Cleanup Corporation (7955) AI Stock Analysis

• Market Cap: ¥38.40B
• Dividend Yield: 3.56%
• Average Volume (3M): 51.87K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.55
• 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): 57.45
• Shares Outstanding: 36,442,375
• 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: 75 Outperform
• Price Target: ¥1,160.00 ▲(32.72% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by improving operating performance and a conservatively financed balance sheet, while thin margins and only moderate cash-flow consistency limit the financial-quality ceiling. Technicals are constructive with a clear uptrend, and valuation is supportive with a low P/E and solid dividend yield.

Positive Factors

Consistent revenue growth

TTM revenue rising ~11% indicates durable demand and expanding market presence in core furnishings and appliances. Sustained top-line momentum supports scale benefits, helps absorb fixed costs over time, and provides a foundation for margin recovery and reinvestment over the next 2–6 months.

Conservatively financed balance sheet

Very low debt-to-equity (~0.14) gives the company strong financial flexibility and low refinancing risk. This conservative capital structure supports investment, dividend stability or opportunistic M&A, and resilience to demand shocks, strengthening long-term operational durability.

Recovering cash generation

Operating and free cash flow recovered in the TTM after prior negative FCF, indicating improving cash conversion and internal funding capacity. While conversion is not perfect, sustained positive FCF reduces reliance on external finance and supports capex, dividends, and balance-sheet strength.

Negative Factors

Thin net margins

A TTM net margin near 2.4% leaves limited buffer against cost inflation or revenue softness. Low absolute margins constrain free cash generation per unit revenue and reduce the company's ability to rapidly scale profits from modest top-line swings, making profitability fragile.

Modest return on equity

ROE around 4.3% signals limited efficiency in converting shareholder capital into profits. Over the medium term this can cap shareholder value creation absent higher margins or faster revenue growth, and it implies slower compounding versus higher-return peers in the sector.

Moderate and variable cash conversion

Free cash flow running at ~66% of net income and prior FY2024 negative FCF point to volatility in cash conversion. Working-capital or reinvestment swings can materially affect free cash flow, limiting predictability for dividends, buybacks, or sustained investment plans.

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

Revenue is growing (TTM up ~11% YoY) and profitability has improved versus FY2025, supported by a conservative balance sheet with low leverage (debt-to-equity ~0.14). Offsetting this, earnings power remains modest (TTM net margin ~2.4%, ROE ~4.3%) and cash-flow quality is only moderate with some volatility (FCF ~two-thirds of net income in TTM).

Income Statement

TTM (Trailing-Twelve-Months) revenue is up about 11% versus the prior year, showing solid top-line momentum. Profitability improved meaningfully versus FY2025 (annual), with higher gross and operating margins, but overall earnings power remains modest (TTM net margin ~2.4%) and profitability has been somewhat uneven over the last few years (stronger in FY2022, softer in FY2024–FY2025).

Balance Sheet

The balance sheet looks conservatively financed, with low leverage (TTM debt-to-equity ~0.14) and a large equity base relative to debt. Returns on equity are positive but not high (TTM ~4.3%), indicating stability and financial flexibility, though not exceptional efficiency in generating profits from shareholder capital.

Cash Flow

Cash generation improved in TTM (Trailing-Twelve-Months), with positive operating cash flow and free cash flow, a sharp rebound from the negative free cash flow seen in FY2024 (annual). That said, cash conversion is still only moderate—free cash flow is about two-thirds of net income in TTM—and operating cash flow relative to sales remains relatively low, suggesting working-capital or reinvestment needs can meaningfully influence year-to-year cash results.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	133.32B	129.99B	127.98B	124.01B	113.31B	104.19B
Gross Profit	43.54B	41.12B	39.94B	39.59B	38.57B	35.49B
EBITDA	9.41B	7.94B	6.52B	6.24B	7.38B	5.75B
Net Income	3.20B	1.72B	1.47B	2.52B	3.15B	1.75B
Balance Sheet
Total Assets	97.10B	90.48B	91.19B	87.94B	85.29B	83.94B
Cash, Cash Equivalents and Short-Term Investments	21.81B	19.23B	19.07B	22.53B	22.78B	22.86B
Total Debt	8.24B	7.44B	5.76B	4.55B	5.29B	7.87B
Total Liabilities	37.56B	33.38B	34.52B	32.08B	30.65B	31.18B
Stockholders Equity	59.54B	57.10B	56.67B	55.86B	54.63B	52.76B
Cash Flow
Free Cash Flow	4.70B	1.06B	-3.62B	918.00M	2.92B	1.03B
Operating Cash Flow	7.11B	4.35B	2.43B	4.30B	5.78B	2.66B
Investing Cash Flow	-2.95B	-4.50B	-5.36B	-2.29B	-2.62B	-1.60B
Financing Cash Flow	68.00M	251.00M	-572.00M	-2.02B	-3.64B	1.23B

Cleanup Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 874.00
• 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 874 is below the 20-day moving average (MA) of 959.45, below the 50-day MA of 909.08, and above the 200-day MA of 778.25, indicating a bullish trend. The MACD of 42.49 indicates Negative momentum. The RSI at 67.17 is Neutral, neither overbought nor oversold. The STOCH value of 85.75 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	77 Outperform	¥55.38B	16.29	―	2.52%	2.47%	6.88%
7955	75 Outperform	¥38.40B	12.06	―	3.56%	3.03%	160.39%
8119	75 Outperform	¥8.91B	22.51	―	4.49%	-9.68%	-61.01%
7981	72 Outperform	¥202.02B	13.57	―	3.41%	6.17%	61.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7822	46 Neutral	¥11.45B	25.72	―	4.41%	2.78%	-88.37%

