Chugai Ro Co., Ltd. (1964) AI Stock Analysis

• Market Cap: ¥35.96B
• Dividend Yield: 2.77%
• Average Volume (3M): 26.67K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.21
• Revenue Growth: 15.61%
• EPS Growth: 81.99%
• Country: JP
• Employees: 700
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 7,800,000
• 10 Day Avg. Volume: 27,110
• 30 Day Avg. Volume: 26,670
• PEG Ratio: 0.23
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.75
• P/FCF Ratio: -6.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥5,244.00 ▲(15.25% Upside)

Chugai Ro Co., Ltd. benefits from strong financial performance and attractive valuation metrics, with technical indicators supporting a positive outlook. However, cash flow management remains a concern that could impact future growth.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and product demand, supporting long-term business sustainability and competitive positioning.

Balance Sheet Health

Low leverage and a strong equity ratio enhance financial stability, providing flexibility for future investments and growth opportunities.

Profit Margins

Healthy profit margins reflect operational efficiency and pricing power, supporting sustained profitability and competitive advantage.

Negative Factors

Cash Flow Challenges

Negative operating cash flow indicates potential liquidity issues, which could constrain business operations and limit growth investments.

Net Income Growth Concerns

Slower net income growth could impact future profitability, necessitating strategic adjustments to maintain competitive edge and shareholder value.

Cash Flow Generation Issues

Poor cash flow generation relative to net income suggests inefficiencies in converting earnings to cash, potentially affecting financial resilience.

Chugai Ro Co., Ltd. Business Overview & Revenue Model

Company Description

Chugai Ro Co., Ltd., established in 1964, is a prominent player in the manufacturing and distribution sectors, specializing in high-quality industrial materials and products. The company operates in various sectors including chemicals, construction materials, and specialized manufacturing, focusing on delivering innovative solutions tailored to meet the diverse needs of its clientele. With a commitment to quality and sustainability, Chugai Ro Co., Ltd. has positioned itself as a trusted partner in both domestic and international markets.

How the Company Makes Money

Chugai Ro Co., Ltd. generates revenue primarily through the sale of its industrial products, which include chemicals and construction materials. The company adopts a multi-faceted revenue model that encompasses direct sales to manufacturers, distributors, and construction firms. Key revenue streams include long-term contracts with large enterprises, which provide a stable income base, and the development of proprietary products that command premium pricing due to their specialized nature. Additionally, strategic partnerships with other companies enhance its market reach and innovation capabilities, contributing to increased sales and profitability. The company's emphasis on research and development ensures a continuous pipeline of new products, further bolstering its revenue potential.

Chugai Ro Co., Ltd. Financial Statement Overview

Summary

Chugai Ro Co., Ltd. demonstrates strong revenue growth and robust profit margins, supported by a solid balance sheet with low leverage. However, negative cash flow positions indicate potential cash management challenges.

Income Statement

Chugai Ro Co., Ltd. has shown a robust revenue growth of 23.75% from 2024 to 2025. The gross profit margin stands at 20.94%, and the net profit margin is 8.27%, indicating strong profitability. The EBIT margin of 7.55% and EBITDA margin of 13.34% suggest effective operational efficiency. The company's consistent revenue growth trajectory and healthy margins underline its strong market position, although the net income growth may need attention to sustain long-term profitability.

Balance Sheet

The company maintains a solid financial structure with a debt-to-equity ratio of 0.19, reflecting prudent financial leverage. The return on equity is 10.58%, showcasing effective utilization of equity capital. A high equity ratio of 58.12% indicates financial stability and a strong capacity to handle liabilities. These metrics suggest a well-managed balance sheet with low risk, although maintaining this low leverage while expanding could be challenging.

Cash Flow

While the operating cash flow is negative at -3,696 million JPY, indicating potential operational cash challenges, the free cash flow has shown notable growth despite being negative. The free cash flow to net income ratio is -1.47, highlighting cash flow generation issues relative to net income. However, the company's investment in capital expenditure may enhance future cash flow, suggesting room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.31B	36.25B	29.28B	27.98B	26.32B	24.72B
Gross Profit	7.95B	7.59B	6.12B	5.69B	5.56B	4.67B
EBITDA	5.81B	4.83B	3.66B	2.14B	2.05B	936.00M
Net Income	3.71B	3.00B	2.20B	1.23B	1.36B	329.00M
Balance Sheet
Total Assets	46.02B	48.74B	48.86B	41.18B	38.14B	38.58B
Cash, Cash Equivalents and Short-Term Investments	6.07B	4.39B	10.06B	7.88B	11.13B	7.12B
Total Debt	6.40B	5.51B	7.29B	3.99B	3.99B	5.99B
Total Liabilities	18.88B	20.13B	21.09B	17.14B	14.93B	16.79B
Stockholders Equity	26.91B	28.33B	27.57B	23.86B	23.07B	21.68B
Cash Flow
Free Cash Flow	0.00	-4.42B	-2.23B	-2.74B	5.77B	2.86B
Operating Cash Flow	0.00	-3.70B	-891.00M	-2.50B	6.09B	3.30B
Investing Cash Flow	0.00	654.00M	550.00M	-63.00M	510.00M	-551.00M
Financing Cash Flow	0.00	-2.70B	2.45B	-727.00M	-2.51B	-4.48B

Chugai Ro Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4550.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1964, the sentiment is Positive. The current price of 4550 is above the 20-day moving average (MA) of 4509.50, above the 50-day MA of 4447.00, and above the 200-day MA of 4023.90, indicating a bullish trend. The MACD of 24.38 indicates Negative momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 43.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1964.

Chugai Ro Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1964	81 Outperform	¥35.96B	7.90	―	2.77%	15.61%	81.99%
6144	75 Outperform	¥39.16B	11.18	―	3.00%	12.75%	96.71%
6247	72 Outperform	¥41.98B	10.01	―	3.32%	18.47%	64.23%
6284	68 Neutral	¥91.90B	12.16	―	3.24%	18.70%	33.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6125	62 Neutral	¥32.38B	14.76	―	3.56%	-3.85%	-45.64%
6151	59 Neutral	¥35.09B	68.37	―	2.13%	1.13%	-66.14%

Chugai Ro Co., Ltd. Corporate Events

Chugai Ro Co., Ltd. Revises Earnings Forecast Upward

Chugai Ro Co., Ltd. has revised its earnings forecast for the fiscal year ending March 31, 2026, reflecting an upward adjustment in net income attributable to owners of the parent. This revision is primarily due to a gain of approximately ¥1.3 billion from the sale of investment securities, indicating a positive impact on the company’s financial performance and potential benefits for stakeholders.

The most recent analyst rating on (JP:1964) stock is a Buy with a Yen5244.00 price target. To see the full list of analyst forecasts on Chugai Ro Co., Ltd. stock, see the JP:1964 Stock Forecast page.

Chugai Ro Co., Ltd. Reports Stable Growth and Revised Earnings Forecast

Chugai Ro Co., Ltd. reported a slight increase in net sales for the first half of 2025, with a notable rise in operating and ordinary profits. The company’s financial position remains stable with a slight improvement in the equity-to-asset ratio, and it has revised its earnings forecast for the fiscal year ending March 31, 2026, indicating positive growth expectations.

The most recent analyst rating on (JP:1964) stock is a Buy with a Yen5244.00 price target. To see the full list of analyst forecasts on Chugai Ro Co., Ltd. stock, see the JP:1964 Stock Forecast page.