United & Collective Co Ltd
United & Collective Co Ltd has a market price of ¥582 and a market cap of ¥2.88 billion, with a price-to-book ratio of 5.47 and a price-to-tangible-book ratio of 5.47. The company's liquidity position is characterized by ¥1.52 billion in cash and equivalents, but it also has ¥2.58 billion in long-term debt, resulting in a debt-to-equity ratio of 4.9 and a current ratio of 1.8. The company's liquidity risk is rated as medium, with a key flag indicating that net cash is negative after subtracting total debt. Profitability metrics show a return on equity of -43.17% and a return on assets of -5.85%, indicating a significant underperformance relative to industry norms. The company reported a net loss of ¥227.5 million and an operating loss of ¥136.2 million in the latest period. These figures suggest a challenging operating environment, with the company's performance falling below the median for its industry. The company's revenue is concentrated in the Tokyo metropolitan area and Osaka, with no disclosed segment breakdown. This geographic concentration may expose the company to regional economic fluctuations. The company's revenue of ¥6.46 billion is derived from a portfolio of restaurant brands, but the lack of segment-specific data limits the ability to assess the performance of individual brands. The company's growth trajectory is uncertain, with no specific outlook provided for the current or next fiscal year. The company's operating cash flow of ¥199.3 million contrasts with a free cash flow of -¥392.1 million, indicating that capital expenditures are outpacing operating cash generation. The company's capital expenditure of -¥377.2 million suggests ongoing investment in its restaurant operations. Risk factors include a medium liquidity risk and a low dilution risk. The company's credit risk is not explicitly rated, but the high debt-to-equity ratio and negative net income suggest potential credit concerns. The company has not disclosed any recent events such as filings or transcripts that would provide additional insight into its operations or strategic direction.
Business. United & Collective Co Ltd operates a chain of restaurants in Japan, primarily in the Tokyo metropolitan area and Osaka, under multiple brand names including Taketeke, the 3rd Burger, Yaranai!, Nanshiyoto?, and Tedare.
Classification. The company is classified under the Restaurants & Bars industry within the Consumer Cyclicals economic sector, with a classification confidence of 0.92.
- United & Collective Co Ltd is experiencing a net loss and operating loss, with a return on equity of -43.17% and a return on assets of -5.85%.
- The company has a high debt-to-equity ratio of 4.9 and a current ratio of 1.8, indicating a medium liquidity risk.
- The company's revenue is concentrated in the Tokyo metropolitan area and Osaka, with no disclosed segment-specific data.
- The company's capital expenditures are outpacing operating cash generation, with a free cash flow of -¥392.1 million.
- The company's liquidity risk is rated as medium, with a key flag indicating that net cash is negative after subtracting total debt.
- # RATIONALES
- **margin_outlook_rationale**: The company's profitability is expected to remain under pressure due to its negative return on equity and return on assets.
- **rd_outlook_rationale**: No specific information is available on the company's research and development activities.
- Net cash is negative after subtracting total debt.