Choei Inc. (2993) AI Stock Analysis

• Market Cap: ¥8.64B
• Dividend Yield: 1.74%
• Average Volume (3M): 2.12K
• 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: 55
• Industry: Real Estate - Services
• EPS (TTM): 309.18
• Shares Outstanding: 4,473,400
• 10 Day Avg. Volume: 1,810
• 30 Day Avg. Volume: 2,120
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥2,218.00 ▲(9.97%Upside)

Choei Inc. benefits from strong financial growth and attractive valuation, but high leverage and neutral technical indicators moderate the score.

Choei Inc. Business Overview & Revenue Model

Company Description

Choei Inc. (2993) is a Japan-based company primarily engaged in the construction and renovation of residential and commercial properties. The company operates in the real estate sector, offering a range of services including architectural design, project management, and construction engineering. Choei Inc. is known for its commitment to quality and sustainability in building practices, catering to both private and corporate clients.

How the Company Makes Money

Choei Inc. generates revenue through a diversified model centered around construction and real estate development services. The company earns income from the construction of new residential and commercial buildings, renovation projects, and through providing architectural and project management services. Key revenue streams include contracts with private clients for custom home builds, partnerships with commercial developers for large-scale projects, and fees for consulting and design services. Additional income may come from government contracts for public infrastructure projects. Strategic partnerships with suppliers and subcontractors also play a critical role in minimizing costs and maximizing 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: Neutral
• Last Price: 2017.00
• 50DMA: Negative
• 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 Neutral. The current price of 2017 is above the 20-day moving average (MA) of 2012.90, below the 50-day MA of 2025.62, and above the 200-day MA of 1959.63, indicating a neutral trend. The MACD of 1.61 indicates Negative momentum. The RSI at 49.22 is Neutral, neither overbought nor oversold. The STOCH value of 58.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2993.

Choei Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4262	76 Outperform	¥7.54B	12.22		3.88%	38.82%	35.82%
3294	72 Outperform	¥9.41B	10.24		5.54%	11.64%	-30.52%
2993	71 Outperform	¥8.64B	4.28		1.74%	6.93%	63.17%
3277	68 Neutral	¥9.32B	4.85		3.05%	13.64%	128.96%
8894	66 Neutral	¥7.12B	27.06		―	341.55%	-0.36%
Sector *	61 Neutral	AU$2.89B	8.10	4.17%	5.03%	17.25%	41.52%
2978	53 Neutral	¥6.71B	114.71		―	42.72%	-110.19%