KG Intelligence Co Ltd

KG Intelligence Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥5,049,682,000, representing 75.3% of total assets. The company has no long-term debt, and its debt-to-equity ratio is 0.0, indicating a conservative capital structure. The current ratio of 10.75 suggests the company has ample short-term liquidity to cover its liabilities.

Profitability metrics show a return on equity (ROE) of 0.91% and a return on assets (ROA) of 0.81%, both below the industry median for Consumer Publishing. The company's operating margin is 10.4%, and net margin is 9.4%, which are in line with the industry average. However, the company's operating cash flow is negative at ¥-470,792,000, indicating a reliance on non-operational cash flows to maintain liquidity.

The company's revenue is concentrated in a single business segment, Consumer Publishing, with no disclosed geographic diversification. This lack of diversification increases exposure to market-specific risks, particularly in the cyclical consumer services sector. The company's revenue is entirely derived from its core publishing activities, with no material contributions from other business lines.

Looking ahead, the company is projected to maintain stable revenue growth, with a modest increase in the current fiscal year and a continuation of this trend in the next fiscal year. The company's capital expenditure is minimal at ¥-13,303,000, suggesting a low reinvestment rate and a focus on maintaining existing operations rather than expanding.

Risk factors include the company's reliance on a single business segment and the potential for regulatory changes in the publishing industry. The company has no immediate filing-based liquidity or dilution flags, and the risk of dilution is assessed as low. The company's share count has not changed in the recent period, and there are no indications of near-term share issuance.

Recent events include the publication of the latest financial results, which show a revenue of ¥573,058,000 and a net income of ¥54,061,000. The company's earnings per share (EPS) for the period was 45.87 JPY, in line with analyst estimates. No material changes in the company's strategic direction or operational performance were disclosed in recent filings.

Revenue grew 10.9% year-over-year to JPY 2.74 billion in FY2026, demonstrating consistent top-line expansion.

Net income surged 39.3% year-over-year to JPY 335.8 million, highlighting strong profitability acceleration.

The company maintains a zero long-term debt position, eliminating interest expense and credit risk.

Free cash flow turned negative at JPY -23.4 million in FY2026, signaling potential liquidity pressures.

Cash conversion ratio of -8.71 places the company in the bottom quartile of its peer cohort.

Return on assets of 0.81% remains low, indicating limited ability to generate profit from total assets.

Revenue ¥713.4M, +9,8% YoY; Operating income +40,2% YoY.

• ▍Revenue ¥713.4M, +9,8% YoY
• ▍Operating income +40,2% YoY
• ▍Net income +202,3% YoY
• ▍Net margin 26.3%

Revenue ¥740.6M, +12,5% YoY; Operating income +57,2% YoY.

• ▍Revenue ¥740.6M, +12,5% YoY
• ▍Operating income +57,2% YoY
• ▍Net income +119,8% YoY
• ▍Net margin 21.1%

Revenue ¥682.0M, +10,6% YoY; Operating income +27,3% YoY.

• ▍Revenue ¥682.0M, +10,6% YoY
• ▍Operating income +27,3% YoY
• ▍Net income +17,0% YoY
• ▍Net margin 9.2%

Revenue ¥663.9M, +15,8% YoY; Operating income +27,5% YoY.

• ▍Revenue ¥663.9M, +15,8% YoY
• ▍Operating income +27,5% YoY
• ▍Net income +1,8% YoY
• ▍Net margin 8.3%

Revenue ¥649.7M; Operating income ¥88.8M.

• ▍Revenue ¥649.7M
• ▍Operating income ¥88.8M
• ▍Net margin 9.5%

Revenue ¥658.5M; Operating income ¥122.3M.

• ▍Revenue ¥658.5M
• ▍Operating income ¥122.3M
• ▍Net margin 10.8%

Revenue ¥616.9M; Operating income ¥64.7M.

• ▍Revenue ¥616.9M
• ▍Operating income ¥64.7M
• ▍Net margin 8.6%

Revenue ¥573.1M; Operating income ¥59.6M.

• ▍Revenue ¥573.1M
• ▍Operating income ¥59.6M
• ▍Net margin 9.4%

Revenue ¥2.74B, +10,9% YoY; Operating income +34,8% YoY.

• ▍Revenue ¥2.74B, +10,9% YoY
• ▍Operating income +34,8% YoY
• ▍Net income +39,3% YoY
• ▍Free cash flow +69,8% YoY
• ▍Net margin 12.3%

Revenue ¥2.47B, −7,2% YoY; Operating income −11,0% YoY.

• ▍Revenue ¥2.47B, −7,2% YoY
• ▍Operating income −11,0% YoY
• ▍Net income −35,1% YoY
• ▍Free cash flow −124,7% YoY
• ▍Net margin 9.8%

Revenue ¥2.66B, +6,8% YoY; Operating income +43,7% YoY.

• ▍Revenue ¥2.66B, +6,8% YoY
• ▍Operating income +43,7% YoY
• ▍Net income +10,0% YoY
• ▍Free cash flow +3,8% YoY
• ▍Net margin 14.0%

Revenue ¥2.49B, +14,6% YoY; Operating income +668,2% YoY.

• ▍Revenue ¥2.49B, +14,6% YoY
• ▍Operating income +668,2% YoY
• ▍Net income +366,0% YoY
• ▍Free cash flow +454,5% YoY
• ▍Net margin 13.6%