Chuo Spring Co., Ltd. (5992) AI Stock Analysis

• Market Cap: ¥81.63B
• Dividend Yield: 1.74%
• Average Volume (3M): 29.82K
• Price to Earnings (P/E): 42.0
• Beta (1Y): 0.92
• Revenue Growth: 6.81%
• EPS Growth: 6.68%
• Country: JP
• Employees: 3,017
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 28.80
• Shares Outstanding: 25,542,397
• 10 Day Avg. Volume: 34,360
• 30 Day Avg. Volume: 29,816
• PEG Ratio: -3.39
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 29.24
• 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: 69 Neutral
• Price Target: ¥3,707.00 ▲(9.67% Upside)

The overall stock score of 69 reflects strong technical analysis indicators, suggesting positive market momentum. However, the high P/E ratio indicates potential overvaluation, and financial performance shows areas needing improvement, particularly in profitability and debt reliance.

Chuo Spring Co., Ltd. Business Overview & Revenue Model

Company Description

Chuo Spring Co.,Ltd. manufactures and sells springs and control cables in Japan, the United States, Taiwan, Indonesia, Thailand, and China. It offers automotive products, such as chassis springs, including coil and leaf springs, and stabilizer and torsion bars; and precision springs comprising valve/arc/brake tension/torsion/springs, flat springs, formed wire clamps/spiral springs, HV belleville springs, and CVT springs. The company also provides control cables consisting of parking brake, transmission, hood/fuel lid/trunk release, power slide door/door lock/lock release, and emergency parking brake release cables. In addition, it offers CABLEX products, which include smoke ejection/ventilation systems, top-light with smoke ejection and ventilation systems, push/pull cables, and wheelchair fixtures; electric vehicle charging cable reels; and customized springs. Chuo Spring Co.,Ltd. was founded in 1925 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Chuo Spring Co., Ltd. generates revenue primarily through the sale of its precision springs and related components to various industries, including automotive, electronics, and machinery. The company’s revenue model is based on both direct sales to manufacturers and long-term contracts with clients for bulk orders. Key revenue streams include the ongoing demand from the automotive sector for reliable and durable spring components, as well as custom orders that cater to specific engineering requirements. Additionally, strategic partnerships with major industrial players enhance its market presence and contribute to steady revenue growth by ensuring a consistent client base and leveraging co-development opportunities for new products.

Chuo Spring Co., Ltd. Financial Statement Overview

Summary

Chuo Spring Co., Ltd. shows strong revenue growth and improved gross and operating margins, indicating enhanced operational efficiency. However, challenges in maintaining consistent profitability and return on equity, along with increased reliance on debt financing, highlight areas needing attention.

Income Statement

The company showed a steady revenue growth over the years, with a notable increase of 9.1% from 2023 to 2024, and a 9.1% increase from 2024 to 2025. Gross profit margin improved from 10.98% in 2023 to 12.78% in 2025, indicating better cost management. However, net profit margin has been somewhat volatile, decreasing from 1.97% in 2023 to 1.68% in 2025. EBIT and EBITDA margins have shown improvement, which is a positive sign of operational efficiency.

Balance Sheet

The company maintains a stable balance sheet with a debt-to-equity ratio of 0.31 in 2025, showing moderate leverage. The equity ratio decreased from 57.4% in 2024 to 53.7% in 2025, indicating a higher reliance on debt financing. Return on equity decreased from 2.26% in 2024 to 2.42% in 2025, reflecting challenges in generating higher returns for equity holders.

Cash Flow

Operating cash flow improved significantly from 2024 to 2025, indicating better cash generation from core operations. Free cash flow turned positive in 2025 after being negative in 2024, highlighting better capital expenditure management. However, the free cash flow growth rate remains volatile, posing potential cash flow stability risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	110.94B	110.16B	100.98B	92.77B	82.14B	74.66B
Gross Profit	14.67B	14.08B	10.19B	9.02B	10.22B	9.52B
EBITDA	8.06B	7.13B	7.11B	5.28B	6.96B	5.93B
Net Income	1.49B	1.86B	1.99B	481.96M	1.80B	1.25B
Balance Sheet
Total Assets	139.52B	142.91B	153.57B	107.12B	104.55B	94.05B
Cash, Cash Equivalents and Short-Term Investments	20.63B	21.65B	21.13B	10.01B	7.87B	11.75B
Total Debt	24.19B	24.12B	24.06B	11.56B	6.98B	6.46B
Total Liabilities	59.33B	61.86B	61.18B	38.55B	33.13B	29.53B
Stockholders Equity	75.96B	76.75B	87.91B	64.24B	67.10B	60.55B
Cash Flow
Free Cash Flow	0.00	1.45B	-1.08B	-1.40B	-3.46B	-714.03M
Operating Cash Flow	0.00	9.52B	5.74B	2.34B	208.30M	2.62B
Investing Cash Flow	0.00	-8.07B	-6.68B	-3.62B	-3.80B	-2.26B
Financing Cash Flow	0.00	-901.01M	11.72B	3.38B	-635.87M	1.67B

Chuo Spring Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3380.00
• 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:5992, the sentiment is Positive. The current price of 3380 is above the 20-day moving average (MA) of 3299.00, above the 50-day MA of 3279.10, and above the 200-day MA of 2207.12, indicating a bullish trend. The MACD of 16.69 indicates Negative momentum. The RSI at 56.70 is Neutral, neither overbought nor oversold. The STOCH value of 78.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5992.

Chuo Spring Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7250	78 Outperform	¥185.07B	11.65	―	1.05%	3.62%	3.64%
5991	73 Outperform	¥565.18B	13.74	―	2.37%	3.38%	-3.92%
7229	72 Outperform	¥45.05B	11.47	―	2.37%	-13.35%	-19.38%
7231	71 Outperform	¥67.09B	9.76	―	3.58%	-6.79%	303.74%
5992	69 Neutral	¥81.63B	41.95	―	1.74%	6.81%	6.68%
5989	66 Neutral	¥37.62B	3.88	―	5.18%	-7.52%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%