Nippon Felt Co Ltd

Nippon Felt maintains a strong liquidity position with a current ratio of 4.32 and cash and equivalents of ¥3.3 billion, which is well above the industry median for liquidity coverage. The company's debt-to-equity ratio of 0.04 is significantly lower than the industry median, indicating a conservative capital structure with minimal leverage risk. Profitability metrics show a mixed picture. The company's return on equity (ROE) of 2.12% and return on assets (ROA) of 1.7% are below the industry median for ROE and ROA, suggesting underperformance in asset utilization and equity returns. Gross profit of ¥2.97 billion represents 30.7% of revenue, which is in line with the industry median for gross margin, but operating income of ¥177 million is below the median for operating margin. The company's revenue is concentrated in its core industrial felt and textile segments, with no disclosed geographic diversification beyond Japan. This concentration increases exposure to domestic economic cycles and regulatory changes, particularly in the manufacturing and real estate sectors. Growth trajectory is modest, with revenue of ¥9.7 billion in the latest period. The company's free cash flow is negative at ¥265 million, driven by capital expenditures of ¥877 million, which is higher than the industry median for capex intensity. This suggests ongoing investment in production capacity or maintenance, but also highlights a lack of cash generation flexibility. Risk factors include low liquidity and dilution risk, with no immediate filing-based flags detected. The company's low debt load and strong cash position mitigate credit risk, but the negative free cash flow and high capex could pressure liquidity if revenue growth does not accelerate. No dilution sources were identified in the latest filings. Recent events include the latest financial filing showing a market price of ¥865 and a market cap of ¥14.99 billion. Analysts reported actual EPS of ¥23.84 and revenue of ¥9.7 billion, aligning with the company's disclosed results. No material events or earnings call transcripts were identified in the latest period.