CKD Corporation (6407) AI Stock Analysis

• Market Cap: ¥152.46B
• Dividend Yield: 3.54%
• Average Volume (3M): 287.59K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.57
• Revenue Growth: 6.94%
• EPS Growth: 14.98%
• Country: JP
• Employees: 4,645
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Machinery
• EPS (TTM): 60.57
• Shares Outstanding: 68,279,450
• 10 Day Avg. Volume: 418,610
• 30 Day Avg. Volume: 287,590
• PEG Ratio: 1.87
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,400.00
• Price Target Upside: 50.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ―

CKD Corporation's stock score reflects strong valuation metrics and robust profitability margins, tempered by inconsistent revenue growth and cash flow challenges. Technical analysis indicates bearish market momentum, suggesting caution for short-term investors. However, the stock's attractive valuation and dividend yield offer potential for long-term investment gains if financial flexibility and revenue consistency improve.

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 profitability margins and low financial leverage, with a solid equity base. However, inconsistent revenue growth and cash flow challenges, particularly due to high capital expenditures, hinder its financial flexibility and growth prospects. Strategic improvements in cash flow management could enhance overall performance.

Income Statement

CKD Corporation shows a strong gross profit margin of 28.88% TTM, indicating efficient production and cost management. The net profit margin is also robust at 7.66% TTM. However, revenue growth has been inconsistent, with a recent decline, impacting overall revenue trajectory. The EBIT and EBITDA margins, at 11.57% and 15.00% respectively, suggest good operational efficiency but room for improvement.

Balance Sheet

The company maintains a healthy equity base with a debt-to-equity ratio of 0.26 TTM, indicating low leverage, which reduces financial risk. The ROE of 8.50% TTM is moderate, showing potential for higher returns on equity. The equity ratio of 62.77% TTM demonstrates strong asset financing through equity, enhancing financial stability.

Cash Flow

CKD Corporation's cash flow statement indicates challenges, with free cash flow being zero TTM due to large capital expenditures. The lack of operating cash flow data prevents a detailed analysis, but historically, the company has shown variability in free cash flow generation, impacting its financial flexibility.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
149.25B	134.43B	159.46B	142.20B	106.72B	100.72B
	Gross Profit
43.10B	38.04B	46.40B	40.89B	28.77B	26.14B
	EBIT
17.28B	13.11B	21.17B	17.88B	7.70B	5.23B
	EBITDA
22.38B	20.31B	28.37B	23.79B	13.21B	11.05B
	Net Income Common Stockholders
11.44B	8.34B	14.79B	12.57B	5.27B	3.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.40B	28.30B	28.57B	34.53B	36.38B	18.99B
	Total Assets
214.31B	208.28B	185.63B	172.51B	152.73B	136.06B
	Total Debt
35.38B	37.53B	18.63B	17.89B	20.41B	23.51B
	Net Debt
5.98B	9.79B	-9.94B	-16.63B	-15.96B	4.52B
	Total Liabilities
79.80B	79.19B	65.90B	62.94B	55.11B	53.60B
	Stockholders Equity
134.51B	129.10B	119.73B	109.57B	97.50B	82.36B
Cash Flow		Free Cash Flow
0.00	-12.99B	-702.00M	4.12B	14.56B	13.17B
	Operating Cash Flow
0.00	7.60B	11.05B	12.35B	17.52B	17.25B
	Investing Cash Flow
0.00	-20.23B	-12.79B	-8.54B	-2.79B	-4.55B
	Financing Cash Flow
0.00	13.05B	-5.74B	-6.26B	2.42B	-6.02B

CKD Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2258.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 2258 is above the 20-day moving average (MA) of 2129.30, above the 50-day MA of 2061.05, and below the 200-day MA of 2443.95, indicating a neutral trend. The MACD of 63.31 indicates Negative momentum. The RSI at 66.54 is Neutral, neither overbought nor oversold. The STOCH value of 69.04 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
6501	77 Outperform	$17.58T	28.76	10.50%	1.10%	0.56%	5.32%
6506	71 Outperform	$859.27B	15.04	13.62%	1.98%	-6.60%	12.77%
6473	68 Neutral	$365.55B	28.46	1.72%	4.17%	-0.38%	-65.61%
6645	66 Neutral	¥746.38B	45.89	2.10%	2.64%	-6.57%	-76.15%
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%
6407	63 Neutral	¥152.46B	11.24		3.54%	6.94%	14.98%
6471	52 Neutral	¥297.72B	29.61		5.23%	-3.42%	-35.09%