Cleanup Corporation (7955) AI Stock Analysis

• Market Cap: ¥32.13B
• Dividend Yield: 3.56%
• Average Volume (3M): 51.87K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.51
• Revenue Growth: 3.03%
• EPS Growth: 160.39%
• Country: JP
• Employees: 3,503
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 15.15
• Shares Outstanding: 37,442,375
• 10 Day Avg. Volume: 36,740
• 30 Day Avg. Volume: 51,866
• PEG Ratio: 0.71
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 22.31
• 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: 78 Outperform
• Price Target: ¥942.00 ▲(8.15% Upside)

The overall stock score of 78 reflects strong technical analysis and valuation metrics, with the stock showing bullish momentum and appearing undervalued. Financial performance is stable, though there is room for improvement in profitability and cash flow management. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Health

A low debt-to-equity ratio signifies conservative leverage, providing financial stability and flexibility for future investments.

Gross Profit Margin

A strong gross profit margin reflects efficient cost control, enhancing the company's ability to sustain profitability over time.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow suggests potential cash management issues, which could impact future investment and operational flexibility.

Low Net Profit Margin

A low net profit margin indicates limited profitability, which may hinder the company's ability to reinvest in growth opportunities.

Cash Flow to Net Income Ratio

A low conversion of net income to free cash flow can limit the company's capacity to fund operations and growth initiatives without external financing.

Cleanup Corporation Business Overview & Revenue Model

Company Description

Cleanup Corporation manufactures and sells kitchen and bath equipment, washstand fixtures, commercial kitchen equipment, and other household equipment and devices in Japan and internationally. The company offers kitchen equipment, such as kitchens, sinks, work cabinets, cabinets for gas stoves, wall and storage cabinets, gas stoves, range hoods, gas and oven ranges, microwave ovens, fridge-freezers, dishwasher/dryers, and dish dryers; bath equipment, including system bathrooms, and artificial marble and stainless steel bathtubs; and washstand fixtures comprising system and shampoo washstands/vanities, and washstand storage cabinets. It also provides commercial kitchen equipment, such as sinks, cooking worktables, cupboards, culinary training tables, heating equipment, dishwashers, fridge-freezers, and rice cookers; and other household equipment and devices. The company offers its products through approximately 102 showrooms primarily under the CENTRO and STEDIA brands. Cleanup Corporation was founded in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Cleanup Corporation generates revenue through multiple streams, primarily from service contracts with businesses and government entities for waste management and cleanup services. The company charges fees for various services, including scheduled waste collection, emergency response cleanup, and consulting for environmental compliance. Additionally, Cleanup Corporation may earn revenue from recycling operations and the resale of recovered materials. Strategic partnerships with local governments and environmental agencies enhance its service capabilities and expand its market reach, contributing significantly to its earnings.

Cleanup Corporation Financial Statement Overview

Summary

Cleanup Corporation demonstrates robust revenue growth and strong cash flow generation, supported by a stable balance sheet with low leverage. While profitability margins are relatively low, the company's financial health is solid, with opportunities to enhance operational efficiency and profitability.

Income Statement

Cleanup Corporation has shown strong revenue growth, particularly in the TTM period with a 35.3% increase. Gross profit margins are stable around 31.6%, indicating efficient cost management. However, net profit margins are relatively low at 1.32%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are modest, reflecting moderate operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.13, indicating low leverage and financial stability. Return on equity is modest at 3.03%, suggesting moderate efficiency in generating returns from equity. The equity ratio stands at 64.4%, highlighting a strong equity base relative to total assets.

Cash Flow

Free cash flow has grown significantly by 160.1% in the TTM period, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is 0.16, indicating adequate cash flow relative to net income. The free cash flow to net income ratio of 0.24 suggests a solid conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	131.86B	129.99B	127.98B	124.01B	113.31B	104.19B
Gross Profit	42.52B	41.12B	39.94B	39.59B	38.57B	35.49B
EBITDA	8.58B	7.94B	6.52B	6.24B	7.38B	5.75B
Net Income	2.47B	1.72B	1.47B	2.52B	3.15B	1.75B
Balance Sheet
Total Assets	90.19B	90.48B	91.19B	87.94B	85.29B	83.94B
Cash, Cash Equivalents and Short-Term Investments	17.02B	19.23B	19.07B	22.53B	22.78B	22.86B
Total Debt	4.51B	7.44B	5.76B	4.55B	5.29B	7.87B
Total Liabilities	32.16B	33.38B	34.52B	32.08B	30.65B	31.18B
Stockholders Equity	58.03B	57.10B	56.67B	55.86B	54.63B	52.76B
Cash Flow
Free Cash Flow	2.04B	1.06B	-3.62B	918.00M	2.92B	1.03B
Operating Cash Flow	4.59B	4.35B	2.43B	4.30B	5.78B	2.66B
Investing Cash Flow	-3.57B	-4.50B	-5.36B	-2.29B	-2.62B	-1.60B
Financing Cash Flow	-2.93B	251.00M	-572.00M	-2.02B	-3.64B	1.23B

Cleanup Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 871.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7955, the sentiment is Positive. The current price of 871 is above the 20-day moving average (MA) of 823.80, above the 50-day MA of 796.04, and above the 200-day MA of 713.41, indicating a bullish trend. The MACD of 16.44 indicates Negative momentum. The RSI at 65.56 is Neutral, neither overbought nor oversold. The STOCH value of 91.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7955.

Cleanup Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7989	80 Outperform	¥41.10B	12.20	―	2.52%	2.47%	6.88%
7981	79 Outperform	¥194.11B	13.84	―	3.42%	6.17%	61.39%
7955	78 Outperform	¥32.13B	12.73	―	3.56%	3.03%	160.39%
8119	75 Outperform	¥8.10B	18.56	―	4.52%	-9.68%	-61.01%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7822	46 Neutral	¥10.03B	31.75	―	4.41%	2.78%	-88.37%

Cleanup Corporation Corporate Events

Cleanup Corporation Reports Strong Financial Performance for First Half of 2025

Cleanup Corporation reported a substantial improvement in its financial performance for the six months ended September 30, 2025, with net sales increasing by 2.9% and operating profit surging by 256.5% compared to the same period last year. This positive financial outcome reflects the company’s strategic efforts to enhance operational efficiency and strengthen its market position, benefiting stakeholders and potentially leading to increased investor confidence.

Cleanup Corporation Revises Earnings Forecast Amid Market Challenges

Cleanup Corporation has revised its earnings forecast for the fiscal year ending March 2026, reflecting a decrease in net sales due to a slowdown in housing acquisition sentiment and rising construction costs. Despite lower sales, the company expects higher profits due to effective cost reduction strategies and sales price revisions. The full-year outlook remains cautious with anticipated declines in sales and gross profit margins, but the company plans to stimulate demand through enhanced promotions and showrooms.