Daisyo Corp

Daisyo Corp maintains a capital structure with a debt-to-equity ratio of 1.48, indicating a moderate reliance on debt financing. The company holds JPY 10.25 billion in cash and equivalents, but this is offset by JPY 15.12 billion in long-term debt, resulting in a net cash position that is negative after subtracting total debt. The current ratio of 1.2 suggests limited short-term liquidity, as current assets barely cover current liabilities.

Profitability metrics show a return on equity (ROE) of 2.86% and a return on assets (ROA) of 0.86%, both below the industry median for Restaurants & Bars. The operating margin is 3.38% (JPY 431 million operating income on JPY 12.74 billion revenue), which is also below the industry median for operating margins. The company's gross margin of 39.88% (JPY 5.08 billion gross profit on JPY 12.74 billion revenue) is in line with the industry median for gross margins.

Daisyo Corp's revenue is concentrated in Japan, with no disclosed international operations. The company does not report revenue by business segment, but its primary activity is in the Restaurants & Bars industry. The lack of geographic or segment diversification increases exposure to local economic conditions and consumer spending trends.

The company's revenue growth trajectory is not explicitly provided, but the most recent actual revenue of JPY 12.74 billion suggests a stable or slightly declining trend compared to the analyst estimate of JPY 52.56 billion. This discrepancy may indicate a need for further investigation into the accuracy of the analyst estimate or the company's recent performance.

Risk factors include a medium liquidity risk due to the current ratio of 1.2 and a negative net cash position. The dilution risk is assessed as low, with no significant dilution potential in the near term. The company has not disclosed any recent share issuance or ATM/shelf registration that would suggest imminent dilution.

Recent events include the latest actual EPS of 55.85 JPY and revenue of JPY 52.56 billion, as reported in the IR observations. These figures may be used to assess the company's performance against analyst expectations and to evaluate its financial health.

Revenue grew at a 16.2% CAGR over four years, demonstrating strong top-line expansion momentum.

The company achieved profitability in FY2024 with 1.3 billion JPY net income, ending a multi-year loss streak.

Long-term debt decreased significantly to 8.8 billion JPY in FY2025, improving the balance sheet strength.

Free cash flow turned positive in FY2024, generating 1.3 billion JPY and indicating improved operational efficiency.

Gross profit expanded to 20.3 billion JPY in FY2025, showing consistent growth in core profitability metrics.

The company carries a high credit risk flag, indicating significant potential financial distress or default probability.

Revenue ¥12.79B, +1,8% YoY; Operating income +50,0% YoY.

• ▍Revenue ¥12.79B, +1,8% YoY
• ▍Operating income +50,0% YoY
• ▍Net income −67,4% YoY
• ▍Net margin 0.3%

Revenue ¥13.10B, +2,1% YoY; Operating income +176,0% YoY.

• ▍Revenue ¥13.10B, +2,1% YoY
• ▍Operating income +176,0% YoY
• ▍Net income −68,1% YoY
• ▍Net margin 0.5%

Revenue ¥13.24B, +3,9% YoY; Operating income 0,0% YoY.

• ▍Revenue ¥13.24B, +3,9% YoY
• ▍Operating income 0,0% YoY
• ▍Net income +38,7% YoY
• ▍Net margin 3.1%

Revenue ¥13.64B; Operating income ¥418.0M.

• ▍Revenue ¥13.64B
• ▍Operating income ¥418.0M
• ▍Net margin 4.3%

Revenue ¥12.57B; Operating income ¥54.0M.

• ▍Revenue ¥12.57B
• ▍Operating income ¥54.0M
• ▍Net margin 1.0%

Revenue ¥12.83B; Operating income ¥25.0M.

• ▍Revenue ¥12.83B
• ▍Operating income ¥25.0M
• ▍Net margin 1.5%

Revenue ¥12.74B; Operating income ¥431.0M.

• ▍Revenue ¥12.74B
• ▍Operating income ¥431.0M
• ▍Net margin 2.3%

Revenue ¥52.56B, +3,9% YoY; Operating income −4,0% YoY.

• ▍Revenue ¥52.56B, +3,9% YoY
• ▍Operating income −4,0% YoY
• ▍Net income −11,9% YoY
• ▍Free cash flow −17,8% YoY
• ▍Net margin 2.2%

Revenue ¥50.59B, +11,2% YoY; Operating income +193,8% YoY.

• ▍Revenue ¥50.59B, +11,2% YoY
• ▍Operating income +193,8% YoY
• ▍Net income +273,3% YoY
• ▍Free cash flow +245,3% YoY
• ▍Net margin 2.6%

Revenue ¥45.49B, +27,1% YoY; Operating income +43,5% YoY.

• ▍Revenue ¥45.49B, +27,1% YoY
• ▍Operating income +43,5% YoY
• ▍Net income 0,0% YoY
• ▍Free cash flow −47,0% YoY
• ▍Net margin -1.7%

Revenue ¥35.80B, +24,1% YoY; Operating income +63,4% YoY.

• ▍Revenue ¥35.80B, +24,1% YoY
• ▍Operating income +63,4% YoY
• ▍Net income +84,2% YoY
• ▍Free cash flow +87,7% YoY
• ▍Net margin -2.1%