Chino Corporation (6850) AI Stock Analysis

• Market Cap: ¥33.01B
• Dividend Yield: 2.89%
• Average Volume (3M): 32.28K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.99
• Revenue Growth: 6.15%
• EPS Growth: 2.98%
• Country: JP
• Employees: 1,095
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 26.55
• Shares Outstanding: 18,520,231
• 10 Day Avg. Volume: 41,830
• 30 Day Avg. Volume: 32,276
• PEG Ratio: 0.64
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 9.19
• 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: 80 Outperform
• Price Target: ¥2,057.00 ▲(45.78% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by strong financial performance (growth, improving margins, and healthier cash generation). Technicals support the longer-term uptrend but are overheated (very high RSI/Stoch), which tempers the score. Valuation is reasonable with a moderate dividend yield, providing additional support.

Positive Factors

Revenue and EPS Growth

Chino has delivered durable double‑digit top‑line and earnings growth, reflecting sustained market demand for measurement/control equipment. Consistent revenue and EPS expansion supports reinvestment in products, R&D and service capabilities, strengthening long‑term earnings power.

Margin Expansion & Efficiency

Improving gross and net margins plus rising EBIT/EBITDA indicate structural operational improvements and pricing or cost advantages. Higher margin durability enhances free cash generation and the firm's ability to fund capex, services and incremental product development.

Solid Balance Sheet

Prudent leverage and a strong equity base provide financial flexibility to weather cyclical downturns, finance strategic investments and support service/network expansion. This balance sheet stability underpins sustained capital allocation and lower refinancing risk.

Negative Factors

Historical Cash‑flow Volatility

Past free cash flow swings indicate that cash generation has not always been steady. While recent improvement is encouraging, historical volatility can constrain consistent reinvestment, dividend reliability and buffer capacity during industry slowdowns.

Limited Forward Guidance

Absence of formal guidance or published management highlights reduces forward visibility for investors and analysts. That limits clarity on near‑term targets and execution, making it harder to assess sustainability of growth and to plan capital allocation decisions.

Product‑centric Revenue Mix

Revenue is primarily product sales which tend to be more cyclical and order‑driven than subscription models. Although services and systems revenue exist, a product‑heavy mix can lead to less predictable recurring income and greater sensitivity to industrial capex cycles.

Chino Corporation Business Overview & Revenue Model

Company Description

Chino Corporation manufactures and sells instrumentation and control equipment. The company operates through Measurement & Control Instruments, Instrumentation Systems, Sensor, and other Segments. Its products include temperature sensors, infrared radiation thermometers, temperature calibration equipment, traceability, temperature/humidity meters and sensors, constituent/moisture/thickness meters, data loggers, controllers, recorders, thyristor regulators, fuel cell testing systems, compressor performance testing systems, instrumentation components, and thermal image systems. In addition, the company offers repair and maintenance services. The company was formerly known as CHINO Works, Ltd. and changed its name to Chino Corporation in 1986. Chino Corporation was founded in 1913 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Chino Corporation generates revenue through multiple key streams, primarily by selling its electronic components and systems to various industries, including telecommunications, automotive, and consumer electronics. The company's revenue model is heavily reliant on direct sales to manufacturers and distributors, alongside long-term contracts with major corporations that require bulk components. Additionally, Chino benefits from strategic partnerships with technology firms, enhancing its market reach and product offerings. The company also invests in research and development, aiming to create cutting-edge products that can command higher prices and maintain competitive advantages in the market.

Chino Corporation Financial Statement Overview

Summary

Strong fundamentals: robust revenue growth and improving profitability margins (income statement score 88), a stable balance sheet with prudent leverage (balance sheet score 85), and improved free cash flow generation despite past fluctuations (cash flow score 80).

