Hasegawa Co Ltd

Hasegawa Co Ltd maintains a relatively conservative capital structure, with a debt-to-equity ratio of 0.2 and a current ratio of 1.6, indicating moderate liquidity risk. The company holds JPY 2.05 billion in cash and equivalents, but its long-term debt of JPY 2.36 billion suggests a net cash position that is negative after subtracting total debt. The price-to-book ratio of 0.48 and price-to-tangible-book ratio of 0.48 indicate that the company is trading at a discount to its book value, which may reflect market skepticism about its asset quality or growth prospects.

Profitability metrics show a return on equity (ROE) of 2.65% and a return on assets (ROA) of 1.75%, both of which are below the industry median for specialty retailers. The company's operating margin is 9.6%, and its net margin is 6.2%, which are in line with the industry average but suggest limited room for margin expansion. Gross profit of JPY 3.25 billion represents 63.7% of revenue, indicating a relatively high cost of goods sold.

Geographically, Hasegawa's revenue is concentrated in Japan, with no disclosed international operations. The company's business is therefore highly sensitive to domestic economic conditions and consumer spending trends. There is no segment-level breakdown provided, but the lack of diversification increases exposure to regional macroeconomic risks.

The company's revenue for the latest period was JPY 5.10 billion, and its operating cash flow was JPY 641 million. Analysts reported a last actual revenue of JPY 21.23 billion, which suggests a significant discrepancy or a potential data misalignment. The company's capital expenditures were JPY 335 million, indicating a modest investment in growth. The outlook for the current fiscal year shows a revenue decline, with no specific numeric delta provided, but the company's operating income and net income are expected to remain stable.

Risk factors include moderate liquidity risk due to the negative net cash position and a low dilution risk, as the company has not issued additional shares recently. The risk assessment flags a negative net cash position after subtracting total debt, which could constrain the company's ability to invest in growth or weather economic downturns. There is no indication of near-term dilution pressure, and the company's capital structure remains relatively stable.

Recent events include the latest financial filing, which shows a revenue of JPY 5.10 billion and a net income of JPY 316 million. There are no recent earnings call transcripts or press releases indicating major strategic shifts or operational changes. The company's performance appears to be in line with its historical trends, with no significant deviations in the most recent reporting period.

Net income grew at a 48.9% CAGR over four years, demonstrating strong historical earnings expansion.

A debt-to-equity ratio of 0.2 is lower than the 0.31 cohort median, reflecting a conservative capital structure.

Cash conversion of 2.03 outperforms the 1.22 cohort median, suggesting efficient working capital management.

Free cash flow turned negative to -219 million JPY in FY2025, a sharp decline from prior positive levels.

Revenue declined 1.4% year-over-year, signaling potential stagnation or contraction in top-line growth.

Revenue ¥4.83B; Operating income -¥116.0M.

• ▍Revenue ¥4.83B
• ▍Operating income -¥116.0M
• ▍Net margin -2.0%

Revenue ¥6.08B, +0,6% YoY; Operating income −26,1% YoY.

• ▍Revenue ¥6.08B, +0,6% YoY
• ▍Operating income −26,1% YoY
• ▍Net income −41,2% YoY
• ▍Net margin 4.0%

Revenue ¥4.97B, +3,7% YoY; Operating income −1 140,0% YoY.

• ▍Revenue ¥4.97B, +3,7% YoY
• ▍Operating income −1 140,0% YoY
• ▍Net income −437,5% YoY
• ▍Net margin -2.2%

Revenue ¥5.41B, +6,2% YoY; Operating income +23,3% YoY.

• ▍Revenue ¥5.41B, +6,2% YoY
• ▍Operating income +23,3% YoY
• ▍Net income +33,9% YoY
• ▍Net margin 7.8%

Revenue ¥21.23B, −0,3% YoY; Operating income −23,4% YoY.

• ▍Revenue ¥21.23B, −0,3% YoY
• ▍Operating income −23,4% YoY
• ▍Net income −14,6% YoY
• ▍Free cash flow −132,4% YoY
• ▍Net margin 4.3%

Revenue ¥19.79B, +10,9% YoY; Operating income +161,5% YoY.

• ▍Revenue ¥19.79B, +10,9% YoY
• ▍Operating income +161,5% YoY
• ▍Net income +228,0% YoY
• ▍Free cash flow +513,0% YoY
• ▍Net margin 3.6%

Revenue ¥17.84B; Operating income ¥471.0M.

• ▍Revenue ¥17.84B
• ▍Operating income ¥471.0M
• ▍Net margin 1.2%