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CKD Corporation (JP:6407)
:6407
Japanese Market
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CKD Corporation (6407) AI Stock Analysis

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JP:6407

CKD Corporation

(6407)

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Neutral 57 (OpenAI - Gpt-5.6Sol)
Rating:57Neutral
Price Target:
¥6,065.00
▲(9.48% Upside)
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
Recent Revenue and Earnings Growth
The return to revenue growth alongside stronger earnings indicates renewed demand for CKD’s automation and fluid-control products. If sustained, this can improve operating leverage and reinforce customer adoption across manufacturing applications.
Negative Factors
Volatile Free Cash Flow
Recent cash-flow improvement is encouraging, but the earlier negative periods and modest operating-cash conversion show that earnings do not consistently translate into cash. This may constrain reinvestment flexibility during weaker industrial cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Recent Revenue and Earnings Growth
The return to revenue growth alongside stronger earnings indicates renewed demand for CKD’s automation and fluid-control products. If sustained, this can improve operating leverage and reinforce customer adoption across manufacturing applications.
Read all positive factors

CKD Corporation (6407) vs. iShares MSCI Japan ETF (EWJ)

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
Strong profitability (gross margin ~28–29%, EBIT margin low-to-mid teens) and a conservatively levered balance sheet (low debt-to-equity) support resilience. The main drag is choppy cash flow, including negative free cash flow in 2023–2024 despite improvement in 2025–2026.
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
61
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue170.74B157.89B155.63B134.43B159.46B142.20B
Gross Profit51.86B45.74B44.16B37.04B45.48B40.09B
EBITDA32.24B28.01B26.73B20.30B28.37B24.09B
Net Income16.79B13.58B13.52B8.34B14.79B12.57B
Balance Sheet
Total Assets241.92B226.72B210.87B208.28B185.63B172.51B
Cash, Cash Equivalents and Short-Term Investments42.49B42.84B35.33B28.30B28.57B34.53B
Total Debt33.24B34.60B35.80B37.53B18.63B17.89B
Total Liabilities81.45B73.18B74.34B79.18B65.89B62.94B
Stockholders Equity160.47B153.54B136.52B129.10B119.73B109.57B
Cash Flow
Free Cash Flow0.0012.23B13.47B-12.26B-7.00M4.47B
Operating Cash Flow0.0014.83B19.17B7.60B11.05B12.35B
Investing Cash Flow0.00-1.19B-6.06B-20.23B-12.79B-8.54B
Financing Cash Flow0.00-7.06B-6.18B13.05B-5.74B-6.26B

CKD Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5540.00
Price Trends
50DMA
6607.00
Negative
100DMA
6357.35
Negative
200DMA
5057.10
Positive
Market Momentum
MACD
-259.85
Positive
RSI
40.34
Neutral
STOCH
20.49
Neutral
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 below the 20-day moving average (MA) of 5940.50, below the 50-day MA of 6607.00, and above the 200-day MA of 5057.10, indicating a neutral trend. The MACD of -259.85 indicates Positive momentum. The RSI at 40.34 is Neutral, neither overbought nor oversold. The STOCH value of 20.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6407.

CKD Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
¥78.84B13.753.95%6.49%36.18%
66
Neutral
¥538.98B27.356.59%1.65%-7.97%78.01%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
58
Neutral
¥766.67B19.01-22.79%3.14%1.98%-48.28%
57
Neutral
¥372.60B22.132.50%11.01%29.70%
54
Neutral
¥295.48B20.941.65%5.19%13.96%
51
Neutral
¥554.48B187.362.07%0.30%11.76%-21.18%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6407
CKD Corporation
5,560.00
3,103.04
126.30%
JP:6324
Harmonic Drive Systems
5,780.00
3,196.04
123.69%
JP:6268
Nabtesco
4,581.00
1,501.61
48.76%
JP:6481
THK Co
6,804.00
2,934.30
75.83%
JP:6381
ANEST IWATA Corp.
1,955.00
456.56
30.47%
JP:6622
Daihen Corporation
13,120.00
5,418.45
70.36%

CKD Corporation Corporate Events

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...
CKD Corporation Reveals JPY 178 Million Embezzlement at Subsidiary, Tightens Controls
Jul 9, 2026
CKD Corporation disclosed that a former accounting staff member at consolidated subsidiary CKD GLOBAL SERVICE CORP. was arrested on suspicion of embezzling company funds by repeatedly transferring money from corporate accounts to a personal accoun...
CKD Corporation Grants Restricted Treasury Stock to Align Directors With Long-Term Growth
Jun 26, 2026
CKD Corporation has approved the disposal of 5,088 shares of its treasury stock as restricted stock compensation for three internal directors, with a total value of approximately 39.9 million yen. The shares will be granted at 7,840 yen per share,...
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: Jul 30, 2026