Kawaden Corporation (6648) AI Stock Analysis

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Kawaden Corporation

(TSE/TYO:6648)

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Rating:74Outperform

Price Target:JPY 1,632.00▲(11.78% Upside)

Action:reiterated

Date:11/12/26

The score is driven primarily by strong financial performance (recent margin and ROE improvement with low leverage) and supportive valuation (low P/E and high dividend yield). These positives are partially offset by weak technicals, with price trading below key moving averages and negative MACD indicating a downtrend and soft momentum.

Positive Factors

Margin and profitability improvementThe sharp expansion in gross, operating, and net margins indicates stronger pricing, product mix, and/or cost control. If maintained, improved profitability should increase internal funding capacity and make the electrical infrastructure business more resilient across the next several quarters.

Negative Factors

Negative latest revenue growthThe latest reported revenue-growth figure is negative, indicating that top-line expansion is not currently assured despite the broader improvement in profitability. Prolonged weak revenue would limit operating leverage, reduce project throughput, and make recent margin gains harder to sustain.

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

Market Cap: JPY 23.38B
Dividend Yield: 4.73%
Average Volume (3M): 48.81K
Price to Earnings (P/E): 8.2
Beta (1Y): 0.84
Revenue Growth: -3.79%
EPS Growth: 0.43%
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

Kawaden makes money mainly by executing project-based and product-based electrical infrastructure work for customers, with revenue recognized from (1) the sale and delivery of electrical equipment (e.g., power receiving/distribution switchboards, con...

Kawaden Corporation Financial Statement Overview

Summary

Strong recent improvement in revenue growth and profitability, with meaningful margin expansion and improved ROE alongside very low leverage. The main risk is historical volatility in margins and cash conversion across prior years, which raises questions about durability through the cycle.

Income Statement

82Very Positive

Balance Sheet

88Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	26.49B	24.22B	21.33B	19.66B	18.31B
Gross Profit	10.12B	8.02B	5.63B	4.89B	4.91B
EBITDA	4.71B	3.24B	1.71B	1.09B	1.48B
Net Income	2.93B	1.96B	744.40M	320.39M	646.92M
Balance Sheet
Total Assets	27.74B	25.57B	22.54B	21.52B	20.61B
Cash, Cash Equivalents and Short-Term Investments	10.84B	8.12B	7.37B	7.64B	6.68B
Total Debt	1.02B	1.13B	1.06B	945.98M	1.08B
Total Liabilities	7.42B	7.82B	6.50B	6.15B	5.33B
Stockholders Equity	20.32B	17.74B	16.04B	15.36B	15.28B
Cash Flow
Free Cash Flow	4.21B	1.22B	-39.16M	1.43B	-2.35B
Operating Cash Flow	5.06B	1.54B	166.88M	1.71B	-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 Price1460.00

Price Trends

50DMA1574.47Negative

100DMA1664.00Negative

200DMA1847.99Negative

Market Momentum

MACD-47.45Negative

RSI43.16Neutral

STOCH71.60Neutral

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 1460.00 is below the 20-day moving average (MA) of 1494.05, below the 50-day MA of 1574.47, and below the 200-day MA of 1847.99, indicating a bearish trend. The MACD of -47.45 indicates Negative momentum. The RSI at 43.16 is Neutral, neither overbought nor oversold. The STOCH value of 71.60 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
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6333	82Outperform	JPY 47.42B	12.88	―	4.36%	2.49%	-8.96%
JP:6363	74Outperform	JPY 68.08B	6.05	―	2.59%	-1.87%	215.36%
JP:6648	74Outperform	JPY 29.24B	8.19	―	4.73%	-3.79%	0.43%
JP:6517	71Outperform	JPY 68.15B	12.18	―	4.10%	9.85%	33.61%
JP:6237	70Outperform	JPY 87.29B	16.44	―	1.96%	13.01%	28.70%
JP:6381	67Neutral	JPY 67.14B	11.41	―	5.00%	13.76%	38.30%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6648 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6648	Kawaden Corporation	1460.00	-387.93	-20.99%
JP:6237	Iwaki Co. Ltd.	3895.00	1564.76	67.15%
JP:6333	Teikoku Electric Manufacturing Co., Ltd.	3300.00	443.30	15.52%
JP:6363	Torishima Pump Mfg.Co., Ltd.	2550.00	710.52	38.63%
JP:6381	ANEST IWATA Corp.	1700.00	273.28	19.15%
JP:6517	Denyo Co., Ltd.	3415.00	358.45	11.73%

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: Nov 12, 2026

Kawaden Corporation AI Stock Analysis