Choei Inc. (2993) AI Stock Analysis

• Market Cap: ¥9.54B
• Dividend Yield: 4.06%
• Average Volume (3M): 1.45K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.31
• Revenue Growth: 7.75%
• EPS Growth: 56.88%
• Country: JP
• Employees: 250
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 44.16
• Shares Outstanding: 4,473,400
• 10 Day Avg. Volume: 830
• 30 Day Avg. Volume: 1,450
• PEG Ratio: 0.07
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.92
• P/FCF Ratio: -1.82
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,447.00 ▲(11.23% Upside)

Choei Inc. is supported by strong valuation metrics, including a low P/E ratio and attractive dividend yield, which are significant positives. The technical analysis indicates a stable upward trend. However, financial performance is hindered by high leverage and negative cash flow growth, which are areas of concern.

Choei Inc. Business Overview & Revenue Model

Company Description

Choei Inc. (2993) is a prominent company based in Japan that specializes in the manufacturing and distribution of high-quality optical components, primarily serving the telecommunications and industrial sectors. The company focuses on research and development to innovate its product offerings, which include optical lenses, filters, and precision optical instruments. Choei Inc. is committed to enhancing optical technologies and providing solutions that meet the evolving needs of its clients across various industries.

How the Company Makes Money

Choei Inc. generates revenue primarily through the sale of its optical components and technologies to businesses in the telecommunications and industrial sectors. The company has established key partnerships with major telecommunications providers, allowing it to secure long-term contracts for the supply of optical products. Additionally, Choei Inc. benefits from a diversified customer base, which helps mitigate risks associated with market fluctuations. The company's focus on research and development enables it to introduce innovative products, creating new revenue streams and enhancing its competitive edge in the market.

Choei Inc. Financial Statement Overview

Summary

Choei Inc. shows strong revenue growth and operational efficiency with healthy margins. However, high leverage and negative free cash flow growth pose financial risks. Improvement in cash flow management and debt reduction is needed.

Income Statement

Choei Inc. has demonstrated a solid revenue growth trajectory, with a notable increase of 6.94% in the latest year. The Gross Profit Margin stands at 33.48%, indicating efficient cost management. However, the Net Profit Margin of 20.63% suggests room for improvement in profitability. The EBIT and EBITDA margins are strong at 17.98% and 33.76%, respectively, reflecting robust operational performance.

Balance Sheet

The company's Debt-to-Equity Ratio is high at 4.10, indicating significant leverage, which could pose financial risks. However, the Return on Equity (ROE) is impressive at 17.32%, showcasing effective use of equity capital. The Equity Ratio is relatively low at 17.90%, suggesting a reliance on debt financing.

Cash Flow

Choei Inc. faces challenges with negative Free Cash Flow growth, indicating potential liquidity issues. The Operating Cash Flow to Net Income Ratio is 0.91, suggesting that cash flows are not fully covering net income. The Free Cash Flow to Net Income Ratio is negative, highlighting cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.18B	10.02B	9.37B	9.16B	8.48B	8.03B
Gross Profit	3.45B	3.35B	3.51B	3.54B	3.13B	2.86B
EBITDA	3.40B	3.38B	3.81B	3.64B	3.24B	3.19B
Net Income	2.05B	2.07B	1.26B	1.37B	1.56B	982.30M
Balance Sheet
Total Assets	66.66B	66.69B	60.65B	56.85B	53.57B	52.24B
Cash, Cash Equivalents and Short-Term Investments	11.00B	11.86B	10.10B	7.44B	8.42B	6.95B
Total Debt	49.23B	48.90B	44.24B	42.22B	38.86B	42.70B
Total Liabilities	55.00B	54.75B	50.39B	47.37B	44.79B	45.97B
Stockholders Equity	11.66B	11.93B	10.26B	9.48B	8.78B	6.27B
Cash Flow
Free Cash Flow	0.00	-5.08B	-1.91B	-3.65B	2.09B	-969.36M
Operating Cash Flow	0.00	1.88B	3.22B	2.02B	3.70B	2.21B
Investing Cash Flow	0.00	-4.24B	-2.02B	-5.66B	656.52M	-3.13B
Financing Cash Flow	0.00	4.11B	1.46B	2.66B	-2.90B	1.07B

Choei Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2200.00
• 50DMA: Negative
• 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:2993, the sentiment is Neutral. The current price of 2200 is below the 20-day moving average (MA) of 2236.70, below the 50-day MA of 2217.22, and above the 200-day MA of 2077.23, indicating a neutral trend. The MACD of -2.39 indicates Positive momentum. The RSI at 44.89 is Neutral, neither overbought nor oversold. The STOCH value of 10.22 is Positive, 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	¥8.40B	11.65	―	2.25%	23.91%	19.62%
2993	74 Outperform	¥9.54B	4.78	―	4.06%	7.75%	56.88%
3277	72 Outperform	¥11.12B	5.80	―	3.09%	-4.65%	77.74%
3294	72 Outperform	¥12.64B	9.28	―	4.38%	25.09%	30.66%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8894	61 Neutral	¥6.77B	-0.42	―	―	781.93%	-2754.00%
2978	45 Neutral	¥5.54B	51.87	―	―	47.71%	-49.58%