Chukyo Iyakuhin Co., Ltd. (4558) AI Stock Analysis

• Market Cap: ¥2.15B
• Dividend Yield: 2.49%
• Average Volume (3M): 12.46K
• Price to Earnings (P/E): 47.7
• Beta (1Y): 0.40
• Revenue Growth: 2.97%
• EPS Growth: N/A
• Country: JP
• Employees: 607
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Department Stores
• EPS (TTM): -10.76
• Shares Outstanding: 11,660,734
• 10 Day Avg. Volume: 10,800
• 30 Day Avg. Volume: 12,456
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: ¥215.00
• Price Target Upside: 5.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥213.00 ▲(4.93%Upside)

Chukyo Iyakuhin Co., Ltd.'s overall score is moderate, driven by solid financial stability and growth, but hindered by high valuation and mediocre technical indicators. Improvements in profitability and cash flow could enhance the score.

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

Company Description

Chukyo Iyakuhin Co., Ltd. (4558) is a Japanese pharmaceutical company primarily engaged in the research, development, manufacturing, and distribution of pharmaceutical products. The company focuses on producing high-quality generic drugs and over-the-counter medications, catering to the healthcare needs of a wide range of customers. With a commitment to innovation and quality, Chukyo Iyakuhin plays a significant role in enhancing public health and ensuring the availability of affordable medications in the market.

How the Company Makes Money

Chukyo Iyakuhin Co., Ltd. generates revenue through the sale of its pharmaceutical products, primarily generic drugs and over-the-counter medications. The company benefits from economies of scale in production, allowing it to offer cost-effective solutions to both healthcare providers and consumers. Key revenue streams include direct sales to hospitals, pharmacies, and wholesalers. Additionally, Chukyo Iyakuhin may engage in partnerships or collaborations with other pharmaceutical companies to expand its market reach and enhance its product offerings. The company's emphasis on quality and affordability helps maintain a strong customer base and steady demand for its products.

Chukyo Iyakuhin Co., Ltd. Financial Statement Overview

Summary

Chukyo Iyakuhin Co., Ltd. presents solid revenue growth and gross margins, but profitability remains a challenge, with low net profit margins and ROE. The balance sheet is stable with moderate leverage, but cash flow management requires attention. Improvements in profitability and cash flow generation could enhance its financial position.

Income Statement

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.31B	6.12B	5.69B	5.36B	5.83B
Gross Profit	3.60B	3.70B	3.70B	3.66B	3.88B
EBITDA	232.54M	121.48M	172.49M	184.46M	287.68M
Net Income	45.15M	-27.32M	14.49M	33.22M	94.57M
Balance Sheet
Total Assets	5.07B	5.08B	5.24B	5.34B	5.17B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.11B	1.10B	1.44B	1.46B
Total Debt	1.31B	1.19B	1.26B	1.44B	1.26B
Total Liabilities	2.54B	2.62B	2.66B	2.72B	2.73B
Stockholders Equity	2.53B	2.52B	2.58B	2.62B	2.45B
Cash Flow
Free Cash Flow	6.10M	135.17M	-86.00M	-269.83M	321.71M
Operating Cash Flow	31.71M	171.85M	105.83M	-222.68M	344.05M
Investing Cash Flow	53.35M	-36.05M	-199.96M	10.50M	78.81M
Financing Cash Flow	42.97M	-131.27M	-247.07M	255.78M	369.16M

Chukyo Iyakuhin Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 203.00
• 50DMA: Negative
• 100DMA: Positive
• 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:4558, the sentiment is Negative. The current price of 203 is above the 20-day moving average (MA) of 202.30, above the 50-day MA of 202.40, and below the 200-day MA of 203.36, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3583	76 Outperform	¥3.49B	6.03		0.39%	12.05%	33.32%
7444	71 Outperform	¥10.14B	7.88		2.65%	0.39%	-8.45%
4558	60 Neutral	¥2.15B	47.67		2.49%	2.97%	―
7506	57 Neutral	¥6.43B	80.61		1.83%	-3.29%	-34.73%
Sector *	57 Neutral	HK$25.53B	4.08	-2.03%	6.14%	-0.31%	-67.64%
7601	54 Neutral	¥2.15B	6.36		―	-1.56%	-4.68%
8247	52 Neutral	¥2.15B	8.71		―	-2.19%	-58.67%