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

• Market Cap: ¥2.16B
• Dividend Yield: 2.38%
• Average Volume (3M): 162.18K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 0.39
• Revenue Growth: 4.32%
• EPS Growth: 161.84%
• Country: JP
• Employees: 607
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): -3.64
• Shares Outstanding: 11,660,734
• 10 Day Avg. Volume: 41,550
• 30 Day Avg. Volume: 162,183
• PEG Ratio: -0.18
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 359.82
• 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: 61 Neutral
• Price Target: ¥218.00 ▲(7.92% Upside)

Chukyo Iyakuhin Co., Ltd. has a mixed financial performance with strong revenue growth but low profitability and cash flow challenges. The technical indicators suggest a neutral to slightly overbought condition, while the valuation indicates the stock may be overvalued. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Gross Profit Margin

A strong gross profit margin reflects efficient cost management and pricing power, which can sustain profitability even in competitive markets.

Financial Stability

A stable equity base and moderate leverage provide financial stability, allowing the company to weather economic fluctuations and invest in growth.

Negative Factors

Net Profit Margin

Low net profit margins suggest challenges in converting sales into actual profits, which may hinder long-term profitability and shareholder returns.

Cash Flow Challenges

Declining free cash flow indicates potential liquidity issues, which could limit the company's ability to fund operations and growth without external financing.

Return on Equity

Low ROE suggests inefficient use of shareholder funds, which may deter investment and impact the company's ability to generate strong returns.

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

Company Description

Chukyoiyakuhin 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 Money

Chukyo 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 faces challenges with low net profit margins and ROE. The balance sheet is stable with moderate leverage, yet cash flow management needs improvement to ensure sustainable financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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	2.56B	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: Positive
• Last Price: 202.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 202 is below the 20-day moving average (MA) of 205.00, below the 50-day MA of 206.50, and below the 200-day MA of 202.19, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 54.03 is Neutral, neither overbought nor oversold. The STOCH value of 42.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	79 Outperform	¥3.59B	5.64	―	2.16%	6.00%	23.22%
7444	70 Neutral	¥10.37B	6.87	―	2.61%	-7.06%	3.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4558	61 Neutral	¥2.16B	28.68	―	2.38%	4.32%	161.84%
8247	60 Neutral	¥2.15B	9.65	―	―	-3.35%	-63.96%
7506	57 Neutral	¥6.49B	-219.69	―	1.81%	-2.58%	-8.24%
7601	51 Neutral	¥2.09B	7.23	―	―	-3.64%	-23.60%