Makoto Construction Co Ltd

Makoto Construction's capital structure shows a debt-to-equity ratio of 0.65, indicating a moderate reliance on debt financing. The company holds 1,636,992,000 JPY in cash and equivalents, but its long-term debt of 2,571,209,000 JPY results in a net cash position of -934,217,000 JPY, raising liquidity concerns [doc:8995_T_FinancialSnapshot]. The current ratio of 5.76 suggests strong short-term liquidity, but the negative operating cash flow of -735,520,000 JPY and free cash flow of -150,281,000 JPY highlight operational cash generation challenges [doc:8995_T_ValuationSnapshot]. Profitability metrics show a return on equity (ROE) of 1.17% and return on assets (ROA) of 0.67%, both below the industry median for homebuilders. The operating margin of 6.17% (20,213,000 JPY / 3,274,673,000 JPY) is also weak compared to peers, indicating inefficiencies in cost control or pricing power [doc:8995_T_FinancialSnapshot]. The company's revenue is split between two segments: Detached House Selling and Real Estate Brokerage. While the Detached House Selling segment likely dominates revenue, the exact contribution of each segment is not disclosed. Geographically, the company is concentrated in Japan, with no material international exposure reported [doc:8995_T_Description]. Outlook for the current fiscal year shows a revenue of 3,274,673,000 JPY, but no forward-looking guidance is provided for the next fiscal year. The company's capital expenditure of -156,768,000 JPY suggests a reduction in investment, which may reflect a strategic shift or financial constraints [doc:8995_T_FinancialSnapshot]. Risk factors include liquidity concerns due to negative net cash and a medium liquidity risk rating. The dilution risk is low, with no near-term pressure expected. However, the company's reliance on the cyclical homebuilding industry exposes it to macroeconomic fluctuations and regulatory changes in the housing sector [doc:8995_T_RiskAssessment]. Recent events include the latest financial results showing a net income of 46,570,000 JPY and an EPS of 23.15 JPY. No recent filings or transcripts have been disclosed that would indicate significant strategic or operational changes [doc:8995_T_IRObservations].