Ogura Clutch Co Ltd

Ogura Clutch's capital structure is characterized by a debt-to-equity ratio of 1.36, indicating a moderate reliance on debt financing. The company holds JPY 8.67 billion in cash and equivalents, but this is offset by JPY 20.81 billion in long-term debt, resulting in a net cash position of negative JPY 12.14 billion. The liquidity position is further reflected in a current ratio of 1.3, suggesting limited short-term liquidity cushion.

Profitability metrics show significant deterioration, with a net loss of JPY 438 million and an operating loss of JPY 461 million in the latest reporting period. The return on equity is -2.85%, and the return on assets is -0.9%, both well below the industry median for the automotive parts sector. Gross profit of JPY 1.21 billion represents a margin of 11.3%, which is in line with the industry average but insufficient to offset rising operating costs.

Geographically, Ogura Clutch's revenue is concentrated in Japan, with over 70% of total revenue derived from domestic operations. The company's exposure to the Japanese market makes it vulnerable to domestic economic fluctuations and regulatory changes. Segment-wise, the company operates in a single business segment focused on clutch systems, with no diversification into other automotive components.

Growth prospects appear muted, with no significant revenue expansion in recent periods. The company reported JPY 10.7 billion in revenue, a decline from prior periods. Analysts have recorded a last actual revenue of JPY 43.9 billion, which may reflect a reporting period mismatch or a one-time event. The operating cash flow of JPY 2.93 billion provides some flexibility, but capital expenditures of JPY 2.21 billion suggest ongoing investment in production capacity.

The risk profile is elevated due to the negative net cash position and operating losses. The company's liquidity risk is rated as medium, and the dilution risk is low, with no near-term pressure from share issuance. The risk assessment highlights the need for improved operating performance to service debt obligations and maintain solvency.

Recent filings and transcripts indicate no material changes in business strategy or capital structure. The company has not disclosed any new product launches or major customer contracts. The absence of recent strategic initiatives suggests a focus on cost control and operational efficiency in the near term.

Net income surged 294.5% year-over-year to JPY 1.16 billion in fiscal 2025, signaling a strong profitability recovery.

Free cash flow improved by 178.3% to JPY 797 million in fiscal 2025, demonstrating enhanced operational cash generation.

Long-term debt decreased to JPY 18.8 billion in fiscal 2025, reflecting a deliberate deleveraging strategy and improved balance sheet health.

Revenue grew at a 6.9% compound annual growth rate over four years, indicating consistent top-line expansion momentum.

Gross profit reached JPY 6.75 billion in fiscal 2025, maintaining a solid margin base despite recent net income volatility.

Operating margin of -4.3% places the company in the bottom quartile of the auto parts cohort, indicating severe profitability weakness.

A debt-to-equity ratio of 1.36 ranks in the bottom quartile, signaling excessive leverage compared to industry peers.

The company faces high credit risk, suggesting potential difficulties in meeting financial obligations or securing favorable financing terms.

Cash conversion of -6.69 is in the bottom quartile, highlighting significant inefficiencies in converting operating income into cash.

Revenue ¥10.26B, −6,5% YoY; Operating income +155,4% YoY.

• ▍Revenue ¥10.26B, −6,5% YoY
• ▍Operating income +155,4% YoY
• ▍Net income +872,3% YoY
• ▍Net margin 4.5%

Revenue ¥10.17B, −9,4% YoY; Operating income +235,1% YoY.

• ▍Revenue ¥10.17B, −9,4% YoY
• ▍Operating income +235,1% YoY
• ▍Net income +213,5% YoY
• ▍Net margin 2.5%

Revenue ¥10.39B, −3,9% YoY; Operating income +435,3% YoY.

• ▍Revenue ¥10.39B, −3,9% YoY
• ▍Operating income +435,3% YoY
• ▍Net income −103,3% YoY
• ▍Net margin -0.2%

Revenue ¥10.92B, +2,0% YoY; Operating income +62,3% YoY.

• ▍Revenue ¥10.92B, +2,0% YoY
• ▍Operating income +62,3% YoY
• ▍Net income +288,1% YoY
• ▍Net margin 7.5%

Revenue ¥10.96B; Operating income ¥168.0M.

• ▍Revenue ¥10.96B
• ▍Operating income ¥168.0M
• ▍Net margin 0.4%

Revenue ¥11.22B; Operating income ¥74.0M.

• ▍Revenue ¥11.22B
• ▍Operating income ¥74.0M
• ▍Net margin -2.0%

Revenue ¥10.81B; Operating income ¥51.0M.

• ▍Revenue ¥10.81B
• ▍Operating income ¥51.0M
• ▍Net margin 4.7%

Revenue ¥10.70B; Operating income -¥461.0M.

• ▍Revenue ¥10.70B
• ▍Operating income -¥461.0M
• ▍Net margin -4.1%

Revenue ¥43.91B, +1,0% YoY; Operating income +131,0% YoY.

• ▍Revenue ¥43.91B, +1,0% YoY
• ▍Operating income +131,0% YoY
• ▍Net income +294,5% YoY
• ▍Free cash flow +178,3% YoY
• ▍Net margin 2.6%

Revenue ¥43.49B, −1,6% YoY; Operating income −212,3% YoY.

• ▍Revenue ¥43.49B, −1,6% YoY
• ▍Operating income −212,3% YoY
• ▍Net income −217,3% YoY
• ▍Free cash flow −436,0% YoY
• ▍Net margin -1.4%

Revenue ¥44.20B, +13,6% YoY; Operating income +131,4% YoY.

• ▍Revenue ¥44.20B, +13,6% YoY
• ▍Operating income +131,4% YoY
• ▍Net income +144,9% YoY
• ▍Free cash flow +119,1% YoY
• ▍Net margin 1.2%

Revenue ¥38.91B, +15,8% YoY; Operating income +27,9% YoY.

• ▍Revenue ¥38.91B, +15,8% YoY
• ▍Operating income +27,9% YoY
• ▍Net income +28,2% YoY
• ▍Free cash flow +8,1% YoY
• ▍Net margin -2.9%