T.Kawabe & Co Ltd

T.Kawabe & Co Ltd maintains a relatively balanced capital structure, with a debt-to-equity ratio of 0.36, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.45, suggesting it can cover its short-term obligations but with limited surplus. However, the company's net cash position is negative after subtracting total debt, signaling potential liquidity constraints.

In terms of profitability, the company's return on equity (ROE) is 3.56%, and its return on assets (ROA) is 1.92%. These figures are below the typical thresholds for strong performance in the apparel and accessories industry, indicating that the company is not generating particularly high returns relative to its equity and asset base.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no significant geographic diversification reported. This lack of diversification may expose the company to higher operational and market risks, particularly in the volatile apparel and accessories sector.

Looking ahead, the company's growth trajectory appears modest. Based on the most recent financial data, there is no indication of a significant increase in revenue or earnings. The company's operating income and net income have remained relatively stable, with no clear upward trend in the most recent reporting periods.

The company's risk profile is characterized by a medium liquidity risk and a low dilution risk. The risk assessment highlights the negative net cash position as a key flag, which could impact the company's ability to fund operations without external financing. The dilution risk is low, with no significant dilution potential identified in the basic shares outstanding.

Recent events, including the latest financial filings and transcripts, do not indicate any major strategic shifts or significant operational changes. The company's financial performance remains consistent with historical trends, with no notable deviations in capital expenditures or operating cash flow.

Net income surged 54.2% year-over-year to JPY 411.8 million, demonstrating strong profitability recovery in fiscal 2025.

Cash conversion ratio of 1.41 is well above the cohort median of 0.61, highlighting robust cash generation capabilities.

Long-term debt decreased to JPY 2.28 billion in fiscal 2025, reflecting a consistent deleveraging trend over the past four years.

Gross profit reached JPY 5.26 billion in fiscal 2025, maintaining a healthy margin despite a slight revenue decline.

The company faces high credit risk, which could negatively impact financial stability and future earnings potential.

Return on equity of 3.56% merely matches the cohort median, suggesting limited ability to generate excess returns for shareholders.

Medium liquidity risk poses potential challenges in meeting short-term obligations or funding operational needs efficiently.

Capex to revenue ratio of -5.41% is in the bottom quartile, potentially indicating underinvestment in future growth drivers.

Revenue ¥3.41B, −5,3% YoY; Operating income −72,6% YoY.

• ▍Revenue ¥3.41B, −5,3% YoY
• ▍Operating income −72,6% YoY
• ▍Net income −62,3% YoY
• ▍Net margin 2.2%

Revenue ¥3.08B, +7,2% YoY; Operating income +1 433,0% YoY.

• ▍Revenue ¥3.08B, +7,2% YoY
• ▍Operating income +1 433,0% YoY
• ▍Net income −77,8% YoY
• ▍Net margin 1.4%

Revenue ¥3.05B, +12,2% YoY; Operating income +112,8% YoY.

• ▍Revenue ¥3.05B, +12,2% YoY
• ▍Operating income +112,8% YoY
• ▍Net income +118,8% YoY
• ▍Net margin 1.1%

Revenue ¥3.57B, −3,5% YoY; Operating income +6,6% YoY.

• ▍Revenue ¥3.57B, −3,5% YoY
• ▍Operating income +6,6% YoY
• ▍Net income −17,4% YoY
• ▍Net margin 5.7%

Revenue ¥3.61B; Operating income ¥228.5M.

• ▍Revenue ¥3.61B
• ▍Operating income ¥228.5M
• ▍Net margin 5.5%

Revenue ¥2.88B; Operating income -¥3.5M.

• ▍Revenue ¥2.88B
• ▍Operating income -¥3.5M
• ▍Net margin 6.9%

Revenue ¥2.72B; Operating income -¥185.2M.

• ▍Revenue ¥2.72B
• ▍Operating income -¥185.2M
• ▍Net margin -6.8%

Revenue ¥3.70B; Operating income ¥249.3M.

• ▍Revenue ¥3.70B
• ▍Operating income ¥249.3M
• ▍Net margin 6.6%

Revenue ¥12.77B, −2,3% YoY; Operating income +22,2% YoY.

• ▍Revenue ¥12.77B, −2,3% YoY
• ▍Operating income +22,2% YoY
• ▍Net income +54,2% YoY
• ▍Free cash flow +0,4% YoY
• ▍Net margin 3.2%

Revenue ¥13.07B, +4,1% YoY; Operating income +113,4% YoY.

• ▍Revenue ¥13.07B, +4,1% YoY
• ▍Operating income +113,4% YoY
• ▍Net income +114,5% YoY
• ▍Free cash flow −12,9% YoY
• ▍Net margin 2.0%

Revenue ¥12.55B, +16,4% YoY; Operating income +148,3% YoY.

• ▍Revenue ¥12.55B, +16,4% YoY
• ▍Operating income +148,3% YoY
• ▍Net income +134,0% YoY
• ▍Free cash flow +175,9% YoY
• ▍Net margin 1.0%

Revenue ¥10.79B, −4,5% YoY; Operating income +69,8% YoY.

• ▍Revenue ¥10.79B, −4,5% YoY
• ▍Operating income +69,8% YoY
• ▍Net income +15,6% YoY
• ▍Free cash flow +13,4% YoY
• ▍Net margin -3.4%