Sanyo Homes Corp

Sanyo Homes Corp maintains a debt-to-equity ratio of 1.2, indicating a moderate reliance on debt financing relative to equity. The company's liquidity position is characterized by a current ratio of 1.94, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the operating cash flow is negative at -2.37 billion JPY, which may signal short-term liquidity pressures despite a relatively strong cash and equivalents balance of 10.43 billion JPY. Profitability metrics show a return on equity (ROE) of 4.39% and a return on assets (ROA) of 1.33%, both below the industry median for homebuilders, which typically exhibit ROE in the 6-8% range and ROA in the 2-3% range. The company's operating income of 868 million JPY and net income of 673 million JPY reflect a relatively narrow margin structure, with gross profit at 9.24 billion JPY, or 20.3% of revenue. The company's revenue is concentrated in a single business segment, homebuilding, with no disclosed geographic diversification beyond Japan. This concentration increases exposure to domestic economic cycles and regulatory changes in the Japanese housing market. Looking ahead, the company's revenue outlook for the current fiscal year is flat, with no significant growth expected in the next fiscal year. Historical revenue trends show a stable but non-expansive trajectory, with the most recent reported revenue at 45.52 billion JPY. The capital expenditure of -84.56 million JPY indicates a reduction in investment, which may reflect a strategic shift or a response to market conditions. The risk assessment highlights a medium liquidity risk, with a key flag indicating that net cash is negative after subtracting total debt. The dilution risk is assessed as low, with no immediate pressure for equity issuance. The company's capital structure includes long-term debt of 18.41 billion JPY, which, while manageable, could become a concern if interest rates rise or if the company's operating cash flow remains negative. Recent events include the latest actual EPS of 60.21 JPY and actual revenue of 45.52 billion JPY, as reported by analysts. These figures align with the company's financial snapshot and suggest a stable but non-growth-oriented performance.