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

• Market Cap: ¥3.50B
• Dividend Yield: 2.91%
• Average Volume (3M): 5.27K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.41
• Revenue Growth: 3.80%
• EPS Growth: -30.52%
• Country: JP
• Employees: 527
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 9.80
• Shares Outstanding: 7,044,000
• 10 Day Avg. Volume: 3,680
• 30 Day Avg. Volume: 5,270
• PEG Ratio: -1.19
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -78.94
• 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: 66 Neutral
• Price Target: ¥554.00 ▲(29.74% Upside)
• Action: Reiterated Date: 10/01/25
• Date: Action: Reiterated 10/01/25

Chuco Co., Ltd.'s overall stock score is driven by strong financial performance, despite challenges in profitability and cash flow. The technical analysis indicates a bearish trend, while the valuation suggests the stock is fairly priced. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Consistent Revenue Growth

Sustained top-line expansion across multiple years indicates expanding client demand and market penetration. Durable revenue growth supports scale economics, funds reinvestment in products and sales, and provides a structural base for improved margins and long-term strategic initiatives over the next several months.

Healthy Balance Sheet

A solid equity base and manageable leverage give the company financial flexibility to absorb shocks, finance capex or pursue M&A without immediate strain. This structural balance-sheet strength reduces refinancing risk and supports durable operations and investment capacity over a multi-month horizon.

Generally Positive Free Cash Flow

Consistent positive free cash flow in most years demonstrates the business can generate surplus cash after investment. That underpins dividend ability, capex funding and debt repayment capacity, providing a durable source of capital for shareholder returns and strategic actions despite short-term cash variability.

Negative Factors

Volatile Net Profit Margin

Significant swings in net profitability reduce earnings predictability and suggest structural pressure on the company's ability to consistently convert revenue into bottom-line profit. Persistent margin volatility complicates planning, undermines sustainable return targets, and raises execution risk over coming months.

Cash Conversion Challenges

A gap between reported earnings and operating cash flow signals difficulty turning accounting profits into liquid resources. Ongoing weak cash conversion can force reliance on external financing for working capital or capex, constraining self-funded growth and placing pressure on long-term dividend and investment plans.

Inconsistent Return on Equity

Fluctuating ROE indicates uneven effectiveness in deploying shareholder capital to generate profits. This inconsistency points to execution or cyclical issues that make sustained shareholder returns uncertain and complicate forecasting, potentially limiting investor confidence over the medium term.

Chuco Co., Ltd. Business Overview & Revenue Model

Company Description

Chuco Co., Ltd. publishes magazines in Japan. Its magazines comprise life and parenting information. The company also provides employment support books for high school students; and Furimo AR, a mobile version of community life information magazine. In addition, it is involved in mail-order, event seminar, and voluntary chain businesses. Further, the company plans advertising strategies and advertising, as well as promotes sales; handles advertising media, such as TV, radio, newspaper, magazine, printed matter, outdoor advertising, etc.; and implements advertising production and sales promotion, and Internet advertising. Chuco Co., Ltd. was founded in 1978 and is headquartered in Gifu, Japan.

How the Company Makes Money

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Chuco Co., Ltd. Financial Statement Overview

Summary

Chuco Co., Ltd. shows strong revenue growth and operational efficiency, but faces challenges in maintaining consistent profitability and cash flow stability. The balance sheet is solid, providing a foundation for future growth.

Income Statement

Chuco Co., Ltd. has demonstrated strong revenue growth, with a significant increase from 2020 to 2025. The gross profit margin has remained robust, indicating efficient cost management. However, net profit margin has been volatile, with a notable decline in 2025, suggesting challenges in maintaining consistent profitability. EBIT and EBITDA margins have improved over the years, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet shows a healthy equity position with a stable equity ratio. The debt-to-equity ratio is moderate, indicating manageable leverage levels. Return on equity has been inconsistent, with fluctuations reflecting varying profitability. Overall, the balance sheet suggests a stable financial position with room for improvement in profitability.

Cash Flow

Chuco Co., Ltd. has experienced fluctuations in free cash flow, with a decline in 2025. The operating cash flow to net income ratio indicates challenges in converting earnings into cash. However, the company has maintained positive free cash flow in most years, suggesting effective cash management despite recent setbacks.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.27B	11.33B	10.24B	8.52B	7.06B	6.55B
Gross Profit	5.02B	4.94B	4.54B	3.84B	3.05B	2.72B
EBITDA	348.66M	407.79M	420.13M	257.60M	181.21M	-356.54M
Net Income	118.25M	163.74M	192.75M	84.95M	101.24M	-367.91M
Balance Sheet
Total Assets	4.96B	5.07B	5.19B	4.58B	3.98B	3.88B
Cash, Cash Equivalents and Short-Term Investments	1.69B	1.90B	2.06B	1.89B	1.72B	1.65B
Total Debt	1.19B	1.23B	1.16B	1.18B	1.14B	947.35M
Total Liabilities	2.96B	2.96B	3.18B	2.70B	2.21B	2.16B
Stockholders Equity	1.91B	2.02B	1.94B	1.82B	1.77B	1.72B
Cash Flow
Free Cash Flow	0.00	-37.04M	465.07M	168.91M	-56.88M	-19.20M
Operating Cash Flow	0.00	7.28M	505.62M	252.55M	-5.58M	-8.20M
Investing Cash Flow	0.00	-246.02M	53.21M	21.87M	41.38M	-256.88M
Financing Cash Flow	0.00	-22.63M	-408.34M	-92.32M	196.53M	324.10M

Chuco Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 427.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2139, the sentiment is Neutral. The current price of 427 is below the 20-day moving average (MA) of 528.75, below the 50-day MA of 483.16, and below the 200-day MA of 447.63, indicating a neutral trend. The MACD of 9.06 indicates Positive momentum. The RSI at 50.74 is Neutral, neither overbought nor oversold. The STOCH value of 14.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	66 Neutral	¥3.50B	10.59	―	2.91%	3.80%	-30.52%
4196	63 Neutral	¥3.55B	563.91	―	―	9.93%	-81.98%
9466	63 Neutral	¥3.19B	8.14	―	6.49%	-13.21%	103.94%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
7069	60 Neutral	¥3.08B	7.59	―	―	-4.44%	―
4170	55 Neutral	¥2.86B	98.58	―	―	-3.17%	-535.65%
2656	48 Neutral	¥4.82B	-5.41	―	―	34.64%	8.49%