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CKD Corporation
(6407)
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Rating:57Neutral
Price Target:
¥4,616.00
▼(-16.68% Downside)
Action:Downgraded
Date:07/30/26
The score is supported primarily by solid fundamentals—healthy profitability and conservative leverage—but is held back by weak technical positioning (price below major moving averages) and a relatively high P/E that limits valuation attractiveness.
Positive Factors
Healthy profitability
CKD’s sustained gross and operating margins indicate that its automation and fluid-control portfolio generates meaningful value beyond basic volume growth. This profitability provides internal resources for product development, customer support, and selective expansion while supporting resilience through uneven industrial demand.
Negative Factors
Volatile free cash flow
Recent positive free cash flow is encouraging, but the prior negative periods show that accounting profitability does not consistently translate into cash generation. Continued volatility could constrain internally funded investment and make results more sensitive to working-capital or capital-spending swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy profitability
CKD’s sustained gross and operating margins indicate that its automation and fluid-control portfolio generates meaningful value beyond basic volume growth. This profitability provides internal resources for product development, customer support, and selective expansion while supporting resilience through uneven industrial demand.
Read all positive factors
CKD Corporation (6407) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥317.65B
Dividend Yield1.01%
Average Volume (3M)741.03K
Price to Earnings (P/E)18.7
Beta (1Y)1.74
Revenue Growth11.01%
EPS Growth29.70%
CountryJP
Employees4,826
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)251.22
Shares Outstanding68,279,450
10 Day Avg. Volume1,302,240
30 Day Avg. Volume741,026
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
¥7,612.00Price Target Upside37.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)337.6
Revenue Forecast (FY)¥203.90B
CKD Corporation Business Overview & Revenue Model
Company Description
CKD Corporation is a global provider engaged in the design, manufacturing, sale, and export of industrial automation equipment and various components. The company operates through its Automatic Machinery and Component Products segments. Its extens...
How the Company Makes Money
CKD makes money primarily by selling industrial automation products and fluid control components to business customers (B2B), generating revenue from (1) product sales and (2) associated system/engineering and aftermarket support tied to installed...
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 | 170.74B | 157.89B | 155.63B | 134.43B | 159.46B | 142.20B |
| Gross Profit | 51.86B | 45.74B | 44.16B | 37.04B | 45.48B | 40.09B |
| EBITDA | 32.24B | 28.01B | 26.73B | 20.30B | 28.37B | 24.09B |
| Net Income | 16.79B | 13.58B | 13.52B | 8.34B | 14.79B | 12.57B |
Balance Sheet | ||||||
| Total Assets | 241.92B | 226.72B | 210.87B | 208.28B | 185.63B | 172.51B |
| Cash, Cash Equivalents and Short-Term Investments | 42.49B | 42.84B | 35.33B | 28.30B | 28.57B | 34.53B |
| Total Debt | 33.24B | 34.60B | 35.80B | 37.53B | 18.63B | 17.89B |
| Total Liabilities | 81.45B | 73.18B | 74.34B | 79.18B | 65.89B | 62.94B |
| Stockholders Equity | 160.47B | 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
Negative
5540.00
Price Trends
5418.85
Negative
6072.63
Negative
5455.85
Negative
Market Momentum
-184.68
Positive
31.90
Neutral
1.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6407, the sentiment is Negative. The current price of 5540 is above the 20-day moving average (MA) of 5363.27, above the 50-day MA of 5418.85, and above the 200-day MA of 5455.85, indicating a bearish trend. The MACD of -184.68 indicates Positive momentum. The RSI at 31.90 is Neutral, neither overbought nor oversold. The STOCH value of 1.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥71.43B | 12.65 | ― | 4.74% | 6.49% | 36.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥503.11B | 25.99 | 7.86% | 1.86% | -7.97% | 70.99% | |
58 Neutral | ¥674.70B | 16.68 | -14.41% | 3.64% | ― | ― | |
57 Neutral | ¥317.65B | 18.75 | ― | 1.01% | 11.01% | 29.70% | |
57 Neutral | ¥296.95B | 20.20 | ― | 4.91% | 5.19% | 13.96% | |
48 Neutral | ¥506.34B | 173.10 | 3.70% | 0.37% | 11.76% | -21.18% |
* Industrials Sector Average
JP:6407
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CKD Corporation Corporate Events
CKD Sets Schedule and Terms for ¥5 Billion Share Buyback
Oct 19, 2026
CKD Corporation has confirmed the specific timetable for a previously approved share repurchase program, setting the buyback period from October 27, 2026 to December 30, 2026. The plan allows market purchases on the Tokyo Stock Exchange of up to 1...
CKD Corporation Sets Terms for Multi-Billion Yen Secondary Share Offering
Oct 19, 2026
CKD Corporation has announced key terms for a secondary offering of its common stock, following a board resolution earlier in October 2026. The offering, executed via purchase and underwriting by a syndicate of underwriters, sets a selling price o...
CKD Corporation posts sharp profit rebound and clears audit ahead of share offering
Oct 7, 2026
CKD Corporation reported a sharp rebound in performance for the three months ended June 30, 2026, with net sales rising 35.5% year on year to ¥49.1 billion and operating profit more than doubling. Profit attributable to owners of parent surge...
CKD Corp to Launch ¥5 Billion Share Buyback After Secondary Offering
Oct 7, 2026
CKD Corporation’s board has approved a share repurchase program aimed at improving capital efficiency and enhancing returns to shareholders. The move is also intended to ease potential supply-demand imbalances in its stock following a planne...
CKD Corporation’s Major Shareholders Launch Secondary Share Offering
Oct 7, 2026
CKD Corporation has announced a secondary offering of 3,570,800 shares of common stock, to be sold by a group of existing institutional shareholders including Sumitomo Mitsui Trust Bank, Mitsui Sumitomo Insurance, Sumitomo Mitsui Banking, MUFG Ban...
CKD Lifts Profit Outlook and Boosts Dividend on Strong Semiconductor Demand
Aug 10, 2026
CKD Corporation raised its full-year consolidated financial forecasts for the fiscal year ending March 31, 2027, citing stronger-than-expected demand in the semiconductor-related market within its Components segment and favorable order trends. The...
CKD Corporation Posts Surging Q1 Profits and Hikes Full-Year Outlook
Aug 10, 2026
CKD Corporation reported strong results for the quarter ended June 30, 2026, with net sales rising 35.5% year on year to ¥49.1 billion and operating profit more than doubling to ¥8.0 billion. Profit attributable to owners of the parent j...
CKD Completes Restricted Stock Grant to Directors
Jul 24, 2026
CKD Corporation has completed the disposal of 5,088 shares of its treasury stock as restricted stock compensation to three internal directors, following Board approval in late June. The shares, priced at 7,840 yen each for a total of about 39.9 mi...
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.