Income Statement

Chino Corporation has demonstrated robust revenue growth, with a significant increase from previous years. The Gross Profit Margin and Net Profit Margin have also improved, indicating strong operational efficiency. The EBIT and EBITDA margins have steadily increased, showcasing enhanced profitability. Overall, the income statement reflects strong growth and profitability with minimal weaknesses.

Balance Sheet

The company maintains a solid Debt-to-Equity Ratio, highlighting prudent financial leverage. The Return on Equity is commendable, driven by consistent profitability. The Equity Ratio demonstrates a stable financial position with a strong equity base. While the debt levels are manageable, continuous monitoring is advisable to maintain financial stability.

Cash Flow

Chino Corporation has shown substantial improvement in Free Cash Flow, reflecting strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio and Free Cash Flow to Net Income Ratio are healthy, indicating efficient cash management. Although prior years showed fluctuations, recent trends are positive, suggesting improved cash flow stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	30.44B	29.33B	27.43B	23.79B	21.91B	21.08B
Gross Profit	9.17B	9.37B	8.39B	7.87B	7.08B	6.36B
EBITDA	3.58B	4.08B	3.58B	3.10B	2.52B	2.73B
Net Income	1.90B	1.99B	1.76B	1.54B	1.05B	1.29B
Balance Sheet
Total Assets	36.67B	37.77B	36.53B	36.29B	31.55B	30.40B
Cash, Cash Equivalents and Short-Term Investments	8.28B	8.13B	7.30B	9.18B	7.33B	6.99B
Total Debt	2.48B	2.61B	3.02B	3.38B	2.26B	2.59B
Total Liabilities	12.12B	12.73B	13.34B	14.72B	11.40B	10.90B
Stockholders Equity	21.62B	21.98B	20.26B	18.78B	17.56B	16.64B
Cash Flow
Free Cash Flow	316.00M	1.84B	-1.34B	1.05B	970.00M	1.39B
Operating Cash Flow	522.50M	2.54B	101.00M	1.62B	1.88B	2.34B
Investing Cash Flow	-189.50M	-667.00M	81.00M	-564.00M	-578.00M	-748.72M
Financing Cash Flow	-336.50M	-1.10B	-1.10B	655.00M	-978.00M	-968.70M

Chino Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1411.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6850, the sentiment is Positive. The current price of 1411 is below the 20-day moving average (MA) of 1579.60, below the 50-day MA of 1474.10, and above the 200-day MA of 1311.50, indicating a bullish trend. The MACD of 95.24 indicates Negative momentum. The RSI at 83.98 is Negative, neither overbought nor oversold. The STOCH value of 87.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6850.

Chino Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥33.01B	16.29	―	2.89%	6.15%	2.98%
6626	73 Outperform	¥33.91B	10.25	―	1.78%	4.47%	12.28%
6848	73 Outperform	¥19.10B	24.04	―	2.59%	1.66%	-12.21%
6853	73 Outperform	¥21.82B	21.76	―	2.93%	-1.58%	12.24%
6874	72 Outperform	¥24.59B	10.85	―	2.84%	8.78%	16.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6844	58 Neutral	¥42.98B	11.20	―	1.95%	6.10%	―

Chino Corporation Corporate Events

Chino Corporation Releases Detailed FY2025 Q3 Financial Supplement and Outlook

Chino Corporation released supplementary materials for its FY2025 third-quarter financial results under Japanese GAAP, outlining financial highlights, performance trends by segment and region, and an analysis of changes in operating profit. The company also detailed quarterly order and sales trends, shareholder return policies, key corporate topics, and its consolidated forecast for the full FY2025, offering investors a structured view of its current performance and outlook.

The documentation indicates a comprehensive disclosure approach aimed at enhancing transparency around regional sales distribution, segment performance, and balance sheet conditions. By pairing operational data with guidance on shareholder returns and future forecasts, Chino seeks to reinforce investor confidence and clarify its positioning and strategic direction in the industrial instrumentation market.

