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Chukyo Iyakuhin Co., Ltd. (JP:4558)
:4558
Japanese Market
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Chukyo Iyakuhin Co., Ltd. (4558) AI Stock Analysis

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JP:4558

Chukyo Iyakuhin Co., Ltd.

(4558)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
Price Target:
¥216.00
▲(5.88% Upside)
Chukyo Iyakuhin Co., Ltd. scores moderately due to solid revenue growth and stable financials, but faces challenges with profitability and cash flow management. Technical indicators suggest weak market momentum, and the stock appears overvalued based on its P/E ratio. The dividend yield offers some compensation for investors.

Chukyo Iyakuhin Co., Ltd. (4558) vs. iShares MSCI Japan ETF (EWJ)

Chukyo Iyakuhin Co., Ltd. Business Overview & Revenue Model

Company DescriptionChukyoiyakuhin Co.,Ltd. engages in the pharmaceuticals, health food products, soft drinks, medical equipment, cosmetics, daily necessities, clothing, food, and life and non-life insurance business. It is also involved in the manufacture and sale of quasi-drugs; production and sale of water; and manufacture and sale of alcohol products for sterilization. The company was founded in 1949 and is headquartered in Handa, Japan.
How the Company Makes MoneyChukyo Iyakuhin generates revenue primarily through the sale of its pharmaceutical products, which include both prescription medications and over-the-counter drugs. The company's revenue model is built on a combination of direct sales to healthcare providers and partnerships with distributors and retailers. Key revenue streams include sales from its proprietary drug formulations and licensing agreements with other pharmaceutical companies for the distribution of its products. Additionally, the company invests in research and development to create new drugs, which can lead to further revenue opportunities through patent protection and market exclusivity. Collaborations with healthcare institutions and participation in clinical trials also contribute to its earnings by providing upfront funding and potential royalties from successful product launches.

Chukyo Iyakuhin Co., Ltd. Financial Statement Overview

Summary
Chukyo Iyakuhin Co., Ltd. shows solid revenue growth and strong gross margins, but profitability is a concern with low net profit margins and ROE. The balance sheet is stable with moderate leverage, but cash flow management needs improvement to ensure sustainable financial health.
Income Statement
75
Positive
Chukyo Iyakuhin Co., Ltd. has demonstrated a consistent growth trajectory in revenue over the past years, with a notable revenue growth rate of 2.97% in the latest year. The gross profit margin stands robustly at approximately 57.11%, indicating strong cost management. However, the net profit margin, although improved to 0.72% from a negative position, remains a concern for sustainable profitability. The EBITDA margin of 3.69% shows operational efficiency but highlights room for improvement in scaling profits.
Balance Sheet
68
Positive
The balance sheet reveals a stable equity base with an equity ratio of around 49.89%, reflecting good financial stability. The debt-to-equity ratio is manageable at approximately 0.52, indicating moderate leverage. However, the return on equity (ROE) is relatively low at 1.79%, suggesting limited returns on shareholder investments. While the company's leverage is under control, improving asset utilization could enhance financial performance.
Cash Flow
60
Neutral
Cash flow analysis shows a challenging scenario, with free cash flow declining significantly to 6.10 million yen. The operating cash flow to net income ratio is strong at 0.70, but the free cash flow to net income ratio is much lower, indicating potential issues in converting profits into free cash flow. This could pose challenges in maintaining liquidity and funding future growth without external financing.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.31B6.12B5.69B5.36B5.83B
Gross Profit3.60B3.70B3.70B3.66B3.88B
EBITDA232.54M121.48M172.49M184.46M287.68M
Net Income45.15M-27.32M14.49M33.22M94.57M
Balance Sheet
Total Assets5.07B5.08B5.24B5.34B5.17B
Cash, Cash Equivalents and Short-Term Investments1.24B1.11B1.10B1.44B1.46B
Total Debt1.31B1.19B1.26B1.44B1.26B
Total Liabilities2.54B2.56B2.66B2.72B2.73B
Stockholders Equity2.53B2.52B2.58B2.62B2.45B
Cash Flow
Free Cash Flow6.10M135.17M-86.00M-269.83M321.71M
Operating Cash Flow31.71M171.85M105.83M-222.68M344.05M
Investing Cash Flow53.35M-36.05M-199.96M10.50M78.81M
Financing Cash Flow42.97M-131.27M-247.07M255.78M369.16M

Chukyo Iyakuhin Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price204.00
Price Trends
50DMA
206.07
Negative
100DMA
203.09
Positive
200DMA
201.96
Positive
Market Momentum
MACD
-0.72
Positive
RSI
44.77
Neutral
STOCH
20.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4558, the sentiment is Negative. The current price of 204 is below the 20-day moving average (MA) of 207.73, below the 50-day MA of 206.07, and above the 200-day MA of 201.96, indicating a neutral trend. The MACD of -0.72 indicates Positive momentum. The RSI at 44.77 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4558.

Chukyo Iyakuhin 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
79
Outperform
¥3.54B5.722.19%8.84%23.27%
70
Neutral
¥10.21B8.452.65%-3.81%-18.49%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
¥2.17B28.412.45%5.13%
61
Neutral
¥6.53B80.961.81%-3.92%-129.57%
60
Neutral
¥2.18B9.72-3.35%-63.96%
59
Neutral
¥2.12B7.35-3.64%-23.60%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4558
Chukyo Iyakuhin Co., Ltd.
205.00
7.75
3.93%
JP:3583
Aubex Corporation
1,296.00
187.95
16.96%
JP:7444
Harima-Kyowa Co., Ltd.
1,889.00
8.77
0.47%
JP:7506
HOUSE OF ROSE Co.,Ltd.
1,378.00
-83.27
-5.70%
JP:7601
POPLAR Co., Ltd.
181.00
-30.00
-14.22%
JP:8247
Daiwa Co., Ltd.
390.00
-44.00
-10.14%
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: Oct 17, 2025