CKD Corporation (6407) AI Stock Analysis

• Market Cap: ¥185.23B
• Dividend Yield: 2.82%
• Average Volume (3M): 404.11K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.55
• 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: 440,070
• 30 Day Avg. Volume: 404,106
• 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: ¥2,849.00
• Price Target Upside: 3.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: ¥2,747.00 ▼(-0.62% Downside)

CKD Corporation's overall stock score is driven primarily by its strong financial performance and reasonable valuation. The technical analysis presents mixed signals, with the stock trading below key moving averages but not showing overbought conditions. The absence of earnings call data and corporate events does not impact the score.

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 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: Positive
• Last Price: 2764.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 2764 is above the 20-day moving average (MA) of 2562.90, above the 50-day MA of 2589.66, and above the 200-day MA of 2368.45, indicating a bullish trend. The MACD of 65.36 indicates Negative momentum. The RSI at 64.97 is Neutral, neither overbought nor oversold. The STOCH value of 89.49 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	86 Outperform	¥229.84B	11.09	8.52%	3.97%	2.48%	-2.06%
6622	81 Outperform	¥188.67B	15.06	8.64%	1.99%	18.08%	-18.15%
6134	77 Outperform	¥269.42B	17.96	―	2.86%	10.24%	49.97%
6508	75 Outperform	¥266.77B	14.87	13.09%	2.30%	5.25%	25.21%
6507	73 Outperform	¥245.52B	20.56	15.10%	1.09%	15.05%	38.95%
6407	73 Outperform	¥185.23B	14.27	―	2.82%	10.27%	35.69%
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.

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.