CHIMNEY CO LTD (3178) AI Stock Analysis

• Market Cap: ¥22.84B
• Dividend Yield: 0.82%
• Average Volume (3M): 37.49K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 0.31
• Revenue Growth: 0.32%
• EPS Growth: 10.22%
• Country: JP
• Employees: 632
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 1.98
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥1,317.00 ▲(6.04% 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.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for CHIMNEY CO LTD's products, enhancing its market position and potential for future expansion.

Operational Efficiency

Improved operational efficiency through cost management strengthens profitability, supporting sustainable business operations and competitive advantage.

Financial Stability

A stable financial position with balanced leverage enhances the company's ability to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Cash Flow Challenges

Declining free cash flow indicates potential liquidity issues, which may hinder the company's ability to fund operations and invest in growth.

Profitability Concerns

Low net profit margins suggest difficulties in translating revenue growth into bottom-line profits, potentially impacting long-term financial health.

Earnings Volatility

Negative EPS growth highlights volatility in earnings, which can undermine investor confidence and affect the company's ability to attract capital.

CHIMNEY CO LTD Business Overview & Revenue Model

Company Description

CHIMNEY CO LTD (3178) is a company primarily engaged in the manufacturing and distribution of chimney systems and related products. Operating in the construction and building materials sector, the company offers a wide range of products including prefabricated chimneys, flue systems, and ventilation solutions. CHIMNEY CO LTD focuses on providing high-quality and innovative products that meet the increasing demand for energy-efficient and environmentally friendly heating solutions.

How the Company Makes Money

CHIMNEY CO LTD generates revenue through multiple key streams, primarily from the sale of its chimney and ventilation products to construction companies, contractors, and retail distributors. The company benefits from a robust distribution network that allows it to reach a broad market, including residential, commercial, and industrial sectors. Additionally, CHIMNEY CO LTD may engage in partnerships with construction firms and home improvement retailers to enhance its market presence and drive sales. The company may also capitalize on service offerings such as installation and maintenance of its products, providing an additional revenue source. Factors contributing to its earnings include the growing trend towards sustainable building practices, regulatory incentives for energy-efficient products, and a steady demand for renovation and construction activities.

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: Positive
• Last Price: 1242.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3178, the sentiment is Positive. The current price of 1242 is above the 20-day moving average (MA) of 1199.75, above the 50-day MA of 1226.25, and above the 200-day MA of 1234.59, indicating a bullish trend. The MACD of 4.30 indicates Negative momentum. The RSI at 61.61 is Neutral, neither overbought nor oversold. The STOCH value of 89.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥30.56B	13.20	―	―	3.45%	-22.80%
7678	65 Neutral	¥23.07B	67.90	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3178	60 Neutral	¥22.84B	26.90	―	0.82%	0.32%	10.22%
9979	60 Neutral	¥23.23B	19.82	―	1.21%	3.89%	-12.08%
2882	57 Neutral	¥22.56B	75.88	―	0.79%	8.86%	-17.71%
9850	52 Neutral	¥22.26B	64.92	―	0.62%	7.64%	-65.84%