Chuco Co., Ltd. (2139) AI Stock Analysis

• Market Cap: ¥3.13B
• Dividend Yield: 2.65%
• Average Volume (3M): 5.77K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.27
• Revenue Growth: 10.70%
• EPS Growth: -15.05%
• Country: JP
• Employees: 527
• Sector: Communication Services
• Sector Strength: 83
• Industry: Advertising Agencies
• EPS (TTM): 14.36
• Shares Outstanding: 7,044,000
• 10 Day Avg. Volume: 6,420
• 30 Day Avg. Volume: 5,766
• PEG Ratio: -2.02
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 73 Outperform
• Price Target: ¥470.00 ▲(3.98%Upside)

The overall stock score for Chuco Co., Ltd. is primarily driven by its solid financial performance and favorable valuation metrics. Technical indicators suggest a stable outlook, though there is room for caution due to lower stochastic values. The lack of earnings call and corporate events data limits additional insight.

Chuco Co., Ltd. Business Overview & Revenue Model

Company Description

Chuco Co., Ltd. (2139) is a company operating in the technology and services sector, specializing in software development and IT consulting. The company provides a range of solutions including custom software development, IT infrastructure services, and business process outsourcing to a diverse clientele across various industries.

How the Company Makes Money

Chuco Co., Ltd. makes money primarily through its software development services and IT consulting projects. The company generates revenue by offering tailored software solutions, which are billed based on project scope, complexity, and duration. Additionally, it earns from long-term IT infrastructure maintenance contracts and business process outsourcing services, which provide a steady stream of recurring income. Key partnerships with technology vendors and strategic clients also help in expanding its market reach and enhancing its service portfolio.

Chuco Co., Ltd. Financial Statement Overview

Summary

Chuco Co., Ltd. demonstrates strong revenue growth and efficient cost management, but faces challenges in profitability and cash flow generation. The balance sheet is stable with manageable leverage, though improvements in cash flow management are essential for sustaining growth. The potential for future growth exists if profitability and cash flow stability are enhanced.

Income Statement

Chuco Co., Ltd. has shown consistent revenue growth, with a TTM revenue increase of approximately 12.26% compared to the previous year. The gross profit margin remains strong at 44.15% for TTM, indicating efficient cost management. However, net profit margin has decreased to 1.41% for TTM, suggesting pressure on bottom-line profitability. EBIT and EBITDA margins are modest at 2.56% and 3.40% respectively for TTM, indicating room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet is relatively stable with an equity ratio of 38.67% as of TTM, reflecting a balanced approach towards equity financing. The debt-to-equity ratio stands at 0.55, indicating manageable leverage. Return on equity is modest at 8.44% for TTM, showing moderate returns for shareholders. Despite a solid equity position, there is potential risk associated with moderate debt levels.

Cash Flow

Chuco Co., Ltd. exhibits challenges in cash flow management, with operating cash flow being zero in the TTM period. This suggests difficulties in converting revenue into cash. The company has struggled with consistent positive free cash flow, potentially impacting future investment capabilities. However, previous periods showed improvements, indicating potential for recovery.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	11.50B	10.24B	8.52B	7.06B	6.55B	6.94B
Gross Profit	5.07B	4.54B	3.84B	3.05B	2.72B	3.04B
EBITDA	390.86M	420.13M	257.60M	181.21M	-356.54M	53.58M
Net Income	161.58M	192.75M	84.95M	101.24M	-367.91M	-19.06M
Balance Sheet
Total Assets	5.19B	5.19B	4.58B	3.98B	3.86B	3.56B
Cash, Cash Equivalents and Short-Term Investments	2.06B	2.06B	1.89B	1.72B	1.65B	1.35B
Total Debt	1.16B	1.16B	1.18B	1.14B	947.35M	623.04M
Total Liabilities	3.18B	3.17B	2.70B	2.21B	2.14B	1.54B
Stockholders Equity	1.94B	1.94B	1.82B	1.77B	1.72B	2.03B
Cash Flow
Free Cash Flow	0.00	465.07M	168.91M	-56.88M	-19.20M	-376.84M
Operating Cash Flow	0.00	505.62M	252.55M	-5.58M	-8.20M	-298.01M
Investing Cash Flow	0.00	53.21M	21.87M	41.38M	-256.88M	100.01M
Financing Cash Flow	0.00	-408.34M	-92.32M	196.53M	324.10M	-50.45M

Chuco Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 452.00
• 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:2139, the sentiment is Positive. The current price of 452 is above the 20-day moving average (MA) of 437.60, above the 50-day MA of 426.70, and above the 200-day MA of 435.48, indicating a bullish trend. The MACD of 7.91 indicates Negative momentum. The RSI at 68.22 is Neutral, neither overbought nor oversold. The STOCH value of 53.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2139.

Chuco Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2139	73 Outperform	¥3.13B	19.10		2.65%	10.70%	-15.05%
7067	71 Outperform	¥1.52B	19.54		1.03%	9.15%	2289.13%
4196	70 Outperform	¥2.93B	12.07		―	-3.61%	66.56%
Sector *	61 Neutral	$41.26B	-0.79	-14.19%	3.78%	2.39%	-73.52%
9258	56 Neutral	¥2.73B	―		―	12.94%	-155.72%
2656	54 Neutral	¥3.05B	―		―	2.09%	21.06%
7069	50 Neutral	¥2.81B	36.62		―	1.11%	―