Kyowa Leather Cloth Co Ltd

Kyowa Leather Cloth Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥13.77 billion, representing 22.7% of total assets. The company's liquidity FPT (free cash flow to total liabilities) is robust, supported by an operating cash flow of ¥7.1 billion and a current ratio of 1.71, indicating a solid ability to meet short-term obligations.

Profitability metrics show a return on equity (ROE) of 0.85% and a return on assets (ROA) of 0.51%, both below the industry median for Textiles & Leather Goods. The company's operating margin is 2.05%, with net income of ¥309 million on revenue of ¥13.17 billion, suggesting moderate profitability relative to peers.

The company's revenue is concentrated in Japan, with no disclosed international segments. The automotive and fashion industries are its primary markets, and the company's exposure to domestic demand cycles is significant. No material geographic diversification is reported in the latest financial filings.

Looking ahead, the company's revenue is expected to remain stable, with no significant growth or contraction projected in the next fiscal year. Capital expenditures are negative (¥2.78 billion), indicating asset sales or reductions in capital spending. The company's operating cash flow is expected to remain a key driver of liquidity and financial flexibility.

Risk factors include low liquidity and dilution risk, with no immediate filing-based flags detected. The company's debt-to-equity ratio is 0.01, indicating a conservative capital structure. No dilution sources were identified in the latest filings, and the company's shares outstanding remain unchanged between basic and diluted shares.

Recent events include the release of the latest financial results, which show a revenue of ¥13.17 billion and a net income of ¥309 million. Analyst estimates for revenue and EPS were below the reported figures, suggesting potential underperformance relative to expectations. No material events or regulatory actions were disclosed in the latest filings.

Revenue ¥13.22B, −3,9% YoY; Operating income −85,4% YoY.

• ▍Revenue ¥13.22B, −3,9% YoY
• ▍Operating income −85,4% YoY
• ▍Net income −134,1% YoY
• ▍Net margin -0.5%

Revenue ¥12.38B, +0,3% YoY; Operating income −97,9% YoY.

• ▍Revenue ¥12.38B, +0,3% YoY
• ▍Operating income −97,9% YoY
• ▍Net income −90,7% YoY
• ▍Net margin 0.3%

Revenue ¥16.25B, +23,4% YoY; Operating income +73,3% YoY.

• ▍Revenue ¥16.25B, +23,4% YoY
• ▍Operating income +73,3% YoY
• ▍Net income −112,0% YoY
• ▍Net margin -0.2%

Revenue ¥14.05B; Operating income ¥715.0M.

• ▍Revenue ¥14.05B
• ▍Operating income ¥715.0M
• ▍Net margin 4.3%

Revenue ¥13.76B; Operating income ¥507.0M.

• ▍Revenue ¥13.76B
• ▍Operating income ¥507.0M
• ▍Net margin 1.3%

Revenue ¥12.34B; Operating income ¥382.0M.

• ▍Revenue ¥12.34B
• ▍Operating income ¥382.0M
• ▍Net margin 2.9%

Revenue ¥13.16B; Operating income ¥270.0M.

• ▍Revenue ¥13.16B
• ▍Operating income ¥270.0M
• ▍Net margin 2.3%

Revenue ¥55.82B, −1,0% YoY; Operating income −68,3% YoY.

• ▍Revenue ¥55.82B, −1,0% YoY
• ▍Operating income −68,3% YoY
• ▍Net income −40,5% YoY
• ▍Free cash flow −163,3% YoY
• ▍Net margin 1.2%

Revenue ¥56.40B, +8,4% YoY; Operating income −15,7% YoY.

• ▍Revenue ¥56.40B, +8,4% YoY
• ▍Operating income −15,7% YoY
• ▍Net income −43,8% YoY
• ▍Free cash flow −172,2% YoY
• ▍Net margin 2.0%

Revenue ¥52.04B, +13,6% YoY; Operating income +1 281,5% YoY.

• ▍Revenue ¥52.04B, +13,6% YoY
• ▍Operating income +1 281,5% YoY
• ▍Net income +462,9% YoY
• ▍Free cash flow +320,2% YoY
• ▍Net margin 3.8%

Revenue ¥45.79B, −2,8% YoY; Operating income −89,9% YoY.

• ▍Revenue ¥45.79B, −2,8% YoY
• ▍Operating income −89,9% YoY
• ▍Net income −79,3% YoY
• ▍Free cash flow −171,8% YoY
• ▍Net margin 0.8%

Revenue ¥47.10B; Operating income ¥1.76B.

• ▍Revenue ¥47.10B
• ▍Operating income ¥1.76B
• ▍Net margin 3.6%