CHIMNEY CO LTD (3178) AI Stock Analysis

• Market Cap: ¥22.55B
• Dividend Yield: 0.83%
• Average Volume (3M): 37.49K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.30
• Revenue Growth: 0.09%
• EPS Growth: -21.59%
• Country: JP
• Employees: 632
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 3.29
• Shares Outstanding: 19,340,800
• 10 Day Avg. Volume: 35,060
• 30 Day Avg. Volume: 37,493
• PEG Ratio: 1.48
• Price to Book (P/B): 3.85
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 706.61
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥1,317.00 ▲(9.29% Upside)

CHIMNEY CO LTD's overall stock score reflects a mixed financial performance with strong revenue growth but significant cash flow challenges. The technical analysis indicates a bearish trend, with the stock trading below key moving averages and nearing oversold conditions. The valuation suggests the stock may be overvalued, with a high P/E ratio and modest dividend yield.

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 headquartered in Tokyo, Japan.

How the Company Makes Money

CHIMNEY CO LTD generates revenue through the sale of its chimney systems and related products. The company's primary revenue streams include the direct sale of industrial and residential chimneys, as well as accessories such as flue liners, caps, and ventilation systems. Additionally, CHIMNEY CO LTD may engage in installation services, maintenance contracts, and after-sales support, providing a comprehensive service package to its customers. Significant partnerships with construction firms and home builders, along with a strong distribution network, further enhance its market reach and contribute to its earnings.

CHIMNEY CO LTD Financial Statement Overview

Summary

CHIMNEY CO LTD shows a mixed financial performance with strong revenue growth and improved operational efficiency. However, cash flow challenges persist, with declining free cash flow and moderate cash generation from operations.

Income Statement

CHIMNEY CO LTD has shown a mixed performance in its income statement. The company experienced a significant revenue growth from 2023 to 2024, with a 27.6% increase, but this slowed to a modest 1.9% growth in 2025. Gross profit margin improved to 66.9% in 2025, indicating efficient cost management. However, the net profit margin was 4.1% in 2025, reflecting challenges in converting revenue to profit. The EBIT margin improved to 3.5% in 2025, recovering from negative figures in previous years, suggesting operational improvements.

Balance Sheet

The balance sheet of CHIMNEY CO LTD shows a stable financial position with a debt-to-equity ratio of 0.99 in 2025, indicating a balanced leverage. The equity ratio improved to 36.3%, reflecting a strong equity base. Return on equity was 17.7% in 2025, showcasing effective use of equity to generate profits. The company has managed to reduce its total debt over the years, enhancing financial stability.

Cash Flow

The cash flow statement reveals some challenges. Free cash flow decreased significantly from 2024 to 2025, with a growth rate of -98.5%, indicating potential cash management issues. The operating cash flow to net income ratio was 0.71 in 2025, suggesting moderate cash generation from operations. The free cash flow to net income ratio was 0.03, highlighting limited free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.13B	26.22B	25.73B	20.16B	10.11B	13.23B
Gross Profit	17.72B	17.55B	17.82B	13.65B	7.03B	9.23B
EBITDA	1.46B	1.51B	1.62B	-1.08B	2.08B	-6.98B
Net Income	849.72M	1.08B	938.83M	-2.02B	1.23B	-9.00B
Balance Sheet
Total Assets	16.75B	16.73B	17.89B	18.04B	22.90B	20.08B
Cash, Cash Equivalents and Short-Term Investments	6.78B	6.63B	7.85B	7.44B	10.02B	6.26B
Total Debt	5.93B	6.02B	7.12B	9.16B	12.42B	10.47B
Total Liabilities	10.68B	10.66B	12.83B	13.81B	16.41B	15.11B
Stockholders Equity	6.07B	6.07B	5.06B	4.23B	6.48B	4.97B
Cash Flow
Free Cash Flow	0.00	33.09M	2.21B	519.61M	988.40M	-7.47B
Operating Cash Flow	0.00	769.38M	2.78B	1.01B	1.89B	-6.69B
Investing Cash Flow	0.00	-688.35M	-332.41M	-193.88M	-72.89M	-246.91M
Financing Cash Flow	0.00	-1.31B	-2.04B	-3.40B	1.94B	9.76B

CHIMNEY CO LTD Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1205.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3178, the sentiment is Negative. The current price of 1205 is below the 20-day moving average (MA) of 1223.45, below the 50-day MA of 1263.27, and below the 200-day MA of 1234.02, indicating a bearish trend. The MACD of -26.63 indicates Positive momentum. The RSI at 39.60 is Neutral, neither overbought nor oversold. The STOCH value of 41.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3178.

CHIMNEY CO LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3073	70 Neutral	¥30.65B	13.24	―	―	3.45%	-22.80%
7678	65 Neutral	¥22.94B	67.51	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3178	60 Neutral	¥22.55B	26.55	―	0.83%	0.09%	-21.59%
9979	60 Neutral	¥23.23B	19.68	―	1.27%	3.89%	-12.08%
2882	57 Neutral	¥22.91B	77.07	―	0.77%	8.86%	-17.71%
9850	52 Neutral	¥22.10B	47.66	―	0.62%	10.90%	-63.26%