Want to see JP:6390 full AI Analyst Report?
Top Page
KATO WORKS CO., LTD.
(6390)
Select Model
Select Model
Rating:61Neutral
Price Target:
¥1,426.00
▲(8.28% Upside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by weak and inconsistent cash generation (negative operating/free cash flow since 2024) and volatile profitability, despite a reasonable balance sheet. Offsetting these risks, the stock shows improving technical momentum and stands out as very inexpensive on P/E with an above-average dividend yield.
Positive Factors
Manageable Balance Sheet
Although leverage remains meaningful for a cyclical machinery company, debt-to-equity improved from earlier periods and equity is still sizeable. This provides some financial resilience and reduces immediate balance-sheet distress risk.
Negative Factors
Persistent Negative Cash Flow
Sustained negative operating and free cash flow weakens internally funded growth and may increase reliance on debt or other balance-sheet funding. The multi-year pattern indicates a structural cash-conversion risk rather than a single-period issue.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable Balance Sheet
Although leverage remains meaningful for a cyclical machinery company, debt-to-equity improved from earlier periods and equity is still sizeable. This provides some financial resilience and reduces immediate balance-sheet distress risk.
Read all positive factors
KATO WORKS CO., LTD. (6390) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥15.84B
Dividend Yield5.11%
Average Volume (3M)62.47K
Price to Earnings (P/E)3.0
Beta (1Y)1.13
Revenue Growth-1.12%
EPS GrowthN/A
CountryJP
Employees932
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)411.76
Shares Outstanding11,743,587
10 Day Avg. Volume66,630
30 Day Avg. Volume62,470
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.37
Price to Sales (P/S)0.28
P/FCF Ratio-19.54
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)N/A
Revenue Forecast (FY)N/A
KATO WORKS CO., LTD. Business Overview & Revenue Model
Company Description
Kato Works Co.,Ltd. is a worldwide enterprise specializing in the production and distribution of heavy machinery for both the lifting and construction industries. Its diverse portfolio encompasses a range of mobile cranes, including models for rou...
How the Company Makes Money
null...
KATO WORKS CO., LTD. Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
58
Neutral
Cash Flow
35
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 56.34B | 52.93B | 57.50B | 57.53B | 63.55B |
| Gross Profit | 5.83B | 9.95B | 11.96B | 10.14B | 7.74B |
| EBITDA | -188.00M | 2.43B | 3.27B | 2.88B | -5.26B |
| Net Income | 4.53B | -6.03B | 4.24B | 2.40B | -9.58B |
Balance Sheet | |||||
| Total Assets | 92.36B | 103.15B | 105.73B | 98.80B | 102.64B |
| Cash, Cash Equivalents and Short-Term Investments | 11.07B | 14.76B | 22.57B | 19.98B | 18.67B |
| Total Debt | 40.21B | 43.81B | 36.04B | 33.84B | 38.98B |
| Total Liabilities | 49.89B | 58.54B | 54.18B | 51.89B | 58.40B |
| Stockholders Equity | 42.47B | 44.60B | 50.41B | 45.69B | 43.14B |
Cash Flow | |||||
| Free Cash Flow | -796.00M | -14.13B | -1.18B | 6.37B | 8.36B |
| Operating Cash Flow | -260.00M | -13.32B | -696.00M | 6.47B | 9.55B |
| Investing Cash Flow | 2.02B | -930.00M | 1.63B | 1.37B | 496.00M |
| Financing Cash Flow | -5.87B | 6.64B | 1.40B | -6.61B | -6.64B |
KATO WORKS CO., LTD. Technical Analysis
Positive
1317.00
Price Trends
1280.38
Positive
1326.79
Positive
1350.05
Positive
Market Momentum
14.50
Positive
60.24
Neutral
80.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6390, the sentiment is Positive. The current price of 1317 is below the 20-day moving average (MA) of 1325.85, above the 50-day MA of 1280.38, and below the 200-day MA of 1350.05, indicating a bullish trend. The MACD of 14.50 indicates Positive momentum. The RSI at 60.24 is Neutral, neither overbought nor oversold. The STOCH value of 80.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6390.
KATO WORKS CO., LTD. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥364.80B | 12.40 | ― | 2.99% | 10.92% | 14.74% | |
76 Outperform | ¥6.51T | 16.90 | ― | 2.72% | 5.24% | -7.42% | |
68 Neutral | ¥1.18T | 12.84 | 8.61% | 3.08% | 5.87% | 32.02% | |
63 Neutral | ¥3.13T | 11.44 | 8.59% | 1.82% | 12.54% | 57.90% | |
61 Neutral | ¥15.84B | 3.01 | ― | 5.40% | -1.12% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:6390
KATO WORKS CO., LTD.
1,369.00
49.20
3.73%
JP:6305
Hitachi Construction Machinery Co
5,390.00
799.56
17.42%
JP:6326
Kubota
2,687.00
887.86
49.35%
JP:6301
Komatsu Ltd.
7,211.00
2,369.69
48.95%
JP:6432
Takeuchi Mfg.Co., Ltd.
7,590.00
2,260.63
42.42%
KATO WORKS CO., LTD. Corporate Events
Kato Works Narrows Quarterly Loss but Keeps FY2027 Dividend Forecast Unchanged
Aug 7, 2026
Kato Works reported consolidated net sales of ¥10.0 billion for the three months ended June 30, 2026, down 19.4% year on year, with an operating loss of ¥79 million and a net loss attributable to owners of the parent of ¥17 million,...
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.