IK Holdings Co Ltd

IK Holdings maintains a capital structure with a debt-to-equity ratio of 0.81, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 2.02, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the company's net cash position is negative after subtracting total debt, which may pose liquidity risks.

In terms of profitability, IK Holdings reports a return on equity of 8.13% and a return on assets of 2.94%. These figures suggest that the company is generating a reasonable return for its shareholders but is less efficient in utilizing its assets to generate profit compared to industry benchmarks.

The company's revenue is primarily concentrated in its core retail operations, with no significant geographic diversification reported. This concentration may expose the company to regional economic fluctuations.

Looking at the growth trajectory, IK Holdings has demonstrated a positive operating cash flow of 940,884,000 JPY and a capital expenditure of -384,561,000 JPY, indicating a net outflow for investment in its operations. The company's recent financial performance shows a net income of 176,506,000 JPY, reflecting its ability to generate profits despite the capital outlay.

The risk assessment for IK Holdings indicates a medium liquidity risk and a low dilution risk. The company's financial leverage and the negative net cash position are key factors contributing to its liquidity risk. No significant dilution events have been reported, and the company's capital structure remains stable.

Recent events, including analyst estimates, show that the last actual EPS was 42.35 JPY and the last actual revenue was 15,211,380,000 JPY. These figures provide insight into the company's recent financial performance and market expectations.

Operating income surged 65.6% year-over-year to JPY 518 million, signaling strong operational recovery and margin expansion.

Free cash flow turned positive with a 1,635.1% increase, reaching JPY 360.8 million, demonstrating improved cash generation capabilities.

Net margin of 4.8% and ROE of 8.1% both exceed the median for miscellaneous specialty retailers.

Cash conversion ratio of 5.33 is best-in-class compared to the cohort median of 1.22, indicating efficient earnings quality.

Revenue grew 8.3% year-over-year to JPY 15.2 billion, marking the first annual growth in four years.

Long-term debt remains elevated at JPY 1.67 billion, resulting in a debt-to-equity ratio of 0.81.

The company faces high credit risk and medium liquidity risk, posing potential financial stability concerns for investors.

Debt-to-equity ratio of 0.81 places the company in the bottom quartile of its peer cohort.

Revenue has declined at a 7.5% compound annual growth rate over the past four years, indicating structural weakness.

Revenue ¥3.68B, −12,1% YoY; Operating income −84,3% YoY.

• ▍Revenue ¥3.68B, −12,1% YoY
• ▍Operating income −84,3% YoY
• ▍Net income +55,0% YoY
• ▍Net margin 5.6%

Revenue ¥3.76B, −6,0% YoY; Operating income −42,8% YoY.

• ▍Revenue ¥3.76B, −6,0% YoY
• ▍Operating income −42,8% YoY
• ▍Net income −79,1% YoY
• ▍Net margin 0.4%

Revenue ¥3.68B, +12,8% YoY; Operating income −42,1% YoY.

• ▍Revenue ¥3.68B, +12,8% YoY
• ▍Operating income −42,1% YoY
• ▍Net income −46,6% YoY
• ▍Net margin 1.0%

Revenue ¥3.76B, +2,5% YoY; Operating income −63,9% YoY.

• ▍Revenue ¥3.76B, +2,5% YoY
• ▍Operating income −63,9% YoY
• ▍Net income −66,8% YoY
• ▍Net margin 1.6%

Revenue ¥4.19B; Operating income ¥243.2M.

• ▍Revenue ¥4.19B
• ▍Operating income ¥243.2M
• ▍Net margin 3.2%

Revenue ¥4.00B; Operating income ¥93.2M.

• ▍Revenue ¥4.00B
• ▍Operating income ¥93.2M
• ▍Net margin 1.6%

Revenue ¥3.26B; Operating income ¥118.3M.

• ▍Revenue ¥3.26B
• ▍Operating income ¥118.3M
• ▍Net margin 2.1%

Revenue ¥3.67B; Operating income ¥175.5M.

• ▍Revenue ¥3.67B
• ▍Operating income ¥175.5M
• ▍Net margin 4.8%

Revenue ¥15.21B, +8,3% YoY; Operating income +65,6% YoY.

• ▍Revenue ¥15.21B, +8,3% YoY
• ▍Operating income +65,6% YoY
• ▍Net income +40,1% YoY
• ▍Free cash flow +1 635,1% YoY
• ▍Net margin 2.1%

Revenue ¥14.05B, −0,9% YoY; Operating income +175,1% YoY.

• ▍Revenue ¥14.05B, −0,9% YoY
• ▍Operating income +175,1% YoY
• ▍Net income +149,5% YoY
• ▍Free cash flow +96,8% YoY
• ▍Net margin 1.6%

Revenue ¥14.18B, −13,2% YoY; Operating income +44,6% YoY.

• ▍Revenue ¥14.18B, −13,2% YoY
• ▍Operating income +44,6% YoY
• ▍Net income +48,8% YoY
• ▍Free cash flow +28,6% YoY
• ▍Net margin -3.3%

Revenue ¥16.34B, −21,3% YoY; Operating income −241,5% YoY.

• ▍Revenue ¥16.34B, −21,3% YoY
• ▍Operating income −241,5% YoY
• ▍Net income −381,8% YoY
• ▍Free cash flow −658,4% YoY
• ▍Net margin -5.5%