Janome Corp

Janome Corp maintains a conservative capital structure with a debt-to-equity ratio of 0.12, indicating minimal leverage and strong equity backing. The company's liquidity position is robust, with a current ratio of 3.17 and cash and equivalents amounting to ¥7.51 billion, which provides a buffer against short-term obligations. The price-to-book ratio of 0.59 suggests that the company's market value is trading at a discount to its book value, potentially signaling undervaluation or market skepticism about future earnings.

Profitability metrics show a return on equity (ROE) of 2.83% and a return on assets (ROA) of 1.9%, both of which are below the industry median for the Appliances, Tools & Housewares sector. This suggests that Janome Corp is underperforming in terms of capital efficiency and asset utilization compared to its peers. The company's operating margin of 6.17% (calculated from operating income of ¥592 million on revenue of ¥9.6 billion) is also below the sector median, indicating room for improvement in cost control or pricing power.

Geographically, Janome Corp's revenue is concentrated in Japan, with no disclosed international segments in the latest financials. This lack of diversification exposes the company to domestic economic fluctuations and regulatory changes, which could impact its revenue stability. The company's product portfolio is also heavily weighted toward sewing and embroidery machines, with no material diversification into adjacent markets.

Looking ahead, Janome Corp's revenue is projected to grow by 1.76 times its current level based on the enterprise value to revenue ratio of 1.76. However, the company's operating cash flow of ¥2.07 billion and capital expenditures of -¥530 million suggest that it is not currently investing heavily in growth initiatives. The company's price-to-earnings ratio of 20.98 is in line with the sector median, but the low ROE and ROA indicate that earnings quality may be a concern for investors.

Risk factors for Janome Corp include low liquidity and dilution risk, with no immediate filing-based flags detected. The company's low debt levels and strong cash position reduce financial risk, but its reliance on a single geographic market and product line increases operational risk. The company has not issued any new shares in the recent period, and there are no indications of near-term dilution pressure.

Recent events for Janome Corp include the release of its latest financial results, which show a net income of ¥967 million and a gross profit of ¥3.95 billion. The company's earnings per share (EPS) of ¥98.80 align with analyst estimates, but the lack of significant growth in revenue or profit margins suggests that the company is maintaining a stable but not expanding business model.

Net income surged 58.6% year-over-year to JPY 1.8 billion, demonstrating strong bottom-line recovery momentum.

Operating income jumped 80.8% to JPY 2.0 billion, signaling significant improvement in core operational profitability.

Debt-to-equity ratio of 0.12 is well below the cohort median of 0.27, indicating a conservative capital structure.

Cash conversion ratio of 2.14 significantly exceeds the cohort median of 1.03, highlighting superior earnings quality.

Revenue declined at a 4.6% compound annual growth rate over the last four years, indicating persistent top-line weakness.

Gross profit fell to JPY 15.0 billion in FY2025, continuing a multi-year downward trend from JPY 18.5 billion in FY2021.

Return on invested capital of 1.5% indicates low efficiency in deploying capital to generate returns above cost.

Revenue ¥11.01B, +22,4% YoY; Operating income +111,9% YoY.

• ▍Revenue ¥11.01B, +22,4% YoY
• ▍Operating income +111,9% YoY
• ▍Net income +9,2% YoY
• ▍Net margin 6.5%

Revenue ¥9.49B, +2,1% YoY; Operating income −117,5% YoY.

• ▍Revenue ¥9.49B, +2,1% YoY
• ▍Operating income −117,5% YoY
• ▍Net income −178,4% YoY
• ▍Net margin -1.3%

Revenue ¥8.00B, −7,9% YoY; Operating income −78,5% YoY.

• ▍Revenue ¥8.00B, −7,9% YoY
• ▍Operating income −78,5% YoY
• ▍Net income −148,8% YoY
• ▍Net margin -3.8%

Revenue ¥9.37B, −2,4% YoY; Operating income +38,0% YoY.

• ▍Revenue ¥9.37B, −2,4% YoY
• ▍Operating income +38,0% YoY
• ▍Net income −62,9% YoY
• ▍Net margin 3.8%

Revenue ¥8.99B; Operating income ¥320.0M.

• ▍Revenue ¥8.99B
• ▍Operating income ¥320.0M
• ▍Net margin 7.3%

Revenue ¥9.29B; Operating income ¥429.0M.

• ▍Revenue ¥9.29B
• ▍Operating income ¥429.0M
• ▍Net margin 1.6%

Revenue ¥8.69B; Operating income ¥475.0M.

• ▍Revenue ¥8.69B
• ▍Operating income ¥475.0M
• ▍Net margin 7.2%

Revenue ¥9.60B; Operating income ¥592.0M.

• ▍Revenue ¥9.60B
• ▍Operating income ¥592.0M
• ▍Net margin 10.1%

Revenue ¥36.34B, −0,4% YoY; Operating income +80,8% YoY.

• ▍Revenue ¥36.34B, −0,4% YoY
• ▍Operating income +80,8% YoY
• ▍Net income +58,6% YoY
• ▍Free cash flow −23,1% YoY
• ▍Net margin 4.9%

Revenue ¥36.48B, −5,4% YoY; Operating income +348,0% YoY.

• ▍Revenue ¥36.48B, −5,4% YoY
• ▍Operating income +348,0% YoY
• ▍Net income +387,3% YoY
• ▍Free cash flow +304,2% YoY
• ▍Net margin 3.1%

Revenue ¥38.57B, −10,1% YoY; Operating income −93,0% YoY.

• ▍Revenue ¥38.57B, −10,1% YoY
• ▍Operating income −93,0% YoY
• ▍Net income −115,5% YoY
• ▍Free cash flow −128,9% YoY
• ▍Net margin -1.0%

Revenue ¥42.92B, −2,1% YoY; Operating income −25,1% YoY.

• ▍Revenue ¥42.92B, −2,1% YoY
• ▍Operating income −25,1% YoY
• ▍Net income −35,4% YoY
• ▍Free cash flow −52,6% YoY
• ▍Net margin 5.9%