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

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CHIeru Co., Ltd.

(TSE/TYO:3933)

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Rating:75Outperform

Price Target:JPY 536.00▲(13.08% Upside)

Action:upgraded

Date:08/18/26

The score is led by very strong valuation (low P/E and a solid dividend yield). Financial performance is mixed: strong revenue momentum and improved FY2026 cash flow are offset by margin compression and a meaningful increase in leverage. Technicals are supportive near term but overbought signals raise the risk of a pullback.

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 offerings. A sustained growth trajectory can support operating scale, strengthen market presence, and provide a durable base for continued investment in products and services.

Negative Factors

Higher LeverageThe move from near-zero debt in FY2022–FY2024 to approximately ¥3.0B in FY2026 represents a substantial increase in financial leverage. Higher borrowing reduces flexibility if growth or margins weaken, while interest and repayment obligations can constrain investment and capital allocation.

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

Market Cap: JPY 3.65B
Dividend Yield: 3.78%
Average Volume (3M): 7,596
Price to Earnings (P/E): 3.5
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

Income statement strength (Score 74) reflects accelerating revenue growth and still-healthy profitability, but with noticeable margin compression versus earlier years. Balance sheet is weaker (Score 58) due to a sharp rise in debt and higher leverage, reducing flexibility. Cash flow is improving (Score 67) with a strong FY2026 rebound, but prior-year volatility and negative periods temper confidence.

Income Statement

74Positive

Balance Sheet

58Neutral

Cash Flow

67Positive

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 SentimentNegative

Last Price474.00

Price Trends

50DMA520.48Negative

100DMA505.82Negative

200DMA567.46Negative

Market Momentum

MACD-13.81Negative

RSI37.11Neutral

STOCH43.13Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3933, the sentiment is Negative. The current price of 474.00 is below the 20-day moving average (MA) of 486.85, below the 50-day MA of 520.48, and below the 200-day MA of 567.46, indicating a bearish trend. The MACD of -13.81 indicates Negative momentum. The RSI at 37.11 is Neutral, neither overbought nor oversold. The STOCH value of 43.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	75Outperform	JPY 3.61B	3.48	―	3.78%	26.32%	158.71%
JP:4060	72Outperform	JPY 6.59B	24.43	―	0.80%	37.13%	-7.58%
JP:4448	63Neutral	JPY 13.95B	19.16	―	―	14.06%	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:4397	60Neutral	JPY 5.68B	15.27	―	―	23.50%	2.72%
JP:5033	59Neutral	JPY 8.11B	46.85	―	―	7.04%	-67.36%
JP:4484	58Neutral	JPY 4.43B	46.26	―	0.72%	20.67%	-37.51%

* 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.	474.00	-166.83	-26.03%
JP:4060	rakumo Inc.	1130.00	-36.41	-3.12%
JP:4397	TeamSpirit, Inc.	352.00	-179.00	-33.71%
JP:4448	Chatwork Co.Ltd.	330.00	-65.00	-16.46%
JP:4484	Lancers, Inc.	278.00	-19.04	-6.41%
JP:5033	Nulab Inc.	1235.00	428.00	53.04%

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