New Art Holdings Co Ltd

New Art Holdings Co Ltd maintains a debt-to-equity ratio of 0.82, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.27, suggesting it can cover its short-term obligations but with limited buffer. The liquidity_fpt metric reveals a net cash position that is negative after subtracting total debt, signaling potential near-term liquidity constraints.

Profitability metrics show a return on equity (ROE) of 2.24% and a return on assets (ROA) of 0.88%, both of which are below the industry median for Apparel & Accessories firms. This suggests that the company is underperforming in terms of capital efficiency and asset utilization. Gross profit of ¥3.52 billion represents 60.1% of revenue, but operating income of ¥515.47 million and net income of ¥193.68 million indicate a narrowing margin structure, which may be a concern for investors.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and shifts in consumer demand. The absence of segment-specific revenue breakdowns limits the ability to assess the performance of individual product lines or markets.

Looking ahead, the company's growth trajectory appears modest. The outlook for the current fiscal year shows a revenue of ¥5.86 billion, with no disclosed growth rate or direction for the next fiscal year. The capital expenditure of ¥-1.57 billion suggests a reduction in investment, which may signal a strategic shift or financial constraint. The operating cash flow of ¥1.91 billion provides some cushion for ongoing operations but does not support aggressive expansion.

Risk factors include a medium liquidity risk and a low dilution risk. The company's net cash position is negative after subtracting total debt, which could necessitate additional financing in the near term. However, the dilution risk is low, as there is no indication of imminent share issuance or dilution events. The absence of recent filings or transcripts limits the visibility into management's strategic direction and operational updates.

Recent events and disclosures are limited, with no notable filings or transcripts available. The company's financial performance is based on the latest available data, and there is no indication of material changes in the business environment or management strategy.

Revenue surged 31.0% year-over-year to JPY 27.6 billion in fiscal 2025, demonstrating strong top-line growth momentum.

Net income jumped 82.8% to JPY 1.98 billion in fiscal 2025, significantly outpacing revenue growth rates.

Cash conversion ratio of 9.86 is best-in-class compared to the cohort median of 0.61, highlighting efficiency.

Free cash flow turned positive to JPY 534.7 million in fiscal 2025, reversing the previous year's deficit.

Debt-to-equity ratio of 0.82 places the company in the bottom quartile of its cohort, signaling high leverage.

Long-term debt increased to JPY 9.17 billion in fiscal 2025, reflecting a rising absolute debt burden.

The company faces high credit risk according to internal risk flags, potentially impacting borrowing costs and stability.

Revenue ¥8.73B, +6,5% YoY; Operating income +29,4% YoY.

• ▍Revenue ¥8.73B, +6,5% YoY
• ▍Operating income +29,4% YoY
• ▍Net income +39,8% YoY
• ▍Net margin 12.6%

Revenue ¥7.82B, +19,3% YoY; Operating income +38,8% YoY.

• ▍Revenue ¥7.82B, +19,3% YoY
• ▍Operating income +38,8% YoY
• ▍Net income +201,8% YoY
• ▍Net margin 9.1%

Revenue ¥7.08B, +37,7% YoY; Operating income +63,0% YoY.

• ▍Revenue ¥7.08B, +37,7% YoY
• ▍Operating income +63,0% YoY
• ▍Net income +39,0% YoY
• ▍Net margin 3.9%

Revenue ¥7.75B, +32,2% YoY; Operating income +75,7% YoY.

• ▍Revenue ¥7.75B, +32,2% YoY
• ▍Operating income +75,7% YoY
• ▍Net income +296,0% YoY
• ▍Net margin 9.9%

Revenue ¥8.20B; Operating income ¥1.26B.

• ▍Revenue ¥8.20B
• ▍Operating income ¥1.26B
• ▍Net margin 9.6%

Revenue ¥6.56B; Operating income ¥856.5M.

• ▍Revenue ¥6.56B
• ▍Operating income ¥856.5M
• ▍Net margin 3.6%

Revenue ¥5.14B; Operating income ¥460.2M.

• ▍Revenue ¥5.14B
• ▍Operating income ¥460.2M
• ▍Net margin 3.9%

Revenue ¥5.86B; Operating income ¥515.5M.

• ▍Revenue ¥5.86B
• ▍Operating income ¥515.5M
• ▍Net margin 3.3%

Revenue ¥27.64B, +31,0% YoY; Operating income +34,1% YoY.

• ▍Revenue ¥27.64B, +31,0% YoY
• ▍Operating income +34,1% YoY
• ▍Net income +82,8% YoY
• ▍Free cash flow +135,7% YoY
• ▍Net margin 7.2%

Revenue ¥21.10B, −1,7% YoY; Operating income −8,8% YoY.

• ▍Revenue ¥21.10B, −1,7% YoY
• ▍Operating income −8,8% YoY
• ▍Net income −37,1% YoY
• ▍Free cash flow −3 060,6% YoY
• ▍Net margin 5.1%

Revenue ¥21.46B, +14,6% YoY; Operating income +47,7% YoY.

• ▍Revenue ¥21.46B, +14,6% YoY
• ▍Operating income +47,7% YoY
• ▍Net income +16,8% YoY
• ▍Free cash flow −89,2% YoY
• ▍Net margin 8.0%

Revenue ¥18.72B, −1,1% YoY; Operating income −4,8% YoY.

• ▍Revenue ¥18.72B, −1,1% YoY
• ▍Operating income −4,8% YoY
• ▍Net income +31,4% YoY
• ▍Free cash flow +128,5% YoY
• ▍Net margin 7.9%