Fine Sinter Co Ltd

Fine Sinter Co Ltd operates with a market price of 1,000 JPY per share, yielding a market capitalization of 4,279,866,000 JPY. The company's price-to-book ratio is 0.27, and its price-to-tangible-book ratio is also 0.27, indicating a significant discount to its book value. The enterprise value to EBITDA ratio is negative at -22.62, reflecting the company's current operating losses. The enterprise value to revenue ratio is 1.77, suggesting a relatively low valuation compared to its revenue.

The company's profitability is underperforming, with a return on equity of -4.32% and a return on assets of -1.35%. These metrics are below the industry median for the "Auto, Truck & Motorcycle Parts" sector, indicating a weak return profile relative to its peers. The company's operating income is negative at -803,710,000 JPY, and its net income is also negative at -676,485,000 JPY. The gross profit of 1,333,090,000 JPY is insufficient to cover operating expenses, contributing to the net loss.

Fine Sinter's revenue is concentrated in the automotive parts segment, with no disclosed geographic diversification in the provided data. The company's total revenue for the period is 10,250,622,000 JPY. The lack of geographic diversification may expose the company to regional economic downturns or supply chain disruptions.

The company's growth trajectory is uncertain, with a negative operating income and net income. The operating cash flow is positive at 4,744,259,000 JPY, but capital expenditures are high at -5,482,483,000 JPY, indicating significant investment in plant and equipment. The capital expenditures exceed the operating cash flow, which may strain the company's liquidity. The company's revenue for the period is 10,250,622,000 JPY, but the analyst estimate for the last actual revenue is 42,720,390,000 JPY, suggesting a significant discrepancy.

The company faces several risk factors, including a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt indicates a potential liquidity constraint. The company's debt-to-equity ratio is 1.15, and its current ratio is 0.9, both of which suggest a weak liquidity position. The company's long-term debt is 18,056,277,000 JPY, and its cash and equivalents are 4,153,436,000 JPY, resulting in a negative net cash position.

Recent events include a reported net loss and a negative operating income. The company's last actual EPS is -48.37 JPY, and its last actual revenue is 42,720,390,000 JPY. These figures suggest a challenging operating environment and potential operational inefficiencies. The company's financial performance may be influenced by industry-specific factors such as supply chain disruptions and demand fluctuations in the automotive sector.

Free cash flow surged 115.5% year-over-year to JPY 431.7 million in FY2025, demonstrating significant operational cash generation improvement.

Net income improved by 65.2% year-over-year in FY2025, indicating a meaningful reduction in losses compared to the prior fiscal year.

Gross profit reached JPY 5.75 billion in FY2025, reflecting strong top-line margin performance despite overall net losses.

Revenue grew at a 5.4% compound annual growth rate over four years, showing consistent top-line expansion through FY2025.

The company carries a high credit risk flag, signaling significant concerns regarding its ability to meet financial obligations.

Debt-to-equity ratio of 1.15 ranks in the bottom quartile of peers, indicating excessive leverage relative to the industry median.

Return on equity of -4.32% falls in the bottom quartile of the cohort, highlighting poor capital efficiency compared to peers.

Cash conversion ratio of -7.01 is in the bottom quartile, suggesting severe inefficiency in converting sales into cash.

Revenue ¥11.70B, +10,4% YoY; Operating income +897,7% YoY.

• ▍Revenue ¥11.70B, +10,4% YoY
• ▍Operating income +897,7% YoY
• ▍Net income −108,3% YoY
• ▍Net margin -0.2%

Revenue ¥12.06B, +16,1% YoY; Operating income +182,3% YoY.

• ▍Revenue ¥12.06B, +16,1% YoY
• ▍Operating income +182,3% YoY
• ▍Net income +167,9% YoY
• ▍Net margin 5.7%

Revenue ¥10.97B, +4,9% YoY; Operating income +161,4% YoY.

• ▍Revenue ¥10.97B, +4,9% YoY
• ▍Operating income +161,4% YoY
• ▍Net income +263,4% YoY
• ▍Net margin 2.1%

Revenue ¥11.27B, +9,9% YoY; Operating income +178,1% YoY.

• ▍Revenue ¥11.27B, +9,9% YoY
• ▍Operating income +178,1% YoY
• ▍Net income +206,7% YoY
• ▍Net margin 6.4%

Revenue ¥10.60B; Operating income ¥18.5M.

• ▍Revenue ¥10.60B
• ▍Operating income ¥18.5M
• ▍Net margin 2.2%

Revenue ¥10.39B; Operating income -¥1.10B.

• ▍Revenue ¥10.39B
• ▍Operating income -¥1.10B
• ▍Net margin -9.8%

Revenue ¥10.47B; Operating income -¥378.5M.

• ▍Revenue ¥10.47B
• ▍Operating income -¥378.5M
• ▍Net margin -1.4%

Revenue ¥10.25B; Operating income -¥803.7M.

• ▍Revenue ¥10.25B
• ▍Operating income -¥803.7M
• ▍Net margin -6.6%

Revenue ¥42.72B, +0,8% YoY; Operating income −50,0% YoY.

• ▍Revenue ¥42.72B, +0,8% YoY
• ▍Operating income −50,0% YoY
• ▍Net income +65,2% YoY
• ▍Free cash flow +115,5% YoY
• ▍Net margin -0.5%

Revenue ¥42.39B, +6,8% YoY; Operating income +83,3% YoY.

• ▍Revenue ¥42.39B, +6,8% YoY
• ▍Operating income +83,3% YoY
• ▍Net income +77,7% YoY
• ▍Free cash flow −12,1% YoY
• ▍Net margin -1.4%

Revenue ¥39.67B, +1,8% YoY; Operating income −1 095,9% YoY.

• ▍Revenue ¥39.67B, +1,8% YoY
• ▍Operating income −1 095,9% YoY
• ▍Net income −1 376,9% YoY
• ▍Free cash flow −387,9% YoY
• ▍Net margin -6.7%

Revenue ¥38.96B, +12,5% YoY; Operating income +99,1% YoY.

• ▍Revenue ¥38.96B, +12,5% YoY
• ▍Operating income +99,1% YoY
• ▍Net income +192,5% YoY
• ▍Free cash flow +321,0% YoY
• ▍Net margin 0.5%