CKD Corporation (6407) AI Stock Analysis

• Market Cap: ¥370.54B
• Dividend Yield: 2.5%
• Average Volume (3M): 472.93K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 1.58
• Revenue Growth: 6.16%
• EPS Growth: 17.11%
• Country: JP
• Employees: 4,645
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 51.80
• Shares Outstanding: 67,909,450
• 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: ¥5,547.14
• Price Target Upside: -0.23% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 183.22
• Revenue Forecast (FY): ¥152.99B

• Rating: 75 Outperform
• Price Target: ¥6,255.00 ▲(12.50% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is driven primarily by strong financial performance (healthy growth and margins, low leverage, and improved free cash flow). Technicals are supportive but look overextended, and valuation is somewhat demanding with only a modest dividend yield.

Positive Factors

Strong profitability and margins

Sustained above-average gross and net margins indicate durable product pricing power and effective cost control across components and FA projects. This margin profile supports reinvestment, resilience to input-cost swings, and the ability to fund R&D and service capabilities over the medium term.

Solid balance sheet with low leverage

A strong equity ratio and conservative leverage provide financial flexibility to absorb cyclical downturns, pursue selective CAPEX or M&A, and maintain supplier/customer confidence. Low leverage reduces refinancing risk and preserves capacity to support long-term automation projects.

Significant free cash flow improvement

The move to material positive free cash flow with near parity to net income signals improved cash conversion and operational discipline. Reliable cash generation enables sustained capex funding, service expansion, and potential shareholder returns without increasing leverage.

Negative Factors

Customer capex cyclicality

A significant portion of revenue derives from project-based factory automation tied to customer CAPEX cycles. This structural exposure can create multi-quarter volatility in order intake and margins, making medium-term revenue visibility and resource planning inherently uneven.

Historically uneven cash flow

Although FCF turned positive recently, past negative periods show cash generation has varied. This historical inconsistency can constrain sustained investment pacing or dividend policies and requires continued focus on working-capital and project execution to keep cash conversion stable.

Moderate returns on equity

An ROE below 10% suggests only moderate efficiency in converting equity into profits relative to higher-return industrial peers. Over the medium term, this may limit shareholder return potential unless margins, asset turnover, or capital allocation improve.

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

Strong profitability and growth (15.8% revenue growth; 28.4% gross margin; 8.7% net margin) supported by a solid balance sheet (64.7% equity ratio; 0.26 debt-to-equity). Cash flow improved meaningfully with positive free cash flow and strong cash conversion, though cash flow strength is slightly less consistent historically than income statement and balance sheet metrics.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 5560.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 5560 is above the 20-day moving average (MA) of 4893.00, above the 50-day MA of 4071.72, and above the 200-day MA of 3003.69, indicating a bullish trend. The MACD of 446.85 indicates Negative momentum. The RSI at 77.31 is Negative, neither overbought nor oversold. The STOCH value of 84.05 is Negative, 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
6371	81 Outperform	¥280.74B	11.68	8.83%	3.85%	1.48%	8.86%
6407	75 Outperform	¥370.54B	28.83	―	2.50%	6.16%	17.11%
6507	74 Outperform	¥371.52B	29.93	―	1.01%	14.47%	30.85%
6622	73 Outperform	¥328.31B	25.60	―	1.65%	14.49%	-21.17%
6508	71 Outperform	¥354.79B	15.98	14.28%	2.40%	8.03%	23.50%
6134	68 Neutral	¥587.45B	28.98	6.46%	2.22%	12.95%	46.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

CKD Corporation Corporate Events

CKD to Grant Restricted Treasury Shares to Executives and Employees

CKD Corporation has approved the disposal of 17,200 shares of its treasury stock as restricted stock to a wide group of insiders, including corporate officers, executive officers, advisors, a fellow, and 291 employees. The allocation, valued at approximately 79.9 million yen at 4,645 yen per share, is structured to align management and employee incentives with shareholders by tying share ownership to continued service.

The restricted stock will be granted in exchange for monetary claims and will be subject to transfer restrictions that last until recipients leave the company or, for executives, at least through March 31, 2027, provided they maintain their positions. By embedding medium- to long-term transfer restrictions and service conditions, CKD aims to promote sustainable growth in corporate value, strengthen retention of key personnel, and reinforce shared interests between internal stakeholders and shareholders.

The most recent analyst rating on (JP:6407) stock is a Buy with a Yen5113.00 price target. To see the full list of analyst forecasts on CKD Corporation stock, see the JP:6407 Stock Forecast page.

CKD Posts Lower Nine-Month Earnings but Keeps Full-Year Forecast and Dividend Plan

CKD Corporation reported consolidated net sales of ¥112.0 billion for the nine months ended December 31, 2025, a 2.7% year-on-year decline, with operating profit down 9.2% to ¥12.5 billion and profit attributable to owners of parent falling 6.7% to ¥8.8 billion. Despite weaker earnings and lower year-to-date dividends versus the prior year, total assets and equity increased, the equity ratio improved to 66.9%, and the company maintained its full-year forecast of lower sales and profit, signaling a cautious but steady outlook for stakeholders.

The company plans an annual dividend of ¥67 per share for the fiscal year ending March 31, 2026, down from ¥80 in the previous year, reflecting more conservative shareholder returns amid softer performance. Management left full-year guidance unchanged, projecting a 3.0% decline in net sales to ¥151.0 billion and a 17.2% drop in full-year profit, indicating expectations of continued earnings pressure even as the balance sheet remains robust and investor communications continue via briefings for institutional investors and analysts.

The most recent analyst rating on (JP:6407) stock is a Buy with a Yen5113.00 price target. To see the full list of analyst forecasts on CKD Corporation stock, see the JP:6407 Stock Forecast page.

CKD Posts Lower Nine-Month Earnings but Keeps Full-Year Forecast and Dividend Plan

CKD Corporation reported consolidated net sales of ¥112.02 billion for the nine months ended Dec. 31, 2025, down 2.7% year on year, with operating profit falling 9.2% to ¥12.51 billion and profit attributable to owners of parent slipping 6.7% to ¥8.84 billion. Despite the earnings decline, the balance sheet strengthened as total assets rose to ¥218.02 billion and the equity ratio improved to 66.9%, while the company maintained its full-year forecast of ¥151 billion in sales and ¥11.2 billion in profit, alongside a planned annual dividend of ¥67 per share for the fiscal year ending March 31, 2026, signaling confidence in its medium-term outlook and shareholder returns.

For the period, basic earnings per share decreased to ¥132.28 from ¥141.91 a year earlier, reflecting softer profitability compared with strong prior-year results. However, comprehensive income surged 46.3% to ¥14.13 billion and the modest reduction in treasury shares, combined with unchanged guidance, underscores management’s view that current headwinds are manageable and that CKD can sustain a solid capital base while continuing to court institutional investors and analysts through regular briefings.

The most recent analyst rating on (JP:6407) stock is a Buy with a Yen5113.00 price target. To see the full list of analyst forecasts on CKD Corporation stock, see the JP:6407 Stock Forecast page.