KATO WORKS CO., LTD. (6390) AI Stock Analysis

• Market Cap: ¥14.40B
• Dividend Yield: 5.7%
• Average Volume (3M): 66.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -7.83%
• EPS Growth: -210.69%
• Country: JP
• Employees: 990
• Sector: Industrials
• Sector Strength: 91
• Industry: Agricultural - Machinery
• EPS (TTM): -102.40
• Shares Outstanding: 11,743,587
• 10 Day Avg. Volume: 81,590
• 30 Day Avg. Volume: 66,886
• PEG Ratio: 0.72
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

KATO WORKS CO., LTD. is currently experiencing financial difficulties with declining revenue and profitability, and significant cash flow issues. The technical indicators suggest a bearish trend with weak momentum. Despite these challenges, the stock offers a high dividend yield, which may attract some investors seeking income. However, the negative P/E ratio reflects substantial recent losses, raising concerns about future earnings potential.

KATO WORKS CO., LTD. Business Overview & Revenue Model

Company Description

KATO WORKS CO., LTD. is a Japanese company specializing in the manufacturing and sale of construction machinery and industrial equipment. Founded in 1895, the company operates primarily in the construction and engineering sectors, offering a wide range of products including mobile cranes, hydraulic excavators, and other specialized machinery designed to meet the needs of construction and industrial projects.

How the Company Makes Money

KATO WORKS CO., LTD. generates revenue through the design, manufacturing, and sale of its construction machinery and equipment portfolio. The company sells its products directly to construction companies, engineering firms, and industrial clients, both domestically in Japan and internationally. Key revenue streams include the sale of mobile cranes and excavators, which are essential in construction and infrastructure projects. Additionally, KATO WORKS may engage in after-sales services, including maintenance and parts replacement, thereby creating a recurring revenue stream. Strategic partnerships with distributors and service providers also play a significant role in expanding its market reach and contributing to its earnings.

KATO WORKS CO., LTD. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
53.95B	57.50B	57.53B	63.55B	58.52B	77.89B
	Gross Profit
9.71B	10.52B	9.10B	6.64B	5.63B	9.29B
	EBIT
1.88B	1.65B	1.26B	-7.22B	-2.81B	-282.00M
	EBITDA
2.62B	4.88B	4.37B	-6.77B	-141.00M	1.16B
	Net Income Common Stockholders
-3.47B	4.24B	2.40B	-9.57B	-5.74B	-1.33B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.71B	22.57B	19.98B	18.67B	14.78B	11.10B
	Total Assets
97.55B	105.33B	98.80B	102.64B	115.82B	125.39B
	Total Debt
34.49B	35.72B	33.21B	38.98B	46.51B	43.36B
	Net Debt
24.79B	13.15B	13.23B	20.31B	31.73B	32.26B
	Total Liabilities
51.56B	53.78B	51.90B	58.40B	64.33B	69.83B
	Stockholders Equity
46.00B	50.41B	45.69B	43.14B	50.51B	54.55B
Cash Flow		Free Cash Flow
0.00	-1.55B	6.27B	8.31B	-289.00M	-8.63B
	Operating Cash Flow
0.00	-696.00M	6.47B	9.55B	2.71B	-2.10B
	Investing Cash Flow
0.00	1.63B	1.37B	496.00M	-3.10B	-6.56B
	Financing Cash Flow
0.00	1.40B	-6.61B	-6.64B	2.99B	5.63B

KATO WORKS CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1211.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6390, the sentiment is Positive. The current price of 1211 is above the 20-day moving average (MA) of 1176.00, above the 50-day MA of 1202.71, and below the 200-day MA of 1225.40, indicating a bullish trend. The MACD of 10.94 indicates Negative momentum. The RSI at 57.18 is Neutral, neither overbought nor oversold. The STOCH value of 58.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6390.

KATO WORKS CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6301	80 Outperform	¥4.01T	9.16		4.37%	5.97%	13.78%
6305	75 Outperform	¥920.35B	11.31	9.99%	3.88%	-2.46%	-12.73%
6330	71 Outperform	€38.44B	19.03	3.19%	3.98%	15.32%	181.83%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%
6373	63 Neutral	¥12.52B	9.83		2.18%	1.63%	―
6390	45 Neutral	¥14.40B	―		5.70%	-7.83%	-210.69%

KATO WORKS CO., LTD. Corporate Events

KATO WORKS Boosts Investment in Italian Subsidiary to Enhance European Market Presence

KATO WORKS CO., LTD. has announced an additional investment of 3.4 million euros in its Italian subsidiary, KATO IMER S.p.A., increasing its stake to 94.2%. This move aims to strengthen the company’s financial position and management structure, enhancing competitiveness in the European market. The initiative is part of KATO WORKS’ mid-term management plan to expand its market share in Europe, driven by the growing demand for sustainable construction machinery. The company plans to streamline decision-making and align its development, sales, and service strategies to meet local needs.

KATO WORKS CO., LTD. Faces Decline in Net Sales Amid Profit Challenges

KATO WORKS CO., LTD. reported a decline in net sales by 8.8% for the quarter ending December 2024, compared to the same period in the previous year. Despite a slight increase in operating and ordinary profits, the company faced a significant net loss attributable to the owners. This financial performance indicates challenges in maintaining profitability, impacting shareholder value and financial stability.