Up Garage Group Co Ltd

Up Garage Group maintains a strong liquidity position, with cash and equivalents amounting to ¥1.87 billion, representing 32% of total assets. The company's current ratio of 2.52 indicates a solid ability to meet short-term obligations, and its debt-to-equity ratio of 0.08 suggests a conservative capital structure with minimal leverage.

Profitability metrics show a return on equity (ROE) of 3.49% and a return on assets (ROA) of 2.36%, both below the industry median for the Auto, Truck & Motorcycle Parts sector. The company's operating margin of 5.82% (calculated from operating income of ¥190.99 million on revenue of ¥3.28 billion) is also below the sector median, indicating room for improvement in cost control and pricing power.

Geographically, Up Garage Group's revenue is concentrated in Japan, with no disclosed international operations. The company's business is segmented into automotive parts and accessories, with no material diversification across product lines. This concentration increases exposure to domestic economic conditions and regulatory changes in the Japanese automotive market.

Looking ahead, the company is projected to grow revenue by 4.5% in the current fiscal year and 3.2% in the next, based on analyst estimates. However, these growth rates are below the sector average, suggesting limited expansion opportunities or competitive pressures. The company's price-to-earnings ratio of 70.87 is significantly higher than the sector median, indicating potential overvaluation relative to earnings.

Risk factors include low liquidity and dilution risk, with no immediate filing-based flags detected. The company's low debt levels and strong cash position reduce credit risk, but its high P/E ratio suggests market expectations of future earnings growth that may not materialize. No dilution sources were identified in recent filings, and the probability of near-term dilution is low.

Recent events include a strong buy recommendation from one analyst, with no other analyst ratings reported. The company's latest EPS of ¥99.44 fell short of the mean estimate of ¥107.60, indicating potential earnings pressure. No material events were disclosed in recent filings or transcripts that would significantly alter the company's risk profile.

Revenue grew 10.0% year-over-year to JPY 15.4 billion in FY2026, demonstrating strong top-line expansion momentum.

Free cash flow surged 17.5% to JPY 413.5 million, indicating robust cash generation capabilities.

Operating margin of 5.8% exceeds the 4.4% cohort median, highlighting superior operational efficiency relative to peers.

Net income CAGR of 17.3% over four years reflects consistent and accelerating profitability growth.

Debt-to-equity ratio of 0.08 is in the top quartile, signaling a conservative and low-risk capital structure.

Net income declined 0.6% year-over-year in FY2026, breaking the previous trend of consistent profit growth.

Return on equity of 3.5% remains modest, suggesting limited capital efficiency despite margin advantages.

Operating income growth slowed to 5.5%, lagging behind the 10.0% revenue expansion rate.

Revenue ¥4.31B, +20,8% YoY; Operating income +14,7% YoY.

• ▍Revenue ¥4.31B, +20,8% YoY
• ▍Operating income +14,7% YoY
• ▍Net income −1,6% YoY
• ▍Net margin 6.1%

Revenue ¥4.37B, +8,8% YoY; Operating income +11,2% YoY.

• ▍Revenue ¥4.37B, +8,8% YoY
• ▍Operating income +11,2% YoY
• ▍Net income +26,5% YoY
• ▍Net margin 8.0%

Revenue ¥3.33B, +6,7% YoY; Operating income −8,8% YoY.

• ▍Revenue ¥3.33B, +6,7% YoY
• ▍Operating income −8,8% YoY
• ▍Net income −29,4% YoY
• ▍Net margin 2.2%

Revenue ¥3.38B, +3,0% YoY; Operating income −11,4% YoY.

• ▍Revenue ¥3.38B, +3,0% YoY
• ▍Operating income −11,4% YoY
• ▍Net income −31,3% YoY
• ▍Net margin 2.8%

Revenue ¥3.57B; Operating income ¥275.3M.

• ▍Revenue ¥3.57B
• ▍Operating income ¥275.3M
• ▍Net margin 7.5%

Revenue ¥4.02B; Operating income ¥448.7M.

• ▍Revenue ¥4.02B
• ▍Operating income ¥448.7M
• ▍Net margin 6.9%

Revenue ¥3.12B; Operating income ¥128.4M.

• ▍Revenue ¥3.12B
• ▍Operating income ¥128.4M
• ▍Net margin 3.3%

Revenue ¥3.28B; Operating income ¥191.0M.

• ▍Revenue ¥3.28B
• ▍Operating income ¥191.0M
• ▍Net margin 4.2%

Revenue ¥15.38B, +10,0% YoY; Operating income +5,5% YoY.

• ▍Revenue ¥15.38B, +10,0% YoY
• ▍Operating income +5,5% YoY
• ▍Net income −0,6% YoY
• ▍Free cash flow +17,5% YoY
• ▍Net margin 5.1%

Revenue ¥13.98B, +11,3% YoY; Operating income +8,2% YoY.

• ▍Revenue ¥13.98B, +11,3% YoY
• ▍Operating income +8,2% YoY
• ▍Net income +22,9% YoY
• ▍Free cash flow +25,2% YoY
• ▍Net margin 5.6%

Revenue ¥12.56B, +10,6% YoY; Operating income +14,2% YoY.

• ▍Revenue ¥12.56B, +10,6% YoY
• ▍Operating income +14,2% YoY
• ▍Net income +14,3% YoY
• ▍Free cash flow −10,2% YoY
• ▍Net margin 5.1%

Revenue ¥11.36B, +7,8% YoY; Operating income +22,9% YoY.

• ▍Revenue ¥11.36B, +7,8% YoY
• ▍Operating income +22,9% YoY
• ▍Net income +35,5% YoY
• ▍Free cash flow +99,4% YoY
• ▍Net margin 4.9%