Fujio Food Group Inc

Fujio Food Group Inc maintains a capital structure with a high debt-to-equity ratio of 5.98, indicating a significant reliance on debt financing. The company's liquidity position is characterized by a current ratio of 0.98, suggesting limited short-term liquidity cushion. Despite holding JPY 6.25 billion in cash and equivalents, the firm's long-term debt of JPY 11.88 billion results in a negative net cash position, raising concerns about liquidity risk.

Profitability metrics reveal a return on equity (ROE) of 19.28%, which is strong relative to the industry's median ROE of 12.5%. However, the return on assets (ROA) of 1.88% lags behind the industry median of 3.2%, indicating underutilization of assets. The company's operating margin of 5.92% (calculated from operating income of JPY 465 million on revenue of JPY 7.85 billion) is below the industry median of 7.1%, suggesting operational inefficiencies.

Geographically, Fujio Food Group Inc's revenue is concentrated in Japan, with no disclosed international operations. Segment-wise, the company operates as a single business unit, with no material diversification across product lines or customer bases. This lack of diversification increases exposure to domestic economic fluctuations and regulatory changes.

The company's revenue growth trajectory is modest, with a year-over-year increase of 2.1% from JPY 7.69 billion to JPY 7.85 billion. Analysts project a mean revenue estimate of JPY 32.6 billion for the current fiscal year, implying a 31.5% growth rate. However, this projection is based on a single period and may not reflect sustainable growth. The earnings per share (EPS) growth is also underperforming, with the last actual EPS of 1.76 JPY compared to a mean estimate of 2.00 JPY.

Risk factors include a medium liquidity risk due to the current ratio of 0.98 and a negative net cash position. The company's debt-to-equity ratio of 5.98 suggests a high financial leverage, increasing vulnerability to interest rate fluctuations and refinancing risks. Dilution risk is currently low, as there is no difference between basic and diluted shares outstanding. However, the company's high debt load could necessitate future equity issuance, potentially diluting existing shareholders.

Recent events include the publication of the latest financial results, which show a net income of JPY 383 million on revenue of JPY 7.85 billion. No material regulatory or legal events were disclosed in the latest filings, and there are no indications of significant operational disruptions.

Fujio Food Group achieved a 5.8% revenue CAGR over four years, demonstrating consistent top-line growth momentum.

Operating margin of 5.9% outperforms the 3.5% cohort median, highlighting strong operational profitability relative to peers.

Long-term debt decreased from 16.8 billion JPY in FY2022 to 8.9 billion JPY in FY2026, showing a clear deleveraging trend.

Net margin of 4.9% is double the 2.4% cohort median, reflecting effective cost management and pricing power.

The company carries a high credit risk flag, suggesting potential difficulties in meeting financial obligations or refinancing debt.

A debt-to-equity ratio of 5.98 places the company in the bottom quartile of its cohort, indicating excessive leverage.

Revenue growth slowed to just 1.9% year-over-year in FY2026, suggesting a potential plateau in top-line expansion.

Revenue ¥8.14B, +2,7% YoY; Operating income −43,3% YoY.

• ▍Revenue ¥8.14B, +2,7% YoY
• ▍Operating income −43,3% YoY
• ▍Net income +375,0% YoY
• ▍Net margin 0.4%

Revenue ¥8.12B, +2,3% YoY; Operating income −45,9% YoY.

• ▍Revenue ¥8.12B, +2,3% YoY
• ▍Operating income −45,9% YoY
• ▍Net income −45,6% YoY
• ▍Net margin 0.5%

Revenue ¥7.74B, +1,7% YoY; Operating income −352,8% YoY.

• ▍Revenue ¥7.74B, +1,7% YoY
• ▍Operating income −352,8% YoY
• ▍Net income −2 110,0% YoY
• ▍Net margin -2.6%

Revenue ¥7.93B, +1,1% YoY; Operating income −35,7% YoY.

• ▍Revenue ¥7.93B, +1,1% YoY
• ▍Operating income −35,7% YoY
• ▍Net income −43,9% YoY
• ▍Net margin 2.7%

Revenue ¥7.92B; Operating income ¥67.0M.

• ▍Revenue ¥7.92B
• ▍Operating income ¥67.0M
• ▍Net margin -0.2%

Revenue ¥7.94B; Operating income ¥253.0M.

• ▍Revenue ¥7.94B
• ▍Operating income ¥253.0M
• ▍Net margin 1.0%

Revenue ¥7.61B; Operating income ¥53.0M.

• ▍Revenue ¥7.61B
• ▍Operating income ¥53.0M
• ▍Net margin 0.1%

Revenue ¥7.85B; Operating income ¥465.0M.

• ▍Revenue ¥7.85B
• ▍Operating income ¥465.0M
• ▍Net margin 4.9%

Revenue ¥31.93B, +1,9% YoY; Operating income −59,4% YoY.

• ▍Revenue ¥31.93B, +1,9% YoY
• ▍Operating income −59,4% YoY
• ▍Net income −80,4% YoY
• ▍Free cash flow −175,0% YoY
• ▍Net margin 0.3%

Revenue ¥31.32B, +5,3% YoY; Operating income +236,0% YoY.

• ▍Revenue ¥31.32B, +5,3% YoY
• ▍Operating income +236,0% YoY
• ▍Net income +165,2% YoY
• ▍Free cash flow +273,5% YoY
• ▍Net margin 1.5%

Revenue ¥29.76B, +12,2% YoY; Operating income +74,4% YoY.

• ▍Revenue ¥29.76B, +12,2% YoY
• ▍Operating income +74,4% YoY
• ▍Net income +79,2% YoY
• ▍Free cash flow +91,8% YoY
• ▍Net margin -2.4%

Revenue ¥26.53B, +4,2% YoY; Operating income −1 669,1% YoY.

• ▍Revenue ¥26.53B, +4,2% YoY
• ▍Operating income −1 669,1% YoY
• ▍Net income −594,1% YoY
• ▍Free cash flow −1 171,2% YoY
• ▍Net margin -12.8%