Vector Inc

Vector Inc maintains a strong liquidity position, with cash and equivalents amounting to ¥14.35 billion, significantly exceeding its long-term debt of ¥12.45 billion. The company's liquidity FPT (free cash flow to total debt) is robust, supported by a current ratio of 2.32 and a debt-to-equity ratio of 0.84, indicating a conservative capital structure.

Profitability metrics show a return on equity (ROE) of 3.69% and a return on assets (ROA) of 1.35%, both below the industry median for advertising and marketing firms. The operating margin of 9.88% (¥1.37 billion operating income on ¥13.88 billion revenue) suggests moderate efficiency in converting revenue to profit.

The company operates as a single business segment, with all revenue derived from advertising and marketing services. Geographic exposure is not disclosed in the available data, but the company is headquartered in Japan, suggesting a primary focus on the domestic market.

Outlook for the current fiscal year indicates stable revenue with no significant growth or contraction expected. The company's net income is projected to remain flat, with operating income showing slight volatility. No major changes in revenue concentration or new market expansion are anticipated.

Risk assessment reveals low liquidity and dilution risk, with no immediate filing-based flags detected. The company's capital structure is stable, and there is no indication of near-term dilution pressure. However, the low ROE and ROA suggest potential challenges in generating returns relative to industry peers.

Recent events include the latest financial filing (market data), which provides the most recent revenue and profitability figures. No significant corporate actions or regulatory changes have been disclosed in the available data.

Net income grew at a 25.3% CAGR over four years, demonstrating strong historical profitability expansion.

Free cash flow surged 47.2% year-over-year to JPY 5.2 billion, highlighting robust cash generation capabilities.

Analysts project 17.3% upside to a JPY 1,750 target price, reflecting positive market sentiment.

Debt-to-equity ratio of 0.84 is in the bottom quartile of peers, indicating significantly higher financial leverage.

Long-term debt increased to JPY 12.7 billion in FY2024, raising concerns about rising financial obligations.

Revenue growth slowed to 7.7% year-over-year, suggesting a potential deceleration in top-line expansion momentum.

Return on assets of 1.4% remains modest, indicating limited efficiency in generating profits from total assets.

Revenue ¥17.11B, +1,8% YoY; Operating income −109,8% YoY.

• ▍Revenue ¥17.11B, +1,8% YoY
• ▍Operating income −109,8% YoY
• ▍Net income −31,0% YoY
• ▍Net margin 8.7%

Revenue ¥16.94B, +12,4% YoY; Operating income +83,0% YoY.

• ▍Revenue ¥16.94B, +12,4% YoY
• ▍Operating income +83,0% YoY
• ▍Net income +82,5% YoY
• ▍Net margin 10.9%

Revenue ¥14.95B, +10,7% YoY; Operating income +200,9% YoY.

• ▍Revenue ¥14.95B, +10,7% YoY
• ▍Operating income +200,9% YoY
• ▍Net income +113,0% YoY
• ▍Net margin 6.7%

Revenue ¥14.80B, +6,7% YoY; Operating income +21,3% YoY.

• ▍Revenue ¥14.80B, +6,7% YoY
• ▍Operating income +21,3% YoY
• ▍Net income +39,5% YoY
• ▍Net margin 5.2%

Revenue ¥16.80B; Operating income ¥3.69B.

• ▍Revenue ¥16.80B
• ▍Operating income ¥3.69B
• ▍Net margin 12.9%

Revenue ¥15.07B; Operating income ¥1.89B.

• ▍Revenue ¥15.07B
• ▍Operating income ¥1.89B
• ▍Net margin 6.7%

Revenue ¥13.51B; Operating income ¥662.0M.

• ▍Revenue ¥13.51B
• ▍Operating income ¥662.0M
• ▍Net margin 3.5%

Revenue ¥13.88B; Operating income ¥1.37B.

• ▍Revenue ¥13.88B
• ▍Operating income ¥1.37B
• ▍Net margin 4.0%

Revenue ¥63.79B, +7,7% YoY; Operating income −11,4% YoY.

• ▍Revenue ¥63.79B, +7,7% YoY
• ▍Operating income −11,4% YoY
• ▍Net income +21,8% YoY
• ▍Free cash flow +47,2% YoY
• ▍Net margin 8.0%

Revenue ¥59.25B, +0,1% YoY; Operating income +17,6% YoY.

• ▍Revenue ¥59.25B, +0,1% YoY
• ▍Operating income +17,6% YoY
• ▍Net income −10,5% YoY
• ▍Free cash flow −26,1% YoY
• ▍Net margin 7.1%

Revenue ¥59.21B, +7,2% YoY; Operating income +22,6% YoY.

• ▍Revenue ¥59.21B, +7,2% YoY
• ▍Operating income +22,6% YoY
• ▍Net income +47,6% YoY
• ▍Free cash flow +49,1% YoY
• ▍Net margin 7.9%

Revenue ¥55.23B, +14,8% YoY; Operating income +5,7% YoY.

• ▍Revenue ¥55.23B, +14,8% YoY
• ▍Operating income +5,7% YoY
• ▍Net income +53,1% YoY
• ▍Free cash flow +3,3% YoY
• ▍Net margin 5.7%