CKD Corporation (6407) AI Stock Analysis

• Market Cap: ¥225.50B
• Dividend Yield: 2.42%
• Average Volume (3M): 472.93K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 1.50
• Revenue Growth: 10.27%
• EPS Growth: 35.69%
• Country: JP
• Employees: 4,645
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 37.09
• 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: ¥3,900.00
• Price Target Upside: 20.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥3,386.00 ▲(4.99% Upside)

CKD Corporation's strong financial performance and positive technical indicators are the primary drivers of the stock score. The company's robust revenue growth, stable balance sheet, and improved cash flow generation contribute significantly to its attractiveness. Technical analysis supports a bullish outlook, with the stock trading above key moving averages and showing positive momentum. The valuation is fair, with a reasonable P/E ratio and a decent dividend yield.

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: Positive
• Last Price: 3225.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 3225 is below the 20-day moving average (MA) of 3235.90, above the 50-day MA of 2877.36, and above the 200-day MA of 2441.25, indicating a neutral trend. The MACD of 106.45 indicates Positive momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 44.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	6.44%	2.71%	12.95%	47.00%
6407	76 Outperform	¥225.50B	17.37	―	2.42%	10.27%	35.69%
6508	76 Outperform	€295.81B	16.06	14.28%	2.23%	8.03%	23.50%
6622	76 Outperform	¥235.16B	18.77	―	1.61%	14.49%	-21.17%
6507	74 Outperform	¥297.39B	24.90	―	0.95%	14.47%	30.85%
6371	74 Outperform	€217.98B	9.57	8.83%	3.93%	1.48%	8.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

CKD Corporation Corporate Events

CKD Corporation Reports Decline in Q1 2025 Financial Results

CKD Corporation reported a decline in its financial performance for the three months ended June 30, 2025, with net sales decreasing by 4.8% and operating profit dropping by 13.6% compared to the previous year. Despite this, the company maintains a stable financial position with a capital adequacy ratio of 65.1%, and it plans to hold a briefing session for institutional investors and analysts to discuss these results.

The most recent analyst rating on (JP:6407) stock is a Hold with a Yen2600.00 price target. To see the full list of analyst forecasts on CKD Corporation stock, see the JP:6407 Stock Forecast page.