Cash Flow StrengthA >100% rise in free cash flow and a 2.7 operating-cash-flow-to-net-income ratio signal durable internal funding. This improves the company’s ability to fund capex, support working capital, reduce leverage or pay distributions without relying on external financing, strengthening long-term resilience.

Balance Sheet ResilienceA robust equity ratio and low debt-to-equity indicate manageable leverage and financial flexibility. This balance-sheet strength enables the company to bid on large public works, absorb project timing variability, and pursue selective investment without materially increasing financial risk over the medium term.

Specialized Product PortfolioA focus on precast concrete, steel frames and civil-engineering products aligns the firm with infrastructure and urban construction demand. Specialized offerings and emphasis on quality and innovation support longer-term customer relationships, repeat project work, and barriers to entry versus generic suppliers.

Bears Say

Low EBIT MarginA 3.0% EBIT margin reflects limited operating leverage and weak conversion of revenue to operating profit. Persistently low margins constrain reinvestment, weaken the buffer against input-cost inflation, and require either price recovery or efficiency gains to improve sustainable profitability.

Modest Return On EquityA 7% ROE signals modest capital efficiency, limiting long-term shareholder return potential and internal capital generation for growth. Without meaningful margin expansion or higher asset turnover, the company may struggle to raise ROE toward peer levels and justify incremental investment.

Recent Revenue TrajectoryA negative recent revenue growth reading suggests potential demand timing issues or project delays. Continued top-line weakness would impair fixed-cost absorption, hinder margin improvement and reduce free-cash-flow sustainability, making stable recovery in project wins essential for medium-term stability.

5974 FAQ

What was Chugokukogyo Co., Ltd.’s price range in the past 12 months?

Chugokukogyo Co., Ltd. lowest stock price was ¥456.00 and its highest was ¥968.00 in the past 12 months.

What is Chugokukogyo Co., Ltd.’s market cap?

Chugokukogyo Co., Ltd.’s market cap is ¥2.68B.

When is Chugokukogyo Co., Ltd.’s upcoming earnings report date?

Chugokukogyo Co., Ltd.’s upcoming earnings report date is May 20, 2026 which is in 86 days.

How were Chugokukogyo Co., Ltd.’s earnings last quarter?

Chugokukogyo Co., Ltd. released its earnings results on Feb 10, 2026. The company reported ¥50.9 earnings per share for the quarter, beating the consensus estimate of N/A by ¥50.9.

Is Chugokukogyo Co., Ltd. overvalued?

According to Wall Street analysts Chugokukogyo Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Chugokukogyo Co., Ltd. pay dividends?

Chugokukogyo Co., Ltd. pays a Annually dividend of ¥20 which represents an annual dividend yield of 2.71%. See more information on Chugokukogyo Co., Ltd. dividends here

What is Chugokukogyo Co., Ltd.’s EPS estimate?

Chugokukogyo Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Chugokukogyo Co., Ltd. have?

Chugokukogyo Co., Ltd. has 3,420,000 shares outstanding.

What happened to Chugokukogyo Co., Ltd.’s price movement after its last earnings report?

Chugokukogyo Co., Ltd. reported an EPS of ¥50.9 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.365%.

Which hedge fund is a major shareholder of Chugokukogyo Co., Ltd.?

Currently, no hedge funds are holding shares in JP:5974

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Chugokukogyo Co., Ltd.

Chugokukogyo Co.,Ltd. manufactures and sells high voltage, steel structure, and facility equipment. The company manufactures and sells LP gas containers, LP gas storage tanks, gas cylinders, and LP gas bulk storage tank; and designs, constructs, and inspects LP gas plants. It also offers inner cover for annealing furnaces and various other steel structure products; FRP feed tank and silage silos; FRP pharmaceutical tanks and covers; FRP automotive parts, vehicle wash basins, etc.; livestock products, such as wet feeders and pipe barns; BM deodorizers; and livestock wastewater treatment equipment. The company was incorporated in 1950 and is headquartered in Kure, Japan.