CKD Corporation (JP:6407)
:6407
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CKD Corporation
(6407)
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Rating:72Outperform
Price Target:
¥7,548.00
▲(36.25% Upside)
Action:Reiterated
Date:05/19/26
The score is primarily driven by solid financial fundamentals (strong margins and conservative leverage) offset by historically volatile cash flow. Technicals remain supportive with a clear uptrend, though overbought signals reduce conviction. Valuation is reasonable but not especially compelling given the moderate P/E and modest yield.
Positive Factors
Margin Sustainability
Stable gross and operating margins near industry-leading levels reflect durable product mix and manufacturing efficiency. Such sustained profitability supports internal R&D and capex for precision components, underpins cash generation, and cushions earnings through industry cycles.
Negative Factors
Cash-Flow Volatility
Material swings to negative free cash flow in 2023–2024 expose the business to working capital and reinvestment risk. Such volatility complicates multi-period planning, can force reactive financing, and weakens confidence in sustained dividends or steady capex during future cyclical troughs.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Sustainability
Stable gross and operating margins near industry-leading levels reflect durable product mix and manufacturing efficiency. Such sustained profitability supports internal R&D and capex for precision components, underpins cash generation, and cushions earnings through industry cycles.
Read all positive factors
CKD Corporation (6407) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥451.00B
Dividend Yield2.5%
Average Volume (3M)472.93K
Price to Earnings (P/E)32.2
Beta (1Y)1.70
Revenue Growth1.45%
EPS Growth0.37%
CountryJP
Employees4,645
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)193.69
Shares Outstanding68,279,450
10 Day Avg. Volume518,100
30 Day Avg. Volume472,929
Financial Highlights & Ratios
PEG Ratio57.49
Price to Book (P/B)1.86
Price to Sales (P/S)1.81
P/FCF Ratio23.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥7,155.00Price Target Upside29.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)270.94
Revenue Forecast (FY)¥181.06B
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 Co...
How the Company Makes Money
CKD makes money primarily by manufacturing and selling industrial automation products and related systems to equipment makers and end-user manufacturers. Its core revenue streams typically include: (1) Pneumatic equipment sales—standard and custom...
CKD Corporation Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 153.81B | 157.89B | 155.63B | 134.43B | 159.46B | 142.20B |
| Gross Profit | 44.82B | 45.74B | 44.16B | 37.04B | 45.48B | 40.09B |
| EBITDA | 25.06B | 26.65B | 25.60B | 19.94B | 27.82B | 23.79B |
| Net Income | 12.94B | 13.58B | 13.52B | 8.34B | 14.79B | 12.57B |
Balance Sheet | ||||||
| Total Assets | 210.26B | 226.72B | 210.87B | 208.28B | 185.63B | 172.51B |
| Cash, Cash Equivalents and Short-Term Investments | 35.35B | 42.84B | 35.33B | 28.30B | 28.57B | 34.53B |
| Total Debt | 34.32B | 34.60B | 35.80B | 37.53B | 18.63B | 17.89B |
| Total Liabilities | 73.28B | 73.18B | 74.34B | 79.18B | 65.89B | 62.94B |
| Stockholders Equity | 136.98B | 153.54B | 136.52B | 129.10B | 119.73B | 109.57B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 12.23B | 13.47B | -12.26B | -7.00M | 4.47B |
| Operating Cash Flow | 0.00 | 14.83B | 19.17B | 7.60B | 11.05B | 12.35B |
| Investing Cash Flow | 0.00 | -1.19B | -6.06B | -20.23B | -12.79B | -8.54B |
| Financing Cash Flow | 0.00 | -7.06B | -6.18B | 13.05B | -5.74B | -6.26B |
CKD Corporation Technical Analysis
Positive
5540.00
Price Trends
5568.10
Positive
4931.10
Positive
3842.55
Positive
Market Momentum
316.11
Positive
61.80
Neutral
63.10
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 5540 is below the 20-day moving average (MA) of 6478.50, below the 50-day MA of 5568.10, and above the 200-day MA of 3842.55, indicating a bullish trend. The MACD of 316.11 indicates Positive momentum. The RSI at 61.80 is Neutral, neither overbought nor oversold. The STOCH value of 63.10 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥64.83B | 12.04 | ― | 3.95% | 2.75% | 25.75% | |
74 Outperform | ¥650.02B | 35.70 | 5.25% | 2.13% | -7.11% | 68.57% | |
72 Outperform | ¥451.00B | 32.18 | ― | 2.50% | 1.45% | 0.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥373.73B | 27.40 | ― | 1.65% | 5.02% | 19.84% | |
56 Neutral | ¥809.80B | -12.83 | 1.88% | 6.16% | 1.98% | -48.28% | |
55 Neutral | ¥755.67B | 456.64 | 5.94% | 0.56% | 7.03% | -53.53% |
* Industrials Sector Average
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CKD Corporation Corporate Events
CKD Overhauls Board Structure Ahead of Governance Transition
May 15, 2026
CKD Corporation has approved a slate of board candidates and executive officer changes as it prepares to transition to a Company with an Audit and Supervisory Committee structure, effective June 26, 2026. The proposal includes maintaining Presiden...
CKD Revamps Governance Structure With Shift to Audit and Supervisory Committee
May 15, 2026
CKD Corporation plans to change its governance structure by transitioning from a company with an Audit Supervisory Board to a company with an Audit and Supervisory Committee, subject to shareholder approval at its June 2026 annual meeting. The mo...
CKD Corporation Raises Year-End Dividend, Lifts Full-Year Payout to ¥81
May 15, 2026
CKD Corporation’s board has approved a year-end dividend of ¥49 per share for the fiscal year ended March 31, 2026, up from the prior forecast of ¥35 and higher than the previous year’s ¥42. The payout, sourced from reta...
CKD Corporation Posts Steady FY2026 Results and Lifts Dividend Outlook
May 15, 2026
CKD Corporation reported a modest increase in consolidated net sales to ¥157.9 billion for the year ended March 31, 2026, with operating profit up 3.3% and profit attributable to owners of parent edging 0.4% higher, while maintaining double-d...
CKD Completes Restricted Stock Treasury Share Disposal to Executives and Employees
Mar 27, 2026
CKD Corporation has completed the disposal of 17,200 shares of its treasury stock as restricted stock, following Board approval in February 2026. The shares, priced at 4,645 yen each for a total value of 79,894,000 yen, were allotted to a wide gro...
CKD to Adopt Audit and Supervisory Committee Structure to Bolster Governance
Mar 27, 2026
CKD Corporation will transition to a governance structure as a Company with an Audit and Supervisory Committee, subject to shareholder approval at its 106th Annual General Meeting scheduled for June 2026. By placing Audit and Supervisory Committee...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.