Chiyoda Co., Ltd. (8185) AI Stock Analysis

• Market Cap: ¥34.89B
• Dividend Yield: 4.07%
• Average Volume (3M): 133.61K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.60
• Revenue Growth: -9.86%
• EPS Growth: -14.02%
• Country: JP
• Employees: 1,554
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 20.60
• Shares Outstanding: 34,359,398
• 10 Day Avg. Volume: 208,490
• 30 Day Avg. Volume: 133,606
• PEG Ratio: 0.23
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 18.18
• 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: 66 Neutral
• Price Target: ¥1,212.00 ▲(11.09% Upside)

Chiyoda Co., Ltd. benefits from a strong financial position with improved profitability and cash flows. However, the stock is currently experiencing bearish technical indicators, which weigh down the overall score. The valuation is reasonable, supported by a good dividend yield.

Positive Factors

Balance Sheet Strength

A roughly 65.8% equity ratio and low leverage create durable financial flexibility for an EPC firm. This conservatism reduces refinancing and covenant risk, supports bonding capacity for large projects, and helps absorb delays or cost overruns without threatening solvency over the medium term.

Margin Improvement and Profitability Recovery

Sustained gross margin near 46.8% and rising operating margins indicate stronger project execution and cost control. In EPC businesses, durable margin improvement reflects better bidding discipline, execution capability and pricing power, which support long-term cash generation and return on invested capital.

Long-term EPC Model and Strategic Partnerships

A business model centered on long-term EPC contracts with strategic partnerships and JVs provides backlog visibility and risk sharing. Expansion into renewable projects aligns with structural energy transition, offering durable new market channels while leveraging existing engineering and project-management strengths.

Negative Factors

Negative Revenue Trend

A ~14% revenue decline signals weaker project awards or timing shifts, reducing scale benefits and pressuring utilization. For an EPC contractor, sustained top-line weakness can erode backlog, underutilize fixed project teams, and make it harder to maintain margins and investment in competitiveness over the medium term.

Flat Free Cash Flow Growth

While FCF has recovered, flat FCF growth constrains the firm's ability to self-fund larger bids, capital expenditures, or strategic investments. In capital- and working-capital-intensive EPC work, improving recurring FCF is necessary to reduce dependence on external financing and support sustainable growth.

Sector Concentration and Cyclicality

Heavy exposure to energy and petrochemical end markets makes revenues and project pipelines sensitive to commodity cycles and client capex timing. Such concentration increases earnings volatility and backlog risk, requiring sustained bidding and diversification efforts to smooth long-term performance.

Chiyoda Co., Ltd. Business Overview & Revenue Model

Company Description

Chiyoda Co., Ltd. engages in the retail of shoes, etc. It also develops, manufactures, and sells shoes; and sells casual clothing products for men, women, and kids. As of February 28, 2022, the company operated 954 stores under the SHOE PLAZA, TSRC, CHIYODA HAKI-GOKOCHI, Chiyoda, cloverleaf, SPC, SHOE PLAZA park, SHOES Paletta, VifVif by cloverleaf, COURIPIE, and NATURA store names. Chiyoda Co., Ltd. was founded in 1936 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Chiyoda Co., Ltd. generates revenue primarily through its engineering, procurement, and construction (EPC) contracts for large-scale industrial projects, particularly in the oil and gas, petrochemical, and energy sectors. The company's revenue model is heavily reliant on long-term contracts with major corporations and government entities, which provide a steady stream of income. Key revenue streams include project management fees, consultancy services, and construction contracts. Additionally, Chiyoda benefits from partnerships with global energy companies and participation in joint ventures, which allow it to access new markets and share resources. The company also explores opportunities in renewable energy projects, contributing to its earnings through innovative technological solutions and eco-friendly initiatives.

Chiyoda Co., Ltd. Financial Statement Overview

Summary

Chiyoda Co., Ltd. shows a positive turnaround in net income and cash flows, with a strong balance sheet and low leverage. However, revenue growth is slightly negative, indicating a need for further stabilization.

