CHIeru Co., Ltd. (3933) AI Stock Analysis

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CHIeru Co., Ltd.

(TSE/TYO:3933)

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Rating:78Outperform

Price Target:JPY 561.00▲(14.02% Upside)

Action:reiterated

Date:08/18/26

The overall score of 78 is primarily driven by CHIeru's deeply discounted valuation and robust financial turnaround. The highly attractive P/E ratio and massive recovery in free cash flow present a compelling value proposition. While the company demonstrates exceptional top-line growth, heavily overbought technical indicators warrant caution for near-term entry. Additionally, investors should monitor slight margin compression and increased leverage as the company continues its rapid expansion.

Positive Factors

Accelerating Revenue GrowthThe sharp FY2026 revenue acceleration, following solid growth in the prior two years, indicates expanding demand for CHIeru’s education ICT solutions. Continued top-line momentum can support scale benefits, product investment, and stronger competitive positioning over the next several quarters.

Negative Factors

Margin CompressionThe declining margin profile indicates that higher costs or pricing pressure are absorbing part of the benefit from revenue growth. If this persists, additional sales may translate into less incremental profit, limiting operating leverage and reducing the durability of earnings expansion.

CHIeru Co., Ltd. (3933) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.68B
Dividend Yield: 3.80%
Average Volume (3M): 7,616
Price to Earnings (P/E): 3.6
Beta (1Y): 0.38
Revenue Growth: 26.32%
EPS Growth: 158.71%
Country: Japan
Employees: 329
Sector: Technology
Sector Strength: 61
Industry: Software - Application

CHIeru Co., Ltd. Business Overview & Revenue Model

Company Description

CHIeru Co.,Ltd. engages in the production of ICT environments for teaching and learning in schools in Japan and internationally. The company’s services include software and system products, teaching and learning resources, and strategic consulting fo...

How the Company Makes Money

CHIeru Co., Ltd. generates revenue primarily by selling and delivering ICT solutions to educational customers (e.g., schools and related institutions). Its revenue model typically consists of (a) product/solution sales (such as education-related soft...

CHIeru Co., Ltd. Financial Statement Overview

Summary

Driven by exceptional revenue growth and a dramatic turnaround in cash flow generation. While increased debt and slight margin compression pose minor risks, a strong 19.4% return on equity highlights highly efficient capital utilization.

Income Statement

82Very Positive

Balance Sheet

70Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	7.97B	6.90B	10.23B	4.62B	3.87B	4.10B
Gross Profit	3.49B	3.22B	4.52B	2.67B	2.46B	2.76B
EBITDA	1.02B	1.03B	1.51B	713.56M	769.97M	835.69M
Net Income	393.36M	423.81M	658.10M	349.18M	423.27M	472.72M
Balance Sheet
Total Assets	10.11B	10.73B	12.20B	6.17B	6.73B	6.38B
Cash, Cash Equivalents and Short-Term Investments	3.36B	3.19B	3.59B	3.29B	4.11B	4.33B
Total Debt	1.84B	2.65B	3.00B	59.87M	107.00M	0
Total Liabilities	6.34B	6.89B	8.82B	3.46B	4.20B	4.24B
Stockholders Equity	3.02B	3.10B	3.38B	2.71B	2.52B	2.14B
Cash Flow
Free Cash Flow	0	-274.21M	2.30B	-175.19M	120.63M	1.53B
Operating Cash Flow	0	-194.43M	2.33B	-25.43M	146.61M	1.55B
Investing Cash Flow	0	-902.70M	-464.60M	-403.80M	-356.14M	-461.03M
Financing Cash Flow	0	970.89M	-1.50B	-175.81M	-38.51M	-352.81M

CHIeru Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price492.00

Price Trends

50DMA518.92Negative

100DMA506.13Negative

200DMA566.63Negative

Market Momentum

MACD-11.70Negative

RSI49.49Neutral

STOCH65.66Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3933, the sentiment is Neutral. The current price of 492.00 is above the 20-day moving average (MA) of 486.30, below the 50-day MA of 518.92, and below the 200-day MA of 566.63, indicating a neutral trend. The MACD of -11.70 indicates Negative momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of 65.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3933.

CHIeru Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3933 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3933	78Outperform	JPY 3.59B	3.60	―	3.80%	26.32%	158.71%
JP:4060	72Outperform	JPY 6.60B	24.15	―	0.80%	30.60%	17.83%
JP:4448	63Neutral	JPY 14.07B	18.87	―	―	14.06%	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:4397	60Neutral	JPY 5.81B	15.40	―	―	23.50%	2.72%
JP:5033	59Neutral	JPY 8.01B	47.24	―	―	7.04%	-67.36%
JP:4484	58Neutral	JPY 4.52B	45.09	―	0.74%	16.33%	-38.56%

* Technology Sector Average

Performance Comparison

JP:3933 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3933	CHIeru Co., Ltd.	492.00	-136.19	-21.68%
JP:4060	rakumo Inc.	1117.00	36.81	3.41%
JP:4397	TeamSpirit, Inc.	348.00	-177.00	-33.71%
JP:4448	Chatwork Co.Ltd.	323.00	-67.00	-17.18%
JP:4484	Lancers, Inc.	271.00	-17.10	-5.93%
JP:5033	Nulab Inc.	1209.00	392.00	47.98%

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 18, 2026

CHIeru Co., Ltd. AI Stock Analysis