Chiikishinbunsha Co., Ltd. (2164) AI Stock Analysis

• Market Cap: ¥1.87B
• Dividend Yield: N/A
• Average Volume (3M): 95.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: 5.92%
• EPS Growth: 280.16%
• Country: JP
• Employees: 199
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): -8.76
• Shares Outstanding: 7,492,828
• 10 Day Avg. Volume: 41,640
• 30 Day Avg. Volume: 95,256
• PEG Ratio: 0.10
• Price to Book (P/B): 3.77
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -2.39
• 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: 44 Neutral
• Price Target: ¥241.00 ▲(0.42% Upside)

The score is primarily weighed down by weak 2025 cash flow and a leveraged balance sheet, despite improving profitability and steady revenue growth. Technical signals are mildly bearish/neutral (negative MACD and price below key moving averages), and valuation support is limited due to a negative P/E and no dividend yield data.

Positive Factors

Consistent revenue growth & return to profitability

Steady top-line expansion and a move from multi-year losses to positive earnings indicate the core publishing business is stabilizing. Over 2–6 months this supports predictable cash generation potential and operational continuity, reducing structural revenue risk versus earlier loss years.

High, stable gross margins

Sustained ~71–73% gross margins point to durable product economics and low variable cost intensity typical of content-driven publishing. This margin buffer supports operating leverage and the potential to sustain profits if management controls SG&A, making earnings less sensitive to revenue swings over the medium term.

Historic ability to generate free cash flow

Track record of positive free cash flow in several recent years demonstrates inherent cash-generative capacity in normal conditions. That historical cash conversion provides a foundation for deleveraging or reinvestment once transient pressures abate, improving the company’s medium-term financial flexibility.

Negative Factors

Elevated leverage

Leverage materially above one times equity increases financial risk for a low-margin publisher: interest and principal obligations reduce flexibility to invest or absorb shocks. Over the next several months higher leverage raises refinancing and covenant risk if earnings or cash flow underperform expectations.

Sharp deterioration in 2025 cash flow

A large negative swing in operating and free cash flow is structurally significant: it can force external financing, cutbacks, or asset sales. Given thin margins and existing debt, persistent weak cash generation would constrain capital allocation and raise solvency concerns over a 2–6 month horizon.

Very thin operating and net margins

Sub-2% operating and net margins leave little room to absorb cost inflation, investment needs, or revenue volatility. Structurally thin profitability increases the chance that small adverse changes in pricing, distribution costs, or content spending will materially depress earnings and cash flow.

Chiikishinbunsha Co., Ltd. Business Overview & Revenue Model

Company Description

Chiikishinbunsha Co.,Ltd. engages in publishing of newspapers in Japan. It is also involved in leaflet distribution; and general sales promotion support businesses. In addition, the company provides web advertising and homepage creation services; manages culture school; collects membership fees and tuition fees; provides exterior wall painting contracting; sells vegetables and rice. Chiikishinbunsha Co.,Ltd. was founded in 1984 and is headquartered in Yachiyo, Japan.

How the Company Makes Money

Chiikishinbunsha Co., Ltd. generates revenue primarily through the sale of its newspapers and publications. The company earns money from subscriptions and single-copy sales of its regional newspapers. Additionally, advertising revenue forms a significant part of its income, as businesses pay to have their advertisements featured within the publications. These advertisements are targeted towards the local communities that the newspapers serve, making them attractive to local businesses. The company may also engage in partnerships with other media or content providers to diversify its offerings and increase its market reach, although specific partnerships are not detailed. Overall, Chiikishinbunsha Co., Ltd.'s revenue model is heavily reliant on its ability to attract and retain subscribers and advertisers within the regions it serves.

Chiikishinbunsha Co., Ltd. Financial Statement Overview

Summary

Income statement trends are improving with steady revenue growth and a return to profitability, but operating and net margins remain very thin. Balance sheet risk is elevated with debt exceeding equity (debt-to-equity ~1.55 in 2025). Cash flow weakened sharply in 2025, with very low operating cash flow and deeply negative free cash flow, increasing near-term funding and volatility risk.

Income Statement

Revenue has grown steadily since 2022 (up ~5.8% in 2025 vs. ~1.7% in 2024), and profitability has improved materially from the 2020–2023 loss period to positive earnings in 2024–2025. Gross profit remains strong and stable (~71–73%), but operating and net profitability are still thin in 2025 (about ~1.4% operating margin and ~1.1% net margin), leaving results sensitive to cost pressures.

Balance Sheet

Leverage remains a key constraint: debt is higher than equity in recent years (debt-to-equity ~1.55 in 2025), and the company previously carried very elevated leverage (notably 2021–2023). Equity has improved versus the trough years, but the capital structure still looks relatively risky for a business with low operating margins, reducing financial flexibility if earnings soften.

Cash Flow

Cash generation deteriorated sharply in 2025, with operating cash flow dropping to a very low level and free cash flow turning deeply negative (from positive in 2024). While prior years show the company can generate positive free cash flow (2021–2022 and 2024), the 2025 swing suggests elevated reinvestment needs and/or working-capital pressure, creating near-term funding and volatility risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.15B	2.98B	2.93B	2.89B	2.79B
Gross Profit	2.24B	2.13B	2.13B	2.12B	2.01B
EBITDA	86.47M	32.13M	-7.47M	41.55M	-52.11M
Net Income	41.34M	3.48M	-51.33M	8.46M	-86.87M
Balance Sheet
Total Assets	2.30B	1.25B	1.11B	1.29B	1.33B
Cash, Cash Equivalents and Short-Term Investments	640.08M	772.18M	674.13M	874.37M	902.58M
Total Debt	1.02B	365.88M	466.73M	606.52M	777.65M
Total Liabilities	1.65B	944.33M	954.93M	1.11B	1.25B
Stockholders Equity	653.23M	302.27M	154.25M	176.20M	81.28M
Cash Flow
Free Cash Flow	-1.03B	76.77M	-63.48M	50.78M	35.32M
Operating Cash Flow	11.83M	127.87M	-19.47M	67.69M	60.51M
Investing Cash Flow	-891.72M	-59.53M	-45.14M	-18.47M	-119.36M
Financing Cash Flow	947.80M	29.71M	-135.64M	-77.43M	175.84M

Chiikishinbunsha Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 240.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2164, the sentiment is Negative. The current price of 240 is below the 20-day moving average (MA) of 245.55, below the 50-day MA of 262.12, and below the 200-day MA of 257.73, indicating a neutral trend. The MACD of -2.75 indicates Negative momentum. The RSI at 47.41 is Neutral, neither overbought nor oversold. The STOCH value of 34.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2164.

Chiikishinbunsha Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2481	75 Outperform	¥3.73B	9.42	―	2.95%	1.41%	-6.45%
6176	73 Outperform	¥9.81B	14.12	―	―	7.76%	12.44%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2341	58 Neutral	¥3.97B	-7.15	―	2.78%	6.71%	-1627.44%
3931	50 Neutral	¥2.82B	-2,228.42	―	3.49%	10.69%	-101.97%
2164	44 Neutral	¥1.87B	-66.91	―	―	5.92%	280.16%
3137	41 Neutral	¥2.91B	-173.95	―	―	5.00%	84.92%