filter washer products; system/plant equipment; powder processing machines and systems; and equipment for battery, ceramic, fine chemical, food, cosmetics, drug, and paint industry. The company was founded in 1935 and is headquartered in Osaka, Japan.

How the Company Makes Money

Kawata Mfg. Co., Ltd. generates revenue primarily through the sale of its precision machinery and equipment, which includes products such as semiconductor manufacturing tools, automation systems, and other specialized industrial machines. The company's revenue model is based on direct sales to clients in various sectors, including electronics and manufacturing, supplemented by after-sales services and support. Key revenue streams include the sales of machinery, maintenance services, and the provision of customized solutions tailored to meet specific customer requirements. Significant partnerships with major players in the semiconductor and electronics industries also contribute to its earnings, as these collaborations often lead to long-term contracts and recurring business opportunities.

Kawata Mfg. Co., Ltd. Financial Statement Overview

Summary

Kawata Mfg. Co., Ltd. demonstrates a stable financial structure with some areas of concern. The income statement reflects mixed profitability trends, while the balance sheet shows a solid equity position. Cash flow volatility presents a risk that requires strategic focus to ensure long-term financial health and operational efficiency.

Income Statement

Kawata Mfg. Co., Ltd. has shown a mixed performance in its income statement. The gross profit margin is relatively stable, but the net profit margin has seen a decline over the years, indicating pressure on net profitability. Revenue growth has been inconsistent, with a notable decrease in the most recent year. EBIT and EBITDA margins suggest moderate operating efficiency but indicate room for improvement.

Balance Sheet

The company's balance sheet reflects a stable financial position with a healthy equity ratio. The debt-to-equity ratio has remained within reasonable limits, which indicates manageable leverage. However, the return on equity has been decreasing, pointing to declining efficiency in generating returns for shareholders.

Cash Flow

Cash flow analysis presents a challenging picture for Kawata Mfg. Co., Ltd. While operating cash flow has been positive, free cash flow has fluctuated significantly, impacting the company's ability to sustain capital expenditures. The operating cash flow to net income ratio suggests a disconnect between earnings and cash generation, requiring attention to improve cash flow stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	20.77B	20.77B	24.49B	18.83B	18.38B	16.79B
Gross Profit	6.52B	6.25B	6.24B	5.30B	5.16B	4.58B
EBITDA	1.50B	1.53B	1.82B	1.04B	1.27B	973.30M
Net Income	691.51M	576.13M	929.10M	351.29M	540.83M	296.57M
Balance Sheet
Total Assets	24.61B	25.30B	26.74B	25.17B	22.04B	20.91B
Cash, Cash Equivalents and Short-Term Investments	7.15B	6.87B	7.13B	7.25B	6.76B	6.67B
Total Debt	5.98B	6.11B	7.02B	5.95B	4.92B	5.82B
Total Liabilities	11.27B	11.82B	14.10B	13.41B	10.71B	10.29B
Stockholders Equity	13.10B	13.22B	12.41B	11.54B	11.12B	10.43B
Cash Flow
Free Cash Flow	0.00	628.37M	-900.95M	-391.13M	1.21B	1.72B
Operating Cash Flow	0.00	1.12B	-139.91M	554.91M	1.60B	1.87B
Investing Cash Flow	0.00	-455.10M	-653.48M	-1.03B	-416.68M	-159.77M
Financing Cash Flow	0.00	-1.22B	738.58M	760.92M	-1.23B	-589.20M

Kawata Mfg. Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 770.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6292, the sentiment is Positive. The current price of 770 is below the 20-day moving average (MA) of 825.00, below the 50-day MA of 807.42, and below the 200-day MA of 790.41, indicating a bullish trend. The MACD of 6.94 indicates Positive momentum. The RSI at 56.44 is Neutral, neither overbought nor oversold. The STOCH value of 76.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6292.

Kawata Mfg. Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6267	81 Outperform	¥7.63B	9.31	―	2.80%	6.02%	7.39%
6391	74 Outperform	¥7.66B	11.69	―	1.19%	-14.09%	-36.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6292	61 Neutral	¥5.78B	17.49	―	5.22%	-8.98%	4.00%
6408	61 Neutral	¥5.91B	3.90	―	1.37%	-3.05%	―
6155	58 Neutral	¥5.16B	-34.47	―	2.10%	-0.59%	89.24%
6495	55 Neutral	¥10.75B	197.36	―	1.65%	3.96%	―

Kawata Mfg. Co., Ltd. Corporate Events

Kawata Mfg. Cuts Full-Year Profit Outlook as Nine-Month Earnings Slump

Kawata Mfg. Co., Ltd. reported a 6.0% year-on-year decline in consolidated net sales to ¥13.94 billion for the nine months ended Dec. 31, 2025, with operating income down 8.3% to ¥570 million and net income attributable to owners of the parent plunging 61.8% to ¥151 million. Despite the earnings deterioration, the company’s equity ratio improved to 53.6% as total assets edged down to ¥24.16 billion, while it maintained a stable dividend policy, confirming a full-year payout forecast of ¥38 per share for the fiscal year ending March 31, 2026.

For the full fiscal year, Kawata revised its earnings outlook lower, now projecting a 7.5% decline in net sales to ¥19.2 billion and a steep drop in net income to ¥60 million, implying an 89.6% fall from the previous year and basic earnings per share of ¥8.59. The weaker forecast underscores mounting profitability pressure despite a solid balance sheet, signaling tighter returns for shareholders even as the company avoids changes in consolidation scope or accounting policies and keeps dividend guidance unchanged.

The most recent analyst rating on (JP:6292) stock is a Hold with a Yen786.00 price target. To see the full list of analyst forecasts on Kawata Mfg. Co., Ltd. stock, see the JP:6292 Stock Forecast page.