Zenrin Co Ltd

Zenrin maintains a strong liquidity position with JPY 13.98 billion in cash and equivalents, representing 18.9% of total assets, and a current ratio of 1.28, which is above the industry median of 1.15. The company's debt-to-equity ratio of 0.04 is significantly lower than the industry median of 0.25, indicating a conservative capital structure.

Profitability metrics show mixed performance. Return on equity (ROE) of 0.02% and return on assets (ROA) of 0.01% are below the industry medians of 2.5% and 1.8%, respectively. Operating income was negative at JPY 53 million, while net income was a modest JPY 10 million, reflecting pressure on margins.

Revenue is concentrated in Japan, with over 95% of total revenue derived from domestic operations. The company operates in a single business segment focused on digital mapping and location-based services, with no material geographic diversification.

Outlook for the current fiscal year shows a 2.8% revenue decline to JPY 13.7 billion, with a 12.3% drop in gross profit to JPY 5.3 billion. For the next fiscal year, revenue is projected to fall further by 4.1% to JPY 13.0 billion, driven by market saturation and competitive pricing pressures.

Risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The company has not issued new shares in the past 12 months, and there is no indication of near-term dilution pressure. However, the negative operating income raises concerns about short-term earnings stability.

Recent filings and transcripts show no material changes in business strategy or capital allocation. The company continues to focus on digital transformation and expansion of its location-based services, but has not disclosed new product launches or major client acquisitions in the past six months.

Analysts project 26% upside to a mean price target of 1,075 yen, significantly above the current market price of 853 yen.

Long-term debt decreased substantially from 10.7 billion yen in FY2022 to 2.4 billion yen in FY2026, strengthening the balance sheet.

Revenue demonstrated a positive 4-year CAGR of 2.1%, growing from 59.1 billion yen in FY2022 to 64.3 billion yen in FY2026.

Net income is projected to grow 5.0% year-over-year to 2.7 billion yen in FY2026, indicating potential earnings recovery.

The company maintains a low debt-to-equity ratio of 0.04, suggesting a conservative capital structure with limited leverage risk.

The company carries a high credit risk flag, indicating significant concerns regarding its ability to meet financial obligations.

Net margin of 0.07% and ROE of 0.02% remain well below the Consumer Publishing cohort medians of 2.66% and 2.93%.

Net income has declined at a 7.0% CAGR over four years, dropping from 3.7 billion yen in FY2022 to 2.7 billion yen in FY2026.

Revenue ¥19.11B, −4,5% YoY; Operating income +0,8% YoY.

• ▍Revenue ¥19.11B, −4,5% YoY
• ▍Operating income +0,8% YoY
• ▍Net income +7,9% YoY
• ▍Net margin 11.7%

Revenue ¥15.65B, +0,0% YoY; Operating income −39,4% YoY.

• ▍Revenue ¥15.65B, +0,0% YoY
• ▍Operating income −39,4% YoY
• ▍Net income −62,2% YoY
• ▍Net margin 1.6%

Revenue ¥15.33B, +5,1% YoY; Operating income +603,6% YoY.

• ▍Revenue ¥15.33B, +5,1% YoY
• ▍Operating income +603,6% YoY
• ▍Net income +400,8% YoY
• ▍Net margin 2.5%

Revenue ¥14.19B, +0,4% YoY; Operating income −471,7% YoY.

• ▍Revenue ¥14.19B, +0,4% YoY
• ▍Operating income −471,7% YoY
• ▍Net income −1 280,0% YoY
• ▍Net margin -0.8%

Revenue ¥20.01B; Operating income ¥2.71B.

• ▍Revenue ¥20.01B
• ▍Operating income ¥2.71B
• ▍Net margin 10.3%

Revenue ¥15.64B; Operating income ¥1.01B.

• ▍Revenue ¥15.64B
• ▍Operating income ¥1.01B
• ▍Net margin 4.2%

Revenue ¥14.58B; Operating income ¥55.0M.

• ▍Revenue ¥14.58B
• ▍Operating income ¥55.0M
• ▍Net margin -0.9%

Revenue ¥14.13B; Operating income -¥53.0M.

• ▍Revenue ¥14.13B
• ▍Operating income -¥53.0M
• ▍Net margin 0.1%

Revenue ¥64.28B, −0,1% YoY; Operating income −7,8% YoY.

• ▍Revenue ¥64.28B, −0,1% YoY
• ▍Operating income −7,8% YoY
• ▍Net income +5,0% YoY
• ▍Free cash flow −50,7% YoY
• ▍Net margin 4.3%

Revenue ¥64.36B, +4,9% YoY; Operating income +100,0% YoY.

• ▍Revenue ¥64.36B, +4,9% YoY
• ▍Operating income +100,0% YoY
• ▍Net income +25,4% YoY
• ▍Free cash flow +31,3% YoY
• ▍Net margin 4.0%

Revenue ¥61.34B, +4,1% YoY; Operating income +12,3% YoY.

• ▍Revenue ¥61.34B, +4,1% YoY
• ▍Operating income +12,3% YoY
• ▍Net income −25,0% YoY
• ▍Free cash flow +10,4% YoY
• ▍Net margin 3.4%

Revenue ¥58.93B, −0,2% YoY; Operating income −34,3% YoY.

• ▍Revenue ¥58.93B, −0,2% YoY
• ▍Operating income −34,3% YoY
• ▍Net income −24,3% YoY
• ▍Free cash flow −30,9% YoY
• ▍Net margin 4.7%