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Chofu Seisakusho Co (5946) AI Stock Analysis

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JP:5946

Chofu Seisakusho Co

(TSE/TYO:5946)

Select Model
Rating:67Neutral
Price Target:JPY 2,272.00â–²(14.11% Upside)
Action:reiterated
Date:08/07/26

The score reflects stable financials with a robust balance sheet offsetting revenue declines, supported by positive technical trends; valuation suggests caution due to high P/E.

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)

-5%0%5%10%15%20%25%JP:5946+3.08%EWJ+18.01%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 459.02M
Dividend Yield
2.31%
Average Volume (3M)
61.70K
Price to Earnings (P/E)
22.8
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

Chofu Seisakusho primarily makes money by selling its own manufactured heating and hot-water equipment and related components into the Japanese building/housing market. Revenue is generated from (1) product sales of hot-water and heating systems (e.g...

Chofu Seisakusho Co Financial Statement Overview

Summary

Financial performance is moderate, with a strong balance sheet (score 85) showing no debt and solid equity, offset by weak income statement (score 45) due to declining revenue and margins, and inconsistent cash flows (score 60).

Income Statement

45Neutral

Balance Sheet

85Very Positive

Cash Flow

60Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue46.49B46.50B46.12B48.51B49.79B44.86B
Gross Profit10.82B10.36B10.39B11.86B11.93B11.12B
EBITDA3.98B4.65B3.01B4.50B6.57B5.39B
Net Income3.03B2.17B3.14B4.00B3.87B2.91B
Balance Sheet
Total Assets152.13B148.08B143.26B142.01B138.14B137.47B
Cash, Cash Equivalents and Short-Term Investments14.98B12.39B14.48B18.84B9.68B13.55B
Total Debt30.00M0001.00M32.00M
Total Liabilities12.35B10.34B8.01B9.11B9.56B9.17B
Stockholders Equity139.78B137.73B135.25B132.91B128.58B128.30B
Cash Flow
Free Cash Flow03.42B1.08B3.40B1.77B3.25B
Operating Cash Flow04.81B2.58B4.89B2.92B4.53B
Investing Cash Flow0-3.49B-579.00M-3.84B553.00M-4.11B
Financing Cash Flow0-1.56B-1.56B-2.37B-1.95B-1.34B

Chofu Seisakusho Co Technical Analysis

Technical Analysis SentimentNeutral
Last Price1991.00

Price Trends

50DMA2017.64Negative
100DMA2016.62Negative
200DMA2009.17Negative

Market Momentum

MACD-4.73Negative
RSI50.63Neutral
STOCH58.17Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5946, the sentiment is Neutral. The current price of 1991.00 is above the 20-day moving average (MA) of 1980.15, below the 50-day MA of 2017.64, and below the 200-day MA of 2009.17, indicating a neutral trend. The MACD of -4.73 indicates Negative momentum. The RSI at 50.63 is Neutral, neither overbought nor oversold. The STOCH value of 58.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5946.

Chofu Seisakusho Co Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:5946 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:5951JP:595182OutperformJPY 20.85B12.13―2.30%-3.00%7.56%
JP:5947JP:594773OutperformJPY 487.14B13.788.60%2.97%3.53%25.11%
JP:5946JP:594667NeutralJPY 65.73B22.822.20%2.31%-1.15%31.88%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:5909JP:590946NeutralJPY 25.78B27.37―3.19%-0.78%37.24%
JP:6612JP:661245NeutralJPY 4.76B-3.08――-17.90%-321.67%
JP:6897JP:689742NeutralJPY 4.97B-6.59―2.83%-4.31%-140.99%

* Consumer Cyclical Sector Average

Performance Comparison

-25%0%25%50%75%JP:5946JP:5947JP:5909JP:5951JP:6612JP:6897Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:5946 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5946Chofu Seisakusho Co 1991.0048.732.51%
JP:5947Rinnai Corporation3465.00-159.50-4.40%
JP:5909Corona Corporation879.00-43.91-4.76%
JP:5951Dainichi Co., Ltd.1215.00331.9737.59%
JP:6612BALMUDA, Inc.554.00-231.00-29.43%
JP:6897Twinbird Corporation459.0061.1715.38%

Chofu Seisakusho Co Corporate Events

Chofu Seisakusho Books Silent Partnership Loss and Cuts Full-Year Profit Forecast

Aug 7, 2026

Chofu Seisakusho has booked ¥805 million in non-operating expenses as a loss on investments in silent partnerships for the second quarter of fiscal 2026, cutting into ordinary profit and net income despite net sales and operating profit remainin...

Chofu Seisakusho Lifts Profit Outlook as Earnings Rebound on Stable Sales

Aug 7, 2026

Chofu Seisakusho reported essentially flat net sales of ¥21.13 billion for the six months to June 30, 2026, but delivered a sharp rebound in profitability, with operating profit surging more than sixfold to ¥561 million and profit attributa...

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: Nov 05, 2026