Sakura Rubber Co Ltd

Sakura Rubber maintains a conservative capital structure with a debt-to-equity ratio of 0.34, indicating a relatively low reliance on debt financing. The company's liquidity position is strong, as evidenced by a current ratio of 2.04 and cash and equivalents of ¥3.02 billion, which provides a buffer against short-term obligations. The liquidity_fpt metric confirms that the firm has sufficient working capital to meet its operational needs without immediate refinancing pressures.

Profitability metrics show that Sakura Rubber generates a return on equity (ROE) of 5.96% and a return on assets (ROA) of 2.96%. These figures are below the industry median for ROE and ROA in the Tires & Rubber Products sector, suggesting that the company is underperforming relative to its peers in terms of capital efficiency and asset utilization. The gross profit margin of 20.3% is in line with industry norms, but the operating margin of 11.5% is slightly below the median, indicating potential cost pressures or pricing challenges.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification beyond Japan. This lack of geographic diversification increases exposure to local economic conditions and regulatory changes, which could impact revenue stability. No material revenue contributions from international markets are reported, and the firm does not disclose segment-specific performance metrics.

Looking ahead, Sakura Rubber is projected to experience modest revenue growth, with a year-over-year increase of approximately 1.5% in the current fiscal year and a 2.0% increase in the following year. These growth rates are in line with the industry average, but the company's operating cash flow of ¥367 million and capital expenditures of ¥122 million suggest a cautious approach to reinvestment and expansion. The company's capex is primarily focused on maintaining existing production capacity rather than expanding into new markets or product lines.

Risk factors for Sakura Rubber include exposure to raw material price volatility, particularly for rubber and other commodity inputs, which can impact gross margins. The company also faces competition from larger global tire manufacturers, which may exert downward pressure on pricing and market share. The risk assessment indicates low liquidity and dilution risks, with no immediate filing-based flags detected. However, the company's low price-to-book ratio of 0.67 suggests that the market may be discounting its asset base, potentially due to concerns about future earnings power or industry headwinds.

Recent filings and transcripts do not indicate any material changes in the company's strategic direction or financial outlook. The firm continues to focus on cost control and operational efficiency, with no significant new product launches or market expansions disclosed in the latest reports. Analyst estimates for revenue and earnings are in line with the company's reported performance, suggesting that expectations for near-term growth remain stable.

The company achieved a robust four-year net income CAGR of 15.9%, signaling consistent long-term earnings growth despite recent volatility.

Low debt-to-equity ratio of 0.34 is below the 0.41 cohort median, reflecting a conservative and financially stable capital structure.

Minimal dilution, liquidity, and credit risks are flagged as low, suggesting a stable operational environment with few immediate financial threats.

Cash conversion ratio of 0.71 trails the 1.14 cohort median, suggesting less efficient translation of earnings into actual cash.

Revenue ¥3.21B, +12,0% YoY; Operating income +201,2% YoY.

• ▍Revenue ¥3.21B, +12,0% YoY
• ▍Operating income +201,2% YoY
• ▍Net income +114,1% YoY
• ▍Net margin 5.8%

Revenue ¥2.56B, +36,0% YoY; Operating income +261,1% YoY.

• ▍Revenue ¥2.56B, +36,0% YoY
• ▍Operating income +261,1% YoY
• ▍Net income +190,8% YoY
• ▍Net margin 3.3%

Revenue ¥1.92B, +19,3% YoY; Operating income +7,2% YoY.

• ▍Revenue ¥1.92B, +19,3% YoY
• ▍Operating income +7,2% YoY
• ▍Net income +23,2% YoY
• ▍Net margin -4.8%

Revenue ¥5.84B, −14,6% YoY; Operating income −2,2% YoY.

• ▍Revenue ¥5.84B, −14,6% YoY
• ▍Operating income −2,2% YoY
• ▍Net income +6,1% YoY
• ▍Net margin 9.5%

Revenue ¥2.87B; Operating income ¥94.6M.

• ▍Revenue ¥2.87B
• ▍Operating income ¥94.6M
• ▍Net margin 3.0%

Revenue ¥1.88B; Operating income -¥87.8M.

• ▍Revenue ¥1.88B
• ▍Operating income -¥87.8M
• ▍Net margin -4.9%

Revenue ¥1.61B; Operating income -¥156.7M.

• ▍Revenue ¥1.61B
• ▍Operating income -¥156.7M
• ▍Net margin -7.5%

Revenue ¥6.83B; Operating income ¥784.3M.

• ▍Revenue ¥6.83B
• ▍Operating income ¥784.3M
• ▍Net margin 7.6%

Revenue ¥12.19B, −8,7% YoY; Operating income −45,7% YoY.

• ▍Revenue ¥12.19B, −8,7% YoY
• ▍Operating income −45,7% YoY
• ▍Net income −41,9% YoY
• ▍Free cash flow −48,3% YoY
• ▍Net margin 3.5%

Revenue ¥13.35B, +24,9% YoY; Operating income +189,2% YoY.

• ▍Revenue ¥13.35B, +24,9% YoY
• ▍Operating income +189,2% YoY
• ▍Net income +133,5% YoY
• ▍Free cash flow +86,5% YoY
• ▍Net margin 5.5%

Revenue ¥10.69B, +20,5% YoY; Operating income +405,9% YoY.

• ▍Revenue ¥10.69B, +20,5% YoY
• ▍Operating income +405,9% YoY
• ▍Net income +432,5% YoY
• ▍Free cash flow +1 365,0% YoY
• ▍Net margin 2.9%

Revenue ¥8.87B, −11,5% YoY; Operating income −146,2% YoY.

• ▍Revenue ¥8.87B, −11,5% YoY
• ▍Operating income −146,2% YoY
• ▍Net income −140,1% YoY
• ▍Free cash flow +29,3% YoY
• ▍Net margin -1.1%