KATO WORKS CO., LTD. (JP:6390)
:6390
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KATO WORKS CO., LTD.
(6390)
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Rating:51Neutral
Price Target:
¥1,495.00
▲(13.52% Upside)
Action:ReiteratedDate:02/18/26
The score is held back primarily by poor financial performance (net losses and negative operating/free cash flow). Technicals are supportive with strong momentum but are tempered by overbought signals. Valuation helps meaningfully due to the very low P/E and solid dividend yield.
Positive Factors
Moderate equity cushion
A stable equity ratio near 43% provides a measurable capital cushion vs. assets, which supports solvency through business cycles. Over the next several months this helps absorb operating shortfalls, supports lender confidence for refinancing, and preserves capacity to fund core operations.
Negative Factors
Declining revenues
An 8% year-over-year revenue decline compresses scale and increases per-unit fixed costs, weakening the firm's ability to cover overhead. Sustained top-line contraction over months would make margin recovery and return to profitability more difficult without structural demand or product improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Moderate equity cushion
A stable equity ratio near 43% provides a measurable capital cushion vs. assets, which supports solvency through business cycles. Over the next several months this helps absorb operating shortfalls, supports lender confidence for refinancing, and preserves capacity to fund core operations.
Read all positive factors
KATO WORKS CO., LTD. (6390) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥17.44B
Dividend Yield5.4%
Average Volume (3M)62.47K
Price to Earnings (P/E)0.5
Beta (1Y)1.23
Revenue Growth-2.22%
EPS Growth18.80%
CountryJP
Employees990
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)630.92
Shares Outstanding11,743,587
10 Day Avg. Volume66,630
30 Day Avg. Volume62,470
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.33
Price to Sales (P/S)0.27
P/FCF Ratio-1.03
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. engages in the manufacture and sale of various machines for lifting and construction industries worldwide. It offers mobile cranes, such as rough terrain, all terrain, city range, truck, and crawler cranes; excavators; crawler ...
How the Company Makes Money
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KATO WORKS CO., LTD. Financial Statement Overview
Summary
Income Statement
35
Negative
Balance Sheet
45
Neutral
Cash Flow
30
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 54.54B | 52.93B | 57.50B | 57.53B | 63.55B | 58.52B |
| Gross Profit | 8.14B | 9.95B | 11.96B | 10.14B | 7.74B | 6.60B |
| EBITDA | 1.98B | 2.43B | 3.27B | 2.88B | -5.26B | 23.00M |
| Net Income | -6.29B | -6.03B | 4.24B | 2.40B | -9.58B | -5.74B |
Balance Sheet | ||||||
| Total Assets | 97.26B | 103.15B | 105.73B | 98.80B | 102.64B | 115.82B |
| Cash, Cash Equivalents and Short-Term Investments | 12.48B | 14.76B | 22.57B | 19.98B | 18.67B | 14.78B |
| Total Debt | 41.54B | 43.81B | 36.04B | 33.84B | 38.98B | 46.51B |
| Total Liabilities | 54.21B | 58.54B | 54.18B | 51.89B | 58.40B | 64.32B |
| Stockholders Equity | 43.03B | 44.60B | 50.41B | 45.69B | 43.14B | 50.51B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -14.13B | -1.18B | 6.37B | 8.36B | -226.00M |
| Operating Cash Flow | 0.00 | -13.32B | -696.00M | 6.47B | 9.55B | 2.71B |
| Investing Cash Flow | 0.00 | -930.00M | 1.63B | 1.37B | 496.00M | -3.10B |
| Financing Cash Flow | 0.00 | 6.64B | 1.40B | -6.61B | -6.64B | 2.99B |
KATO WORKS CO., LTD. Technical Analysis
Neutral
1317.00
Price Trends
1520.40
Negative
1411.98
Positive
1375.04
Positive
Market Momentum
-27.54
Positive
44.19
Neutral
23.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6390, the sentiment is Neutral. The current price of 1317 is below the 20-day moving average (MA) of 1572.05, below the 50-day MA of 1520.40, and below the 200-day MA of 1375.04, indicating a neutral trend. The MACD of -27.54 indicates Positive momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 23.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6390.
KATO WORKS CO., LTD. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥5.81T | 12.01 | ― | 4.06% | 0.40% | 8.40% | |
73 Outperform | ¥302.81B | 12.67 | ― | 2.99% | 0.31% | -11.04% | |
70 Outperform | ¥165.06B | 7.33 | 9.45% | 2.86% | 10.49% | -5.19% | |
67 Neutral | ¥1.17T | 13.34 | 9.16% | 3.98% | -2.72% | 29.43% | |
65 Neutral | ¥2.93T | 13.56 | 7.55% | 2.22% | -3.22% | -29.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | ¥17.44B | 0.51 | ― | 5.40% | -2.22% | 18.80% |
* Industrials Sector Average
JP:6390
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KATO WORKS CO., LTD. Corporate Events
Kato Works Swings to Profit Despite Operating Loss, Keeps ¥70 Dividend Outlook
Feb 13, 2026
Kato Works reported consolidated net sales of ¥37.3 billion for the nine months to Dec. 31, 2025, up 1.3% year on year, but swung to an operating loss of ¥1.87 billion and an ordinary loss of ¥1.39 billion. Despite this, profit attr...
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.