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Kanematsu Engineering Co., Ltd. (JP:6402)
:6402
Japanese Market
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Kanematsu Engineering Co., Ltd. (6402) AI Stock Analysis

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JP:6402

Kanematsu Engineering Co., Ltd.

(6402)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
¥1,631.00
▲(8.01% Upside)
Action:Reiterated
Date:05/17/26
The score is driven primarily by strong financial performance (improving profitability and conservative leverage) and very attractive valuation (low P/E and high dividend yield). These positives are tempered by weak technicals (broad downtrend despite oversold signals) and historical cash flow volatility.
Positive Factors
Improving profitability
Meaningful margin improvement in 2026—higher gross, operating, and net margins versus 2024–2025—signals better pricing and operational efficiency. Sustained margin expansion would support stronger earnings durability, improve cash generation and resilience to cost pressures over coming quarters.
Negative Factors
Cash-flow volatility
Operating and free cash flow have been uneven, with negative operating cash flow in 2022 and 2024 despite 2026 improvement. This volatility complicates capital allocation, increases reliance on external funding in weak years, and reduces confidence that accounting profits will consistently convert to cash.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
Meaningful margin improvement in 2026—higher gross, operating, and net margins versus 2024–2025—signals better pricing and operational efficiency. Sustained margin expansion would support stronger earnings durability, improve cash generation and resilience to cost pressures over coming quarters.
Read all positive factors

Kanematsu Engineering Co., Ltd. (6402) vs. iShares MSCI Japan ETF (EWJ)

Kanematsu Engineering Co., Ltd. Business Overview & Revenue Model

Company Description
Kanematsu Engineering Co., Ltd. (6402) is a Japanese company specializing in engineering and manufacturing solutions, primarily focusing on advanced technologies in the fields of electronics, machinery, and precision instruments. The company opera...
How the Company Makes Money
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Kanematsu Engineering Co., Ltd. Financial Statement Overview

Summary
Strong overall fundamentals supported by improving margins and a solid, low-leverage balance sheet, but the cash flow profile is volatile with negative operating/free cash flow in multiple years, which reduces confidence in earnings durability.
Income Statement
78
Positive
Balance Sheet
83
Very Positive
Cash Flow
62
Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue14.10B13.30B12.40B11.34B11.87B
Gross Profit3.62B3.03B2.83B2.68B2.80B
EBITDA1.73B1.41B1.27B1.48B1.33B
Net Income1.04B700.69M618.92M754.36M750.28M
Balance Sheet
Total Assets12.66B12.08B13.38B13.75B12.81B
Cash, Cash Equivalents and Short-Term Investments2.13B1.58B1.50B2.38B967.51M
Total Debt1.64B1.49B1.83B2.18B2.46B
Total Liabilities4.70B4.94B6.74B7.47B7.10B
Stockholders Equity7.96B7.14B6.64B6.29B5.71B
Cash Flow
Free Cash Flow662.23M651.97M-262.33M1.95B-2.33B
Operating Cash Flow802.14M733.30M-111.96M2.28B-243.69M
Investing Cash Flow-152.63M-83.51M-150.63M-334.95M-1.29B
Financing Cash Flow-94.53M-568.34M-615.44M-541.04M1.18B

Kanematsu Engineering Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1510.00
Price Trends
50DMA
1803.02
Negative
100DMA
1721.63
Negative
200DMA
1573.94
Negative
Market Momentum
MACD
-110.39
Positive
RSI
20.92
Positive
STOCH
2.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6402, the sentiment is Negative. The current price of 1510 is below the 20-day moving average (MA) of 1711.50, below the 50-day MA of 1803.02, and below the 200-day MA of 1573.94, indicating a bearish trend. The MACD of -110.39 indicates Positive momentum. The RSI at 20.92 is Positive, neither overbought nor oversold. The STOCH value of 2.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6402.

Kanematsu Engineering Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥64.59B11.673.95%2.75%25.75%
81
Outperform
¥24.94B4.940.72%6.51%3.68%
73
Outperform
¥7.64B8.472.15%5.99%48.36%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥69.54B13.343.09%7.43%47.68%
60
Neutral
¥11.97B10.626.70%-1.89%-12.80%
50
Neutral
¥7.25B164.261.65%3.81%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6402
Kanematsu Engineering Co., Ltd.
1,375.00
275.47
25.05%
JP:6363
Torishima Pump Mfg.Co., Ltd.
2,701.00
833.75
44.65%
JP:6381
ANEST IWATA Corp.
1,623.00
261.39
19.20%
JP:6393
Yuken Kogyo Co., Ltd.
2,919.00
364.53
14.27%
JP:6492
Okano Valve Mfg. Co., Ltd.
14,720.00
10,049.11
215.14%
JP:6495
Miyairi Valve Mfg.Co., Ltd.
151.00
43.00
39.82%
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 17, 2026