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

• Market Cap: ¥30.45B
• Dividend Yield: 4.37%
• Average Volume (3M): 133.61K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.59
• Revenue Growth: -9.86%
• EPS Growth: -14.02%
• Country: JP
• Employees: 1,554
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -10.71
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,079.00 ▲(6.20% 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

Strong Balance Sheet

A strong balance sheet with a high equity ratio and low debt-to-equity ratio indicates financial stability and flexibility to fund future growth.

Improved Profitability

Positive return on equity suggests effective management and operational efficiency, enhancing long-term shareholder value.

Positive Cash Flow

Positive free cash flow indicates improved cash management, providing resources for reinvestment and debt reduction, supporting sustainable growth.

Negative Factors

Negative Revenue Growth

Negative revenue growth suggests challenges in market expansion or competitive pressures, potentially impacting long-term earnings potential.

Flat Free Cash Flow Growth

Flat free cash flow growth may limit the company's ability to invest in new projects or technologies, affecting future growth prospects.

Decline in EPS Growth

A decline in EPS growth can indicate profitability challenges, potentially affecting investor confidence and long-term financial health.

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	88.14B	91.83B	93.32B	92.12B	88.65B	94.23B
Gross Profit	41.87B	42.95B	43.94B	42.16B	40.36B	42.72B
EBITDA	2.59B	2.80B	2.33B	-1.79B	-1.95B	-4.40B
Net Income	2.90B	2.92B	1.85B	-2.60B	-3.98B	-5.00B
Balance Sheet
Total Assets	79.42B	79.08B	84.76B	87.21B	90.68B	99.61B
Cash, Cash Equivalents and Short-Term Investments	19.99B	26.40B	26.60B	25.90B	32.03B	36.53B
Total Debt	769.00M	799.00M	1.05B	1.17B	1.59B	3.32B
Total Liabilities	26.96B	27.04B	32.91B	35.86B	35.22B	37.14B
Stockholders Equity	52.45B	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: Neutral
• Last Price: 1016.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 1016 is above the 20-day moving average (MA) of 986.80, below the 50-day MA of 1078.78, and below the 200-day MA of 1128.70, indicating a neutral trend. The MACD of -18.19 indicates Negative momentum. The RSI at 45.29 is Neutral, neither overbought nor oversold. The STOCH value of 68.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	69 Neutral	¥54.97B	13.37	―	3.10%	10.48%	-34.38%
2792	69 Neutral	¥41.47B	12.04	―	3.57%	-0.98%	-29.86%
8008	67 Neutral	¥36.87B	24.80	―	4.74%	48.00%	16.54%
8185	66 Neutral	¥30.45B	15.35	―	4.37%	-9.86%	-14.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3548	53 Neutral	¥26.72B	-12.28	―	5.01%	-7.21%	-5127.88%
7494	43 Neutral	¥8.02B	16.95	―	4.13%	-10.82%	―