Wagokoro Co Ltd

Wagokoro's capital structure is highly leveraged, with a debt-to-equity ratio of 4.26, indicating significant reliance on debt financing. Despite holding JPY 284.14 million in cash and equivalents, the company's liquidity position is constrained by JPY 528.28 million in long-term debt, resulting in a negative net cash position. The current ratio of 0.83 further signals short-term liquidity risk, as current liabilities exceed current assets.

Profitability metrics are sharply negative, with a return on equity (ROE) of -9.51% and a return on assets (ROA) of -1.15%. These figures fall well below the typical performance of the Department Stores industry, which generally expects positive ROE and ROA. The company reported a net loss of JPY 11.79 million, despite generating JPY 347.29 million in revenue, highlighting poor cost control and margin compression.

Geographically, Wagokoro's revenue is concentrated in Japan, with no disclosed international operations. Segment-wise, the company operates as a single integrated department store entity, with no material diversification across product lines or customer bases. This lack of diversification increases exposure to domestic economic fluctuations and retail sector volatility.

Growth prospects are muted, with no disclosed revenue growth in the most recent fiscal year. The company's operating cash flow is negative at JPY -345.34 million, and capital expenditures of JPY -66.83 million suggest ongoing investment in store maintenance or expansion. However, without a clear path to profitability, these expenditures may not yield sufficient returns to justify the capital outlay.

Risk factors include liquidity constraints and a high debt load, which could limit the company's ability to respond to market changes or fund new initiatives. The risk assessment indicates a low probability of dilution in the near term, but the company's negative net income and high leverage could pressure equity holders if financing conditions worsen. No recent dilutive events were identified in the latest filings or transcripts.

Recent events include the disclosure of a net loss in the latest financial report, with no material changes in business strategy or capital structure. The company's IR observations show that the last actual EPS was 109.71 JPY, and revenue was reported at JPY 2.78 billion, both in line with the latest financial snapshot.

Revenue surged 57.4% year-over-year to JPY 2.09 billion in FY2026, demonstrating strong top-line growth momentum.

The company achieved a significant turnaround, posting a JPY 398 million net profit in FY2026 after years of losses.

Free cash flow turned positive with a 718.5% increase to JPY 361 million, indicating improved operational efficiency.

Cash conversion ratio of 29.28 ranks as best-in-class compared to the department store cohort median of 1.47.

Long-term debt decreased to JPY 433 million in FY2026, reflecting a deliberate deleveraging strategy over the period.

Debt-to-equity ratio of 4.26 is significantly higher than the cohort median of 0.52, indicating high leverage risk.

The company faces a high credit risk flag, suggesting potential difficulties in meeting financial obligations.

Revenue ¥727.2M, +27,9% YoY; Operating income +47,3% YoY.

• ▍Revenue ¥727.2M, +27,9% YoY
• ▍Operating income +47,3% YoY
• ▍Net income +66,7% YoY
• ▍Net margin 27.4%

Revenue ¥751.7M, +28,5% YoY; Operating income +35,3% YoY.

• ▍Revenue ¥751.7M, +28,5% YoY
• ▍Operating income +35,3% YoY
• ▍Net income +41,0% YoY
• ▍Net margin 26.3%

Revenue ¥544.7M, +25,6% YoY; Operating income +16,3% YoY.

• ▍Revenue ¥544.7M, +25,6% YoY
• ▍Operating income +16,3% YoY
• ▍Net income +21,5% YoY
• ▍Net margin 12.8%

Revenue ¥507.5M, +46,1% YoY; Operating income +859,7% YoY.

• ▍Revenue ¥507.5M, +46,1% YoY
• ▍Operating income +859,7% YoY
• ▍Net income +789,3% YoY
• ▍Net margin 16.0%

Revenue ¥568.8M; Operating income ¥126.0M.

• ▍Revenue ¥568.8M
• ▍Operating income ¥126.0M
• ▍Net margin 21.0%

Revenue ¥585.2M; Operating income ¥150.2M.

• ▍Revenue ¥585.2M
• ▍Operating income ¥150.2M
• ▍Net margin 23.9%

Revenue ¥433.6M; Operating income ¥68.2M.

• ▍Revenue ¥433.6M
• ▍Operating income ¥68.2M
• ▍Net margin 13.3%

Revenue ¥347.3M; Operating income ¥10.3M.

• ▍Revenue ¥347.3M
• ▍Operating income ¥10.3M
• ▍Net margin -3.4%

Revenue ¥2.09B, +57,4% YoY; Operating income +1 319,8% YoY.

• ▍Revenue ¥2.09B, +57,4% YoY
• ▍Operating income +1 319,8% YoY
• ▍Net income +3 058,3% YoY
• ▍Free cash flow +718,5% YoY
• ▍Net margin 19.0%

Revenue ¥1.33B, +33,5% YoY; Operating income +164,7% YoY.

• ▍Revenue ¥1.33B, +33,5% YoY
• ▍Operating income +164,7% YoY
• ▍Net income +83,8% YoY
• ▍Free cash flow +52,5% YoY
• ▍Net margin -1.0%

Revenue ¥996.8M, +10,5% YoY; Operating income +91,0% YoY.

• ▍Revenue ¥996.8M, +10,5% YoY
• ▍Operating income +91,0% YoY
• ▍Net income +85,1% YoY
• ▍Free cash flow +79,0% YoY
• ▍Net margin -8.3%

Revenue ¥902.1M, −30,0% YoY; Operating income +56,3% YoY.

• ▍Revenue ¥902.1M, −30,0% YoY
• ▍Operating income +56,3% YoY
• ▍Net income +55,8% YoY
• ▍Free cash flow +56,6% YoY
• ▍Net margin -61.5%