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Kitagawa Corporation (JP:6317)
:6317
Japanese Market
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Kitagawa Corporation (6317) AI Stock Analysis

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JP:6317

Kitagawa Corporation

(6317)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
¥1,777.00
▲(2.48% Upside)
Action:Downgraded
Date:05/15/26
The score is driven by highly attractive valuation (low P/E and high dividend yield), partially offset by weaker cash-flow quality (negative free cash flow in the latest year) and mixed/neutral technical momentum.
Positive Factors
Recurring aftermarket revenue
The company's core hardware sales are complemented by recurring aftermarket parts, consumables and service tied to installed equipment. This creates a durable, repeat-revenue stream across equipment lifecycles that supports stable revenue and margins through cycles and fosters customer stickiness.
Negative Factors
Deteriorating cash generation
A sharp drop to modest operating cash flow and negative free cash flow reduces internal funding for capex, R&D and dividends. Persistent cash conversion weakness signals working-capital pressure or higher outlays and could force reliance on external financing, weakening long-term financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket revenue
The company's core hardware sales are complemented by recurring aftermarket parts, consumables and service tied to installed equipment. This creates a durable, repeat-revenue stream across equipment lifecycles that supports stable revenue and margins through cycles and fosters customer stickiness.
Read all positive factors

Kitagawa Corporation (6317) vs. iShares MSCI Japan ETF (EWJ)

Kitagawa Corporation Business Overview & Revenue Model

Company Description
Kitagawa Corporation manufactures and supplies synthetic metals, power chucks and NC rotary tables, and industrial machinery in Japan and internationally. The company offers power and standard chucks, advanced and manual chucks, gripping meters, r...
How the Company Makes Money
Kitagawa makes money primarily by selling industrial hardware used in machining and factory automation. The core revenue stream is the manufacture and sale of workholding products—especially power chucks and related chuck jaws, cylinders/actuators...

Kitagawa Corporation Financial Statement Overview

Summary
Profitability rebounded in FY2026 (higher net margin and improved gross margin) and leverage remains manageable, but cash generation weakened materially with negative free cash flow in the latest year and revenue growth was only modest, indicating a less reliable earnings/cash profile through the cycle.
Income Statement
68
Positive
Balance Sheet
72
Positive
Cash Flow
45
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue57.08B58.41B57.28B61.57B59.70B58.68B
Gross Profit9.34B9.86B8.97B8.47B6.51B8.35B
EBITDA7.77B5.91B5.91B6.29B3.63B3.29B
Net Income2.89B3.13B1.25B1.27B-418.00M-951.00M
Balance Sheet
Total Assets81.36B84.91B82.00B80.14B74.48B73.31B
Cash, Cash Equivalents and Short-Term Investments12.08B11.96B11.50B10.65B8.41B8.85B
Total Debt13.82B16.39B14.04B16.24B13.82B13.40B
Total Liabilities38.26B38.95B40.26B40.11B37.41B36.57B
Stockholders Equity43.10B45.96B41.73B40.03B36.86B36.33B
Cash Flow
Free Cash Flow0.00-1.41B2.94B1.93B-171.00M-1.15B
Operating Cash Flow0.002.05B6.15B4.88B2.81B3.50B
Investing Cash Flow0.00-3.22B-2.73B-3.08B-2.80B-4.70B
Financing Cash Flow0.001.32B-2.84B292.00M-686.00M-675.00M

Kitagawa Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1734.00
Price Trends
50DMA
1623.01
Positive
100DMA
1684.02
Positive
200DMA
1631.39
Positive
Market Momentum
MACD
17.13
Negative
RSI
57.49
Neutral
STOCH
62.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6317, the sentiment is Positive. The current price of 1734 is above the 20-day moving average (MA) of 1632.90, above the 50-day MA of 1623.01, and above the 200-day MA of 1631.39, indicating a bullish trend. The MACD of 17.13 indicates Negative momentum. The RSI at 57.49 is Neutral, neither overbought nor oversold. The STOCH value of 62.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6317.

Kitagawa Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥92.95B17.187.00%3.02%8.49%-0.33%
69
Neutral
¥15.71B5.063.41%1.98%150.85%
67
Neutral
¥33.78B63.721.17%24.89%26.18%
66
Neutral
¥30.52B14.252.13%0.12%59.33%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥35.15B28.393.56%-2.79%-35.37%
58
Neutral
¥6.69B4.451.37%-5.11%29.29%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6317
Kitagawa Corporation
1,694.00
347.43
25.80%
JP:6143
Sodick
1,857.00
977.73
111.20%
JP:6125
Okamoto Machine Tool Works,Ltd.
5,270.00
1,374.86
35.30%
JP:6151
Nitto Kohki Co., Ltd.
1,635.00
-130.86
-7.41%
JP:6327
Kitagawa Seiki Co., Ltd.
5,000.00
4,396.82
728.94%
JP:6408
Ogura Clutch Co., Ltd.
4,470.00
1,096.32
32.50%

Kitagawa Corporation Corporate Events

Kitagawa Corporation Lifts Profit, Strengthens Balance Sheet and Hikes Dividend
May 13, 2026
Kitagawa Corporation reported higher consolidated net sales of ¥58.4 billion for the fiscal year ended March 31, 2026, up 2.0% year-on-year, with operating profit surging 43.6% to ¥2.69 billion and profit attributable to owners of parent...
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: May 15, 2026