Ray Corp

Ray Corp maintains a strong liquidity position, with cash and equivalents amounting to ¥3.72 billion, representing 43.3% of total assets. The company's liquidity FPT (free cash flow to total debt) is robust, with a current ratio of 2.71 and a debt-to-equity ratio of 0.13, indicating a conservative capital structure. The price-to-book ratio of 1.05 suggests the market values the company close to its net asset value, while the price-to-tangible-book ratio of 1.05 reflects minimal intangible asset influence on valuation.

Profitability metrics for Ray Corp show a return on equity (ROE) of 1.78% and a return on assets (ROA) of 1.32%, both below the industry median for advertising and marketing firms. The company's operating margin is 5.09%, and net margin is 4.89%, which are in line with the sector average but indicate limited margin expansion potential. Gross profit of ¥778.9 million supports a 33.5% gross margin, suggesting efficient cost control in service delivery.

Ray Corp's revenue is concentrated in a single business segment, with no disclosed geographic diversification. The company's total revenue of ¥23.22 billion is derived entirely from its advertising and marketing services, exposing it to sector-specific demand fluctuations. No material geographic revenue breakdown is available, limiting visibility into regional exposure.

The company's growth trajectory is modest, with no disclosed revenue growth in the most recent fiscal year. Analyst estimates for revenue and EPS align closely with reported figures, suggesting stable but not accelerating performance. The price-to-earnings ratio of 58.98 indicates a premium valuation relative to earnings, which may reflect market expectations of future growth or sector-specific risk premiums.

Risk factors for Ray Corp are minimal in the short term, with low liquidity and dilution risk scores. The company has no immediate filing-based flags for liquidity stress or dilution pressure, and its capital structure remains stable with no near-term debt maturities or share issuance plans disclosed. The absence of dilution risk is reinforced by equal basic and diluted shares outstanding, indicating no material dilution potential.

Recent events for Ray Corp include the publication of its latest financial results, which show consistent revenue and profit figures with no material deviations from prior periods. No significant corporate actions, such as acquisitions, divestitures, or major regulatory changes, have been disclosed in the most recent filings.

Net income surged 74.9% year-over-year to JPY 1.3 billion in fiscal 2026, demonstrating strong profitability growth.

Operating income jumped 91.7% to JPY 1.75 billion in fiscal 2026, indicating significant operational efficiency improvements.

Operating margin of 5.1% outperforms the industry median of 3.54%, highlighting superior cost management relative to peers.

Long-term debt decreased steadily to JPY 563.5 million in fiscal 2026, reducing financial leverage and credit risk.

Free cash flow dropped sharply to JPY 213.7 million in fiscal 2025, down from JPY 400.1 million the prior year.

Gross profit fell to JPY 3.55 billion in fiscal 2025, reflecting margin pressure before the fiscal 2026 recovery.

Revenue ¥3.28B, +6,5% YoY; Operating income −23,8% YoY.

• ▍Revenue ¥3.28B, +6,5% YoY
• ▍Operating income −23,8% YoY
• ▍Net income −13,3% YoY
• ▍Net margin 8.5%

Revenue ¥4.29B, +50,0% YoY; Operating income +131,2% YoY.

• ▍Revenue ¥4.29B, +50,0% YoY
• ▍Operating income +131,2% YoY
• ▍Net income +87,8% YoY
• ▍Net margin 11.1%

Revenue ¥2.63B, +19,9% YoY; Operating income +327,8% YoY.

• ▍Revenue ¥2.63B, +19,9% YoY
• ▍Operating income +327,8% YoY
• ▍Net income +230,6% YoY
• ▍Net margin 7.0%

Revenue ¥3.22B, +38,6% YoY; Operating income +315,2% YoY.

• ▍Revenue ¥3.22B, +38,6% YoY
• ▍Operating income +315,2% YoY
• ▍Net income +220,4% YoY
• ▍Net margin 11.3%

Revenue ¥3.08B; Operating income ¥437.7M.

• ▍Revenue ¥3.08B
• ▍Operating income ¥437.7M
• ▍Net margin 10.5%

Revenue ¥2.86B; Operating income ¥309.0M.

• ▍Revenue ¥2.86B
• ▍Operating income ¥309.0M
• ▍Net margin 8.9%

Revenue ¥2.19B; Operating income ¥50.5M.

• ▍Revenue ¥2.19B
• ▍Operating income ¥50.5M
• ▍Net margin 2.5%

Revenue ¥2.32B; Operating income ¥118.2M.

• ▍Revenue ¥2.32B
• ▍Operating income ¥118.2M
• ▍Net margin 4.9%

Revenue ¥13.42B, +28,3% YoY; Operating income +91,7% YoY.

• ▍Revenue ¥13.42B, +28,3% YoY
• ▍Operating income +91,7% YoY
• ▍Net income +74,9% YoY
• ▍Free cash flow +83,7% YoY
• ▍Net margin 9.7%

Revenue ¥10.46B, −6,8% YoY; Operating income −13,5% YoY.

• ▍Revenue ¥10.46B, −6,8% YoY
• ▍Operating income −13,5% YoY
• ▍Net income −8,9% YoY
• ▍Free cash flow −46,6% YoY
• ▍Net margin 7.1%

Revenue ¥11.22B, −9,9% YoY; Operating income −12,8% YoY.

• ▍Revenue ¥11.22B, −9,9% YoY
• ▍Operating income −12,8% YoY
• ▍Net income +14,4% YoY
• ▍Free cash flow −53,6% YoY
• ▍Net margin 7.3%

Revenue ¥12.45B, +12,7% YoY; Operating income +60,9% YoY.

• ▍Revenue ¥12.45B, +12,7% YoY
• ▍Operating income +60,9% YoY
• ▍Net income +70,6% YoY
• ▍Free cash flow +11,6% YoY
• ▍Net margin 5.7%