Awa Paper & Technological Co Inc

Awa Paper & Technological Co Inc has a price-to-book ratio of 0.83 and a price-to-tangible-book ratio of 0.83, indicating that the company is trading at a discount relative to its book value. The enterprise value to EBITDA ratio is 140.75, which is significantly higher than the typical range for the industry, suggesting that the company is overvalued relative to its earnings. The company's liquidity position is characterized by a current ratio of 0.77, which is below 1, indicating that the company may struggle to meet its short-term obligations with its current assets.

The company's profitability is weak, with a return on equity of -0.0153 and a return on assets of -0.0037, both of which are negative, indicating that the company is not generating returns for its shareholders or effectively utilizing its assets. The gross profit margin is 17.26%, and the operating margin is 2.09%, which are both below the industry median, suggesting that the company is underperforming in terms of profitability.

Awa Paper & Technological Co Inc's revenue is concentrated in the automotive parts segment, with no significant geographic diversification disclosed in the available data. The company's capital expenditures for the period were -3.76 billion JPY, indicating a net outflow of cash, which may suggest a reduction in investment in long-term assets or a restructuring of operations.

The company's growth trajectory is uncertain, with a net income of -78.62 million JPY for the period, indicating a loss. The company's operating cash flow is positive at 792.17 million JPY, which is a positive sign for its ability to generate cash from operations. However, the company's long-term debt is 7.75 billion JPY, and its total liabilities exceed its total assets, which may pose a risk to its financial stability.

The company's risk assessment indicates a medium liquidity risk and a low dilution risk. The key flag of concern is the negative net cash position after subtracting total debt, which may indicate a liquidity crunch if the company is unable to refinance or generate sufficient cash flow. The company's capital structure is heavily leveraged, with a debt-to-equity ratio of 1.51, which is higher than the industry median, suggesting that the company is more vulnerable to financial distress.

Recent events and disclosures do not provide specific details on the company's strategic initiatives or operational changes. The company's market price is 425 JPY, and its market capitalization is 4.25 billion JPY, which is significantly lower than its total assets, indicating that the market may be undervaluing the company.

Revenue grew 8.1% annually over four years, demonstrating consistent top-line expansion despite recent volatility in profitability.

Operating income increased 17.8% year-over-year to 382.7 million JPY, indicating improved core operational efficiency in the latest period.

Gross profit reached 2.74 billion JPY in FY2025, maintaining a stable margin profile despite fluctuating operating results.

The company returned to positive net income in FY2024 and FY2025, reversing the significant losses recorded in FY2021.

Dilution risk is assessed as low, suggesting current capital structure changes are unlikely to significantly erode shareholder value.

Free cash flow deteriorated sharply to -4.23 billion JPY in FY2025, reflecting severe cash generation challenges.

Long-term debt surged to 12.61 billion JPY in FY2025, significantly increasing leverage and financial risk exposure.

Net margin of -2.1% places the company in the bottom quartile of its peer cohort, indicating poor profitability.

Return on equity of -1.5% ranks in the bottom quartile, showing the company fails to generate returns for shareholders.

Credit risk is flagged as high, signaling potential difficulties in meeting debt obligations or securing favorable financing terms.

Revenue ¥4.70B, +5,6% YoY; Operating income −63,8% YoY.

• ▍Revenue ¥4.70B, +5,6% YoY
• ▍Operating income −63,8% YoY
• ▍Net income −367,1% YoY
• ▍Net margin -1.6%

Revenue ¥4.49B, +2,1% YoY; Operating income −72,8% YoY.

• ▍Revenue ¥4.49B, +2,1% YoY
• ▍Operating income −72,8% YoY
• ▍Net income −357,3% YoY
• ▍Net margin -4.2%

Revenue ¥4.31B, +16,7% YoY; Operating income −47,8% YoY.

• ▍Revenue ¥4.31B, +16,7% YoY
• ▍Operating income −47,8% YoY
• ▍Net income −68,9% YoY
• ▍Net margin -6.3%

Revenue ¥4.58B, +24,0% YoY; Operating income +262,6% YoY.

• ▍Revenue ¥4.58B, +24,0% YoY
• ▍Operating income +262,6% YoY
• ▍Net income +368,0% YoY
• ▍Net margin 4.6%

Revenue ¥4.45B; Operating income ¥119.2M.

• ▍Revenue ¥4.45B
• ▍Operating income ¥119.2M
• ▍Net margin 0.6%

Revenue ¥4.40B; Operating income ¥128.4M.

• ▍Revenue ¥4.40B
• ▍Operating income ¥128.4M
• ▍Net margin -0.9%

Revenue ¥3.69B; Operating income -¥145.4M.

• ▍Revenue ¥3.69B
• ▍Operating income -¥145.4M
• ▍Net margin -4.4%

Revenue ¥3.70B; Operating income ¥77.3M.

• ▍Revenue ¥3.70B
• ▍Operating income ¥77.3M
• ▍Net margin -2.1%

Revenue ¥17.12B, +6,3% YoY; Operating income +17,8% YoY.

• ▍Revenue ¥17.12B, +6,3% YoY
• ▍Operating income +17,8% YoY
• ▍Net income −31,6% YoY
• ▍Free cash flow −47,9% YoY
• ▍Net margin 0.2%

Revenue ¥16.12B, −6,9% YoY; Operating income +165,6% YoY.

• ▍Revenue ¥16.12B, −6,9% YoY
• ▍Operating income +165,6% YoY
• ▍Net income −78,4% YoY
• ▍Free cash flow −5 243,9% YoY
• ▍Net margin 0.3%

Revenue ¥17.31B, +15,2% YoY; Operating income −291,9% YoY.

• ▍Revenue ¥17.31B, +15,2% YoY
• ▍Operating income −291,9% YoY
• ▍Net income −14,2% YoY
• ▍Free cash flow −105,9% YoY
• ▍Net margin 1.4%

Revenue ¥15.02B, +19,7% YoY; Operating income +185,9% YoY.

• ▍Revenue ¥15.02B, +19,7% YoY
• ▍Operating income +185,9% YoY
• ▍Net income +163,6% YoY
• ▍Free cash flow +711,1% YoY
• ▍Net margin 1.9%