Kimura Co Ltd

Kimura Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.24, indicating a relatively low reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.71, suggesting it can cover its short-term obligations but with limited excess capacity. However, the firm's net cash position is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics for Kimura are modest, with a return on equity (ROE) of 1.68% and a return on assets (ROA) of 0.93%. These figures fall below the typical thresholds for strong performance in the retail sector, where ROE and ROA are often expected to exceed 10% and 5%, respectively. The company's gross profit margin is 30.84%, and its operating margin is 5.79%, both of which are in line with industry norms but do not suggest a competitive advantage in cost control or pricing power.

Geographic and segment exposure data is not explicitly provided in the available source documents, but as a home improvement retailer, Kimura's revenue is likely concentrated in domestic markets, with potential exposure to regional construction and renovation cycles. The absence of detailed segment reporting limits the ability to assess diversification or concentration risk with precision.

Looking ahead, Kimura's revenue growth trajectory is uncertain. The company reported revenue of ¥8,396.29 million in the latest period, but analyst estimates for the most recent actual revenue were significantly lower at ¥36,249.86 million, suggesting a potential data discrepancy or a shift in reporting periods. The outlook for the current and next fiscal years is not explicitly provided, but the company's historical performance does not indicate strong growth momentum.

Risk factors for Kimura include medium liquidity risk and low dilution potential. The firm's liquidity risk is driven by its current ratio and negative net cash position, which could constrain its ability to fund operations or invest in growth opportunities. Dilution risk is low, as the number of shares outstanding has not changed between basic and diluted measures, and no recent equity issuance or shelf registration is reported.

Recent events and disclosures are not detailed in the available source documents, but the company's financial performance and risk profile suggest a stable but unremarkable operating environment. The absence of significant earnings surprises or material risk disclosures implies that Kimura is not currently facing acute operational or financial challenges.

Revenue grew 2.5% year-over-year to JPY 37.2 billion in FY2025, showing continued top-line expansion despite margin pressures.

The debt-to-equity ratio of 0.24 is below the 0.35 cohort median, suggesting a conservative capital structure relative to peers.

Long-term debt surged to JPY 11.9 billion in FY2025, nearly doubling from JPY 6.6 billion in the previous fiscal year.

Return on equity of 1.7% falls well below the 4.0% cohort median, indicating inefficient use of shareholder capital.

Revenue ¥8.03B, −5,8% YoY; Operating income −244,0% YoY.

• ▍Revenue ¥8.03B, −5,8% YoY
• ▍Operating income −244,0% YoY
• ▍Net income −169,7% YoY
• ▍Net margin -2.1%

Revenue ¥9.84B, +2,2% YoY; Operating income −40,8% YoY.

• ▍Revenue ¥9.84B, +2,2% YoY
• ▍Operating income −40,8% YoY
• ▍Net income −39,7% YoY
• ▍Net margin 2.2%

Revenue ¥10.69B, +10,2% YoY; Operating income +1,4% YoY.

• ▍Revenue ¥10.69B, +10,2% YoY
• ▍Operating income +1,4% YoY
• ▍Net income +23,3% YoY
• ▍Net margin 3.8%

Revenue ¥8.60B, +2,5% YoY; Operating income −9,1% YoY.

• ▍Revenue ¥8.60B, +2,5% YoY
• ▍Operating income −9,1% YoY
• ▍Net income +0,1% YoY
• ▍Net margin 3.0%

Revenue ¥8.53B; Operating income ¥263.3M.

• ▍Revenue ¥8.53B
• ▍Operating income ¥263.3M
• ▍Net margin 2.8%

Revenue ¥9.63B; Operating income ¥611.9M.

• ▍Revenue ¥9.63B
• ▍Operating income ¥611.9M
• ▍Net margin 3.7%

Revenue ¥9.70B; Operating income ¥586.8M.

• ▍Revenue ¥9.70B
• ▍Operating income ¥586.8M
• ▍Net margin 3.4%

Revenue ¥8.40B; Operating income ¥486.5M.

• ▍Revenue ¥8.40B
• ▍Operating income ¥486.5M
• ▍Net margin 3.1%

Revenue ¥37.17B, +2,5% YoY; Operating income −47,6% YoY.

• ▍Revenue ¥37.17B, +2,5% YoY
• ▍Operating income −47,6% YoY
• ▍Net income −40,3% YoY
• ▍Free cash flow −102,4% YoY
• ▍Net margin 1.9%

Revenue ¥36.25B, +6,6% YoY; Operating income +7,3% YoY.

• ▍Revenue ¥36.25B, +6,6% YoY
• ▍Operating income +7,3% YoY
• ▍Net income +14,8% YoY
• ▍Free cash flow −324,8% YoY
• ▍Net margin 3.3%

Revenue ¥33.99B, −3,3% YoY; Operating income −22,2% YoY.

• ▍Revenue ¥33.99B, −3,3% YoY
• ▍Operating income −22,2% YoY
• ▍Net income −20,5% YoY
• ▍Free cash flow −51,0% YoY
• ▍Net margin 3.0%

Revenue ¥35.14B, +2,3% YoY; Operating income +11,3% YoY.

• ▍Revenue ¥35.14B, +2,3% YoY
• ▍Operating income +11,3% YoY
• ▍Net income +8,9% YoY
• ▍Free cash flow +46,7% YoY
• ▍Net margin 3.7%