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Kawaden Corporation (6648) AI Stock Analysis

JP:6648

Kawaden Corporation

(TSE/TYO:6648)

Select Model
Rating:76Outperform
Price Target:JPY 1,870.00â–²(26.18% Upside)
Action:reiterated
Date:08/11/26

Score is driven primarily by strong recent financial performance (meaningful margin and return improvement alongside low leverage) and supportive valuation (low P/E and solid dividend yield). Offsetting these positives, technical signals are weak with the stock trading below major moving averages, suggesting the market trend is currently unfavorable.

Positive Factors
Conservative balance sheet / low leverageDebt-to-equity near 5–7% and rising equity give durable financial flexibility, lowering refinancing and liquidity risk. This conservative structure supports capital spending, bidding on large projects and weathering demand cycles without forcing distressed asset sales or emergency financing.
Negative Factors
Cyclicality and earnings volatilityHistoric swings in profitability and returns reflect exposed end markets and project timing sensitivity. These cyclic dynamics reduce confidence that recent margin gains persist, increasing forecasting risk for earnings, capital allocation and the durability of improved ROE over full cycles.

Kawaden Corporation (6648) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%40%50%JP:6648-18.18%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 23.73B
Dividend Yield
4.66%
Average Volume (3M)
55.59K
Price to Earnings (P/E)
8.1
Beta (1Y)
0.71
Revenue Growth
-2.59%
EPS Growth
19.88%
Country
Japan
Employees
574
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

Kawaden Corporation Business Overview & Revenue Model

Company Description

Kawaden Corporation, based in Japan, specializes in the comprehensive lifecycle of electrical machinery and equipment, encompassing design, manufacturing, installation, and sales. Beyond hardware, the company also provides extensive electrical engine...

How the Company Makes Money

null

Kawaden Corporation Financial Statement Overview

Summary

Strong improvement in 2025–2026 with accelerating revenue growth, materially higher profitability (gross margin ~38%, net margin ~11%, EBIT margin ~15.5% in 2026), and a conservatively financed balance sheet (debt-to-equity ~5%–7%). Main risk is cyclicality/volatility: earlier years showed thinner margins and uneven performance, and cash conversion has not been consistent through the cycle.

Income Statement

82Very Positive

Balance Sheet

88Very Positive

Cash Flow

72Positive
Financial statement breakdown
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue26.49B24.22B21.33B19.66B18.31B
Gross Profit10.12B8.02B5.63B4.89B4.91B
EBITDA4.71B3.24B1.71B1.09B1.48B
Net Income2.93B1.96B744.40M320.39M646.92M
Balance Sheet
Total Assets27.74B25.57B22.54B21.52B20.61B
Cash, Cash Equivalents and Short-Term Investments10.84B8.12B7.37B7.64B6.68B
Total Debt1.02B1.13B1.06B945.98M1.08B
Total Liabilities7.42B7.82B6.50B6.15B5.33B
Stockholders Equity20.32B17.74B16.04B15.36B15.28B
Cash Flow
Free Cash Flow4.21B1.22B-39.16M1.43B-2.35B
Operating Cash Flow5.06B1.54B166.88M1.71B-988.75M
Investing Cash Flow-1.28B-564.11M-297.13M-356.27M-1.32B
Financing Cash Flow-1.07B-226.11M-138.66M-392.44M-141.48M

Kawaden Corporation Technical Analysis

Technical Analysis SentimentNegative
Last Price1482.00

Price Trends

50DMA1618.55Negative
100DMA1683.06Negative
200DMA1883.83Negative

Market Momentum

MACD-30.79Positive
RSI33.05Neutral
STOCH35.05Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6648, the sentiment is Negative. The current price of 1482.00 is below the 20-day moving average (MA) of 1583.30, below the 50-day MA of 1618.55, and below the 200-day MA of 1883.83, indicating a bearish trend. The MACD of -30.79 indicates Positive momentum. The RSI at 33.05 is Neutral, neither overbought nor oversold. The STOCH value of 35.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6648.

Kawaden Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:6648 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6381JP:638184OutperformJPY 68.49B12.10―4.94%6.49%36.18%
JP:6333JP:633382OutperformJPY 48.65B13.58―4.29%-2.07%6.34%
JP:6517JP:651780OutperformJPY 74.01B11.10―3.76%9.99%41.83%
JP:6648JP:664876OutperformJPY 29.60B8.14―4.66%-2.59%19.88%
JP:6237JP:623768NeutralJPY 85.54B16.48―1.95%7.86%19.30%
JP:6363JP:636357NeutralJPY 68.03B9.12―2.50%0.93%212.09%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%JP:6648JP:6237JP:6333JP:6363JP:6381JP:6517Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:6648 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6648Kawaden Corporation1482.00-256.10-14.73%
JP:6237Iwaki Co. Ltd.3905.001419.9957.14%
JP:6333Teikoku Electric Manufacturing Co., Ltd.3355.00400.7813.57%
JP:6363Torishima Pump Mfg.Co., Ltd.2642.00592.1528.89%
JP:6381ANEST IWATA Corp.1721.00277.1719.20%
JP:6517Denyo Co., Ltd.3725.00954.8234.47%
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: Aug 11, 2026