Revenue And Margin StrengthChoei's steady top-line growth together with high gross and operating margins indicates a business that converts revenue into profitable operations. Structural mid-30s EBITDA and ~18% EBIT margins provide durable cash-generating capacity and operating resilience to support reinvestment and competitive positioning over several months.

High Return On EquityA 17.32% ROE reflects effective use of shareholder capital and disciplined asset allocation. Sustained ROE at this level suggests management can generate attractive returns from limited equity, supporting long-term value creation and facilitating funding of growth without immediate need for significant equity issuance.

Consistent Revenue Growth TrendConsistent ~7% revenue growth combined with a material EPS improvement points to rising demand and operational leverage. Over a multi-month horizon, this trend supports capacity to scale services, improve margins through fixed-cost absorption, and strengthen earnings quality if cash conversion issues are resolved.

Bears Say

High LeverageA debt-to-equity ratio of 4.10 denotes heavy reliance on borrowed capital, increasing exposure to interest-rate moves and refinancing pressure. Structurally high leverage limits financial flexibility, raises fixed costs, and heightens downside risk in an economic slowdown over the coming months.

Negative Free Cash Flow GrowthNegative FCF growth and a negative FCF-to-net-income ratio mean reported profits are not converting into cash. This constrains the company's ability to fund capex, pay down debt, or sustain distributions without new financing, posing a durable constraint on strategic options and balance-sheet repair.

Low Equity Ratio / Capital Structure RiskAn equity ratio under 18% indicates a thin equity base relative to assets, amplifying losses and limiting absorbent capacity during shocks. Combined with high leverage, this structural capital weakness can increase borrowing costs, restrict new financing avenues, and curtail strategic investments over a 2-6 month horizon.

2993 FAQ

What was Choei Inc.’s price range in the past 12 months?

Choei Inc. lowest stock price was ¥1921.00 and its highest was ¥2600.00 in the past 12 months.

What is Choei Inc.’s market cap?

Choei Inc.’s market cap is ¥10.79B.

When is Choei Inc.’s upcoming earnings report date?

Choei Inc.’s upcoming earnings report date is May 08, 2026 which is in 79 days.

How were Choei Inc.’s earnings last quarter?

Choei Inc. released its earnings results on Feb 10, 2026. The company reported ¥71.51 earnings per share for the quarter, beating the consensus estimate of N/A by ¥71.51.

Is Choei Inc. overvalued?

According to Wall Street analysts Choei Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Choei Inc. pay dividends?

Choei Inc. pays a Annually dividend of ¥100 which represents an annual dividend yield of 4.08%. See more information on Choei Inc. dividends here

What is Choei Inc.’s EPS estimate?

Choei Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Choei Inc. have?

Choei Inc. has 4,473,400 shares outstanding.

What happened to Choei Inc.’s price movement after its last earnings report?

Choei Inc. reported an EPS of ¥71.51 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.191%.

Which hedge fund is a major shareholder of Choei Inc.?

Currently, no hedge funds are holding shares in JP:2993

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Choei Inc.

Choei Inc. provides condominium management services in Japan. It offers rental real estate management, real estate leasing, real estate sales and rental brokerage, real estate development, home remodeling, monthly apartment, and rental services. The company was founded in 1980 and is headquartered in Kyoto, Japan.