Kyowa Corp

Kyowa Corp maintains a capital structure with a debt-to-equity ratio of 1.53, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 1.37, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the risk assessment highlights a medium liquidity risk, with net cash being negative after subtracting total debt.

Profitability metrics show a return on equity (ROE) of 5.27% and a return on assets (ROA) of 1.48%, both of which are below the industry median for Leisure & Recreation firms. The company's operating margin is 8.29% (calculated from operating income of ¥3.18 billion on ¥38.33 billion in revenue), which is also below the median for the sector.

Geographically, Kyowa Corp's revenue is concentrated in Japan, with no disclosed international operations. The company's business is primarily driven by domestic leisure and hospitality demand, which exposes it to local economic cycles and consumer spending trends.

Looking ahead, the company's revenue is expected to grow by 1.2% in the current fiscal year and 0.8% in the next fiscal year, based on analyst estimates and historical performance. This growth trajectory is modest compared to the industry median of 3.5% for Leisure & Recreation firms.

The risk assessment identifies a medium liquidity risk and a low dilution risk. The company has not issued additional shares in the past year, and there is no indication of near-term dilution pressure. However, the negative net cash position raises concerns about the company's ability to fund operations without external financing.

Recent events include the company's latest earnings report, which showed a net income of ¥210.29 million, below the industry median for Leisure & Recreation firms. The company has not disclosed any major strategic initiatives or capital-raising activities in the past quarter.

Return on equity of 5.3% surpasses the cohort median of 3.9%, reflecting better capital utilization than competitors.

Cash conversion ratio of 12.06 is best-in-class compared to the cohort median of 1.04, highlighting exceptional cash generation.

Revenue grew to 16.7 billion JPY in FY2025, showing consistent top-line expansion over the recent period.

Debt-to-equity ratio of 1.53 is in the bottom quartile versus the cohort median of 0.3, signaling high leverage risk.

Free cash flow turned negative to -1.56 billion JPY in FY2025, reversing a positive trend from the prior period.

The company faces medium liquidity and credit risks, which could constrain financial flexibility and increase borrowing costs.

Revenue ¥5.00B, +25,8% YoY; Operating income +50,7% YoY.

• ▍Revenue ¥5.00B, +25,8% YoY
• ▍Operating income +50,7% YoY
• ▍Net income +59,8% YoY
• ▍Net margin 3.3%

Revenue ¥5.36B, +19,0% YoY; Operating income +18,2% YoY.

• ▍Revenue ¥5.36B, +19,0% YoY
• ▍Operating income +18,2% YoY
• ▍Net income +18,5% YoY
• ▍Net margin 6.2%

Revenue ¥4.36B, +18,4% YoY; Operating income +55,0% YoY.

• ▍Revenue ¥4.36B, +18,4% YoY
• ▍Operating income +55,0% YoY
• ▍Net income +53,0% YoY
• ▍Net margin 3.3%

Revenue ¥4.55B, +18,7% YoY; Operating income +24,3% YoY.

• ▍Revenue ¥4.55B, +18,7% YoY
• ▍Operating income +24,3% YoY
• ▍Net income +109,7% YoY
• ▍Net margin 9.7%

Revenue ¥3.97B; Operating income ¥164.9M.

• ▍Revenue ¥3.97B
• ▍Operating income ¥164.9M
• ▍Net margin 2.6%

Revenue ¥4.50B; Operating income ¥464.0M.

• ▍Revenue ¥4.50B
• ▍Operating income ¥464.0M
• ▍Net margin 6.2%

Revenue ¥3.68B; Operating income ¥153.9M.

• ▍Revenue ¥3.68B
• ▍Operating income ¥153.9M
• ▍Net margin 2.5%

Revenue ¥3.83B; Operating income ¥317.7M.

• ▍Revenue ¥3.83B
• ▍Operating income ¥317.7M
• ▍Net margin 5.5%

Revenue ¥16.71B, +14,6% YoY; Operating income +14,9% YoY.

• ▍Revenue ¥16.71B, +14,6% YoY
• ▍Operating income +14,9% YoY
• ▍Net income +41,8% YoY
• ▍Free cash flow −1,5% YoY
• ▍Net margin 5.5%

Revenue ¥14.58B, +17,2% YoY; Operating income +46,8% YoY.

• ▍Revenue ¥14.58B, +17,2% YoY
• ▍Operating income +46,8% YoY
• ▍Net income +49,5% YoY
• ▍Free cash flow +1,6% YoY
• ▍Net margin 4.4%

Revenue ¥12.44B, +19,8% YoY; Operating income +239,9% YoY.

• ▍Revenue ¥12.44B, +19,8% YoY
• ▍Operating income +239,9% YoY
• ▍Net income +235,7% YoY
• ▍Free cash flow −1,5% YoY
• ▍Net margin 3.5%

Revenue ¥10.39B, −3,0% YoY; Operating income +164,2% YoY.

• ▍Revenue ¥10.39B, −3,0% YoY
• ▍Operating income +164,2% YoY
• ▍Net income +199,6% YoY
• ▍Free cash flow −439,5% YoY
• ▍Net margin 1.2%