Recomm Co Ltd

Recomm Co Ltd maintains a liquidity position with a current ratio of 1.85, indicating the company can cover its short-term liabilities with its short-term assets. The company's cash and equivalents amount to 2,668,879,000 JPY, but this is offset by long-term debt of 3,459,829,000 JPY, resulting in a net cash position that is negative after subtracting total debt. The debt-to-equity ratio of 0.72 suggests a moderate level of leverage, with total liabilities of 5,888,921,000 JPY against total equity of 4,820,360,000 JPY.

In terms of profitability, Recomm Co Ltd reports a return on equity of 1.73% and a return on assets of 0.78%, which are below the industry median for profitability metrics. The company's operating income of 176,226,000 JPY and net income of 83,177,000 JPY indicate a relatively low margin, with a gross profit of 648,678,000 JPY on total revenue of 2,642,596,000 JPY.

Recomm Co Ltd's revenue is concentrated in a single segment, with no disclosed geographic diversification. The company's revenue is primarily derived from the sale of electronic equipment, instruments, and components, with no significant diversification into other product lines or markets.

The company's growth trajectory is modest, with a revenue of 2,642,596,000 JPY and an operating cash flow of 456,919,000 JPY. The free cash flow of 101,836,000 JPY and capital expenditure of -17,800,000 JPY suggest a conservative approach to reinvestment and expansion. Analyst estimates indicate a last actual revenue of 13,088,330,000 JPY, which is significantly lower than the reported revenue, suggesting potential discrepancies or seasonal variations.

Recomm Co Ltd faces a medium liquidity risk, with a current ratio of 1.85 and a debt-to-equity ratio of 0.72. The company's net cash position is negative after subtracting total debt, indicating potential liquidity constraints. The risk of dilution is low, with no significant dilution potential reported.

Recent events and filings do not indicate any major changes or risks for Recomm Co Ltd. The company's financial performance and risk profile remain stable, with no significant events reported in the latest filings or transcripts.

Revenue grew 18.5% annually over four years, demonstrating strong top-line expansion momentum for the retailer.

Net income surged 134.3% year-over-year in FY2025, highlighting a sharp acceleration in bottom-line earnings.

Cash conversion ratio of 5.49 ranks as best-in-class compared to the 1.22 cohort median.

High credit risk flag signals significant potential financial distress or default probability for the company.

Long-term debt increased to 4.86 billion JPY in FY2025, reflecting a rising leverage burden.

Medium liquidity risk flag suggests potential challenges in meeting short-term financial obligations.

Return on assets of 0.78% indicates inefficient utilization of the company's asset base.

Revenue ¥2.95B, −8,5% YoY; Operating income −250,9% YoY.

• ▍Revenue ¥2.95B, −8,5% YoY
• ▍Operating income −250,9% YoY
• ▍Net income −235,7% YoY
• ▍Free cash flow −46,8% YoY
• ▍Net margin -1.3%

Revenue ¥3.18B, −8,5% YoY; Operating income +3,5% YoY.

• ▍Revenue ¥3.18B, −8,5% YoY
• ▍Operating income +3,5% YoY
• ▍Net income +213,3% YoY
• ▍Free cash flow −0,0% YoY
• ▍Net margin 0.0%

Revenue ¥3.29B, +21,4% YoY; Operating income +421,1% YoY.

• ▍Revenue ¥3.29B, +21,4% YoY
• ▍Operating income +421,1% YoY
• ▍Net income +193,5% YoY
• ▍Free cash flow +36,9% YoY
• ▍Net margin 1.2%

Revenue ¥3.40B, +28,5% YoY; Operating income −16,9% YoY.

• ▍Revenue ¥3.40B, +28,5% YoY
• ▍Operating income −16,9% YoY
• ▍Net income +53,2% YoY
• ▍Free cash flow +101,5% YoY
• ▍Net margin 3.8%

Revenue ¥3.22B; Operating income ¥47.0M.

• ▍Revenue ¥3.22B
• ▍Operating income ¥47.0M
• ▍Net margin 0.9%

Revenue ¥3.48B; Operating income ¥119.2M.

• ▍Revenue ¥3.48B
• ▍Operating income ¥119.2M
• ▍Net margin -0.0%

Revenue ¥2.71B; Operating income -¥28.4M.

• ▍Revenue ¥2.71B
• ▍Operating income -¥28.4M
• ▍Net margin -1.6%

Revenue ¥2.64B; Operating income ¥176.2M.

• ▍Revenue ¥2.64B
• ▍Operating income ¥176.2M
• ▍Net margin 3.1%

Revenue ¥13.09B, +12,0% YoY; Operating income +51,4% YoY.

• ▍Revenue ¥13.09B, +12,0% YoY
• ▍Operating income +51,4% YoY
• ▍Net income +134,3% YoY
• ▍Free cash flow +15,7% YoY
• ▍Net margin 1.5%

Revenue ¥11.69B, +22,9% YoY; Operating income −40,2% YoY.

• ▍Revenue ¥11.69B, +22,9% YoY
• ▍Operating income −40,2% YoY
• ▍Net income −73,3% YoY
• ▍Free cash flow −65,2% YoY
• ▍Net margin 0.7%

Revenue ¥9.51B, +6,6% YoY; Operating income +8,9% YoY.

• ▍Revenue ¥9.51B, +6,6% YoY
• ▍Operating income +8,9% YoY
• ▍Net income −10,4% YoY
• ▍Free cash flow −8,4% YoY
• ▍Net margin 3.3%

Revenue ¥8.92B, +34,6% YoY; Operating income +96,1% YoY.

• ▍Revenue ¥8.92B, +34,6% YoY
• ▍Operating income +96,1% YoY
• ▍Net income +211,1% YoY
• ▍Free cash flow +3 713,0% YoY
• ▍Net margin 3.9%