Eidai Co Ltd

Eidai's capital structure shows a debt-to-equity ratio of 0.55, indicating moderate leverage. The company's liquidity position is characterized by a current ratio of 2.14, suggesting it can cover its short-term obligations. However, the company's negative operating cash flow of -2.3 billion JPY and free cash flow of -38 million JPY indicate cash outflows from operations [doc:HA-latest]. Profitability metrics are weak, with a return on equity of -0.0007 and a return on assets of -0.0003, both below the industry median. The company's operating margin is negative, with an operating loss of 262 million JPY, and a gross margin of 20.74% (14.762 billion JPY gross profit on 71.202 billion JPY revenue), which is below the industry average for construction materials firms [doc:HA-latest]. Eidai's revenue is concentrated in two primary segments: Housing Materials and Wooden Board. The Housing Materials segment includes flooring, stairs, interior doors, and system kitchens, while the Wooden Board segment focuses on particle boards. The company also has a smaller Others segment, which includes real estate, environmental services, and solar power generation [doc:HA-latest]. The company's growth trajectory is uncertain, with a net loss of 29 million JPY and a negative operating income. The outlook for the current fiscal year is not explicitly provided, but the negative operating cash flow and free cash flow suggest operational challenges. The company's capital expenditures of -2.126 billion JPY indicate ongoing investment in infrastructure, but the negative net income and operating income suggest these investments are not yet yielding returns [doc:HA-latest]. Risk factors include liquidity concerns, as the company has a negative net cash position after subtracting total debt. The risk assessment indicates a medium liquidity risk and a low dilution risk. The company's recent financial performance, including a negative operating income and net income, suggests potential operational and market challenges [doc:HA-latest]. Recent events include the company's latest financial results, which show a net loss and negative operating income. The company's market price is 229 JPY, with a market cap of 10.12 billion JPY. The price-to-book ratio of 0.23 and price-to-tangible-book ratio of 0.23 indicate the company is trading at a significant discount to its book value [doc:HA-latest].