Cleanup Corporation Corporate Events

Cleanup Corporation Completes ¥774 Million Treasury Share Buyback

Cleanup Corporation has completed a share buyback program approved by its board of directors on February 5, 2026, repurchasing 800,000 common shares for a total of 774.4 million yen through the Tokyo Stock Exchange’s off-auction own share repurchase system (ToSTNeT-3) on February 6, 2026. The transaction, which utilized the full authorized amount of both shares and funds, is aimed at enhancing shareholder returns and improving capital efficiency, underscoring the company’s commitment to shareholder-friendly capital allocation and potentially affecting key metrics such as earnings per share and return on equity for existing investors.

The most recent analyst rating on (JP:7955) stock is a Hold with a Yen971.00 price target. To see the full list of analyst forecasts on Cleanup Corporation stock, see the JP:7955 Stock Forecast page.

Cleanup Corporation Announces Share Buyback and Planned Cancellation to Boost Capital Efficiency

Cleanup Corporation’s board has approved a share buyback of up to 800,000 common shares, representing 2.22% of its issued shares excluding treasury stock, for a maximum of ¥774.4 million via the Tokyo Stock Exchange’s ToSTNeT-3 off-auction trading system at the February 5 closing price of ¥968. The company will subsequently cancel 1,000,000 common shares on February 27, 2026, a move designed to enhance shareholder returns and improve capital efficiency, thereby tightening the share supply and potentially supporting shareholder value by reducing the total number of shares outstanding.

The most recent analyst rating on (JP:7955) stock is a Hold with a Yen971.00 price target. To see the full list of analyst forecasts on Cleanup Corporation stock, see the JP:7955 Stock Forecast page.

Cleanup Corporation Unveils Next-Generation Leadership Lineup Ahead of April Transition

Cleanup Corporation announced a major reshuffle of its top management aimed at building a next-generation leadership structure amid significant changes in its business environment. Current Representative Director and President Hiroshi Takeuchi will step down from the presidency on April 1, 2026, remaining as Representative Director until his term ends at the June 25, 2026 shareholders’ meeting, after which he will become an advisor. Managing Executive Officer Toru Fujiwara, who has held a series of senior roles in development, corporate planning, new business promotion and retail business planning since joining the company in 1989, will assume the role of President and Executive Officer on April 1 and is slated to become Representative Director following shareholder approval in June. The company will also promote Kazuhiro Kawada to Director and Vice President, reassign Director and Senior Managing Executive Officer Masaji Yamada to advisor after his term expires in June, and appoint executives Atsushi Nakazato and Misao Kuwata as directors, further reinforcing its management bench. These changes reflect Cleanup’s effort to ensure leadership continuity, sharpen strategic planning and product development capabilities, and position the group for sustainable growth under a refreshed governance framework.

The most recent analyst rating on (JP:7955) stock is a Hold with a Yen971.00 price target. To see the full list of analyst forecasts on Cleanup Corporation stock, see the JP:7955 Stock Forecast page.

Cleanup Corporation Raises Full-Year Profit Forecast on Cost Controls and Price Revisions

Cleanup Corporation has revised its full-year earnings forecast for the fiscal year ending March 2026, keeping net sales unchanged at ¥134.5 billion but substantially raising profit projections on the back of stronger-than-expected results through the third quarter. Operating profit is now forecast to rise 28% from the previous estimate to ¥3.2 billion, ordinary profit by 23.3% to ¥3.7 billion, and profit attributable to owners of parent by 35.1% to ¥2.5 billion, lifting expected earnings per share to ¥69.58. The company attributes the upward revision to the successful impact of sales price adjustments, cost reductions and controlled selling, general and administrative expenses, while noting that profitability in the fourth quarter remains seasonally weaker amid declining new housing starts and higher promotional spending to stimulate demand.

The most recent analyst rating on (JP:7955) stock is a Hold with a Yen971.00 price target. To see the full list of analyst forecasts on Cleanup Corporation stock, see the JP:7955 Stock Forecast page.

Cleanup Corporation Nearly Doubles Profit and Lifts Full-Year Forecast

Cleanup Corporation reported consolidated net sales of ¥102.0 billion for the nine months ended December 31, 2025, a 3.4% year-on-year increase, while operating profit nearly doubled to ¥4.0 billion and profit attributable to owners of parent surged 93.0% to ¥3.1 billion, underscoring a significant recovery in profitability. The company’s financial position remained solid, with total assets rising to ¥97.1 billion and an equity ratio of 61.3%, and it maintained its annual dividend forecast of ¥31 per share for the fiscal year ending March 31, 2026; at the same time, Cleanup raised its full-year earnings forecast, now targeting ¥134.5 billion in net sales and a 45.4% increase in full-year profit, signaling improved earnings momentum and potentially stronger returns for shareholders.

The most recent analyst rating on (JP:7955) stock is a Hold with a Yen971.00 price target. To see the full list of analyst forecasts on Cleanup Corporation stock, see the JP:7955 Stock Forecast page.