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Chugokukogyo Co., Ltd. (5974) AI Stock Analysis

JP:5974

Chugokukogyo Co., Ltd.

(TSE/TYO:5974)

Select Model
Rating:69.5Neutral
Price Target:JPY 923.00â–²(23.07% Upside)
Action:downgraded
Date:08/18/26

The stock’s score is driven primarily by a solid financial foundation, with low leverage, rising equity, and recovering cash flows supporting resilience despite thin margins and only moderate returns. An undemanding valuation, reflected in a single-digit P/E and moderate dividend yield, further boosts the score by offering potential value for income- and value-oriented investors. Technical signals are mildly constructive, showing an uptrend over longer moving averages but only neutral momentum, which tempers near-term enthusiasm and keeps the overall score in the upper-mid range rather than at a premium level.

Positive Factors
Conservative and improving leverageFalling leverage and rising equity strengthen financial resilience, reduce balance-sheet risk, and provide greater flexibility to fund operations or investment through changing conditions.
Negative Factors
Thin and declining profitabilityLow margins leave limited protection against cost inflation, pricing pressure, or execution issues. The recent decline also suggests operating leverage is not currently converting stable sales into stronger profits.

Chugokukogyo Co., Ltd. (5974) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%60%70%JP:5974+27.35%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 2.56B
Dividend Yield
2.93%
Average Volume (3M)
1,555
Price to Earnings (P/E)
7.4
Beta (1Y)
0.46
Revenue Growth
4.52%
EPS Growth
15.12%
Country
Japan
Employees
376
Sector
Utilities
Sector Strength
66
Industry
Regulated Gas

Chugokukogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Chugokukogyo Co.,Ltd. is a Japanese firm that manufactures and supplies a range of high-voltage components, steel structures, and various industrial equipment. The company's offerings include a complete line of liquefied petroleum gas (LPG) products...

How the Company Makes Money

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Chugokukogyo Co., Ltd. Financial Statement Overview

Summary

Score reflects stable revenues, thin but improving profitability, a very conservative low-leverage balance sheet, and recovering but historically volatile cash flows.

Income Statement

62Positive

Balance Sheet

82Very Positive

Cash Flow

60Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue14.10B13.75B13.84B13.33B13.39B12.87B
Gross Profit2.83B2.76B2.75B2.54B2.60B2.44B
EBITDA697.00M661.00M756.00M540.00M587.00M401.00M
Net Income348.00M313.00M376.00M206.00M207.00M132.00M
Balance Sheet
Total Assets12.89B13.00B12.45B13.36B12.10B11.76B
Cash, Cash Equivalents and Short-Term Investments1.14B877.00M512.00M534.00M504.00M576.00M
Total Debt1.35B1.42B1.53B2.24B2.22B1.88B
Total Liabilities6.32B6.50B6.58B7.81B7.13B7.02B
Stockholders Equity6.05B5.96B5.38B5.08B4.53B4.30B
Cash Flow
Free Cash Flow0446.00M778.00M106.00M-354.00M122.00M
Operating Cash Flow0700.00M1.02B289.00M-81.00M309.00M
Investing Cash Flow0-130.00M-205.00M-192.00M-254.00M-145.00M
Financing Cash Flow0-214.00M-833.00M-66.00M263.00M-138.00M

Chugokukogyo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price750.00

Price Trends

50DMA832.74Negative
100DMA836.69Negative
200DMA830.06Negative

Market Momentum

MACD-13.34Positive
RSI28.57Positive
STOCH6.17Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5974, the sentiment is Negative. The current price of 750.00 is below the 20-day moving average (MA) of 813.55, below the 50-day MA of 832.74, and below the 200-day MA of 830.06, indicating a bearish trend. The MACD of -13.34 indicates Positive momentum. The RSI at 28.57 is Positive, neither overbought nor oversold. The STOCH value of 6.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5974.

Chugokukogyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (66)

Financial Indicators

JP:5974 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:9537JP:953785OutperformJPY 20.16B6.07―1.90%1.67%34.46%
JP:9543JP:954375OutperformJPY 101.52B10.487.33%3.25%0.10%40.92%
JP:9534JP:953474OutperformJPY 78.11B8.44―3.00%0.69%-22.03%
JP:5974JP:597470NeutralJPY 2.55B7.38―2.93%4.52%15.12%
Sector *66Neutral$17.65B18.105.60%3.62%6.62%11.55%
JP:9536JP:953662NeutralJPY 100.51B9.568.87%2.51%-5.67%20.75%
JP:9539JP:953962NeutralJPY 41.10B9.91―2.06%-0.15%21.66%

* Utilities Sector Average

Performance Comparison

0%20%40%60%JP:5974JP:9536JP:9543JP:9534JP:9537JP:9539Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:5974 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5974Chugokukogyo Co., Ltd.750.00160.1127.14%
JP:9536SAIBU GAS HOLDINGS CO. LTD.2788.00969.8253.34%
JP:9543SHIZUOKA GAS CO. LTD.1369.00280.9425.82%
JP:9534Hokkaido Gas Co., Ltd.870.00187.5627.48%
JP:9537Hokuriku Gas Co., Ltd.4180.00608.0117.02%
JP:9539Keiyo Gas Co., Ltd.1250.00104.209.09%
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