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Kitagawa Corporation (6317) AI Stock Analysis

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JP:6317

Kitagawa Corporation

(TSE/TYO:6317)

Select Model
Rating:71Outperform
Price Target:JPY 2,370.00â–²(3.72% Upside)
Action:reiterated
Date:09/16/26

The score is driven by attractive valuation (low P/E and high dividend yield) and strong technical uptrend versus all major moving averages. Offsetting these positives, financial performance is constrained by a sharp deterioration in cash generation and negative free cash flow in the latest year, despite improved profitability and a manageable balance sheet.

Positive Factors
Profitability RecoveryThe FY2026 rebound in net and gross margins indicates improved pricing, product mix, or cost control. If maintained, stronger profitability can improve internal funding capacity and provide a more resilient earnings base for the company over the next several quarters.
Negative Factors
Deteriorating Cash GenerationNegative free cash flow and sharply lower operating cash flow weaken cash conversion and reduce funding flexibility. Even with improved accounting profitability, sustained weak cash generation could constrain investment, dividends, or the company’s ability to absorb operational pressure.

Kitagawa Corporation (6317) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%60%70%JP:6317+41.59%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 21.58B
Dividend Yield
5.12%
Average Volume (3M)
75.01K
Price to Earnings (P/E)
10.2
Beta (1Y)
1.18
Revenue Growth
9.30%
EPS Growth
4.02%
Country
Japan
Employees
2,221
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

Kitagawa Corporation Business Overview & Revenue Model

Company Description

Headquartered in Fuchu, Japan, Kitagawa Corporation is a global manufacturer and distributor of diverse industrial products. The company's offerings include a wide array of machine tool accessories such as various automated and manual chucks, advance...

Kitagawa Corporation Financial Statement Overview

Summary

Profitability rebounded in FY2026 with stronger net and gross margins and improved ROE, while leverage remains manageable. However, cash generation weakened sharply as free cash flow turned negative and operating cash flow fell, raising near-term quality-of-earnings and funding flexibility concerns; revenue growth was also only modest and historically choppy.

Income Statement

68Positive

Balance Sheet

72Positive

Cash Flow

45Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue59.20B58.41B57.28B61.57B59.70B58.68B
Gross Profit10.23B9.86B8.97B8.47B6.51B8.35B
EBITDA6.09B5.91B5.91B6.29B3.63B3.29B
Net Income2.08B3.13B1.25B1.27B-418.00M-951.00M
Balance Sheet
Total Assets86.81B84.91B82.00B80.14B74.48B73.31B
Cash, Cash Equivalents and Short-Term Investments10.98B11.96B11.50B10.65B8.41B8.85B
Total Debt16.01B16.39B14.04B16.24B13.82B13.40B
Total Liabilities39.84B38.95B40.26B40.11B37.41B36.57B
Stockholders Equity46.96B45.96B41.73B40.03B36.86B36.33B
Cash Flow
Free Cash Flow0-1.41B2.94B1.93B-171.00M-1.15B
Operating Cash Flow02.05B6.15B4.88B2.81B3.50B
Investing Cash Flow0-3.22B-2.73B-3.08B-2.80B-4.70B
Financing Cash Flow01.32B-2.84B292.00M-686.00M-675.00M

Kitagawa Corporation Technical Analysis

Technical Analysis SentimentPositive
Last Price2285.00

Price Trends

50DMA2280.58Positive
100DMA1990.44Positive
200DMA1811.21Positive

Market Momentum

MACD-28.39Positive
RSI46.93Neutral
STOCH69.16Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6317, the sentiment is Positive. The current price of 2285.00 is below the 20-day moving average (MA) of 2351.30, above the 50-day MA of 2280.58, and above the 200-day MA of 1811.21, indicating a neutral trend. The MACD of -28.39 indicates Positive momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of 69.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6317.

Kitagawa Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:6317 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6151JP:615173OutperformJPY 29.62B11.02―2.42%5.95%392.59%
JP:6317JP:631771OutperformJPY 21.42B10.20―5.12%9.30%4.02%
JP:6408JP:640868NeutralJPY 7.15B3.65―3.06%2.62%81.42%
JP:6327JP:632767NeutralJPY 18.77B20.86―0.83%23.43%40.78%
JP:6143JP:614362NeutralJPY 72.79B7.689.79%2.48%21.48%58.27%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:6125JP:612541NeutralJPY 28.74B23.78―3.73%-1.08%-44.97%

* General Sector Average

Performance Comparison

0%200%400%600%800%JP:6317JP:6143JP:6125JP:6151JP:6327JP:6408Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6317 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6317Kitagawa Corporation2285.00666.5041.18%
JP:6143Sodick Co., Ltd.1410.00479.4451.52%
JP:6125Okamoto Machine Tool Works,Ltd.4295.0061.841.46%
JP:6151Nitto Kohki Co., Ltd.1488.00-160.56-9.74%
JP:6327Kitagawa Seiki Co., Ltd.2402.001554.70183.49%
JP:6408Ogura Clutch Co., Ltd.4900.001345.1637.84%
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.

Date of analysis: Sep 16, 2026