CKD Corporation (6407) AI Stock Analysis

• Market Cap: ¥161.70B
• Dividend Yield: 3.32%
• Average Volume (3M): 387.86K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.52
• Revenue Growth: 10.27%
• EPS Growth: 35.69%
• Country: JP
• Employees: 4,645
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): 37.09
• Shares Outstanding: 68,279,450
• 10 Day Avg. Volume: 325,130
• 30 Day Avg. Volume: 387,863
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,942.00
• Price Target Upside: 21.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: ¥2,748.00 ▲(13.88% Upside)

CKD Corporation's overall stock score is driven by its strong financial performance and attractive valuation. The company's robust revenue growth, effective cost management, and improved cash flow generation are significant strengths. However, technical analysis indicates some short-term weakness, which tempers the overall score.

CKD Corporation Business Overview & Revenue Model

Company Description

CKD Corporation (6407) is a Japanese company that operates in the industrial machinery sector. It specializes in manufacturing and selling automation equipment, including pneumatic components, fluid control components, and automatic machinery. The company's products are widely used in various industries such as automotive, electronics, and food processing, helping to enhance production efficiency and automation.

How the Company Makes Money

CKD Corporation generates revenue primarily through the sale of its automation equipment and components. Its key revenue streams include the manufacturing and distribution of pneumatic components such as cylinders and valves, as well as fluid control components like solenoid valves and regulators. Additionally, the company earns income from its automatic machinery segment, which comprises systems for packaging, assembly, and inspection. CKD Corporation benefits from its strong partnerships with industrial manufacturers and relies on continuous innovation and product development to maintain its competitive edge and meet the evolving needs of its clients.

CKD Corporation Financial Statement Overview

Summary

CKD Corporation exhibits strong financial performance with robust revenue growth of 15.8%, effective cost management, and solid profitability margins. The balance sheet is stable with a strong equity ratio and low leverage, while cash flow has improved significantly, 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	155.63B	155.63B	134.43B	159.46B	142.20B	106.72B
Gross Profit	44.16B	44.16B	38.04B	46.40B	40.89B	28.77B
EBITDA	25.50B	26.73B	20.31B	28.37B	24.09B	13.44B
Net Income	13.52B	13.52B	8.34B	14.79B	12.57B	5.27B
Balance Sheet
Total Assets	210.87B	210.87B	208.28B	185.63B	172.51B	152.73B
Cash, Cash Equivalents and Short-Term Investments	35.33B	35.33B	28.30B	28.57B	34.53B	36.38B
Total Debt	35.80B	35.80B	37.53B	18.63B	17.89B	20.41B
Total Liabilities	74.34B	74.34B	79.19B	65.90B	62.94B	55.11B
Stockholders Equity	136.52B	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: 2413.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2413 is below the 20-day moving average (MA) of 2502.80, below the 50-day MA of 2579.38, and above the 200-day MA of 2357.42, indicating a neutral trend. The MACD of -48.50 indicates Positive momentum. The RSI at 39.55 is Neutral, neither overbought nor oversold. The STOCH value of 17.61 is Positive, 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
6407	71 Outperform	¥161.70B	12.46		3.32%	10.27%	35.69%
Sector *	64 Neutral	$10.75B	15.69	7.62%	2.01%	2.75%	-15.14%
FMMFF	―	$1.80B	15.77	6.44%	2.71%	―	―
TSB	―	€1.34B	10.36	8.30%	―	―	―
MW7	―	€1.51B	13.61	14.46%	―	―	―
6622	81 Outperform	¥175.91B	14.04		2.14%	18.08%	-18.15%
6507	64 Neutral	¥211.13B	17.68		1.27%	15.05%	38.95%

CKD Corporation Corporate Events

CKD Corporation Completes Treasury Stock Disposal for Director Compensation

CKD Corporation has completed the disposal of treasury stock as restricted stock compensation to three directors, following a board resolution on June 20, 2025. The disposal involved 16,978 shares at a price of 2,350 yen per share, totaling 39,898,300 yen, with restrictions on transferring the shares until a semiannual securities report is filed.

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.

CKD Corporation Aligns Director Incentives with Shareholder Interests through Stock Disposal

CKD Corporation has announced the disposal of treasury stock as restricted stock compensation to its directors, aiming to align their interests with shareholders and incentivize long-term corporate value growth. This move reflects the company’s strategy to enhance its market position by ensuring that directors are motivated to contribute to the company’s sustained success, potentially impacting stakeholders positively by aligning management’s goals with shareholder interests.

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 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.