Hiramatsu Inc

Hiramatsu Inc maintains a strong liquidity position with cash and equivalents of ¥6.65 billion, significantly exceeding its total liabilities of ¥6.25 billion, resulting in a current ratio of 2.27 [doc:HA-latest]. The company's debt-to-equity ratio of 0.65 suggests a conservative capital structure, with long-term debt of ¥3.83 billion compared to total equity of ¥5.90 billion [doc:HA-latest]. Despite a negative operating income of ¥211 million, the company reported a net income of ¥1.53 billion, driven by non-operating gains or tax benefits [doc:HA-latest]. Profitability metrics indicate mixed performance. Return on equity (ROE) of 25.97% is strong, but return on assets (ROA) of 12.61% is below the industry median of 15.2% for Restaurants & Bars [doc:HA-latest]. Gross profit of ¥5.99 billion represents 56.2% of revenue, which is in line with the industry median of 54.8% [doc:HA-latest]. However, the negative operating income highlights operational inefficiencies or cost pressures. The company's geographic exposure is concentrated in Japan, with a Paris-based subsidiary contributing a smaller portion of revenue. No specific segment revenue breakdown is disclosed, but the presence of a Paris location suggests some international diversification [doc:HA-latest]. Revenue concentration in Japan remains a key risk, as the company operates stores in 11 Japanese cities but only one overseas location. Growth trajectory appears mixed. Revenue of ¥10.66 billion is flat compared to the prior year, with no significant growth in the current fiscal year. Outlook for the next fiscal year is neutral, with no projected revenue increase or decline [doc:HA-latest]. Free cash flow of ¥1.72 billion provides some flexibility for reinvestment or shareholder returns, but capital expenditures of ¥162 million suggest limited near-term expansion [doc:HA-latest]. Risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The company's strong cash position and low debt-to-equity ratio reduce financial stress. However, the negative operating income raises concerns about long-term sustainability. No dilution pressure is expected in the near term, as shares outstanding remain unchanged [doc:HA-latest]. Recent events include the continued operation of the Paris restaurant, which may face challenges due to local economic conditions. No material regulatory or legal filings were disclosed in the latest reports. Analyst estimates align with reported revenue and EPS, suggesting no significant surprises in performance [doc:, ].