Takihyo Co Ltd

Takihyo Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.27, significantly below the industry median of 0.55, indicating a low reliance on debt financing. The company's liquidity position is mixed, with a current ratio of 1.8, suggesting adequate short-term liquidity, but negative net cash after subtracting total debt, which raises liquidity concerns. Free cash flow of 447 million JPY in the latest period reflects the company's ability to generate cash after capital expenditures.

Profitability metrics show Takihyo underperforming relative to industry benchmarks. Return on equity of 1.78% and return on assets of 1.12% are below the industry medians of 4.2% and 2.8%, respectively, indicating weaker capital efficiency and asset utilization. Gross margin of 23.1% (3.57 billion JPY gross profit on 15.43 billion JPY revenue) is in line with the industry median of 24.5%, but operating margin of 4.25% (655 million JPY operating income) lags behind the 6.8% industry median, suggesting operational inefficiencies.

Geographic and segment exposure data is not available in the provided dataset, but the company's revenue concentration in a single business activity (Apparel & Accessories) increases vulnerability to sector-specific shocks. No disclosed segments or geographic breakdowns are available to assess diversification.

Growth trajectory appears muted, with no forward-looking revenue guidance provided in the dataset. Historical revenue of 15.43 billion JPY in the latest period shows no clear YoY growth rate, and the absence of analyst estimates for future periods limits visibility. The company's operating cash flow of -1.01 billion JPY in the latest period raises concerns about its ability to sustain operations without external financing.

Risk factors include medium liquidity risk due to negative net cash after debt and a medium debt-to-equity ratio. Dilution risk is assessed as low, with no near-term pressure from share issuance or convertible debt. However, the negative operating cash flow and reliance on free cash flow for operations suggest potential future financing needs. No recent filings or transcripts are available to assess management commentary or strategic shifts.

The company's capital expenditure of -39 million JPY in the latest period indicates minimal investment in growth, which may limit long-term revenue potential. This aligns with the low dilution risk but suggests a conservative operational strategy.

Net income surged 45.8% year-over-year to JPY 1.6 billion in fiscal 2026, demonstrating strong profitability recovery.

Free cash flow turned positive at JPY 900 million in fiscal 2025 and grew 36.9% to JPY 1.2 billion in fiscal 2026.

Long-term debt decreased substantially to JPY 5.3 billion in fiscal 2026, reflecting a strengthened balance sheet and reduced leverage.

The company faces high credit risk, which could threaten financial stability and increase borrowing costs in the future.

Cash conversion ratio of -1.82 places the company in the bottom quartile of its cohort, signaling poor cash generation efficiency.

Operating margin of 4.25% remains slightly below the cohort median of 4.34%, suggesting limited pricing power or operational inefficiencies.

Medium liquidity risk flags potential challenges in meeting short-term obligations, requiring careful monitoring of cash flow dynamics.

Revenue ¥14.66B, +13,2% YoY; Operating income +302,7% YoY.

• ▍Revenue ¥14.66B, +13,2% YoY
• ▍Operating income +302,7% YoY
• ▍Net income +317,5% YoY
• ▍Free cash flow +417,2% YoY
• ▍Net margin 1.9%

Revenue ¥17.13B, +11,1% YoY; Operating income +24,1% YoY.

• ▍Revenue ¥17.13B, +11,1% YoY
• ▍Operating income +24,1% YoY
• ▍Net income +18,2% YoY
• ▍Free cash flow +5,6% YoY
• ▍Net margin 3.8%

Revenue ¥13.84B; Operating income -¥406.0M.

• ▍Revenue ¥13.84B
• ▍Operating income -¥406.0M
• ▍Net margin -2.0%

Revenue ¥18.41B; Operating income ¥1.13B.

• ▍Revenue ¥18.41B
• ▍Operating income ¥1.13B
• ▍Net margin 5.2%

Revenue ¥12.96B; Operating income -¥150.0M.

• ▍Revenue ¥12.96B
• ▍Operating income -¥150.0M
• ▍Net margin -1.0%

Revenue ¥15.43B; Operating income ¥655.0M.

• ▍Revenue ¥15.43B
• ▍Operating income ¥655.0M
• ▍Net margin 3.6%

Revenue ¥63.97B, +5,5% YoY; Operating income +57,6% YoY.

• ▍Revenue ¥63.97B, +5,5% YoY
• ▍Operating income +57,6% YoY
• ▍Net income +45,9% YoY
• ▍Free cash flow +36,9% YoY
• ▍Net margin 2.5%

Revenue ¥60.63B, +5,0% YoY; Operating income +125,0% YoY.

• ▍Revenue ¥60.63B, +5,0% YoY
• ▍Operating income +125,0% YoY
• ▍Net income +44,1% YoY
• ▍Free cash flow +452,9% YoY
• ▍Net margin 1.8%

Revenue ¥57.74B, −6,6% YoY; Operating income +170,9% YoY.

• ▍Revenue ¥57.74B, −6,6% YoY
• ▍Operating income +170,9% YoY
• ▍Net income +372,7% YoY
• ▍Free cash flow +53,1% YoY
• ▍Net margin 1.3%

Revenue ¥61.81B, +15,0% YoY; Operating income +68,1% YoY.

• ▍Revenue ¥61.81B, +15,0% YoY
• ▍Operating income +68,1% YoY
• ▍Net income +86,1% YoY
• ▍Free cash flow +75,9% YoY
• ▍Net margin -0.5%

Revenue ¥53.75B; Operating income -¥2.43B.

• ▍Revenue ¥53.75B
• ▍Operating income -¥2.43B
• ▍Net margin -3.8%