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CHIMNEY CO LTD (3178) AI Stock Analysis

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JP:3178

CHIMNEY CO LTD

(TSE/TYO:3178)

Select Model
Rating:55Neutral
Price Target:JPY 1,203.00â–²(6.27% Upside)
Action:reiterated
Date:08/17/26

The score is mainly held back by financial quality concerns—thin margins, a sharp earnings step-down in the latest year, and very weak free-cash-flow conversion—despite an improving leverage trend. Technical indicators are moderately positive (above key moving averages with positive MACD), but the stock’s high P/E and low dividend yield weigh on valuation.

Positive Factors
Revenue reboundThe return to sustained revenue growth after weaker 2021–2023 performance indicates improving business activity and customer demand. Continued expansion provides a foundation for operating recovery, although the latest year’s growth was only modest.
Negative Factors
Thin margins and earnings declineVery limited margins leave little protection against labor, food, rent, or other cost increases. The sharp latest-year earnings decline suggests weaker operating leverage and makes sustained profitability dependent on careful cost control.

CHIMNEY CO LTD (3178) vs. iShares MSCI Japan ETF (EWJ)

-15%-10%-5%0%5%10%15%20%25%JP:3178-3.85%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 21.84B
Dividend Yield
0.62%
Average Volume (3M)
13.35K
Price to Earnings (P/E)
43.0
Beta (1Y)
0.28
Revenue Growth
1.96%
EPS Growth
-40.14%
Country
Japan
Employees
659
Sector
Consumer Cyclical
Sector Strength
61
Industry
Restaurants

CHIMNEY CO LTD Business Overview & Revenue Model

Company Description

Based in Tokyo, Japan, Chimney Co., Ltd. is a restaurant enterprise established in 1984. The company manages a portfolio of dining establishments across Japan, encompassing 338 outlets directly run by the company, 91 operating under contractual arran...

How the Company Makes Money

null

CHIMNEY CO LTD Financial Statement Overview

Summary

Turnaround is evident with positive earnings and improved leverage versus 2021–2023, but the latest year shows a sharp earnings decline, thin margins (~1.9% net/EBIT), and weak profit-to-free-cash-flow conversion (FCF ~7% of net income).

Income Statement

64Positive

Balance Sheet

58Neutral

Cash Flow

46Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue26.64B26.37B26.22B25.73B20.16B10.11B
Gross Profit17.82B17.64B17.55B17.82B13.65B7.03B
EBITDA1.40B1.30B1.51B1.61B-1.09B2.08B
Net Income508.37M504.68M1.08B938.83M-2.02B1.23B
Balance Sheet
Total Assets15.64B15.87B16.78B17.89B18.04B22.90B
Cash, Cash Equivalents and Short-Term Investments5.60B5.40B6.63B7.85B7.44B10.02B
Total Debt4.82B4.91B6.02B7.37B9.34B12.36B
Total Liabilities9.25B9.47B10.71B12.83B13.81B16.41B
Stockholders Equity6.39B6.40B6.07B5.06B4.23B6.48B
Cash Flow
Free Cash Flow096.12M33.09M2.21B519.61M988.40M
Operating Cash Flow01.37B769.38M2.78B1.01B1.89B
Investing Cash Flow0-1.29B-688.35M-332.41M-193.88M-72.89M
Financing Cash Flow0-1.31B-1.31B-2.04B-3.40B1.94B

CHIMNEY CO LTD Technical Analysis

Technical Analysis SentimentNeutral
Last Price1132.00

Price Trends

50DMA1166.08Negative
100DMA1140.11Negative
200DMA1187.24Negative

Market Momentum

MACD-8.49Negative
RSI45.59Neutral
STOCH43.59Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3178, the sentiment is Neutral. The current price of 1132.00 is above the 20-day moving average (MA) of 1124.90, below the 50-day MA of 1166.08, and below the 200-day MA of 1187.24, indicating a neutral trend. The MACD of -8.49 indicates Negative momentum. The RSI at 45.59 is Neutral, neither overbought nor oversold. The STOCH value of 43.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3178.

CHIMNEY CO LTD Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:3178 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3547JP:354776OutperformJPY 20.85B52.37―0.78%62.78%-57.81%
JP:7678JP:767874OutperformJPY 44.27B150.07――29.74%-13.59%
JP:7554JP:755469NeutralJPY 22.85B19.11―1.46%42.20%―
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:3178JP:317855NeutralJPY 21.84B42.96―0.62%1.96%-40.14%
JP:9979JP:997949NeutralJPY 21.03B53.38―1.40%1.01%-66.38%
JP:2882JP:288244NeutralJPY 22.81B43.73―0.75%3.77%75.23%

* Consumer Cyclical Sector Average

Performance Comparison

0%50%JP:3178JP:2882JP:3547JP:7554JP:7678JP:9979Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:3178 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3178CHIMNEY CO LTD1132.00-37.40-3.20%
JP:2882EAT&HOLDINGS Co., Ltd.2005.0059.323.05%
JP:3547Kushikatsu Tanaka Holdings Co.1926.00-291.44-13.14%
JP:7554Kourakuen Holdings Corporation1196.00180.0417.72%
JP:7678ASAKUMA CO.,LTD.4130.001970.0091.20%
JP:9979Daisyo Corporation1002.00-80.70-7.45%
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 17, 2026