Ginza Renoir Co Ltd

Ginza Renoir maintains a strong liquidity position with JPY 2.29 billion in cash and equivalents, representing 36.7% of total assets. The company's liquidity FPT score of 8.2 indicates robust short-term financial flexibility, supported by a current ratio of 1.22 and positive operating cash flow of JPY 316.2 million. However, the price-to-book ratio of 1.75 suggests market valuation exceeds tangible asset value, which may reflect expectations of future earnings recovery.

The company's profitability metrics show significant underperformance relative to industry norms. With a net loss of JPY 130.3 million and operating loss of JPY 178.1 million, Ginza Renoir's return on equity of -4.13% and return on assets of -2.08% fall well below the industry median for restaurant operators. The negative EBITDA of JPY 153.2 million (implied from EV/EBITDA of -30.63) highlights operational challenges that need resolution.

Geographically, Ginza Renoir's revenue is concentrated in Japan, with no disclosed international operations in the latest financial filings. The company's single-segment reporting structure indicates a lack of diversification, with all revenue derived from restaurant operations. This concentration increases vulnerability to domestic economic fluctuations and consumer spending patterns.

Looking ahead, the company's revenue outlook for FY2024 shows a 23.5% decline from the previous year's JPY 18.84 billion, with a further 12.8% contraction expected in FY2025. These projections suggest ongoing pressure on the company's core business model, potentially driven by weak domestic demand and competitive pricing in the premium dining sector. The capital expenditure of JPY 409.6 million in the latest period indicates ongoing investment in maintaining or expanding physical assets, though the negative value suggests a net reduction in fixed assets.

Risk assessment reveals low immediate liquidity and dilution risks, with no filing-based flags detected. The debt-to-equity ratio of 0.7 indicates a conservative capital structure, with long-term debt of JPY 2.22 billion representing 70.3% of total equity. However, the company's negative operating income and net loss raise concerns about its ability to service debt in the medium term. No dilution potential was identified in the latest filings, and the company's share count has remained stable.

Recent filings and transcripts show no material events in the past 90 days that would significantly alter the company's risk profile. The absence of new financing announcements or strategic initiatives suggests the company is maintaining a status quo approach while addressing operational losses.

Revenue grew 16.9% annually over four years, demonstrating strong top-line expansion momentum for the company.

Operating income improved 40.9% year-over-year in FY2025, signaling significant progress toward operational profitability.

Free cash flow improved 55.8% year-over-year in FY2025, indicating better cash generation capabilities recently.

Long-term debt decreased to 1.94 billion JPY in FY2025, reflecting a reduction in leverage obligations.

The debt-to-equity ratio of 0.7 is above the cohort median, suggesting manageable leverage relative to peers.

The company recorded a net loss of 76.4 million JPY in FY2025, failing to achieve profitability.

Return on equity of -4.1% ranks in the bottom quartile, indicating poor capital efficiency.

High credit risk is flagged, suggesting potential difficulties in meeting financial obligations or securing financing.

Revenue ¥2.12B, +7,6% YoY; Operating income +49,0% YoY.

• ▍Revenue ¥2.12B, +7,6% YoY
• ▍Operating income +49,0% YoY
• ▍Net income +57,3% YoY
• ▍Net margin 3.7%

Revenue ¥2.07B, +7,7% YoY; Operating income +228,2% YoY.

• ▍Revenue ¥2.07B, +7,7% YoY
• ▍Operating income +228,2% YoY
• ▍Net income +155,6% YoY
• ▍Net margin 2.0%

Revenue ¥2.06B, +6,6% YoY; Operating income +1 055,4% YoY.

• ▍Revenue ¥2.06B, +6,6% YoY
• ▍Operating income +1 055,4% YoY
• ▍Net income +726,5% YoY
• ▍Net margin 4.2%

Revenue ¥1.98B, +4,9% YoY; Operating income +21,8% YoY.

• ▍Revenue ¥1.98B, +4,9% YoY
• ▍Operating income +21,8% YoY
• ▍Net income −17,1% YoY
• ▍Net margin -7.7%

Revenue ¥1.97B; Operating income ¥48.5M.

• ▍Revenue ¥1.97B
• ▍Operating income ¥48.5M
• ▍Net margin 2.5%

Revenue ¥1.92B; Operating income ¥10.7M.

• ▍Revenue ¥1.92B
• ▍Operating income ¥10.7M
• ▍Net margin 0.8%

Revenue ¥1.93B; Operating income ¥6.9M.

• ▍Revenue ¥1.93B
• ▍Operating income ¥6.9M
• ▍Net margin 0.5%

Revenue ¥1.88B; Operating income -¥178.1M.

• ▍Revenue ¥1.88B
• ▍Operating income -¥178.1M
• ▍Net margin -6.9%

Revenue ¥7.80B, +6,1% YoY; Operating income +40,9% YoY.

• ▍Revenue ¥7.80B, +6,1% YoY
• ▍Operating income +40,9% YoY
• ▍Net income −29,3% YoY
• ▍Free cash flow +55,8% YoY
• ▍Net margin -1.0%

Revenue ¥7.35B, +20,0% YoY; Operating income +76,2% YoY.

• ▍Revenue ¥7.35B, +20,0% YoY
• ▍Operating income +76,2% YoY
• ▍Net income +79,8% YoY
• ▍Free cash flow +32,8% YoY
• ▍Net margin -0.8%

Revenue ¥6.12B, +34,4% YoY; Operating income +61,7% YoY.

• ▍Revenue ¥6.12B, +34,4% YoY
• ▍Operating income +61,7% YoY
• ▍Net income −184,5% YoY
• ▍Free cash flow −324,4% YoY
• ▍Net margin -4.8%

Revenue ¥4.56B, +9,2% YoY; Operating income +41,8% YoY.

• ▍Revenue ¥4.56B, +9,2% YoY
• ▍Operating income +41,8% YoY
• ▍Net income +114,7% YoY
• ▍Free cash flow +107,4% YoY
• ▍Net margin 7.6%