The most recent analyst rating on (JP:6850) stock is a Buy with a Yen1809.00 price target. To see the full list of analyst forecasts on Chino Corporation stock, see the JP:6850 Stock Forecast page.

Chino Posts Higher Nine-Month Sales and Profit, Keeps Modest Full-Year Outlook

Chino Corporation reported consolidated net sales of ¥21.3 billion for the nine months ended December 31, 2025, up 9.2% year on year, with operating profit rising 16% to ¥1.65 billion and ordinary profit up 9.3% to ¥1.73 billion, while profit attributable to owners of parent slipped 4.8% to ¥919 million. The company maintained a solid financial position with total assets of ¥38.8 billion and an equity ratio of 57.6%, confirmed an unchanged dividend forecast, and reiterated full-year guidance calling for modest growth in sales and profits, factoring in a recent 2-for-1 share split and a board-approved share buyback that will influence per-share metrics.

For the fiscal year ending March 31, 2026, Chino projects net sales of ¥30.0 billion, operating profit of ¥2.9 billion, and profit attributable to owners of parent of ¥2.0 billion, implying low single-digit percentage increases over the prior year. The combination of continued revenue growth, stable margins, and shareholder-return measures such as dividends and treasury share repurchases underscores management’s intent to balance business expansion with capital efficiency, which may support valuation but leaves earnings growth at a measured pace amid a steady operating environment.

The most recent analyst rating on (JP:6850) stock is a Buy with a Yen1687.00 price target. To see the full list of analyst forecasts on Chino Corporation stock, see the JP:6850 Stock Forecast page.

Chino Corporation Reports Progress on Share Buyback and Plans Share Cancellation for Shareholder Returns

Chino Corporation has disclosed the status of its ongoing share buyback program authorized by its board in November 2025, under which it repurchased 74,100 shares of common stock on the Tokyo Stock Exchange between January 1 and January 31, 2026, at a total cost of ¥104.47 million. This transaction forms part of a broader authorization to buy back up to 860,000 shares for a maximum of ¥1.3 billion through November 12, 2026, with the company stating that the acquired shares are intended for cancellation to return value to shareholders; as of January 31, 2026, cumulative repurchases under this framework totaled 182,000 shares for ¥253.06 million, underscoring an active capital allocation policy that may support earnings per share and signal management’s confidence in the company’s valuation.

The most recent analyst rating on (JP:6850) stock is a Buy with a Yen1687.00 price target. To see the full list of analyst forecasts on Chino Corporation stock, see the JP:6850 Stock Forecast page.

Chino Corporation Reports Progress on Share Buyback Program Aimed at Shareholder Returns

Chino Corporation has disclosed the status of its ongoing share buyback program authorized by its board in November 2025, under which it is repurchasing common stock on the Tokyo Stock Exchange as part of a broader capital policy aimed at enhancing shareholder returns. Between December 1 and December 31, 2025, the company repurchased 65,800 shares for a total of ¥90,473,700, bringing cumulative buybacks under the current resolution to 107,900 shares at a cost of ¥148,585,300, with the repurchased shares intended for cancellation, indicating a continued focus on optimizing capital structure and returning value to shareholders over the authorized period through November 2026.

The most recent analyst rating on (JP:6850) stock is a Buy with a Yen1576.00 price target. To see the full list of analyst forecasts on Chino Corporation stock, see the JP:6850 Stock Forecast page.

Chino Corporation Announces Treasury Share Repurchase

Chino Corporation announced the repurchase of 42,100 treasury shares as part of a broader strategy to enhance shareholder value. This move, approved by the Board of Directors, is part of a larger plan to repurchase up to 860,000 shares by November 2026, with the intention of canceling these shares to benefit shareholders.

The most recent analyst rating on (JP:6850) stock is a Buy with a Yen1576.00 price target. To see the full list of analyst forecasts on Chino Corporation stock, see the JP:6850 Stock Forecast page.