Historical Revenue GrowthA 27.6% revenue jump in 2024 indicates the company has demonstrated scalable demand and effective top-line expansion capabilities. That past acceleration implies a viable business model and market acceptance that can support medium-term recovery or renewed expansion if operational issues are addressed.

High Gross Profit MarginA gross margin near 67% signals strong cost control and/or pricing power at the core of operations. Sustained high gross margins provide structural support for operating leverage, enabling the company to invest in growth or absorb SG&A without eroding product-level profitability over the next several quarters.

Improved Balance Sheet & ROEBalanced leverage, a stronger equity ratio and a 17.7% ROE reflect disciplined capital structure and effective use of shareholders' equity. This foundation improves financial flexibility for capital expenditures, expansion, or downturn resilience and supports sustainable returns over a multi-quarter horizon.

Bears Say

Collapse In Free Cash FlowA nearly 100% drop in free cash flow and an FCF-to-net-income ratio of 0.03 reveal a structural cash-generation shortfall. Limited free cash constrains reinvestment, dividends, and debt reduction, and increases dependency on external financing to fund operations and strategic initiatives over coming quarters.

Low Net Profit MarginA 4.1% net margin leaves little buffer against cost shocks or demand softness. In a competitive restaurant industry, low bottom-line conversion reduces retained earnings for reinvestment and heightens sensitivity to input cost inflation, making sustained profitability harder to achieve without structural improvements.

Revenue Growth DecelerationGrowth dropping from double digits to 1.9% suggests the company faces saturation, execution limits, or weakening demand. Slower top-line expansion undermines the scalability of fixed-cost leverage and risks limiting future margin improvement and free cash generation unless new revenue initiatives are implemented.

3178 FAQ

What was CHIMNEY CO LTD’s price range in the past 12 months?

CHIMNEY CO LTD lowest stock price was ¥1107.00 and its highest was ¥1330.00 in the past 12 months.

What is CHIMNEY CO LTD’s market cap?

CHIMNEY CO LTD’s market cap is ¥25.12B.

When is CHIMNEY CO LTD’s upcoming earnings report date?

CHIMNEY CO LTD’s upcoming earnings report date is May 13, 2026 which is in 65 days.

How were CHIMNEY CO LTD’s earnings last quarter?

CHIMNEY CO LTD released its earnings results on Feb 10, 2026. The company reported ¥21.73 earnings per share for the quarter, beating the consensus estimate of N/A by ¥21.73.

Is CHIMNEY CO LTD overvalued?

According to Wall Street analysts CHIMNEY CO LTD’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does CHIMNEY CO LTD pay dividends?

CHIMNEY CO LTD pays a Semiannually dividend of ¥5 which represents an annual dividend yield of 0.81%. See more information on CHIMNEY CO LTD dividends here

What is CHIMNEY CO LTD’s EPS estimate?

CHIMNEY CO LTD’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does CHIMNEY CO LTD have?

CHIMNEY CO LTD has 19,340,800 shares outstanding.

What happened to CHIMNEY CO LTD’s price movement after its last earnings report?

CHIMNEY CO LTD reported an EPS of ¥21.73 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.231%.

Which hedge fund is a major shareholder of CHIMNEY CO LTD?

Currently, no hedge funds are holding shares in JP:3178

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

CHIMNEY CO LTD

Chimney Co., Ltd. operates and franchises a chain of restaurants in Japan. The company operates through a network of 338 directly managed stores, 91 contract stores, and 248 franchise stores. Chimney Co., Ltd. was founded in 1984 and is headquartered in Tokyo, Japan.