CKD Corporation (6407) AI Stock Analysis

• Market Cap: ¥225.50B
• Dividend Yield: 2.54%
• Average Volume (3M): 472.93K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 1.50
• Revenue Growth: 6.16%
• EPS Growth: 17.11%
• Country: JP
• Employees: 4,645
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 43.39
• Shares Outstanding: 68,279,450
• 10 Day Avg. Volume: 518,100
• 30 Day Avg. Volume: 472,929
• PEG Ratio: 0.16
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 10.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,600.00
• Price Target Upside: 78.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥2,838.00 ▲(9.83% Upside)

CKD Corporation's overall stock score is driven by strong financial performance and a fair valuation. However, technical indicators suggest bearish momentum, which impacts the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong market demand and effective business strategies, supporting long-term expansion and market position.

Cash Flow Generation

Improved cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and strengthening the company's financial health.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk, providing stability and resilience against economic fluctuations.

Negative Factors

Market Volatility

Higher volatility can lead to unpredictable stock performance, potentially impacting investor confidence and increasing perceived risk.

Earnings Call Absence

Lack of earnings call data limits transparency and investor insight into management's strategic direction and operational performance.

Technical Analysis Signals

Negative technical signals may indicate potential bearish trends, affecting investor sentiment and potentially impacting stock liquidity.

CKD Corporation Business Overview & Revenue Model

Company Description

CKD Corporation develops, manufactures, sells, and exports automation machinery, drive components, pneumatic control components, pneumatic auxiliary components, and fluid control components worldwide. It operates through Automatic Machinery and Component Products segments. The company offers a range of products, including packaging machines for medical, pharmaceutical, and food products; industrial machinery for lithium-ion battery winding and solder paste inspection machines; and lamp equipment. It also provides labor-saving components, such as index units, direct drive motors, and pick and place units; pneumatic control components comprising directional control values; and drive components, which include pneumatic cylinders, assistance devices, and hand chucks. In addition, the company offers fine system components; and fluid control components, including valves and unit system components to control and utilize fluids. The company was formerly known as Chukyo Electric Co., Ltd. and changed its name to CKD Corporation in July 1979. CKD Corporation was incorporated in 1943 and is headquartered in Komaki, Japan.

How the Company Makes Money

CKD Corporation generates revenue through multiple streams, primarily by selling its core products, which include pneumatic and fluid control equipment. The company serves a diverse clientele across industries such as automotive, electronics, and packaging, providing tailored solutions to meet specific operational needs. Key revenue streams include direct sales to manufacturers, distribution partnerships, and international sales. Additionally, CKD engages in ongoing product development and enhancements, allowing them to maintain competitive pricing and customer loyalty. Strategic partnerships with other companies in the automation space further augment their market presence and revenue potential.

CKD Corporation Financial Statement Overview

Summary

CKD Corporation exhibits strong financial performance with robust revenue growth of 15.8%, a solid gross profit margin of 28.4%, and a net profit margin of 8.7%. The balance sheet is stable with a strong equity ratio of 64.7% and low debt-to-equity ratio of 0.26. Cash flow has improved significantly with a positive free cash flow of ¥13.47 billion, indicating effective cash management.

Income Statement

CKD Corporation's income statement demonstrates robust performance with a strong gross profit margin of 28.4% and a net profit margin of 8.7% for 2025. Revenue growth is notable at 15.8%, indicating a healthy upward trajectory. The EBIT and EBITDA margins, at 12.2% and 17.2% respectively, underline effective cost management and operational efficiency. The consistent revenue growth and profitability margins suggest a solid market position and effective business strategy.

Balance Sheet

The balance sheet of CKD Corporation shows a solid equity ratio of 64.7%, reflecting a strong capital structure with significant equity backing. The debt-to-equity ratio is relatively low at 0.26, indicating prudent leverage levels. ROE stands at 9.9%, showing efficient utilization of shareholder funds. Overall, the company's balance sheet is stable, with low financial risk and good asset management.

