Village Vanguard Co Ltd

Village Vanguard Co Ltd has a liquidity position that is currently medium, with a current ratio of 2.38 and cash and equivalents of 2.31 billion JPY. However, the company's net cash is negative after subtracting total debt, indicating a potential liquidity risk. The debt-to-equity ratio stands at 1.57, which is higher than the industry median, suggesting a more leveraged capital structure.

The company's profitability is underperforming, with a return on equity of -7.2% and a return on assets of -1.96%. These figures are significantly below the industry median for both metrics, indicating that the company is not generating returns that meet the expectations of its shareholders or asset base.

Geographically, Village Vanguard is heavily concentrated in Japan, with the majority of its revenue derived from domestic operations. The company does not report significant revenue from international markets, which increases its exposure to local economic conditions and regulatory changes.

Looking at the growth trajectory, the company is expected to see a decline in revenue in the current fiscal year, with a negative outlook for the next fiscal year as well. The operating income and net income have both turned negative, and the company is experiencing a decline in operating cash flow, which could impact its ability to fund operations and capital expenditures.

The risk assessment indicates a medium liquidity risk and a low dilution risk. The company has not issued additional shares recently, and there is no indication of a near-term dilution event. However, the negative net cash position and the high debt-to-equity ratio suggest that the company may need to raise additional capital in the future, which could lead to dilution.

Recent events include the company's latest financial results, which show a significant drop in profitability. The company reported a net loss of 448 million JPY, and the operating income was also negative. These results have raised concerns among analysts and investors about the company's financial health and future prospects.

Cash conversion of 2.09 exceeds the cohort median of 1.22, indicating superior cash generation relative to peers.

Long-term debt decreased to 9.5 billion JPY in FY2025, reflecting a modest reduction in leverage obligations.

Revenue stabilized at 24.96 billion JPY in FY2025, showing a slight 0.7% increase from the prior year.

Dilution risk is assessed as low, suggesting limited immediate threat to existing shareholder equity value.

Free cash flow deteriorated significantly to a 4.4 billion JPY outflow in FY2025.

Debt-to-equity ratio of 1.57 is in the bottom quartile, far exceeding the 0.31 cohort median.

High credit risk flags indicate significant potential for financial distress or default issues.

Revenue ¥6.77B, −0,8% YoY; Operating income +210,3% YoY.

• ▍Revenue ¥6.77B, −0,8% YoY
• ▍Operating income +210,3% YoY
• ▍Net income +188,1% YoY
• ▍Net margin 6.8%

Revenue ¥5.12B, −4,8% YoY; Operating income +95,7% YoY.

• ▍Revenue ¥5.12B, −4,8% YoY
• ▍Operating income +95,7% YoY
• ▍Net income +88,8% YoY
• ▍Net margin -1.3%

Revenue ¥5.66B, −11,8% YoY; Operating income +291,6% YoY.

• ▍Revenue ¥5.66B, −11,8% YoY
• ▍Operating income +291,6% YoY
• ▍Net income +344,4% YoY
• ▍Net margin 3.5%

Revenue ¥6.33B, −5,8% YoY; Operating income −574,4% YoY.

• ▍Revenue ¥6.33B, −5,8% YoY
• ▍Operating income −574,4% YoY
• ▍Net income −582,1% YoY
• ▍Net margin -48.3%

Revenue ¥6.83B; Operating income -¥455.0M.

• ▍Revenue ¥6.83B
• ▍Operating income -¥455.0M
• ▍Net margin -7.6%

Revenue ¥5.38B; Operating income -¥580.0M.

• ▍Revenue ¥5.38B
• ▍Operating income -¥580.0M
• ▍Net margin -11.0%

Revenue ¥6.42B; Operating income -¥95.0M.

• ▍Revenue ¥6.42B
• ▍Operating income -¥95.0M
• ▍Net margin -1.3%

Revenue ¥6.72B; Operating income -¥446.0M.

• ▍Revenue ¥6.72B
• ▍Operating income -¥446.0M
• ▍Net margin -6.7%

Revenue ¥24.96B, +0,7% YoY; Operating income −284,9% YoY.

• ▍Revenue ¥24.96B, +0,7% YoY
• ▍Operating income −284,9% YoY
• ▍Net income −271,6% YoY
• ▍Free cash flow −216,1% YoY
• ▍Net margin -17.0%

Revenue ¥24.80B, −1,9% YoY; Operating income −1 379,8% YoY.

• ▍Revenue ¥24.80B, −1,9% YoY
• ▍Operating income −1 379,8% YoY
• ▍Net income −4 862,5% YoY
• ▍Free cash flow −1 933,3% YoY
• ▍Net margin -4.6%

Revenue ¥25.28B, −5,5% YoY; Operating income −53,6% YoY.

• ▍Revenue ¥25.28B, −5,5% YoY
• ▍Operating income −53,6% YoY
• ▍Net income −79,3% YoY
• ▍Free cash flow −3 350,0% YoY
• ▍Net margin 0.1%

Revenue ¥26.76B, −5,4% YoY; Operating income +654,2% YoY.

• ▍Revenue ¥26.76B, −5,4% YoY
• ▍Operating income +654,2% YoY
• ▍Net income +604,4% YoY
• ▍Free cash flow +97,9% YoY
• ▍Net margin 0.4%