C.S. LUMBER CO.,INC (7808) AI Stock Analysis

1 Followers

C.S. LUMBER CO.,INC

(TSE/TYO:7808)

Select Model

Rating:50Neutral

Price Target:JPY 2,685.00▲(4.07% Upside)

Action:reiterated

Date:10/19/26

The overall stock score is primarily constrained by a challenging fundamental environment marked by declining revenues, compressing margins, and negative free cash flows. Technical indicators reinforce this weakness, as the stock is struggling with negative momentum and trading below key long-term moving averages. Nevertheless, a highly attractive valuation characterized by a low P/E ratio and solid dividend yield provides some downside support and value appeal despite the operational headwinds.

Positive Factors

Persistent ProfitabilityThe company remains profitable through the downcycle, with positive EBIT and net income in every year provided. Continued earnings generation gives the business an operating base to preserve capabilities and fund part of its needs, even though profitability has weakened materially.

Negative Factors

Revenue and Earnings DeclineSeveral years of declining revenue and the fall in net income from 2.77B in 2022 to 0.69B in 2026 indicate a prolonged operating downcycle. Weaker earnings reduce reinvestment capacity and make recovery dependent on renewed demand or improved business conditions.

C.S. LUMBER CO.,INC (7808) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.55B
Dividend Yield: 3.10%
Average Volume (3M): 1,666
Price to Earnings (P/E): 6.9
Beta (1Y): 0.17
Revenue Growth: -1.19%
EPS Growth: -40.06%
Country: Japan
Employees: 320
Sector: General
Sector Strength: 55
Industry: Paper, Lumber & Forest Products

C.S. LUMBER CO.,INC Business Overview & Revenue Model

Company Description

C.S. Lumber Co., Inc engages in pre-cut wood processing, construction contracting, and real estate leasing businesses in Japan. The company operates through Pre-cut business, Construction contract business segments It manufactures and sells pre-cut p...

C.S. LUMBER CO.,INC Financial Statement Overview

Summary

Financial performance is weak, weighed down by shrinking revenues, compressing profit margins, and deeply negative free cash flows. While the growing equity base offers some structural stability, rising debt levels and deteriorating return on equity constrain overall financial health.

Income Statement

30Negative

Balance Sheet

55Neutral

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	20.77B	20.38B	20.67B	21.13B	24.55B	25.13B
Gross Profit	3.92B	3.81B	4.33B	4.70B	5.81B	6.46B
EBITDA	1.79B	1.70B	2.19B	2.55B	3.66B	4.45B
Net Income	695.63M	693.09M	1.16B	1.44B	2.24B	2.77B
Balance Sheet
Total Assets	30.48B	30.28B	26.98B	23.57B	22.40B	21.07B
Cash, Cash Equivalents and Short-Term Investments	4.06B	5.05B	5.24B	5.28B	5.55B	4.92B
Total Debt	12.64B	12.69B	10.29B	8.33B	8.13B	7.20B
Total Liabilities	18.51B	18.40B	15.69B	13.29B	13.41B	14.18B
Stockholders Equity	11.97B	11.88B	11.29B	10.29B	8.99B	6.89B
Cash Flow
Free Cash Flow	-1.91B	-1.91B	-1.61B	-210.00M	-83.46M	2.49B
Operating Cash Flow	1.84B	1.84B	2.16B	2.01B	2.09B	3.38B
Investing Cash Flow	-4.61B	-4.61B	-5.55B	-2.31B	-2.29B	-826.49M
Financing Cash Flow	1.94B	1.94B	1.59B	34.70M	698.23M	-40.20M

C.S. LUMBER CO.,INC Technical Analysis

Technical Analysis SentimentNegative

Last Price2580.00

Price Trends

50DMA2672.54Negative

100DMA2645.42Negative

200DMA2784.89Negative

Market Momentum

MACD-15.36Positive

RSI41.69Neutral

STOCH24.60Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7808, the sentiment is Negative. The current price of 2580.00 is below the 20-day moving average (MA) of 2625.70, below the 50-day MA of 2672.54, and below the 200-day MA of 2784.89, indicating a bearish trend. The MACD of -15.36 indicates Positive momentum. The RSI at 41.69 is Neutral, neither overbought nor oversold. The STOCH value of 24.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7808.

C.S. LUMBER CO.,INC Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7808 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3513	83Outperform	JPY 15.36B	10.46	―	2.98%	8.39%	51.91%
JP:8032	69Neutral	JPY 146.38B	26.03	―	2.93%	9.61%	-3.44%
JP:3861	62Neutral	JPY 691.45B	11.77	5.99%	4.23%	0.22%	208.36%
JP:3880	58Neutral	JPY 163.71B	20.69	3.48%	1.33%	1.33%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7808	50Neutral	JPY 4.81B	6.86	―	3.10%	-1.19%	-40.06%
JP:7815	41Neutral	JPY 785.35M	0.23	―	―	―	―

* General Sector Average

Performance Comparison

JP:7808 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7808	C.S. LUMBER CO.,INC	2580.00	-444.81	-14.71%
JP:3861	Oji Holdings Corp	850.80	111.51	15.08%
JP:3880	Daio Paper Corporation	1049.00	223.44	27.07%
JP:3513	Ichikawa Co., Ltd.	3355.00	1165.86	53.26%
JP:7815	Tokyo Board Industries Co., Ltd.	282.00	-318.00	-53.00%
JP:8032	Japan Pulp and Paper Co. Ltd.	1295.00	598.68	85.98%

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 19, 2026

C.S. LUMBER CO.,INC AI Stock Analysis