Income Statement

Chiyoda Co., Ltd. has shown a recovery in net income from negative values in previous years to a positive net income in the most recent year. The gross profit margin is healthy at approximately 46.8%, and the company has improved its EBIT and EBITDA margins significantly over the last year. However, revenue growth is slightly negative over the past year, indicating a need for further revenue stabilization.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of about 65.8%. The debt-to-equity ratio is low, indicating conservative financial leverage. The return on equity has turned positive, reflecting improved profitability. Overall, the company maintains a stable financial position with strong equity backing.

Cash Flow

Chiyoda Co., Ltd. has demonstrated positive free cash flow after a period of negative values, indicating improved cash management. The operating cash flow to net income ratio is favorable, but the free cash flow growth rate is flat, suggesting the company needs to enhance cash flow generation to support future growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.81B	91.83B	93.32B	92.12B	88.65B	94.23B
Gross Profit	40.13B	42.95B	43.94B	42.16B	40.36B	42.72B
EBITDA	2.41B	2.80B	2.33B	-1.79B	-1.95B	-4.40B
Net Income	2.26B	2.92B	1.85B	-2.60B	-3.98B	-5.00B
Balance Sheet
Total Assets	75.44B	79.08B	84.76B	87.21B	90.68B	99.61B
Cash, Cash Equivalents and Short-Term Investments	18.93B	26.40B	26.60B	25.90B	32.03B	36.53B
Total Debt	770.00M	799.00M	1.05B	1.17B	1.59B	3.32B
Total Liabilities	24.36B	27.04B	32.91B	35.86B	35.22B	37.14B
Stockholders Equity	51.09B	52.03B	50.80B	49.84B	53.53B	60.05B
Cash Flow
Free Cash Flow	0.00	2.10B	2.10B	-4.29B	-4.48B	-3.35B
Operating Cash Flow	0.00	2.82B	2.99B	-2.98B	-3.60B	-1.72B
Investing Cash Flow	0.00	-3.16B	-731.00M	-2.38B	2.58B	-812.00M
Financing Cash Flow	0.00	-1.37B	-1.29B	-1.38B	-3.47B	-1.35B

Chiyoda Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1091.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8185, the sentiment is Positive. The current price of 1091 is below the 20-day moving average (MA) of 1095.80, above the 50-day MA of 1045.96, and below the 200-day MA of 1123.08, indicating a neutral trend. The MACD of 19.40 indicates Negative momentum. The RSI at 68.18 is Neutral, neither overbought nor oversold. The STOCH value of 57.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8185.

Chiyoda Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7606	74 Outperform	¥68.45B	18.89	―	2.73%	10.48%	-34.38%
2792	72 Outperform	¥41.72B	12.19	―	3.62%	-0.98%	-29.86%
8008	67 Neutral	¥40.33B	24.98	―	4.71%	48.00%	16.54%
8185	66 Neutral	¥34.89B	17.02	―	4.07%	-9.86%	-14.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3548	53 Neutral	¥28.45B	-17.67	―	4.99%	-7.21%	-5127.88%
7494	47 Neutral	¥8.46B	17.86	―	4.13%	-10.82%	―

Chiyoda Co., Ltd. Corporate Events

Chiyoda Profit Falls but Equity Ratio and Shareholder Returns Strengthen

Chiyoda Corporation reported a decline in performance for the nine months ended November 30, 2025, with net sales falling 14.5% year on year to ¥62.1 billion and profit attributable to owners of parent dropping 27.5% to ¥1.63 billion, while basic earnings per share slid to ¥47.06. Despite lower sales and profits and a modest decrease in total assets and equity, the company’s equity-to-asset ratio improved to 66.8%, it continued share buybacks that reduced outstanding shares, and it plans to raise full-year dividends from ¥34.00 to ¥54.00 per share, indicating an ongoing commitment to shareholder returns even as it forecasts further profit contraction for the fiscal year ending February 28, 2026.

The most recent analyst rating on (JP:8185) stock is a Hold with a Yen1079.00 price target. To see the full list of analyst forecasts on Chiyoda Co., Ltd. stock, see the JP:8185 Stock Forecast page.