| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2555.61 | -38 |
| Intrinsic value (DCF) | 933.62 | -77 |
| Graham-Dodd Method | 2097.94 | -49 |
| Graham Formula | 4706.27 | 15 |
CKD Corporation (6407.T) is a leading Japanese industrial machinery and components manufacturer specializing in automation solutions. Headquartered in Komaki, Japan, CKD operates through two key segments: Automatic Machinery and Component Products. The company provides a diverse portfolio, including packaging machines for medical, pharmaceutical, and food industries, lithium-ion battery winding machines, and solder paste inspection equipment. Additionally, CKD supplies labor-saving components like index units, direct drive motors, and pneumatic control systems. With a strong global presence, CKD serves industries requiring precision automation, fluid control, and pneumatic systems. Founded in 1943 and formerly known as Chukyo Electric Co., CKD has evolved into a trusted name in industrial automation, combining innovation with reliability. The company’s expertise in fine system components and fluid control technology positions it as a critical player in advanced manufacturing and automation sectors.
CKD Corporation presents a stable investment opportunity within the industrial machinery sector, supported by its diversified product portfolio and global reach. The company’s FY2024 financials show revenue of ¥134.4 billion and net income of ¥8.3 billion, with a diluted EPS of ¥124.94. While operating cash flow remains positive at ¥7.6 billion, high capital expenditures (¥-20.6 billion) suggest aggressive reinvestment. CKD’s beta of 0.942 indicates lower volatility compared to the broader market, appealing to risk-averse investors. However, its total debt of ¥37.5 billion against cash reserves of ¥27.7 billion warrants caution. The dividend yield, with a payout of ¥79 per share, adds income appeal. Investors should weigh CKD’s strong industrial positioning against sector cyclicality and competitive pressures.
CKD Corporation competes in the industrial automation and machinery sector, leveraging its expertise in pneumatic, drive, and fluid control components. Its competitive advantage lies in its integrated product offerings, serving high-growth industries like medical packaging and lithium-ion battery manufacturing. CKD’s dual-segment approach (Automatic Machinery and Component Products) allows it to capture both system-level and component-level demand. However, the company faces intense competition from global automation giants, particularly in cost-sensitive markets. CKD’s Japanese manufacturing base ensures high precision but may limit cost competitiveness against lower-cost regional players. Its focus on niche applications (e.g., solder paste inspection) provides differentiation but exposes it to cyclical industry demand. The company’s R&D investments in automation and fluid control technologies strengthen its long-term positioning, but scalability remains a challenge compared to larger multinational rivals.