Graphite Design Inc

Graphite Design Inc maintains a strong liquidity position, with cash and equivalents amounting to ¥3.64 billion, representing 58% of total assets. The company's liquidity FPT (free cash flow to total liabilities) is robust, and its current ratio of 5.12 indicates a high ability to meet short-term obligations. The debt-to-equity ratio of 0.09 suggests a conservative capital structure, with long-term debt at ¥430.5 million compared to total equity of ¥4.88 billion.

Profitability metrics show a return on equity (ROE) of 2.3% and return on assets (ROA) of 1.78%, both below the industry median for recreational products. The company's gross margin is 57%, which is in line with the sector average, but its operating margin of 16.8% is slightly below the median. Net income of ¥112 million reflects a 14.8% margin on revenue, but this is not sufficient to drive high returns relative to equity.

The company operates in a single business segment, with all revenue derived from recreational product sales. Geographically, it is concentrated in Japan, with no disclosed international revenue streams. This concentration increases exposure to domestic economic cycles and regulatory changes, particularly in the consumer discretionary sector.

Looking ahead, the company is expected to grow revenue by 9.9% in the current fiscal year and 11.2% in the next, based on analyst estimates. However, these projections are modest compared to the industry's average growth rate of 14.5%. The company's operating income is expected to grow at a slower pace than revenue, indicating potential margin compression.

Risk factors include low liquidity risk and low dilution potential, with no immediate filing-based flags detected. The company has not issued additional shares in the past 12 months, and its diluted shares outstanding remain unchanged at 6.49 million. The absence of near-term dilution is a positive signal for equity holders.

Recent events include the release of Q4 financial results, which showed revenue of ¥762.7 million and net income of ¥112 million. Analysts have revised their EPS estimates upward, from ¥22.26 to ¥24.70, reflecting improved expectations for the company's performance. No major regulatory or geopolitical events have been disclosed that would significantly impact operations.

Graphite Design maintains a conservative debt-to-equity ratio of 0.09, well below the 0.31 cohort median.

The firm faces low dilution, liquidity, and credit risks according to current risk flag assessments.

Long-term debt surged to 1.13 billion JPY in fiscal 2026, nearly tripling from fiscal 2022 levels.

Revenue ¥635.2M, +1,3% YoY; Operating income −79,4% YoY.

• ▍Revenue ¥635.2M, +1,3% YoY
• ▍Operating income −79,4% YoY
• ▍Net income −86,9% YoY
• ▍Net margin 0.9%

Revenue ¥762.8M, −0,8% YoY; Operating income −23,6% YoY.

• ▍Revenue ¥762.8M, −0,8% YoY
• ▍Operating income −23,6% YoY
• ▍Net income −9,3% YoY
• ▍Net margin 15.9%

Revenue ¥666.4M, −27,2% YoY; Operating income −97,3% YoY.

• ▍Revenue ¥666.4M, −27,2% YoY
• ▍Operating income −97,3% YoY
• ▍Net income −71,4% YoY
• ▍Net margin 3.8%

Revenue ¥647.5M, −15,1% YoY; Operating income −73,8% YoY.

• ▍Revenue ¥647.5M, −15,1% YoY
• ▍Operating income −73,8% YoY
• ▍Net income −106,7% YoY
• ▍Net margin -1.2%

Revenue ¥627.3M; Operating income ¥61.7M.

• ▍Revenue ¥627.3M
• ▍Operating income ¥61.7M
• ▍Net margin 6.9%

Revenue ¥769.0M; Operating income ¥140.7M.

• ▍Revenue ¥769.0M
• ▍Operating income ¥140.7M
• ▍Net margin 17.3%

Revenue ¥915.0M; Operating income ¥198.9M.

• ▍Revenue ¥915.0M
• ▍Operating income ¥198.9M
• ▍Net margin 9.6%

Revenue ¥762.7M; Operating income ¥128.2M.

• ▍Revenue ¥762.7M
• ▍Operating income ¥128.2M
• ▍Net margin 14.7%

Revenue ¥2.71B, −11,8% YoY; Operating income −69,9% YoY.

• ▍Revenue ¥2.71B, −11,8% YoY
• ▍Operating income −69,9% YoY
• ▍Net income −61,7% YoY
• ▍Free cash flow −308,6% YoY
• ▍Net margin 5.3%

Revenue ¥3.07B, +15,9% YoY; Operating income +186,3% YoY.

• ▍Revenue ¥3.07B, +15,9% YoY
• ▍Operating income +186,3% YoY
• ▍Net income +115,1% YoY
• ▍Free cash flow +18,4% YoY
• ▍Net margin 12.3%

Revenue ¥2.65B, −25,3% YoY; Operating income −76,2% YoY.

• ▍Revenue ¥2.65B, −25,3% YoY
• ▍Operating income −76,2% YoY
• ▍Net income −71,5% YoY
• ▍Free cash flow −278,3% YoY
• ▍Net margin 6.6%

Revenue ¥3.55B, +6,5% YoY; Operating income +10,2% YoY.

• ▍Revenue ¥3.55B, +6,5% YoY
• ▍Operating income +10,2% YoY
• ▍Net income +19,1% YoY
• ▍Free cash flow −65,6% YoY
• ▍Net margin 17.3%