World Holdings Co Ltd

World Holdings maintains a capital structure characterized by significant leverage, with a debt-to-equity ratio of 1.79 and long-term debt of 89.06 billion JPY against total equity of 49.76 billion JPY. The company holds 39.42 billion JPY in cash and equivalents, resulting in a negative net cash position as flagged in the risk assessment. Liquidity appears adequate in the short term, supported by a current ratio of 1.74, though the medium liquidity risk rating suggests potential constraints in meeting longer-term obligations without refinancing or operational cash flow improvements.

Profitability metrics indicate efficient use of equity, with a return on equity (ROE) of 12.26% and a return on assets (ROA) of 3.29%. The company trades at a price-to-earnings ratio of 7.41 and a price-to-book ratio of 0.91, suggesting the market values the equity at a discount to its book value. The EV/EBITDA multiple of 9.33 and EV/Revenue of 0.33 reflect a valuation that accounts for the company's debt load while acknowledging its revenue generation capacity of 284.35 billion JPY.

Revenue concentration and segment details are not explicitly provided in the available data, limiting the analysis of specific business line contributions. The company's total revenue stands at 284.35 billion JPY, with a gross profit of 45.39 billion JPY, indicating a gross margin of approximately 16%. Operating income is 10.78 billion JPY, leading to a net income of 6.62 billion JPY, which demonstrates a net margin of roughly 2.3%.

Growth trajectory analysis is constrained by the absence of historical period data in the input. However, recent analyst estimates suggest expected growth, with a mean revenue estimate of 309 billion JPY compared to the last actual revenue of 284.35 billion JPY. The mean EPS estimate of 424.60 JPY exceeds the last actual EPS of 369.94 JPY, indicating market expectations for improved earnings performance in the near term.

Risk factors include a medium liquidity risk and low dilution risk. The key flag of negative net cash after subtracting total debt highlights the company's reliance on debt financing. The low dilution risk suggests that the share count, currently at 17.65 million basic and diluted shares, is stable with no immediate threats of significant equity issuance.

Recent observations from IR data show that analyst estimates are positive, with both revenue and EPS projections exceeding recent actuals. The mean revenue estimate of 309 billion JPY implies an expected growth of approximately 8.7% from the last reported period. The EPS estimate of 424.60 JPY suggests a potential increase in profitability, aligning with the company's current ROE of 12.26%.

Revenue grew 17.4% year-over-year to JPY 284.35 billion, demonstrating strong top-line expansion momentum.

Net income surged 32.9% year-over-year to JPY 6.62 billion, highlighting significant profitability acceleration.

Cash conversion ratio of 2.44 ranks in the top quartile, reflecting high earnings quality.

Operating income increased 19.8% year-over-year to JPY 10.78 billion, supporting core business strength.

Debt-to-equity ratio of 1.79 sits in the bottom quartile, indicating excessive leverage relative to peers.

High credit risk flags suggest significant potential for loan losses or financial instability.

Net margin of 2.12% remains well below the cohort median of 5.24%, indicating weak profitability.

Revenue ¥66.42B, +4,6% YoY; Operating income −24,6% YoY.

• ▍Revenue ¥66.42B, +4,6% YoY
• ▍Operating income −24,6% YoY
• ▍Net income −43,1% YoY
• ▍Net margin 1.0%

Revenue ¥83.75B, +18,5% YoY; Operating income −32,1% YoY.

• ▍Revenue ¥83.75B, +18,5% YoY
• ▍Operating income −32,1% YoY
• ▍Net income −27,3% YoY
• ▍Net margin 2.6%

Revenue ¥68.81B, +13,3% YoY; Operating income +28,3% YoY.

• ▍Revenue ¥68.81B, +13,3% YoY
• ▍Operating income +28,3% YoY
• ▍Net income +45,1% YoY
• ▍Net margin 2.6%

Revenue ¥68.29B, +22,0% YoY; Operating income +47,7% YoY.

• ▍Revenue ¥68.29B, +22,0% YoY
• ▍Operating income +47,7% YoY
• ▍Net income +67,8% YoY
• ▍Net margin 2.1%

Revenue ¥63.49B; Operating income ¥2.50B.

• ▍Revenue ¥63.49B
• ▍Operating income ¥2.50B
• ▍Net margin 1.9%

Revenue ¥70.69B; Operating income ¥4.61B.

• ▍Revenue ¥70.69B
• ▍Operating income ¥4.61B
• ▍Net margin 4.3%

Revenue ¥60.73B; Operating income ¥2.03B.

• ▍Revenue ¥60.73B
• ▍Operating income ¥2.03B
• ▍Net margin 2.0%

Revenue ¥55.98B; Operating income ¥1.72B.

• ▍Revenue ¥55.98B
• ▍Operating income ¥1.72B
• ▍Net margin 1.5%

Revenue ¥284.35B, +17,4% YoY; Operating income +19,8% YoY.

• ▍Revenue ¥284.35B, +17,4% YoY
• ▍Operating income +19,8% YoY
• ▍Net income +32,9% YoY
• ▍Free cash flow −206,2% YoY
• ▍Net margin 2.3%

Revenue ¥242.23B, +13,3% YoY; Operating income −11,8% YoY.

• ▍Revenue ¥242.23B, +13,3% YoY
• ▍Operating income −11,8% YoY
• ▍Net income −19,7% YoY
• ▍Free cash flow +62,0% YoY
• ▍Net margin 2.1%

Revenue ¥213.74B, +16,4% YoY; Operating income +21,6% YoY.

• ▍Revenue ¥213.74B, +16,4% YoY
• ▍Operating income +21,6% YoY
• ▍Net income +16,1% YoY
• ▍Free cash flow −45,6% YoY
• ▍Net margin 2.9%

Revenue ¥183.64B, +18,7% YoY; Operating income +16,1% YoY.

• ▍Revenue ¥183.64B, +18,7% YoY
• ▍Operating income +16,1% YoY
• ▍Net income +15,5% YoY
• ▍Free cash flow +28,0% YoY
• ▍Net margin 2.9%