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CHIMNEY CO LTD (JP:3178)
:3178
Japanese Market

CHIMNEY CO LTD (3178) AI Stock Analysis

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JP:3178

CHIMNEY CO LTD

(3178)

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Neutral 57 (OpenAI - 5.2)
Rating:57Neutral
Price Target:
¥1,349.00
▲(8.53% Upside)
Action:ReiteratedDate:03/24/26
The score is held back primarily by weakening 2025 fundamentals—especially the sharp drop in operating/free cash flow and the revenue decline—despite improved profitability and lower leverage. Technicals are mildly supportive, and valuation looks reasonable, but the low dividend yield offers limited additional support.
Positive Factors
Profitability Recovery
Returning to operating profit and net income after multi-year losses signals a durable operational turnaround: core unit economics can cover fixed costs, supporting internal funding for maintenance and selective reinvestment. Sustained profitability reduces refinancing need and enhances resilience over the medium term.
Negative Factors
2025 Revenue Decline
A >12% revenue drop in the most recent year signals meaningful demand erosion or execution challenges. Sustained top-line weakness compresses scale economics, reduces operating leverage, and makes it harder to restore margins and cash flow, raising medium-term growth and execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
Returning to operating profit and net income after multi-year losses signals a durable operational turnaround: core unit economics can cover fixed costs, supporting internal funding for maintenance and selective reinvestment. Sustained profitability reduces refinancing need and enhances resilience over the medium term.
Read all positive factors

CHIMNEY CO LTD (3178) vs. iShares MSCI Japan ETF (EWJ)

CHIMNEY CO LTD Business Overview & Revenue Model

Company Description
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 headquarte...

CHIMNEY CO LTD Financial Statement Overview

Summary
Profitability has improved versus prior-year losses and leverage has declined (debt-to-equity improved to ~0.99 in 2025), but 2025 revenue fell ~12.6% and cash generation deteriorated sharply (free cash flow nearly breakeven and weak cash conversion), increasing near-term execution risk.
Income Statement
56
Neutral
Balance Sheet
58
Neutral
Cash Flow
41
Neutral
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue26.13B26.22B25.73B20.16B10.11B13.23B
Gross Profit17.72B17.55B17.82B13.65B7.03B9.23B
EBITDA1.46B1.51B1.62B-1.08B2.08B-6.98B
Net Income849.72M1.08B938.83M-2.02B1.23B-9.00B
Balance Sheet
Total Assets16.75B16.78B17.89B18.04B22.90B20.08B
Cash, Cash Equivalents and Short-Term Investments6.78B6.63B7.85B7.44B10.02B6.26B
Total Debt5.93B6.02B7.37B9.34B12.36B10.43B
Total Liabilities10.68B10.71B12.83B13.81B16.41B15.11B
Stockholders Equity6.07B6.07B5.06B4.23B6.48B4.97B
Cash Flow
Free Cash Flow0.0033.09M2.21B519.61M988.40M-7.47B
Operating Cash Flow0.00769.38M2.78B1.01B1.89B-6.69B
Investing Cash Flow0.00-688.35M-332.41M-193.88M-72.89M-246.91M
Financing Cash Flow0.00-1.31B-2.04B-3.40B1.94B9.76B

CHIMNEY CO LTD Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1243.00
Price Trends
50DMA
1298.80
Positive
100DMA
1265.12
Positive
200DMA
1255.73
Positive
Market Momentum
MACD
4.47
Negative
RSI
49.27
Neutral
STOCH
26.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3178, the sentiment is Neutral. The current price of 1243 is below the 20-day moving average (MA) of 1307.80, below the 50-day MA of 1298.80, and below the 200-day MA of 1255.73, indicating a neutral trend. The MACD of 4.47 indicates Negative momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 26.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3178.

CHIMNEY CO LTD Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥22.36B20.09
66
Neutral
¥26.22B76.41
63
Neutral
¥23.02B146.771.20%3.89%-12.08%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
¥22.10B35.550.78%8.86%-17.71%
60
Neutral
¥19.94B-47.440.75%25.41%77.18%
57
Neutral
¥25.14B14.300.81%0.32%10.22%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3178
CHIMNEY CO LTD
1,311.00
43.82
3.46%
JP:2882
EAT&HOLDINGS Co., Ltd.
1,976.00
-71.32
-3.48%
JP:3547
Kushikatsu Tanaka Holdings Co.
1,909.00
503.86
35.86%
JP:7554
Kourakuen Holdings Corporation
1,185.00
78.00
7.05%
JP:7678
ASAKUMA CO.,LTD.
4,915.00
935.00
23.49%
JP:9979
Daisyo Corporation
1,097.00
-15.17
-1.36%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 24, 2026