Tohokushinsha Film Corp

Tohokushinsha Film Corp maintains a strong liquidity position, with a current ratio of 5.02 and cash and equivalents amounting to ¥45.71 billion, significantly exceeding its total liabilities of ¥16.30 billion. The company's debt-to-equity ratio is 0.01, indicating a conservative capital structure with minimal reliance on debt financing. This liquidity profile supports operational flexibility and resilience against short-term financial shocks.

The company's profitability metrics show a return on equity (ROE) of 2.83% and a return on assets (ROA) of 2.36%. These figures are below the industry median for ROE and ROA in the Advertising & Marketing sector, suggesting that Tohokushinsha Film Corp is underperforming relative to its peers in terms of capital efficiency and asset utilization. The operating margin is 2.88% (¥4.69 billion operating income on ¥16.28 billion revenue), which is also below the sector median, indicating room for improvement in cost management or pricing power.

Geographically, Tohokushinsha Film Corp is concentrated in Japan, with no disclosed international revenue segments. This concentration increases exposure to domestic economic conditions and regulatory changes. The company does not report segment-level revenue breakdowns, making it difficult to assess the contribution of different service lines to overall performance.

Looking ahead, the company's revenue is expected to grow by 20.3% year-over-year in the current fiscal year, based on the most recent actual revenue of ¥47.69 billion and the reported ¥16.28 billion. However, the absence of forward-looking guidance from the company or analysts introduces uncertainty about the sustainability of this growth. The capital expenditure of -¥554 million suggests a reduction in investment, which may reflect a strategic shift or a focus on cost containment.

The risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The company's low debt load and high cash reserves reduce the likelihood of near-term financial distress. However, the absence of disclosed dilution sources does not eliminate the possibility of future equity issuance, particularly if the company seeks to fund expansion or respond to competitive pressures.

Recent events include the latest actual EPS of ¥50.60 and revenue of ¥47.69 billion, as reported in investor relations data. No material events or filings were disclosed in the last 90 days that would significantly alter the company's risk profile or strategic direction.

Net income CAGR of 22.7% over four years demonstrates strong historical earnings growth despite recent revenue volatility.

Cash conversion ratio of 2.63 is above the 75th percentile, indicating superior ability to turn earnings into cash.

Debt-to-equity ratio of 0.01 is in the top quartile for safety, reflecting a nearly debt-free capital structure.

Operating income turned negative to -1.7 billion JPY in FY2025, signaling a severe deterioration in core operational profitability.

Revenue CAGR of -2.5% over four years highlights a long-term structural decline in sales volume.

Operating margin of 2.9% trails the 3.5% cohort median, suggesting weaker cost control or pricing power than peers.

Return on invested capital of 0.6% is extremely low, indicating minimal value creation from deployed capital.

Revenue ¥12.38B, +5,6% YoY; Operating income +146,8% YoY.

• ▍Revenue ¥12.38B, +5,6% YoY
• ▍Operating income +146,8% YoY
• ▍Net income +32 575,0% YoY
• ▍Net margin 31.7%

Revenue ¥11.77B, +14,3% YoY; Operating income +1 489,8% YoY.

• ▍Revenue ¥11.77B, +14,3% YoY
• ▍Operating income +1 489,8% YoY
• ▍Net income +201,0% YoY
• ▍Net margin 7.7%

Revenue ¥9.28B, −2,4% YoY; Operating income +122,5% YoY.

• ▍Revenue ¥9.28B, −2,4% YoY
• ▍Operating income +122,5% YoY
• ▍Net income +24,9% YoY
• ▍Net margin 18.5%

Revenue ¥14.15B, −13,1% YoY; Operating income +409,4% YoY.

• ▍Revenue ¥14.15B, −13,1% YoY
• ▍Operating income +409,4% YoY
• ▍Net income +188,8% YoY
• ▍Net margin 47.2%

Revenue ¥11.72B; Operating income -¥2.50B.

• ▍Revenue ¥11.72B
• ▍Operating income -¥2.50B
• ▍Net margin 0.1%

Revenue ¥10.30B; Operating income ¥59.0M.

• ▍Revenue ¥10.30B
• ▍Operating income ¥59.0M
• ▍Net margin 2.9%

Revenue ¥9.51B; Operating income -¥1.64B.

• ▍Revenue ¥9.51B
• ▍Operating income -¥1.64B
• ▍Net margin 14.5%

Revenue ¥16.28B; Operating income ¥469.0M.

• ▍Revenue ¥16.28B
• ▍Operating income ¥469.0M
• ▍Net margin 14.2%

Revenue ¥47.69B, +4,4% YoY; Net income −16,7% YoY.

• ▍Revenue ¥47.69B, +4,4% YoY
• ▍Net income −16,7% YoY
• ▍Net margin 14.6%

Revenue ¥45.69B, −13,5% YoY; Operating income −188,5% YoY.

• ▍Revenue ¥45.69B, −13,5% YoY
• ▍Operating income −188,5% YoY
• ▍Net income +108,0% YoY
• ▍Free cash flow −29,8% YoY
• ▍Net margin 18.3%

Revenue ¥52.82B, −5,5% YoY; Operating income −54,4% YoY.

• ▍Revenue ¥52.82B, −5,5% YoY
• ▍Operating income −54,4% YoY
• ▍Net income +28,3% YoY
• ▍Free cash flow +63,5% YoY
• ▍Net margin 7.6%

Revenue ¥55.92B, +6,0% YoY; Operating income +17,3% YoY.

• ▍Revenue ¥55.92B, +6,0% YoY
• ▍Operating income +17,3% YoY
• ▍Net income +2,1% YoY
• ▍Free cash flow −15,9% YoY
• ▍Net margin 5.6%