Lilycolor Co Ltd

Lilycolor maintains a conservative capital structure with a debt-to-equity ratio of 0.34, significantly below the median for the Home Furnishings industry, indicating a low reliance on debt financing. The company's liquidity position is robust, with a current ratio of 1.62 and cash and equivalents amounting to ¥3.98 billion, which provides a buffer against short-term obligations [doc:HA-latest]. Profitability metrics show Lilycolor's return on equity (ROE) at 6.44%, which is in line with the industry median, while its return on assets (ROA) of 2.57% is slightly below the median for the sector. The company's operating margin of 2.31% (calculated from operating income of ¥767.36 million on revenue of ¥33.21 billion) suggests moderate efficiency in converting sales to operating profit [doc:HA-latest]. The company's revenue is split between two segments: Interior and Space Solution. The Interior segment, which includes wall covering materials, curtains, and floor materials, is the primary revenue driver. The Space Solution segment, focused on office furniture and supplies, contributes a smaller but stable portion of total revenue. Geographically, Lilycolor is concentrated in Japan, with no disclosed international operations, which may limit its exposure to global market fluctuations [doc:HA-latest]. Looking ahead, Lilycolor is projected to see a modest growth in revenue, with a year-over-year increase of approximately 2.5% in the current fiscal year and a 3.0% increase in the following year. This growth trajectory is supported by the company's stable cash flow and ongoing investments in product development and brand expansion [doc:HA-latest]. Risk factors for Lilycolor include potential supply chain disruptions and economic downturns in the domestic market, which could impact demand for interior and office furnishings. The company's dilution risk is currently low, with no immediate filing-based flags detected, and the absence of significant share issuance activity in the recent financial statements [doc:HA-latest]. Recent events include the company's continued focus on expanding its product offerings and enhancing its brand presence in the Japanese market. Lilycolor has also maintained a consistent dividend policy, reflecting its stable financial position and commitment to shareholder returns [doc:HA-latest].