Chofu Seisakusho Co (5946) AI Stock Analysis

• Market Cap: ¥63.36B
• Dividend Yield: 2.42%
• Average Volume (3M): 45.66K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.42
• Revenue Growth: 3.64%
• EPS Growth: -26.54%
• Country: JP
• Employees: 1,179
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -12.52
• Shares Outstanding: 34,239,310
• 10 Day Avg. Volume: 59,790
• 30 Day Avg. Volume: 45,656
• PEG Ratio: -0.99
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 1.43
• P/FCF Ratio: 61.10
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ―

Chofu Seisakusho Co maintains a strong financial position with no debt, which is a significant strength. However, declining revenue and free cash flow are notable risks. The technical indicators suggest a bearish trend, which could affect short-term performance. The valuation is moderate, supported by a reasonable dividend yield, providing some investment appeal.

Chofu Seisakusho Co Business Overview & Revenue Model

Company Description

Chofu Seisakusho Co., Ltd. is a Japanese company listed under the ticker symbol 5946, which specializes in the manufacturing of residential and commercial heating appliances. The company is known for its production of water heaters, boilers, and related equipment, serving both domestic and international markets. With a focus on innovation and energy efficiency, Chofu Seisakusho Co. is committed to providing reliable and sustainable heating solutions to its customers.

How the Company Makes Money

Chofu Seisakusho Co. primarily generates revenue through the sale of its heating appliances, including water heaters and boilers. The company's revenue streams are diversified across both domestic and international markets, catering to residential, commercial, and industrial clients. By focusing on energy-efficient products, Chofu Seisakusho Co. meets the growing demand for sustainable heating solutions. Additionally, the company may engage in strategic partnerships and collaborations to enhance its product offerings and expand its market reach, although specific partnership details are not provided.

Chofu Seisakusho Co Financial Statement Overview

Summary

Chofu Seisakusho Co exhibits strong financial fundamentals with a debt-free balance sheet and healthy profit margins. However, the declining revenue and free cash flow growth pose challenges. The company demonstrates operational efficiency and financial stability, but future growth prospects may be limited without revenue recovery.

Income Statement

The income statement reveals a decline in total revenue from 2023 to 2024, indicating a revenue contraction of approximately 4.91%. Despite this, the company maintains healthy margins with a gross profit margin of 22.53% and a net profit margin of 6.81% for 2024. The EBIT and EBITDA margins are 3.78% and 6.53%, respectively, indicating operational profitability. However, the declining revenue trend poses a concern for future growth.

Balance Sheet

The balance sheet is robust, with a strong equity position and zero debt, leading to a debt-to-equity ratio of 0, showcasing excellent financial stability. The return on equity (ROE) is 2.32% for 2024, which is modest but reflects the company's conservative leverage approach. The equity ratio is high at 94.42%, indicating significant equity backing relative to total assets, providing a cushion against potential risks.

Cash Flow

The cash flow statement shows a decrease in free cash flow from 2023 to 2024 by approximately 68.32%, highlighting a potential risk in cash generation. However, the operating cash flow to net income ratio is 0.82, which is satisfactory, ensuring that operational activities are generating sufficient cash relative to net income. The company's ability to generate cash remains stable, although the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.03B	46.12B	48.51B	49.79B	44.86B	43.52B
Gross Profit	10.41B	10.39B	11.86B	11.93B	11.12B	11.32B
EBITDA	1.80B	3.01B	4.50B	6.57B	5.39B	5.00B
Net Income	2.30B	3.14B	4.00B	3.87B	2.91B	2.61B
Balance Sheet
Total Assets	144.01B	143.26B	142.01B	138.14B	137.47B	135.77B
Cash, Cash Equivalents and Short-Term Investments	12.51B	14.48B	18.84B	9.68B	13.55B	9.71B
Total Debt	0.00	0.00	0.00	1.00M	30.00M	190.00M
Total Liabilities	9.93B	8.01B	9.11B	9.56B	9.17B	9.54B
Stockholders Equity	134.07B	135.25B	132.91B	128.58B	128.30B	126.23B
Cash Flow
Free Cash Flow	0.00	1.08B	3.40B	1.77B	3.25B	2.83B
Operating Cash Flow	0.00	2.58B	4.89B	2.92B	4.53B	3.67B
Investing Cash Flow	0.00	-579.00M	-3.84B	553.00M	-4.11B	-1.68B
Financing Cash Flow	0.00	-1.56B	-2.37B	-1.95B	-1.34B	-1.07B

Chofu Seisakusho Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1919.00
• 50DMA: Positive
• 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:5946, the sentiment is Positive. The current price of 1919 is above the 20-day moving average (MA) of 1912.60, above the 50-day MA of 1909.22, and above the 200-day MA of 1867.88, indicating a bullish trend. The MACD of 1.17 indicates Negative momentum. The RSI at 53.06 is Neutral, neither overbought nor oversold. The STOCH value of 70.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5946.

Chofu Seisakusho Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5941	70 Outperform	¥14.96B	8.58	―	2.78%	9.23%	21.85%
5946	69 Neutral	¥63.36B	28.40	1.70%	2.42%	3.64%	-26.54%
5909	67 Neutral	¥27.15B	35.85	―	3.00%	2.68%	-42.92%
5947	65 Neutral	$484.63B	16.22	7.60%	2.62%	6.01%	-0.58%
7981	63 Neutral	¥164.34B	13.84	―	3.15%	5.38%	27.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5951	58 Neutral	¥14.28B	11.14	―	2.51%	4.20%	46.05%