Chuo Spring Co., Ltd. (5992) AI Stock Analysis

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Chuo Spring Co., Ltd.

(TSE/TYO:5992)

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Rating:63Neutral

Price Target:JPY 3,030.00▲(16.49% Upside)

Action:reiterated

Date:10/30/26

The score is driven primarily by mixed financial performance: strong balance sheet strength is offset by inconsistent free cash flow and low/volatile operating profitability, making the recent profitability uplift a sustainability question. Valuation is a notable positive (low P/E with a reasonable dividend), but the technical picture is materially negative with the price well below key moving averages and momentum indicators showing heavy downside pressure.

Positive Factors

Conservative balance sheetVery low leverage gives Chuo Spring greater resilience across the automotive cycle and reduces dependence on external financing. The stronger equity base also preserves flexibility to maintain operations, invest in capacity, or absorb weaker customer production without excessive balance-sheet strain.

Negative Factors

Recurring negative free cash flowRepeated negative free cash flow shows that operating cash generation has not consistently translated into excess cash after investment and other outflows. This can constrain shareholder returns and internally funded growth, while making sustained improvement in cash conversion an important durability test.

Chuo Spring Co., Ltd. (5992) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 64.27B
Dividend Yield: 2.88%
Average Volume (3M): 58.26K
Price to Earnings (P/E): 5.5
Beta (1Y): 0.87
Revenue Growth: 1.90%
EPS Growth: 509.59%
Country: Japan
Employees: 3,017
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Chuo Spring Co., Ltd. Business Overview & Revenue Model

Company Description

Chuo Spring Co.,Ltd. is a global manufacturer and distributor of springs and control cables, with operations spanning Japan, the United States, Taiwan, Indonesia, Thailand, and China. The company's diverse product portfolio encompasses a wide array o...

How the Company Makes Money

Chuo Spring makes money primarily by manufacturing and selling springs and related metal-formed components to customers that incorporate these parts into finished products—most notably automotive manufacturers and automotive parts suppliers. Revenue...

Chuo Spring Co., Ltd. Financial Statement Overview

Summary

Financials are mixed: a strong, conservatively levered balance sheet (low latest-year debt-to-equity) supports resilience, but operating margins remain thin/volatile and cash conversion is a key concern given frequently negative free cash flow despite positive operating cash flow. The sharp 2026 net margin/ROE improvement is a positive, but may be less sustainable given the weaker core operating margin.

Income Statement

63Positive

Balance Sheet

78Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	112.12B	110.87B	110.16B	100.98B	92.77B	82.14B
Gross Profit	12.53B	12.96B	14.08B	10.18B	9.00B	10.20B
EBITDA	7.80B	8.00B	8.81B	4.97B	4.10B	5.32B
Net Income	12.22B	12.42B	1.86B	1.99B	481.96M	1.80B
Balance Sheet
Total Assets	147.96B	154.91B	142.91B	153.57B	107.12B	104.55B
Cash, Cash Equivalents and Short-Term Investments	26.12B	32.27B	21.67B	21.13B	10.02B	7.88B
Total Debt	23.84B	23.86B	24.12B	24.06B	11.56B	6.98B
Total Liabilities	56.84B	62.67B	61.86B	61.18B	38.55B	33.13B
Stockholders Equity	86.57B	87.73B	76.75B	87.91B	64.24B	67.10B
Cash Flow
Free Cash Flow	0	-1.12B	1.44B	-964.02M	-1.37B	-3.41B
Operating Cash Flow	0	6.89B	9.52B	5.74B	2.34B	208.30M
Investing Cash Flow	0	4.91B	-8.07B	-6.68B	-3.62B	-3.80B
Financing Cash Flow	0	-2.15B	-901.01M	11.72B	3.38B	-635.87M

Chuo Spring Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2601.00

Price Trends

50DMA3492.92Negative

100DMA3599.29Negative

200DMA3583.89Negative

Market Momentum

MACD-276.19Positive

RSI11.35Positive

STOCH2.74Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5992, the sentiment is Negative. The current price of 2601.00 is below the 20-day moving average (MA) of 3265.80, below the 50-day MA of 3492.92, and below the 200-day MA of 3583.89, indicating a bearish trend. The MACD of -276.19 indicates Positive momentum. The RSI at 11.35 is Positive, neither overbought nor oversold. The STOCH value of 2.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5992.

Chuo Spring Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5992 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7217	71Outperform	JPY 4.35B	8.30	―	3.52%	10.57%	148.78%
JP:5991	67Neutral	JPY 552.62B	16.65	―	2.38%	3.12%	-15.85%
JP:7278	66Neutral	JPY 192.46B	15.77	6.44%	6.14%	0.21%	0.59%
JP:7242	64Neutral	JPY 187.73B	8.10	10.55%	10.50%	10.28%	3.78%
JP:5992	63Neutral	JPY 65.91B	5.50	―	2.88%	1.90%	509.59%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7220	47Neutral	JPY 157.31B	82.52	―	1.62%	3.60%	-81.10%

* General Sector Average

Performance Comparison

JP:5992 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5992	Chuo Spring Co., Ltd.	2601.00	-701.24	-21.24%
JP:7242	KYB Corporation	1543.00	25.01	1.65%
JP:7278	Exedy Corporation	5290.00	259.58	5.16%
JP:5991	NHK Spring Co., Ltd.	2774.00	409.95	17.34%
JP:7217	Tein, Inc.	455.00	94.22	26.12%
JP:7220	Musashi Seimitsu Industry Co., Ltd.	2166.00	-727.14	-25.13%

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: Oct 30, 2026

Chuo Spring Co., Ltd. AI Stock Analysis