Choei Inc. (2993) AI Stock Analysis

• Market Cap: ¥8.67B
• Dividend Yield: 1.73%
• Average Volume (3M): 2.10K
• Price to Earnings (P/E): 4.3
• Beta (1Y): 0.29
• Revenue Growth: 6.93%
• EPS Growth: 63.17%
• Country: JP
• Employees: 250
• Sector: Real Estate
• Sector Strength: 60
• Industry: Real Estate - Services
• EPS (TTM): 309.18
• Shares Outstanding: 4,473,400
• 10 Day Avg. Volume: 830
• 30 Day Avg. Volume: 2,096
• PEG Ratio: 0.03
• Price to Book (P/B): 0.75
• 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: ¥2,144.00
• Price Target Upside: 5.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥2,277.00 ▲(12.50%Upside)

The overall stock score reflects strong valuation and stable technical analysis, which are the most significant factors. Financial performance shows growth but is hindered by high leverage and liquidity concerns.

Choei Inc. Business Overview & Revenue Model

Company Description

Choei Inc. (2993) is a Japanese company engaged in the construction industry, primarily focusing on civil engineering and building projects. The company offers a range of services, including the construction of public infrastructure, commercial facilities, and residential buildings. Choei Inc. is known for its expertise in delivering complex projects and adhering to high-quality standards, contributing to the development of urban and rural areas across Japan.

How the Company Makes Money

Choei Inc. generates revenue through its construction services, which include civil engineering and building construction projects. The company earns income by securing contracts from government entities for public infrastructure projects such as roads, bridges, and utilities, as well as from private sector clients for commercial and residential buildings. Choei Inc.'s revenue streams are significantly influenced by its ability to maintain strong relationships with clients and its reputation for completing projects on time and within budget. Additionally, strategic partnerships with suppliers and subcontractors play a crucial role in optimizing costs and enhancing profitability.

Choei Inc. Financial Statement Overview

Summary

Choei Inc. shows strong revenue growth and operational efficiency, but high leverage and strained cash flow due to capital expenditures present risks.

Income Statement

Choei Inc. has demonstrated robust revenue growth with a steady increase from ¥8.48 billion in 2022 to ¥10.02 billion in 2025, reflecting a healthy expansion trajectory. The gross profit margin has remained solid, supporting profitability. However, the net profit margin shows some volatility, indicating potential areas for cost management improvements. Strong EBIT and EBITDA margins showcase operational efficiency.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio, which implies significant leverage; however, the equity has grown from ¥5.62 billion in 2020 to ¥11.93 billion in 2025, indicating strengthening financial health. The equity ratio is improving, reflecting better capitalization, but high leverage remains a potential risk factor.

Cash Flow

Choei Inc. has experienced fluctuating free cash flow, with negative figures in recent years indicating a reliance on external financing. The operating cash flow to net income ratio is stable, suggesting adequate cash generation from operations, but the negative free cash flow to net income ratio reflects high capital expenditures that may impact liquidity.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.02B	9.37B	9.16B	8.48B	8.03B
Gross Profit	3.35B	3.51B	3.54B	3.13B	2.86B
EBITDA	3.38B	3.81B	3.64B	3.24B	3.19B
Net Income	2.07B	1.26B	1.37B	1.56B	982.30M
Balance Sheet
Total Assets	66.69B	60.65B	56.85B	53.57B	52.24B
Cash, Cash Equivalents and Short-Term Investments	11.86B	10.10B	7.44B	8.42B	6.95B
Total Debt	48.90B	44.24B	42.22B	38.86B	42.70B
Total Liabilities	54.75B	50.39B	47.37B	44.79B	45.97B
Stockholders Equity	11.93B	10.26B	9.48B	8.78B	6.27B
Cash Flow
Free Cash Flow	-5.08B	-1.91B	-3.65B	2.09B	-969.36M
Operating Cash Flow	1.88B	3.22B	2.02B	3.70B	2.21B
Investing Cash Flow	-4.24B	-2.02B	-5.66B	656.52M	-3.13B
Financing Cash Flow	4.11B	1.46B	2.66B	-2.90B	1.07B

Choei Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2024.00
• 50DMA: Positive
• 100DMA: Negative
• 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:2993, the sentiment is Positive. The current price of 2024 is above the 20-day moving average (MA) of 2019.80, above the 50-day MA of 2017.02, and above the 200-day MA of 1969.19, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 53.86 is Neutral, neither overbought nor oversold. The STOCH value of 45.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2993.

Choei Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3277	76 Outperform	¥9.96B	5.18		4.87%	13.64%	128.96%
4262	76 Outperform	¥7.84B	12.71		2.60%	38.82%	35.82%
2993	75 Outperform	¥8.67B	4.30		1.73%	6.93%	63.17%
3294	72 Outperform	¥9.55B	10.39		5.46%	11.64%	-30.52%
8894	68 Neutral	¥9.68B	27.06		―	341.55%	-0.36%
Sector *	64 Neutral	€2.51B	17.31	3.70%	6.85%	4.21%	24.14%
2978	52 Neutral	¥6.53B	114.71		―	42.72%	-110.19%