Chugokukogyo Co., Ltd. (5974) AI Stock Analysis

• Market Cap: ¥1.75B
• Dividend Yield: 3.72%
• Average Volume (3M): 3.12K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.37
• Revenue Growth: 3.83%
• EPS Growth: 82.55%
• Country: JP
• Employees: 379
• Sector: Utilities
• Sector Strength: 69
• Industry: Regulated Gas
• EPS (TTM): 79.17
• Shares Outstanding: 3,420,000
• 10 Day Avg. Volume: 2,400
• 30 Day Avg. Volume: 3,116
• PEG Ratio: 0.57
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.23
• 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: ¥630.00
• Price Target Upside: 17.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥608.00 ▲(13.01%Upside)

Chugokukogyo Co., Ltd.'s overall stock score is bolstered by its strong financial foundation and attractive valuation metrics. The company's financial performance is solid, with notable cash flow generation and revenue growth. Despite neutral technical indicators, the low P/E ratio and substantial dividend yield enhance its investment appeal.

Chugokukogyo Co., Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Chugokukogyo Co., Ltd. generates revenue through the sale of its industrial machinery and equipment. The company serves a diverse range of industries, providing customized solutions and products that meet the specific needs of its clients. Key revenue streams include direct sales of machinery, spare parts, and maintenance services. Additionally, the company may engage in significant partnerships with other industrial firms to enhance product distribution and market reach. The company's earnings are influenced by its ability to innovate, maintain strong customer relationships, and adapt to market demands.

Chugokukogyo Co., Ltd. Financial Statement Overview

Summary

Chugokukogyo Co., Ltd. demonstrates strong revenue growth, effective cost management, and robust cash flow generation. Financial stability is supported by a solid equity position and manageable leverage levels. However, improving operational efficiency and profitability could enhance overall performance.

Income Statement

Chugokukogyo Co., Ltd. demonstrates strong revenue growth with a 3.8% increase in the last year, alongside an improving gross profit margin of 20.3%. The net profit margin also shows a positive trend at 2.7%, up from previous years, indicating effective cost management. However, the EBIT margin remains relatively low at 3.0%, suggesting room for improvement in operational efficiency.

Balance Sheet

The company maintains a solid equity position with an equity ratio of 43.2%, reflecting financial stability. The debt-to-equity ratio is moderate at 0.28, indicating manageable leverage levels. However, return on equity (ROE) is relatively low at 7.0%, which could be improved by enhancing profitability.

Cash Flow

Chugokukogyo Co., Ltd. shows impressive cash flow management with a significant improvement in free cash flow, growing by 103.2%. The operating cash flow to net income ratio is strong at 2.7, indicating robust cash generation relative to profits. The free cash flow to net income ratio also improved significantly, highlighting efficient capital allocation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.85B	13.84B	13.33B	13.39B	12.87B	12.88B
Gross Profit	2.77B	2.81B	2.60B	2.64B	2.56B	2.60B
EBITDA	711.75M	913.00M	540.00M	587.00M	401.00M	415.00M
Net Income	237.00M	376.00M	206.00M	199.00M	132.00M	124.00M
Balance Sheet
Total Assets	13.20B	12.45B	13.36B	12.09B	11.76B	11.48B
Cash, Cash Equivalents and Short-Term Investments	485.00M	512.00M	534.00M	504.00M	576.00M	550.00M
Total Debt	2.54B	1.53B	2.24B	2.22B	1.88B	1.95B
Total Liabilities	7.58B	6.58B	7.81B	7.13B	7.03B	6.72B
Stockholders Equity	5.14B	5.38B	5.08B	4.52B	4.30B	4.35B
Cash Flow
Free Cash Flow	0.00	772.00M	38.00M	-408.00M	122.00M	87.00M
Operating Cash Flow	0.00	1.02B	289.00M	-81.00M	309.00M	489.00M
Investing Cash Flow	0.00	-205.00M	-192.00M	-254.00M	-145.00M	-336.00M
Financing Cash Flow	0.00	-833.00M	-66.00M	263.00M	-138.00M	-309.00M

Chugokukogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 538.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5974, the sentiment is Neutral. The current price of 538 is below the 20-day moving average (MA) of 540.60, below the 50-day MA of 542.24, and above the 200-day MA of 518.46, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 48.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5974.

Chugokukogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5974	76 Outperform	¥1.75B	4.65		3.72%	3.83%	82.55%
Sector *	67 Neutral	$16.47B	17.00	4.45%	3.56%	4.76%	6.21%
XSG		€392.19M	9.72	6.29%	3.86%	―	―
1KS		€473.54M	8.51	7.82%	3.74%	―	―
9534	78 Outperform	¥52.43B	4.96		3.04%	-2.06%	-10.54%
9537	71 Outperform	¥17.26B	8.49		2.22%	0.59%	―
9539	64 Neutral	¥35.30B	10.77		2.03%	0.03%	―