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

• Market Cap: ¥88.06B
• Dividend Yield: 1.61%
• Average Volume (3M): 29.82K
• Price to Earnings (P/E): 2.2
• Beta (1Y): 0.93
• Revenue Growth: 6.81%
• EPS Growth: 6.68%
• Country: JP
• Employees: 3,017
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 402.67
• 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: 29.48
• 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: 64 Neutral
• Price Target: ¥4,066.00 ▲(15.84% Upside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

Chuo Spring Co., Ltd. demonstrates strong financial performance with revenue growth and improved operational efficiency. However, the high P/E ratio suggests potential overvaluation, and the technical indicators show moderate momentum. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Chuo Spring's products across industries, supporting long-term business expansion.

Operational Efficiency

Improved gross margins reflect enhanced operational efficiency, which can lead to sustained profitability and competitive positioning.

Cash Flow Management

Improved cash flow management enhances financial stability, enabling strategic investments and reducing reliance on external financing.

Negative Factors

Debt Reliance

Increased reliance on debt can constrain financial flexibility and elevate risk, potentially impacting long-term growth and stability.

Net Profit Margin Volatility

Volatile net profit margins can signal challenges in maintaining consistent profitability, affecting investor confidence and financial health.

Free Cash Flow Volatility

Volatile free cash flow growth can pose risks to cash flow stability, affecting the company's ability to fund operations and growth initiatives.

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. exhibits strong revenue growth and improved gross and operating margins, reflecting enhanced operational efficiency. However, challenges remain in maintaining consistent profitability and return on equity, and there is an increased reliance on debt financing.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	110.94B	110.16B	100.98B	92.77B	82.14B	74.66B
Gross Profit	14.67B	14.08B	10.18B	9.00B	10.20B	9.49B
EBITDA	9.42B	8.81B	4.97B	4.10B	5.32B	4.58B
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	21.67B	21.13B	10.02B	7.88B	11.76B
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	1.44B	-964.02M	-1.37B	-3.41B	-652.88M
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: 3510.00
• 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 3510 is above the 20-day moving average (MA) of 3427.00, above the 50-day MA of 3466.50, and above the 200-day MA of 3086.65, indicating a bullish trend. The MACD of -0.67 indicates Negative momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 60.33 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
7242	78 Outperform	¥215.63B	6.43	13.11%	2.87%	3.95%	136.86%
5991	74 Outperform	¥541.89B	11.33	―	2.60%	1.06%	-5.99%
7220	71 Outperform	¥176.15B	-8.32	―	1.93%	-3.23%	24.93%
7278	69 Neutral	¥206.70B	10.65	7.50%	5.39%	-2.26%	―
7217	68 Neutral	¥3.93B	-23.96	―	4.39%	9.38%	0.07%
5992	64 Neutral	¥88.06B	2.18	―	1.61%	6.81%	6.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%