Cash Flow

CKD Corporation's cash flow statement reveals a remarkable turnaround with a positive free cash flow of ¥13.47 billion in 2025, compared to negative values in previous years, indicating improved cash generation. The operating cash flow to net income ratio is 1.42, suggesting strong cash conversion efficiency. The free cash flow to net income ratio of 0.99 reflects substantial cash available after capital expenditures. These metrics highlight improved cash management and operational cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	153.81B	155.63B	134.43B	159.46B	142.20B	106.72B
Gross Profit	43.79B	45.20B	38.04B	46.40B	40.89B	28.77B
EBITDA	24.70B	26.73B	20.31B	28.37B	24.09B	13.44B
Net Income	12.94B	13.52B	8.34B	14.79B	12.57B	5.27B
Balance Sheet
Total Assets	210.26B	210.87B	208.28B	185.63B	172.51B	152.73B
Cash, Cash Equivalents and Short-Term Investments	35.35B	35.33B	28.30B	28.57B	34.53B	36.38B
Total Debt	34.32B	35.80B	37.53B	18.63B	17.89B	20.41B
Total Liabilities	73.28B	74.34B	79.19B	65.90B	62.94B	55.11B
Stockholders Equity	136.98B	136.52B	129.10B	119.73B	109.57B	97.50B
Cash Flow
Free Cash Flow	0.00	13.47B	-12.99B	-702.00M	4.12B	14.56B
Operating Cash Flow	0.00	19.17B	7.60B	11.05B	12.35B	17.52B
Investing Cash Flow	0.00	-6.06B	-20.23B	-12.79B	-8.54B	-2.79B
Financing Cash Flow	0.00	-6.18B	13.05B	-5.74B	-6.26B	2.42B

CKD Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2584.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6407, the sentiment is Negative. The current price of 2584 is below the 20-day moving average (MA) of 2939.40, below the 50-day MA of 2976.39, and above the 200-day MA of 2466.97, indicating a neutral trend. The MACD of -155.88 indicates Positive momentum. The RSI at 33.32 is Neutral, neither overbought nor oversold. The STOCH value of 25.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6407.

CKD Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6134	77 Outperform	$282.39B	18.83	6.46%	2.76%	12.95%	46.98%
6508	76 Outperform	€295.81B	16.06	14.28%	2.33%	8.03%	23.50%
6371	74 Outperform	€217.98B	9.57	8.83%	3.93%	1.48%	8.86%
6507	69 Neutral	¥297.39B	24.90	―	0.95%	14.47%	30.85%
6407	64 Neutral	¥225.50B	17.37	―	2.54%	6.16%	17.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6622	63 Neutral	¥235.16B	18.77	―	1.61%	14.49%	-21.17%

CKD Corporation Corporate Events

CKD Corporation Enhances Shareholder Benefits to Encourage Long-Term Investment

CKD Corporation has announced changes to its shareholder benefit program, aiming to increase the appeal of its benefits and encourage long-term shareholding. The revised program enhances digital gift values for shareholders holding between 100 and 500 shares, reflecting the company’s commitment to rewarding loyal investors and potentially strengthening its market position.

The most recent analyst rating on (JP:6407) stock is a Buy with a Yen3386.00 price target. To see the full list of analyst forecasts on CKD Corporation stock, see the JP:6407 Stock Forecast page.

CKD Corporation Revises Financial Forecasts and Dividend Policy Amid Slow Demand Recovery

CKD Corporation has revised its consolidated financial forecasts for the fiscal year ending March 31, 2026, due to slow recovery in demand for semiconductor-related components. The company also announced changes in its dividend policy, setting interim dividends at ¥32 per share and revising the year-end dividends to ¥35 per share, aiming for a total annual dividend of ¥67 per share.

The most recent analyst rating on (JP:6407) stock is a Buy with a Yen3386.00 price target. To see the full list of analyst forecasts on CKD Corporation stock, see the JP:6407 Stock Forecast page.

CKD Corporation Reports Improved Profit Margins Amid Declining Sales

CKD Corporation reported its consolidated financial results for the six months ended September 30, 2025, showing a decline in net sales to ¥72,648 million, a decrease of 4.1% compared to the previous year. Despite the drop in sales, the company managed to improve its operating profit margin, with operating profit and ordinary profit both increasing by over 14%. The equity-to-asset ratio also improved, indicating a stronger financial position. The company revised its forecast for the fiscal year ending March 31, 2026, with expected net sales of ¥151,000 million, a slight decrease from the previous year, but with improved profitability metrics.

The most recent analyst rating on (JP:6407) stock is a Buy with a Yen3386.00 price target. To see the full list of analyst forecasts on CKD Corporation stock, see the JP:6407 Stock Forecast page.