Chofu Seisakusho Co (5946) AI Stock Analysis

• Market Cap: ¥65.90B
• Dividend Yield: 2.27%
• Average Volume (3M): 56.97K
• Price to Earnings (P/E): 31.9
• Beta (1Y): 0.40
• Revenue Growth: 1.82%
• EPS Growth: -32.79%
• Country: JP
• Employees: 1,179
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 20.78
• Shares Outstanding: 34,239,310
• 10 Day Avg. Volume: 64,120
• 30 Day Avg. Volume: 56,970
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥2,184.00 ▲(13.28% Upside)

The score is driven primarily by strong financial resilience (near debt-free balance sheet), tempered by only moderate operating/cash-flow performance in 2024. Technicals are supportive with price above key moving averages and positive MACD, but valuation is a meaningful drag due to the elevated P/E despite a modest dividend yield.

Positive Factors

Balance Sheet Strength

A near debt-free balance sheet reduces financial risk and provides flexibility, enabling the company to navigate economic cycles effectively.

Positive Cash Generation

Despite volatility, positive cash generation indicates the company's ability to generate surplus cash, supporting long-term investments and stability.

Revenue Rebound

A rebound in revenue suggests resilience and potential for growth, reflecting the company's ability to recover from short-term setbacks.

Negative Factors

Declining Profitability

Weaker profitability due to declining margins indicates challenges in maintaining cost efficiency and pricing power, impacting long-term earnings potential.

Inconsistent Cash Flow

Inconsistent cash flow generation can strain financial resources, limiting the company's ability to invest in growth and manage unexpected expenses.

Profit Decline

A substantial decline in profit highlights operational challenges and may affect the company's ability to reinvest in its business, impacting future growth.

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

Financial profile is conservative and resilient, led by a very strong, near debt-free balance sheet. However, operating performance is only moderate: 2024 saw weaker profitability versus 2023 and cash conversion fell (free cash flow declined and covered less than half of net income), keeping the overall financial picture solid but not strongly improving.

Income Statement

Revenue has been broadly range-bound over the last several years, with a modest decline in 2023 followed by a rebound in 2024. Profitability, however, weakened in 2024 versus 2023: operating and net margins stepped down, indicating softer pricing, mix, and/or cost pressure. Longer-term margins are positive and fairly steady, but the recent downshift keeps the earnings profile more “stable” than “expanding.”

Balance Sheet

The balance sheet is a clear strength: the company operates with essentially no debt (debt-to-equity near zero across periods), which materially reduces financial risk and provides flexibility through cycles. Equity and total assets have trended modestly higher over time. Returns on equity are positive but not high (low-single-digits to ~3%), suggesting the capital base is under-levered and/or the business is not currently generating outsized returns on shareholder capital.

Cash Flow

Cash generation is positive but somewhat inconsistent. Operating cash flow and free cash flow declined meaningfully in 2024 versus 2023, and free cash flow covered less than half of net income in 2024, pointing to weaker cash conversion in the most recent year. That said, free cash flow remained positive and improved versus 2022, indicating the company can still generate surplus cash despite year-to-year volatility.

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: Neutral
• Last Price: 1928.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5946, the sentiment is Neutral. The current price of 1928 is below the 20-day moving average (MA) of 2018.65, below the 50-day MA of 2000.51, and above the 200-day MA of 1892.18, indicating a neutral trend. The MACD of -3.78 indicates Positive momentum. The RSI at 36.57 is Neutral, neither overbought nor oversold. The STOCH value of 18.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5946.

Chofu Seisakusho Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5951	82 Outperform	¥14.32B	10.63	―	2.30%	9.86%	119.10%
7981	79 Outperform	¥197.37B	14.07	―	3.41%	6.17%	61.39%
5947	76 Outperform	¥561.70B	16.88	8.08%	2.25%	3.33%	9.57%
5941	70 Outperform	¥16.95B	9.63	―	2.66%	8.62%	11.21%
5946	66 Neutral	¥65.90B	31.87	1.51%	2.27%	1.82%	-32.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5909	56 Neutral	¥27.64B	39.51	―	2.94%	0.41%	-51.02%

Chofu Seisakusho Co Corporate Events

Chofu Seisakusho Reports Mixed Financial Results for Nine Months Ending September 2025

Chofu Seisakusho Co., Ltd. reported a slight increase in net sales for the nine months ending September 30, 2025, despite a significant drop in profit attributable to owners of the parent by 54.6%. The company’s financial results indicate challenges in maintaining profitability, with operating and ordinary profits also showing declines compared to the previous year.