Asahi Eito Holdings Co Ltd

The company's capital structure shows a debt-to-equity ratio of 0.71, indicating a moderate level of leverage. With cash and equivalents of 546.73 million JPY and long-term debt of 865.65 million JPY, the firm has a net cash position of -318.92 million JPY, which raises liquidity concerns. The current ratio of 3.09 suggests the company has sufficient short-term assets to cover its short-term liabilities. However, the negative operating income of 80.96 million JPY and net loss of 76.63 million JPY indicate financial distress.

Profitability metrics show a return on equity of -6.31% and a return on assets of -2.74%, both significantly below industry norms. The gross profit margin of 30.43% is relatively high, but the operating margin is negative at -8.39%, reflecting high operating costs or declining sales. The company's price-to-book ratio of 1.61 and price-to-tangible-book ratio of 1.61 suggest the market is valuing the company at a premium to its book value, despite its current financial performance.

The company's revenue is concentrated in the construction supplies and fixtures segment, with no disclosed geographic diversification. This concentration increases exposure to regional economic fluctuations and construction market cycles. The company's operating cash flow of 58.68 million JPY is positive, but capital expenditures of 26.69 million JPY indicate ongoing investment in infrastructure.

The company's growth trajectory is uncertain, with a net loss in the most recent period and no disclosed revenue growth rates. Analyst estimates for the last actual revenue of 4.34 billion JPY and EPS of -57.39 JPY suggest continued financial challenges. The company's market cap of 1.96 billion JPY and market price of 237 JPY indicate a relatively small market presence.

The company faces several risk factors, including liquidity concerns due to a negative net cash position and a medium liquidity risk rating. The risk assessment indicates a low dilution potential, but the negative operating income and net loss suggest financial instability. The company's debt levels and operating performance may require additional financing, which could lead to further dilution or increased debt.

Recent events, including the latest financial results and analyst estimates, highlight the company's financial challenges. The company's negative operating income and net loss indicate a need for strategic adjustments to improve profitability and liquidity. The company's market position and financial performance suggest a need for close monitoring of its financial health and strategic direction.

Revenue grew 25.2% annually over four years, reaching 4.34 trillion JPY in fiscal 2026.

Gross profit expanded to 1.34 trillion JPY in fiscal 2026, indicating improving top-line efficiency.

Debt-to-equity ratio of 0.71 is below the cohort median of 0.29, suggesting manageable leverage.

High credit risk flags indicate significant financial distress concerns for the issuer.

Revenue ¥1.06B, −0,1% YoY; Operating income −36,8% YoY.

• ▍Revenue ¥1.06B, −0,1% YoY
• ▍Operating income −36,8% YoY
• ▍Net income −20,6% YoY
• ▍Net margin -5.0%

Revenue ¥1.12B, +11,5% YoY; Operating income +12,6% YoY.

• ▍Revenue ¥1.12B, +11,5% YoY
• ▍Operating income +12,6% YoY
• ▍Net income +15,8% YoY
• ▍Net margin -11.3%

Revenue ¥1.01B, +6,7% YoY; Operating income +68,1% YoY.

• ▍Revenue ¥1.01B, +6,7% YoY
• ▍Operating income +68,1% YoY
• ▍Net income +45,2% YoY
• ▍Net margin -7.3%

Revenue ¥1.14B, +17,9% YoY; Operating income −12,4% YoY.

• ▍Revenue ¥1.14B, +17,9% YoY
• ▍Operating income −12,4% YoY
• ▍Net income −24,9% YoY
• ▍Net margin -8.4%

Revenue ¥1.07B; Operating income -¥41.2M.

• ▍Revenue ¥1.07B
• ▍Operating income -¥41.2M
• ▍Net margin -4.2%

Revenue ¥1.00B; Operating income -¥109.8M.

• ▍Revenue ¥1.00B
• ▍Operating income -¥109.8M
• ▍Net margin -15.0%

Revenue ¥950.3M; Operating income -¥151.6M.

• ▍Revenue ¥950.3M
• ▍Operating income -¥151.6M
• ▍Net margin -14.1%

Revenue ¥964.6M; Operating income -¥81.0M.

• ▍Revenue ¥964.6M
• ▍Operating income -¥81.0M
• ▍Net margin -7.9%

Revenue ¥4.34B, +9,3% YoY; Operating income +20,1% YoY.

• ▍Revenue ¥4.34B, +9,3% YoY
• ▍Operating income +20,1% YoY
• ▍Net income +9,1% YoY
• ▍Free cash flow +5,3% YoY
• ▍Net margin -7.9%

Revenue ¥3.97B, +12,8% YoY; Operating income +42,8% YoY.

• ▍Revenue ¥3.97B, +12,8% YoY
• ▍Operating income +42,8% YoY
• ▍Net income +39,8% YoY
• ▍Free cash flow +43,6% YoY
• ▍Net margin -9.4%

Revenue ¥3.52B, +54,1% YoY; Operating income −225,2% YoY.

• ▍Revenue ¥3.52B, +54,1% YoY
• ▍Operating income −225,2% YoY
• ▍Net income −281,3% YoY
• ▍Free cash flow −287,2% YoY
• ▍Net margin -17.7%

Revenue ¥2.28B, +29,3% YoY; Operating income −188,6% YoY.

• ▍Revenue ¥2.28B, +29,3% YoY
• ▍Operating income −188,6% YoY
• ▍Net income −289,9% YoY
• ▍Free cash flow −209,8% YoY
• ▍Net margin -7.2%