Yorozu Corp

Yorozu Corp's capital structure is characterized by a debt-to-equity ratio of 0.5, indicating a moderate reliance on debt financing. The company holds JPY 22.29 billion in cash and equivalents, but this is offset by JPY 33.39 billion in long-term debt, resulting in a net cash position of negative JPY 11.1 billion. The liquidity position is further supported by a current ratio of 1.51, suggesting the company can cover its short-term obligations. However, the price-to-book ratio of 0.27 indicates that the company's market value is significantly below its book value, reflecting investor concerns about asset quality or future earnings potential.

Profitability metrics show a challenging operating environment for Yorozu Corp. The company reported an operating loss of JPY 8.38 billion and a net loss of JPY 3.94 billion in the latest period. Return on equity (ROE) is negative at -5.92%, and return on assets (ROA) is also negative at -2.77%, both well below the industry median for automotive parts manufacturers. Gross profit of JPY 7.21 billion represents a margin of 13.77%, which is in line with the industry average but insufficient to offset rising costs and declining demand.

Geographically, Yorozu Corp's revenue is heavily concentrated in Japan, with over 80% 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 primarily in the automotive parts segment, with no material diversification into other product lines or services.

The company's growth trajectory is under pressure, with a negative operating income and declining net income. Capital expenditures of JPY 13.45 billion in the latest period suggest ongoing investment in production capacity, but this has not translated into improved profitability. Analysts have reported a last actual revenue of JPY 178.41 billion, which is significantly lower than the JPY 52.35 billion reported in the latest financial snapshot, indicating potential discrepancies or reporting inconsistencies.

Risk factors for Yorozu Corp include liquidity constraints and the potential for further dilution. The company's net cash position is negative, and while dilution risk is currently assessed as low, the possibility of future equity issuance remains if the company requires additional capital to fund operations or debt obligations. The risk assessment also highlights the need for close monitoring of the company's debt levels and cash flow generation.

Recent events include a reported operating loss and net loss, which have likely impacted investor sentiment. The company's market price of JPY 866 and a market cap of JPY 17.84 billion reflect a significant discount to book value and suggest a lack of confidence in the company's ability to return to profitability. The company's financial performance and risk profile indicate a need for strategic adjustments to improve operational efficiency and restore profitability.

Revenue grew at a 10.7% CAGR over four years, demonstrating consistent top-line expansion despite recent volatility.

Debt-to-equity ratio of 0.5 sits below the cohort median of 0.41, suggesting a manageable leverage position.

Dilution risk is assessed as low, providing some protection for existing shareholders against equity erosion.

Free cash flow deteriorated to a 16.56 billion JPY outflow in FY2025, worsening from the prior year's deficit.

High credit risk flags suggest significant concerns regarding the company's ability to meet its financial obligations.

Revenue ¥43.65B, −0,5% YoY; Operating income +141,7% YoY.

• ▍Revenue ¥43.65B, −0,5% YoY
• ▍Operating income +141,7% YoY
• ▍Net income +111,1% YoY
• ▍Net margin 0.7%

Revenue ¥42.34B, −8,7% YoY; Operating income +7,1% YoY.

• ▍Revenue ¥42.34B, −8,7% YoY
• ▍Operating income +7,1% YoY
• ▍Net income +120,2% YoY
• ▍Net margin 0.7%

Revenue ¥41.43B, −7,1% YoY; Operating income +123,4% YoY.

• ▍Revenue ¥41.43B, −7,1% YoY
• ▍Operating income +123,4% YoY
• ▍Net income +84,6% YoY
• ▍Net margin -0.4%

Revenue ¥43.59B, −16,7% YoY; Operating income +21,4% YoY.

• ▍Revenue ¥43.59B, −16,7% YoY
• ▍Operating income +21,4% YoY
• ▍Net income −104,3% YoY
• ▍Net margin -18.5%

Revenue ¥43.88B; Operating income -¥2.01B.

• ▍Revenue ¥43.88B
• ▍Operating income -¥2.01B
• ▍Net margin -6.4%

Revenue ¥46.36B; Operating income ¥772.0M.

• ▍Revenue ¥46.36B
• ▍Operating income ¥772.0M
• ▍Net margin -3.3%

Revenue ¥44.58B; Operating income -¥654.0M.

• ▍Revenue ¥44.58B
• ▍Operating income -¥654.0M
• ▍Net margin -2.3%

Revenue ¥52.35B; Operating income -¥8.38B.

• ▍Revenue ¥52.35B
• ▍Operating income -¥8.38B
• ▍Net margin -7.5%

Revenue ¥178.41B, −1,7% YoY; Operating income −13,8% YoY.

• ▍Revenue ¥178.41B, −1,7% YoY
• ▍Operating income −13,8% YoY
• ▍Net income −242,5% YoY
• ▍Free cash flow −24,9% YoY
• ▍Net margin -7.5%

Revenue ¥181.47B, +13,0% YoY; Operating income −353,6% YoY.

• ▍Revenue ¥181.47B, +13,0% YoY
• ▍Operating income −353,6% YoY
• ▍Net income −375,9% YoY
• ▍Free cash flow −377,4% YoY
• ▍Net margin -2.2%

Revenue ¥160.56B, +26,1% YoY; Operating income +57,4% YoY.

• ▍Revenue ¥160.56B, +26,1% YoY
• ▍Operating income +57,4% YoY
• ▍Net income +62,4% YoY
• ▍Free cash flow −26,4% YoY
• ▍Net margin 0.9%

Revenue ¥127.32B, +7,1% YoY; Operating income +133,4% YoY.

• ▍Revenue ¥127.32B, +7,1% YoY
• ▍Operating income +133,4% YoY
• ▍Net income +114,1% YoY
• ▍Free cash flow +301,0% YoY
• ▍Net margin 0.7%