CKD Corporation (6407) AI Stock Analysis

• Market Cap: ¥159.83B
• Dividend Yield: 3.52%
• Average Volume (3M): 339.59K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.57
• Revenue Growth: 15.78%
• EPS Growth: 62.07%
• Country: JP
• Employees: 4,645
• Sector: Industrials
• Sector Strength: 87
• Industry: Industrial - Machinery
• EPS (TTM): 60.57
• Shares Outstanding: 68,279,450
• 10 Day Avg. Volume: 287,710
• 30 Day Avg. Volume: 339,593
• PEG Ratio: 0.55
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -204.25
• 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: ¥3,100.00
• Price Target Upside: 29.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥2,631.00 ▲(10.31%Upside)

CKD Corporation's overall stock score is driven by strong financial performance and an attractive valuation. The financial stability and growth potential are significant strengths, complemented by a relatively low P/E ratio and high dividend yield. Technical indicators suggest caution due to potential overbought conditions, but the overall outlook remains positive.

CKD Corporation Business Overview & Revenue Model

Company Description

CKD Corporation (6407) is a Japanese company specializing in the design, manufacture, and sale of automation technology and components. The company operates primarily in sectors such as industrial automation, pneumatic control systems, and fluid control systems. CKD's core products include automatic machinery, pneumatic equipment, and fluid control components, which are utilized in various industries, including automotive, electronics, and healthcare.

How the Company Makes Money

CKD Corporation generates revenue through the sale of its automation technology and component products. The company's key revenue streams include the sales of pneumatic control systems, which are used in manufacturing processes to automate and improve efficiency; fluid control systems, which manage and regulate the flow of liquids and gases in industrial applications; and automatic machinery that enhances production capabilities across various industries. CKD also benefits from strategic partnerships and collaborations with industrial manufacturers, allowing it to expand its market reach and drive sales growth. Additionally, the company invests in research and development to innovate and improve its product offerings, maintaining its competitive edge and appeal to a broad customer base.

CKD Corporation Financial Statement Overview

Summary

CKD Corporation exhibits strong financial performance with robust growth and profitability. The income statement shows a strong gross profit margin and notable revenue growth. The balance sheet reflects a solid capital structure with low leverage, and the cash flow statement highlights improved cash generation capabilities.

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
149.25B	155.63B	134.43B	159.46B	142.20B	106.72B
	Gross Profit
43.10B	44.16B	38.04B	46.40B	40.89B	28.77B
	EBIT
17.28B	19.02B	13.11B	21.17B	17.88B	7.70B
	EBITDA
24.24B	26.73B	20.31B	28.37B	23.79B	13.21B
	Net Income Common Stockholders
11.44B	13.52B	8.34B	14.79B	12.57B	5.27B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.40B	35.33B	28.30B	28.57B	34.53B	36.38B
	Total Assets
214.31B	210.87B	208.28B	185.63B	172.51B	152.73B
	Total Debt
35.38B	35.80B	37.53B	18.63B	17.89B	20.41B
	Net Debt
5.98B	468.00M	9.79B	-9.94B	-16.63B	-15.96B
	Total Liabilities
79.80B	74.34B	79.19B	65.90B	62.94B	55.11B
	Stockholders Equity
134.51B	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: 2385.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 2385 is above the 20-day moving average (MA) of 2305.20, above the 50-day MA of 2121.34, and below the 200-day MA of 2414.24, indicating a neutral trend. The MACD of 56.41 indicates Positive momentum. The RSI at 59.24 is Neutral, neither overbought nor oversold. The STOCH value of 73.09 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
6407	78 Outperform	¥159.83B	11.52		3.52%	15.78%	62.07%
6134	77 Outperform	$230.51B	19.98	4.82%	3.35%	-6.42%	-15.92%
6508	76 Outperform	€222.99B	12.06	14.03%	2.56%	4.59%	64.99%
6622	76 Outperform	¥145.61B	12.49		2.58%	20.05%	-26.75%
6371	75 Outperform	¥191.22B	8.57	8.48%	5.16%	4.64%	24.27%
6507	74 Outperform	¥239.32B	19.80		1.12%	16.07%	61.09%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%

CKD Corporation Corporate Events

CKD Corporation Revises Financial Results for FY 2025

CKD Corporation announced corrections to its Consolidated Financial Results for the fiscal year ended March 31, 2025. The revisions, which include updated numerical data, are intended to provide more accurate financial information. These corrections could impact stakeholders’ understanding of the company’s financial health and operational efficiency.

The most recent analyst rating on (JP:6407) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on CKD Corporation stock, see the JP:6407 Stock Forecast page.

CKD Corporation Announces Executive Personnel Changes

CKD Corporation announced executive personnel changes, effective May 13, 2025. Akihiro Ueno has been appointed as Executive Officer while retaining his role as President of CKD Korea Corporation. Akihiro Ito has been promoted to Fellow and General Manager of the New Business Development Office. Additionally, Seiichi Hamguchi will retire from his position as Executive Officer and transition to a Special Advisor role. These changes are part of CKD’s strategic efforts to strengthen leadership and drive new business initiatives.

The most recent analyst rating on (JP:6407) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on CKD Corporation stock, see the JP:6407 Stock Forecast page.

CKD Corporation Increases Year-End Dividend to 42 Yen Per Share

CKD Corporation announced an increase in its year-end dividend to 42 yen per share, up from the previous forecast of 41 yen, resulting in a total annual dividend of 80 yen per share. This decision reflects the company’s commitment to shareholder returns while maintaining a target dividend payout ratio of 40% and supporting business expansion through strategic investments.

The most recent analyst rating on (JP:6407) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on CKD Corporation stock, see the JP:6407 Stock Forecast page.