CMC Corp

CMC Corp maintains a strong liquidity position, with cash and equivalents amounting to ¥11,459,174,000, which is significantly higher than its total liabilities of ¥5,477,647,000, resulting in a current ratio of 5.13. The company's price-to-book ratio of 1.21 and price-to-tangible-book ratio of 1.21 suggest that the market values the company slightly above its book value, indicating a relatively conservative valuation.

In terms of profitability, CMC Corp's return on equity (ROE) of 0.85% and return on assets (ROA) of 0.66% are below the typical thresholds for high-performing firms in the advertising and marketing industry. These figures suggest that the company is not generating substantial returns relative to its equity and asset base. The operating income of ¥158,510,000 and net income of ¥166,733,000 indicate a modest profit margin, which is consistent with the industry's competitive nature and thin margins.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no significant geographic diversification reported. This concentration could expose the company to higher risks if demand in its primary market fluctuates. The absence of detailed segment or geographic breakdowns in the provided data limits a more granular assessment of revenue concentration.

Looking at the growth trajectory, CMC Corp's recent revenue of ¥4,075,795,000 and net income of ¥166,733,000 suggest a stable but not rapidly growing business. The company's price-to-earnings ratio of 142.67 and enterprise value-to-EBITDA ratio of 79.75 indicate that the market is pricing in long-term growth expectations, despite the current low ROE and ROA. The absence of specific growth projections in the input data makes it challenging to assess the company's future performance.

The risk assessment for CMC Corp indicates low liquidity and dilution risks, with no immediate filing-based flags detected. The company's debt-to-equity ratio of 0.02 is very low, suggesting minimal leverage and a conservative capital structure. The low dilution risk is further supported by the fact that the number of shares outstanding remains unchanged between basic and diluted shares.

Recent events, as reflected in the financial data, show a stable performance with no significant deviations in revenue or earnings. The last actual EPS of ¥164.12 and revenue of ¥18,256,390,000 indicate that the company has met analyst expectations, although the data does not provide insights into recent filings or transcripts that might highlight strategic shifts or operational changes.

Net income grew 3.4% year-over-year to JPY 2.15 billion, demonstrating consistent profitability despite revenue headwinds.

Free cash flow surged 387.2% to JPY 1.07 billion, indicating a significant recovery in cash generation capabilities.

Operating margin of 3.9% exceeds the Advertising & Marketing cohort median of 3.5%, highlighting superior operational efficiency.

The debt-to-equity ratio of 0.02 is well below the cohort median of 0.14, signaling a conservative and stable capital structure.

Revenue CAGR of only 1.3% over four years points to stagnant long-term growth potential in the current market environment.

Return on assets of 0.66% remains low, indicating limited ability to generate profit from the company's total asset base.

Revenue ¥5.67B, +8,5% YoY; Operating income +29,3% YoY.

• ▍Revenue ¥5.67B, +8,5% YoY
• ▍Operating income +29,3% YoY
• ▍Net income +34,7% YoY
• ▍Net margin 15.1%

Revenue ¥4.57B, +23,0% YoY; Operating income +154,6% YoY.

• ▍Revenue ¥4.57B, +23,0% YoY
• ▍Operating income +154,6% YoY
• ▍Net income +62,4% YoY
• ▍Net margin 12.3%

Revenue ¥5.66B, −2,7% YoY; Operating income +4,1% YoY.

• ▍Revenue ¥5.66B, −2,7% YoY
• ▍Operating income +4,1% YoY
• ▍Net income +2,0% YoY
• ▍Net margin 17.2%

Revenue ¥3.66B, −10,1% YoY; Operating income +90,2% YoY.

• ▍Revenue ¥3.66B, −10,1% YoY
• ▍Operating income +90,2% YoY
• ▍Net income +16,4% YoY
• ▍Net margin 5.3%

Revenue ¥5.22B; Operating income ¥900.0M.

• ▍Revenue ¥5.22B
• ▍Operating income ¥900.0M
• ▍Net margin 12.1%

Revenue ¥3.71B; Operating income ¥257.8M.

• ▍Revenue ¥3.71B
• ▍Operating income ¥257.8M
• ▍Net margin 9.3%

Revenue ¥5.81B; Operating income ¥1.18B.

• ▍Revenue ¥5.81B
• ▍Operating income ¥1.18B
• ▍Net margin 16.5%

Revenue ¥4.08B; Operating income ¥158.5M.

• ▍Revenue ¥4.08B
• ▍Operating income ¥158.5M
• ▍Net margin 4.1%

Revenue ¥18.26B, −6,5% YoY; Operating income −6,4% YoY.

• ▍Revenue ¥18.26B, −6,5% YoY
• ▍Operating income −6,4% YoY
• ▍Net income +3,4% YoY
• ▍Free cash flow +387,2% YoY
• ▍Net margin 11.8%

Revenue ¥19.52B, +5,8% YoY; Operating income +19,4% YoY.

• ▍Revenue ¥19.52B, +5,8% YoY
• ▍Operating income +19,4% YoY
• ▍Net income +18,0% YoY
• ▍Free cash flow −127,9% YoY
• ▍Net margin 10.6%

Revenue ¥18.45B, +3,0% YoY; Operating income −7,2% YoY.

• ▍Revenue ¥18.45B, +3,0% YoY
• ▍Operating income −7,2% YoY
• ▍Net income −12,0% YoY
• ▍Free cash flow −27,7% YoY
• ▍Net margin 9.6%

Revenue ¥17.92B, +3,4% YoY; Operating income +13,8% YoY.

• ▍Revenue ¥17.92B, +3,4% YoY
• ▍Operating income +13,8% YoY
• ▍Net income +23,8% YoY
• ▍Free cash flow +21,4% YoY
• ▍Net margin 11.2%