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Kitagawa Corporation (JP:6317)
:6317
Japanese Market
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Kitagawa Corporation (6317) AI Stock Analysis

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JP:6317

Kitagawa Corporation

(6317)

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Outperform 71 (OpenAI - Gpt-5.6Sol)
Rating:71Outperform
Price Target:
¥2,700.00
▲(55.71% 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
Improved Profitability
FY2026 net and gross margin improvement indicates better pricing, product mix, or cost control, supporting stronger earnings resilience. If maintained, the improved margin base can help the company absorb manufacturing-cycle volatility and fund operations more effectively over the next several quarters.
Negative Factors
Weak Cash Generation
The sharp FY2026 deterioration in operating cash flow and the move to negative free cash flow weaken cash conversion despite improved accounting profitability. This can constrain internally funded investment and reduce flexibility if working-capital pressure or higher cash outlays persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
FY2026 net and gross margin improvement indicates better pricing, product mix, or cost control, supporting stronger earnings resilience. If maintained, the improved margin base can help the company absorb manufacturing-cycle volatility and fund operations more effectively over the next several quarters.
Read all positive factors

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

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, adva...
How the Company Makes Money
Kitagawa makes money primarily by manufacturing and selling workholding and machine-tool peripheral products used by machining customers and machine tool builders. Key revenue streams include: (1) sales of workholding devices (e.g., power chucks a...

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
68
Positive
Balance Sheet
72
Positive
Cash Flow
45
Neutral
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 Flow0.00-1.41B2.94B1.93B-171.00M-1.15B
Operating Cash Flow0.002.05B6.15B4.88B2.81B3.50B
Investing Cash Flow0.00-3.22B-2.73B-3.08B-2.80B-4.70B
Financing Cash Flow0.001.32B-2.84B292.00M-686.00M-675.00M

Kitagawa Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1734.00
Price Trends
50DMA
1872.14
Positive
100DMA
1767.48
Positive
200DMA
1722.45
Positive
Market Momentum
MACD
206.41
Negative
RSI
82.49
Negative
STOCH
94.16
Negative
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 1734 is below the 20-day moving average (MA) of 2056.55, below the 50-day MA of 1872.14, and above the 200-day MA of 1722.45, indicating a bullish trend. The MACD of 206.41 indicates Negative momentum. The RSI at 82.49 is Negative, neither overbought nor oversold. The STOCH value of 94.16 is Negative, 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
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥23.87B11.39―4.31%3.71%-28.36%
69
Neutral
¥32.97B11.68―1.86%2.42%406.25%
66
Neutral
¥6.59B3.64―2.26%-2.81%186.98%
64
Neutral
¥86.08B11.688.18%2.04%14.68%69.21%
61
Neutral
¥25.21B35.14―0.61%6.11%89.38%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
52
Neutral
¥32.11B34.76―3.29%-6.36%-61.60%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6317
Kitagawa Corporation
2,552.00
1,004.97
64.96%
JP:6143
Sodick
1,715.00
828.29
93.41%
JP:6125
Okamoto Machine Tool Works,Ltd.
4,870.00
280.05
6.10%
JP:6151
Nitto Kohki Co., Ltd.
1,724.00
10.83
0.63%
JP:6327
Kitagawa Seiki Co., Ltd.
3,215.00
2,385.64
287.65%
JP:6408
Ogura Clutch Co., Ltd.
4,420.00
703.57
18.93%

Kitagawa Corporation Corporate Events

Kitagawa Keeps FY2027 Guidance, Trims Annual Dividend as Quarterly Profit Softens
Aug 7, 2026
Kitagawa Corporation reported consolidated net sales of ¥14.26 billion for the three months ended June 30, 2026, with operating profit of ¥935 million, ordinary profit of ¥1.27 billion and profit attributable to owners of parent of ...
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