Eidai Kako Co Ltd

Eidai Kako maintains a strong liquidity position with JPY 2.38 billion in cash and equivalents, supporting a current ratio of 3.92, well above the industry median. The company's price-to-book ratio of 0.35 indicates a significant discount to tangible asset value, suggesting potential undervaluation relative to its capital structure [doc:HA-latest]. Profitability metrics show a return on equity of 2.57% and return on assets of 1.88%, both below the industry median for automotive parts manufacturers. The operating margin of 3.28% (calculated from operating income of JPY 290.78 million on revenue of JPY 8.86 billion) reflects modest efficiency in converting sales to operating profit [doc:HA-latest]. The company's revenue is concentrated in two segments: Automobile Supplies-related (floor mats) and Industrial Material-related (refrigerator components, office furniture, etc.). No geographic concentration data is available, but the automotive segment's exposure to vehicle production cycles suggests sensitivity to macroeconomic conditions [doc:HA-latest]. Outlook data indicates a projected revenue increase of 4.2% in the current fiscal year, with a 2.1% growth expected in the following year. This aligns with the broader automotive industry's moderate recovery, though the company's free cash flow of JPY 284.61 million suggests limited capacity for aggressive expansion [doc:HA-latest]. Risk assessment identifies low liquidity and dilution risk, with no immediate filing-based flags detected. The debt-to-equity ratio of 0.16 indicates a conservative capital structure, reducing financial leverage risk. No dilution pressure is expected in the near term, with shares outstanding unchanged between basic and diluted measures [doc:HA-latest]. Recent filings and transcripts show no material events affecting operations or strategy. The company's capital expenditure of JPY -160.71 million (negative due to accounting convention) suggests a focus on cost control rather than asset expansion [doc:HA-latest].