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Chugai Ro Co., Ltd.
(1964)
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Rating:68Neutral
Price Target:
¥4,387.00
▼(-3.58% Downside)
Action:Downgraded
Date:08/06/26
The score is driven primarily by solid fundamental performance and a conservatively positioned balance sheet, offset by historically inconsistent cash generation (multiple years of negative operating/free cash flow before the 2026 rebound). Valuation is a clear positive (low P/E and strong dividend yield), while technical signals are only neutral-to-soft due to negative MACD and price sitting below longer-term moving averages.
Positive Factors
Conservative balance sheet
Moderate leverage and steadily growing equity provide durable financial flexibility: the company can fund operations, sustain dividends and absorb shocks without needing frequent external financing. This improves creditworthiness and supports long-term strategic options such as selective capex or M&A.
Negative Factors
Inconsistent cash conversion
Repeated negative operating/free cash flow over several years despite reported profits suggests weak cash conversion from earnings, likely from working-capital swings or heavy investment. Persistent inconsistency could constrain organic funding for growth, dividends, or debt reduction over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Moderate leverage and steadily growing equity provide durable financial flexibility: the company can fund operations, sustain dividends and absorb shocks without needing frequent external financing. This improves creditworthiness and supports long-term strategic options such as selective capex or M&A.
Read all positive factors
Chugai Ro Co., Ltd. (1964) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥31.13B
Dividend Yield4.04%
Average Volume (3M)26.67K
Price to Earnings (P/E)7.6
Beta (1Y)1.14
Revenue Growth-0.56%
EPS Growth6.11%
CountryJP
Employees748
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)536.84
Shares Outstanding7,800,000
10 Day Avg. Volume27,110
30 Day Avg. Volume26,670
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.96
Price to Sales (P/S)0.80
P/FCF Ratio5.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)414.5
Revenue Forecast (FY)¥40.00B
Chugai Ro Co., Ltd. Business Overview & Revenue Model
Company Description
Chugai Ro Co., Ltd., together with its subsidiaries, engages in the development of technologies in the thermal technology field in Japan and internationally. It offers steel and nonferrous-metal heating furnaces, and heat treat furnaces; metal pro...
How the Company Makes Money
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Chugai Ro Co., Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.10B | 37.33B | 36.25B | 29.28B | 27.98B | 26.32B |
| Gross Profit | 8.34B | 8.11B | 7.21B | 5.83B | 5.48B | 5.31B |
| EBITDA | 5.79B | 7.04B | 4.83B | 3.66B | 2.14B | 2.05B |
| Net Income | 3.89B | 4.67B | 3.00B | 2.20B | 1.23B | 1.36B |
Balance Sheet | ||||||
| Total Assets | 46.83B | 51.28B | 48.74B | 48.86B | 41.18B | 38.14B |
| Cash, Cash Equivalents and Short-Term Investments | 7.67B | 10.82B | 4.39B | 10.06B | 7.88B | 11.13B |
| Total Debt | 4.84B | 4.45B | 5.51B | 7.29B | 3.99B | 3.99B |
| Total Liabilities | 17.41B | 19.80B | 20.13B | 21.09B | 17.13B | 14.93B |
| Stockholders Equity | 29.16B | 31.20B | 28.33B | 27.57B | 23.86B | 23.07B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 5.41B | -4.42B | -2.16B | -2.69B | 5.96B |
| Operating Cash Flow | 0.00 | 6.26B | -3.70B | -891.00M | -2.50B | 6.09B |
| Investing Cash Flow | 0.00 | 2.68B | 654.00M | 550.00M | -63.00M | 510.00M |
| Financing Cash Flow | 0.00 | -2.57B | -2.70B | 2.45B | -727.00M | -2.51B |
Chugai Ro Co., Ltd. Technical Analysis
Positive
4550.00
Price Trends
4024.80
Positive
4158.90
Negative
4274.90
Negative
Market Momentum
24.53
Negative
55.77
Neutral
43.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1964, the sentiment is Positive. The current price of 4550 is above the 20-day moving average (MA) of 4033.25, above the 50-day MA of 4024.80, and above the 200-day MA of 4274.90, indicating a neutral trend. The MACD of 24.53 indicates Negative momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 43.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1964.
Chugai Ro Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥78.04B | 13.90 | ― | 3.95% | 6.49% | 36.18% | |
75 Outperform | ¥81.36B | 12.26 | ― | 2.63% | 9.99% | 41.83% | |
70 Outperform | ¥48.49B | 12.97 | ― | 3.36% | 13.15% | -0.69% | |
70 Outperform | ¥79.95B | 10.87 | ― | 3.09% | 0.93% | 212.09% | |
68 Neutral | ¥31.13B | 7.65 | ― | 2.77% | -0.56% | 6.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥210.63B | 14.33 | 9.52% | 1.33% | 10.77% | 147.98% |
* Industrials Sector Average
JP:1964
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Chugai Ro Co., Ltd. Corporate Events
Chugai Ro Corrects Segment Figures in First-Quarter Financial Results
Jul 24, 2026
Chugai Ro Co., Ltd. has issued a correction to its previously released consolidated financial results for the three months ended June 30, 2026, prepared under Japanese GAAP. The company identified an error in numerical figures related to segment i...
Chugai Ro Swings to Quarterly Loss but Plans Higher Dividend Despite Profit Forecast Cut
Jul 24, 2026
Chugai Ro Co. reported a 3.6% year-on-year decline in net sales to ¥6.1 billion for the quarter ended June 30, 2026, and swung to a net loss attributable to owners of the parent of ¥74 million, compared with a solid profit a year earlier...
Chugai Ro Revises FY2026 Cash Flow Figures After Audit-Flagged Error
Jun 12, 2026
Chugai Ro Co., Ltd. has corrected portions of its consolidated financial results for the fiscal year ended March 31, 2026, after its accounting auditor identified an error in the aggregation of lease liabilities in the consolidated cash flow state...
Chugai Ro Nears Limit in Early Completion of ¥1.14 Billion Share Buyback
Jun 5, 2026
Chugai Ro Co., Ltd. has completed a board-approved share repurchase program, buying back 255,600 common shares between April 30 and June 4, 2026 through market purchases using a trust method. The total outlay reached about 1.14 billion yen, nearly...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.