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Chugai Ro Co., Ltd. (JP:1964)
:1964
Japanese Market
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Chugai Ro Co., Ltd. (1964) AI Stock Analysis

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JP:1964

Chugai Ro Co., Ltd.

(1964)

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Neutral 68 (OpenAI - 5.2)
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)

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
null...

Chugai Ro Co., Ltd. Financial Statement Overview

Summary
Income statement and balance sheet trends are constructive (multi-year revenue and net income growth; moderate leverage and growing equity). The key drag is cash-flow consistency: operating/free cash flow was negative for multiple years (2023–2025) despite positive net income, with only a rebound in 2026, which raises uncertainty about cash conversion durability.
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue37.10B37.33B36.25B29.28B27.98B26.32B
Gross Profit8.34B8.11B7.21B5.83B5.48B5.31B
EBITDA5.79B7.04B4.83B3.66B2.14B2.05B
Net Income3.89B4.67B3.00B2.20B1.23B1.36B
Balance Sheet
Total Assets46.83B51.28B48.74B48.86B41.18B38.14B
Cash, Cash Equivalents and Short-Term Investments7.67B10.82B4.39B10.06B7.88B11.13B
Total Debt4.84B4.45B5.51B7.29B3.99B3.99B
Total Liabilities17.41B19.80B20.13B21.09B17.13B14.93B
Stockholders Equity29.16B31.20B28.33B27.57B23.86B23.07B
Cash Flow
Free Cash Flow0.005.41B-4.42B-2.16B-2.69B5.96B
Operating Cash Flow0.006.26B-3.70B-891.00M-2.50B6.09B
Investing Cash Flow0.002.68B654.00M550.00M-63.00M510.00M
Financing Cash Flow0.00-2.57B-2.70B2.45B-727.00M-2.51B

Chugai Ro Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4550.00
Price Trends
50DMA
4024.80
Positive
100DMA
4158.90
Negative
200DMA
4274.90
Negative
Market Momentum
MACD
24.53
Negative
RSI
55.77
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥78.04B13.903.95%6.49%36.18%
75
Outperform
¥81.36B12.262.63%9.99%41.83%
70
Outperform
¥48.49B12.973.36%13.15%-0.69%
70
Outperform
¥79.95B10.873.09%0.93%212.09%
68
Neutral
¥31.13B7.652.77%-0.56%6.11%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥210.63B14.339.52%1.33%10.77%147.98%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1964
Chugai Ro Co., Ltd.
4,120.00
346.78
9.19%
JP:6376
Nikkiso Co., Ltd.
3,805.00
2,351.11
161.71%
JP:6247
Hisaka Works,Ltd.
1,807.00
508.60
39.17%
JP:6363
Torishima Pump Mfg.Co., Ltd.
3,065.00
1,078.73
54.31%
JP:6381
ANEST IWATA Corp.
1,955.00
456.56
30.47%
JP:6517
Denyo Co., Ltd.
4,140.00
1,351.03
48.44%

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.Date of analysis: Aug 06, 2026