Chino Corporation (6850) AI Stock Analysis

• Market Cap: ¥19.40B
• Dividend Yield: 3.49%
• Average Volume (3M): 22.05K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.96
• Revenue Growth: 6.94%
• EPS Growth: 13.27%
• Country: JP
• Employees: 1,095
• Sector: Technology
• Sector Strength: 83
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 120.59
• Shares Outstanding: 9,260,116
• 10 Day Avg. Volume: 17,110
• 30 Day Avg. Volume: 22,053
• PEG Ratio: -1.27
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 53.63
• 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

• Rating: 79 Outperform
• Price Target: ¥2,581.00 ▲(12.66%Upside)

Chino Corporation's strong financial performance is the most significant factor contributing to its overall stock score. The company's robust growth and profitability, solid financial position, and improved cash flow stability are complemented by favorable technical analysis and attractive valuation. However, the technical indicators suggest caution due to potential overbought conditions.

Chino Corporation Business Overview & Revenue Model

Company Description

Chino Corporation (6850) is a Japanese company specializing in the development and production of measurement and control equipment. The company primarily operates in the industrial sector, offering a wide range of products including temperature sensors, recorders, controllers, and data loggers. Chino Corporation serves various industries such as manufacturing, energy, and environmental management, providing solutions that enhance process efficiency and product quality.

How the Company Makes Money

Chino Corporation generates revenue through the sale of its measurement and control equipment to industrial clients. Its key revenue streams include the production and distribution of temperature sensors, recorders, and controllers that are essential for maintaining optimal operational conditions in manufacturing and other industrial processes. The company also offers data loggers that help clients monitor and analyze environmental conditions. Revenue is further supported by after-sales services and maintenance contracts. Significant partnerships with industrial players and continuous investment in research and development contribute to the company's earnings by enhancing product offerings and expanding market reach.

Chino Corporation Financial Statement Overview

Summary

Chino Corporation demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet reflects stability with low leverage, while cash flow statements reveal some volatility in cash generation. Despite some fluctuations, the company's overall financial condition is robust, positioning it well within the industry.

Income Statement

Chino Corporation has shown consistent revenue growth with a notable increase of 17.4% from 2022 to 2023 and a further 15.3% from 2023 to 2024. The gross profit margin for the TTM period is a healthy 31.1%, and the net profit margin stands at 5.8%, indicating solid profitability. EBIT and EBITDA margins at 8.0% and 11.4% respectively, show operational efficiency. However, a slight decline in net income in the TTM compared to the previous year raises a potential concern.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 57.7% in the TTM, showing a stable capital structure. The debt-to-equity ratio is low at 0.13, indicating minimal leverage risk. ROE for the TTM is 7.9%, reflecting moderate efficiency in using equity to generate profits. The overall balance sheet shows strength but the decline in cash reserves from 2023 to 2024 should be monitored.

Cash Flow

Chino Corporation's operating cash flow has seen improvements, with a significant recovery from a low in 2024. The free cash flow to net income ratio is positive, showing effective cash conversion. However, free cash flow growth has been inconsistent, and the free cash flow growth rate from 2023 to 2024 is negative, indicating volatility in cash generation.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
27.99B	27.43B	23.79B	21.91B	21.08B	20.58B
	Gross Profit
8.71B	8.39B	7.87B	7.08B	6.36B	6.35B
	EBIT
2.23B	2.17B	2.02B	1.50B	1.14B	1.03B
	EBITDA
3.19B	3.58B	2.80B	2.29B	2.73B	2.56B
	Net Income Common Stockholders
1.63B	1.76B	1.54B	1.05B	1.29B	1.22B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.60B	7.30B	9.18B	7.33B	6.99B	4.80B
	Total Assets
35.75B	36.53B	36.29B	31.55B	30.40B	26.71B
	Total Debt
2.77B	3.02B	3.38B	2.26B	2.59B	2.83B
	Net Debt
-4.83B	-3.72B	-5.79B	-5.07B	-4.40B	-1.82B
	Total Liabilities
12.19B	13.34B	14.72B	11.40B	10.90B	10.39B
	Stockholders Equity
20.61B	20.26B	18.78B	17.56B	16.64B	15.38B
Cash Flow		Free Cash Flow
316.00M	-1.34B	1.05B	970.00M	1.39B	-54.79M
	Operating Cash Flow
522.50M	101.00M	1.62B	1.88B	2.34B	1.15B
	Investing Cash Flow
-189.50M	81.00M	-564.00M	-578.00M	-748.72M	-1.52B
	Financing Cash Flow
-336.50M	-1.10B	655.00M	-978.00M	-968.70M	-245.47M

Chino Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2291.00
• 50DMA: Positive
• 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:6850, the sentiment is Positive. The current price of 2291 is above the 20-day moving average (MA) of 2231.15, above the 50-day MA of 2024.64, and above the 200-day MA of 2110.18, indicating a bullish trend. The MACD of 79.59 indicates Positive momentum. The RSI at 64.86 is Neutral, neither overbought nor oversold. The STOCH value of 73.43 is Neutral, 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
6626	81 Outperform	¥22.34B	6.74		2.04%	11.73%	52.86%
6850	79 Outperform	¥19.40B	9.78		3.49%	6.94%	13.27%
6874	79 Outperform	¥19.24B	8.62		1.88%	11.73%	40.03%
6853	76 Outperform	¥14.38B	13.32		3.80%	0.16%	5.68%
6848	73 Outperform	¥16.02B	14.35		2.72%	3.52%	-14.02%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%
6844	46 Neutral	¥21.23B	―		3.17%	3.49%	-241.98%

Chino Corporation Corporate Events

Chino Corporation Announces Change in Accounting Auditor

Chino Corporation has announced a change in its accounting auditor, resolving to appoint Audit Corporation A&A partners as the new auditor, replacing Nakachi & Co. This decision comes as Nakachi & Co. completes its term and has requested not to renew the contract due to increased audit workload and challenges in staffing for overseas operations. The change is supported by the Audit & Supervisory Board, which selected A&A partners for their independence, expertise, and understanding of Chino’s business fields, ensuring appropriate and fair audit practices.

Chino Corporation Announces Leadership Changes

Chino Corporation has announced changes in its leadership team, with several directors and executive officers set to retire or be newly appointed. These changes, which will be finalized at the upcoming General Meeting of Shareholders, reflect the company’s ongoing efforts to strengthen its management structure and strategic direction.

Chino Corporation Exceeds Financial Forecasts and Increases Dividend

Chino Corporation has reported a positive difference between its forecasted and actual financial results for the fiscal year ending March 2025, driven by increased demand in its primary sectors and effective cost management. The company has also revised its dividend forecast upwards, reflecting its commitment to shareholder returns and sustainable profit growth.

Chino Corporation Reports Strong Fiscal Year 2025 Results

Chino Corporation reported a solid financial performance for the fiscal year ending March 31, 2025, with net sales reaching 29,329 million yen, a 6.9% increase from the previous year. The company also saw significant growth in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating strong operational efficiency and market positioning. The increase in dividends per share from 60.00 yen to 80.00 yen reflects the company’s commitment to returning value to shareholders. The financial results suggest a positive outlook for Chino Corporation, with a stable financial position and a slight increase in equity ratio, which could enhance stakeholder confidence.