KATO WORKS CO., LTD. (JP:6390)
:6390
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KATO WORKS CO., LTD.
(6390)
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Rating:52Neutral
Price Target:
¥1,300.00
▼(-1.29% Downside)
Action:Reiterated
Date:05/16/26
The score is held back primarily by unstable profitability and persistently negative operating/free cash flow since 2024, alongside a weak technical trend (below key moving averages with negative MACD). These risks are partly offset by a very low P/E and a high dividend yield, which improve the valuation profile if fundamentals improve.
Positive Factors
Balance sheet resilience
The company maintains a non-distressed balance sheet with sizeable equity, giving structural financial flexibility versus a distressed peer. Even with a downward trend, a meaningful equity base and improving leverage vs earlier periods support capacity to fund operations or absorb shocks over the medium term.
Negative Factors
Sustained negative cash flow
Persistent negative operating and free cash flow since 2024 is a durable structural weakness. It increases reliance on balance-sheet financing, limits ability to self-fund capex or dividends, and raises vulnerability to extended demand weakness or cost shocks absent a credible cash-restoration plan.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet resilience
The company maintains a non-distressed balance sheet with sizeable equity, giving structural financial flexibility versus a distressed peer. Even with a downward trend, a meaningful equity base and improving leverage vs earlier periods support capacity to fund operations or absorb shocks over the medium term.
Read all positive factors
KATO WORKS CO., LTD. (6390) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥14.33B
Dividend Yield5.4%
Average Volume (3M)62.47K
Price to Earnings (P/E)3.4
Beta (1Y)1.22
Revenue Growth6.43%
EPS GrowthN/A
CountryJP
Employees990
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)-537.09
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. 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
52
Neutral
Balance Sheet
58
Neutral
Cash Flow
35
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 54.54B | 56.34B | 52.93B | 57.50B | 57.53B | 63.55B |
| Gross Profit | 8.14B | 5.83B | 9.95B | 11.96B | 10.14B | 7.74B |
| EBITDA | 1.98B | -188.00M | 2.43B | 3.27B | 2.88B | -5.26B |
| Net Income | -6.29B | 4.53B | -6.03B | 4.24B | 2.40B | -9.58B |
Balance Sheet | ||||||
| Total Assets | 97.26B | 92.36B | 103.15B | 105.73B | 98.80B | 102.64B |
| Cash, Cash Equivalents and Short-Term Investments | 12.48B | 11.07B | 14.76B | 22.57B | 19.98B | 18.67B |
| Total Debt | 41.54B | 40.21B | 43.81B | 36.04B | 33.84B | 38.98B |
| Total Liabilities | 54.21B | 49.89B | 58.54B | 54.18B | 51.89B | 58.40B |
| Stockholders Equity | 43.03B | 42.47B | 44.60B | 50.41B | 45.69B | 43.14B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -796.00M | -14.13B | -1.18B | 6.37B | 8.36B |
| Operating Cash Flow | 0.00 | -260.00M | -13.32B | -696.00M | 6.47B | 9.55B |
| Investing Cash Flow | 0.00 | 2.02B | -930.00M | 1.63B | 1.37B | 496.00M |
| Financing Cash Flow | 0.00 | -5.87B | 6.64B | 1.40B | -6.61B | -6.64B |
KATO WORKS CO., LTD. Technical Analysis
Negative
1317.00
Price Trends
1420.47
Negative
1422.41
Negative
1368.10
Negative
Market Momentum
-58.08
Positive
28.49
Positive
12.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6390, the sentiment is Negative. The current price of 1317 is below the 20-day moving average (MA) of 1362.90, below the 50-day MA of 1420.47, and below the 200-day MA of 1368.10, indicating a bearish trend. The MACD of -58.08 indicates Positive momentum. The RSI at 28.49 is Positive, neither overbought nor oversold. The STOCH value of 12.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥325.70B | 18.05 | ― | 2.99% | 5.65% | 11.14% | |
70 Outperform | ¥3.08T | 9.53 | 7.55% | 2.22% | 5.51% | 12.24% | |
69 Neutral | ¥5.56T | 12.74 | ― | 4.06% | 0.69% | -12.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥1.06T | 16.50 | 9.16% | 3.98% | 2.49% | -10.13% | |
52 Neutral | ¥14.33B | 3.44 | ― | 5.40% | 6.43% | ― |
* Industrials Sector Average
JP:6390
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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.