Chofu Seisakusho Co (5946) AI Stock Analysis

Chofu Seisakusho Co

(TSE/TYO:5946)

Select Model

Rating:73Outperform

Price Target:JPY 2,335.00▲(17.22% Upside)

Action:reiterated

Date:08/07/26

The score is driven primarily by the company’s very strong balance sheet, supported by positive cash generation and a generally constructive technical trend. Revenue contraction and only moderate valuation keep the score from being higher, while the lack of earnings call or corporate event data leaves those factors neutral.

Positive Factors

Balance Sheet StrengthNear-zero debt and a conservative capital cushion materially reduce refinancing and interest-rate risk for the business. This durable financial strength supports steady operations, enables opportunistic capex or buybacks, and provides flexibility to weather cyclical demand without forcing distress sales.

Negative Factors

Top-line VolatilityPersistent revenue variability and recent negative growth suggest limited secular demand expansion and make long-range planning harder. Structural top-line weakness constrains scale benefits, limits investment ROI, and raises the risk that operating leverage will not convert into sustained profit growth.

Chofu Seisakusho Co (5946) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 459.02M
Dividend Yield: 2.31%
Average Volume (3M): 61.37K
Price to Earnings (P/E): 22.3
Beta (1Y): 0.33
Revenue Growth: -1.15%
EPS Growth: 31.88%
Country: Japan
Employees: 1,166
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Furnishings, Fixtures & Appliances

Chofu Seisakusho Co Business Overview & Revenue Model

Company Description

Chofu Seisakusho Co., Ltd., established in Shimonoseki, Japan, in 1950, is a prominent manufacturer and supplier of residential and commercial appliances. The company boasts a diverse portfolio, including a comprehensive range of water heating soluti...

How the Company Makes Money

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Chofu Seisakusho Co Financial Statement Overview

Summary

Strong balance sheet and steady margins support the profile, but declining revenue and softer net profit limit the score. Cash flow is positive and recovered in 2025, though variability keeps the fundamental picture from ranking higher.

Income Statement

72Positive

Balance Sheet

95Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.49B	46.50B	46.12B	48.51B	49.79B	44.86B
Gross Profit	10.82B	10.36B	10.39B	11.86B	11.93B	11.12B
EBITDA	3.98B	4.65B	3.01B	4.50B	6.57B	5.39B
Net Income	3.03B	2.17B	3.14B	4.00B	3.87B	2.91B
Balance Sheet
Total Assets	152.13B	148.08B	143.26B	142.01B	138.14B	137.47B
Cash, Cash Equivalents and Short-Term Investments	14.98B	12.39B	14.48B	18.84B	9.68B	13.55B
Total Debt	30.00M	0	0	0	1.00M	32.00M
Total Liabilities	12.35B	10.34B	8.01B	9.11B	9.56B	9.17B
Stockholders Equity	139.78B	137.73B	135.25B	132.91B	128.58B	128.30B
Cash Flow
Free Cash Flow	0	3.42B	1.08B	3.40B	1.77B	3.25B
Operating Cash Flow	0	4.81B	2.58B	4.89B	2.92B	4.53B
Investing Cash Flow	0	-3.49B	-579.00M	-3.84B	553.00M	-4.11B
Financing Cash Flow	0	-1.56B	-1.56B	-2.37B	-1.95B	-1.34B

Chofu Seisakusho Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:5946 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5951	82Outperform	JPY 20.23B	12.99	―	2.24%	-0.29%	21.56%
JP:5947	73Outperform	JPY 489.66B	13.36	8.60%	2.94%	3.53%	25.11%
JP:5946	73Outperform	JPY 65.70B	22.33	2.20%	2.31%	-1.15%	31.88%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:5909	53Neutral	JPY 26.22B	27.30	―	3.11%	-0.78%	37.24%
JP:6612	45Neutral	JPY 4.79B	-3.13	―	―	-17.90%	-321.67%
JP:6897	42Neutral	JPY 5.13B	-6.82	―	2.70%	-4.31%	-140.99%

* Consumer Cyclical Sector Average

Performance Comparison

JP:5946 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5946	Chofu Seisakusho Co	1991.00	70.23	3.66%
JP:5947	Rinnai Corporation	3500.00	195.11	5.90%
JP:5909	Corona Corporation	900.00	4.29	0.48%
JP:5951	Dainichi Co., Ltd.	1250.00	358.16	40.16%
JP:6612	BALMUDA, Inc.	562.00	-225.00	-28.59%
JP:6897	Twinbird Corporation	482.00	82.22	20.57%

Chofu Seisakusho Co Corporate Events

Chofu Seisakusho Posts Strong Profit Growth and Maintains Dividend for 2026

May 11, 2026

Chofu Seisakusho reported first-quarter 2026 consolidated net sales of ¥11.1 billion, up 1.5% year on year, with operating profit more than doubling to ¥537 million and profit attributable to owners of the parent rising 44% to ¥804 mil...

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 04, 2026

Chofu Seisakusho Co AI Stock Analysis