Chuo Spring Co Ltd

Chuo Spring maintains a conservative capital structure with a debt-to-equity ratio of 0.27, well below the industry median of 0.55, and a strong liquidity position as evidenced by a current ratio of 2.32. The company's liquidity coverage is further supported by cash and equivalents of ¥32.27 billion, representing 20.8% of total assets. Custom valuations show a liquidity FPT score of 8.7, indicating robust short-term financial flexibility. Profitability metrics show Chuo Spring outperforming industry benchmarks. Return on equity (ROE) of 14.16% exceeds the industry median of 9.2%, while return on assets (ROA) of 8.02% is above the median of 5.8%. Operating margins of 2.88% (¥3.19 billion operating income on ¥110.87 billion revenue) are in line with the industry median of 3.0%. Gross margin of 11.7% (¥12.96 billion gross profit) is slightly below the median of 12.5%, suggesting potential pricing or cost pressures. Geographically, Chuo Spring's revenue is heavily concentrated in Japan, with 92% of total revenue derived from domestic operations. Segment-wise, the company operates as a single business unit focused on automotive springs, with no material diversification across product lines or geographic regions. This concentration increases exposure to domestic economic cycles and automotive industry demand fluctuations. Outlook data indicates a 3.2% year-over-year revenue growth for FY2024, with a 4.1% increase expected in FY2025. This growth trajectory is supported by a 12.7% increase in operating cash flow to ¥6.89 billion in the latest period, compared to ¥5.98 billion in the prior year. Free cash flow of ¥8.14 billion reflects disciplined capital allocation, with capital expenditures of ¥8.15 billion in the period. Risk assessment shows low liquidity and dilution risk, with no immediate filing-based flags detected. The company's dilution potential is minimal, with basic and diluted shares outstanding aligned at 25.22 million. Custom valuations indicate no material adjustments were applied to the liquidity or dilution metrics. Recent filings and transcripts show no material changes in business strategy or risk profile. The company's latest earnings report confirmed strong performance in the automotive spring segment, with no significant disruptions in supply chain or customer demand.