Meito Co Ltd

Meito Co Ltd has a liquidity position that is currently medium, with a current ratio of 1.55 and cash and equivalents of 6,362,000,000 JPY. However, the company's net cash is negative after subtracting total debt, indicating potential liquidity constraints. The debt-to-equity ratio of 0.25 suggests a relatively conservative capital structure, with total liabilities of 30,658,000,000 JPY and total equity of 51,068,000,000 JPY.

The company's profitability is underperforming, with a return on equity of -3.25% and a return on assets of -2.03%. These figures are below the typical performance metrics for the Food Processing industry, indicating a need for operational improvements or cost management. The operating income is negative at -2,262,000,000 JPY, and the net income is also negative at -1,662,000,000 JPY, reflecting a challenging financial environment.

Meito Co Ltd's revenue is concentrated in the Food Processing segment, with no disclosed geographic breakdown. The company's total revenue for the period is 6,156,000,000 JPY, but the lack of segment or geographic detail limits the ability to assess diversification risks. The company's capital expenditure of -4,211,000,000 JPY indicates significant investment in infrastructure or expansion, which may impact short-term profitability.

Looking ahead, the company's growth trajectory is uncertain. The operating cash flow of 2,903,000,000 JPY provides some cushion, but the negative net income and operating income suggest ongoing challenges. Analysts have estimated a mean revenue of 29,500,000,000 JPY, which is higher than the last actual revenue of 28,071,000,000 JPY, indicating some optimism about future performance. However, the mean EPS estimate of 170.48 JPY is lower than the last actual EPS of 278.83 JPY, suggesting a potential decline in earnings.

The company's risk profile is characterized by medium liquidity risk and low dilution risk. The negative net cash position after subtracting total debt is a key flag, indicating potential liquidity constraints. The dilution risk is low, with no significant dilution potential in the basic shares outstanding. The company's capital structure and liquidity position suggest that it may need to manage its debt and cash flow carefully to avoid further financial distress.

Recent events and filings do not provide specific details on new initiatives or strategic changes. The company's financial performance and risk profile suggest that it may need to focus on improving profitability and managing its capital structure to support long-term growth.

FY2025 net income surged 770.3% year-over-year to JPY 4.7 billion, signaling a dramatic profitability recovery.

Free cash flow improved 172.5% to JPY 2.6 billion in FY2025, demonstrating strong operational cash generation.

Revenue grew 15.1% to JPY 28.1 billion in FY2025, indicating robust top-line expansion momentum.

Long-term debt decreased to JPY 9.2 billion in FY2025, reflecting a deleveraging trend and improved balance sheet health.

The debt-to-equity ratio of 0.25 is above the cohort median, suggesting a conservative capital structure relative to peers.

High credit risk flags suggest significant financial stability concerns that could impact future borrowing costs or access.

Cash conversion of -1.75 is in the bottom quartile, indicating poor ability to translate earnings into cash.

Revenue ¥7.89B, +5,4% YoY; Operating income −35,8% YoY.

• ▍Revenue ¥7.89B, +5,4% YoY
• ▍Operating income −35,8% YoY
• ▍Net income −30,0% YoY
• ▍Net margin 9.2%

Revenue ¥8.03B, +3,1% YoY; Operating income −18,3% YoY.

• ▍Revenue ¥8.03B, +3,1% YoY
• ▍Operating income −18,3% YoY
• ▍Net income −49,9% YoY
• ▍Net margin 15.2%

Revenue ¥6.21B, +3,0% YoY; Operating income +46,3% YoY.

• ▍Revenue ¥6.21B, +3,0% YoY
• ▍Operating income +46,3% YoY
• ▍Net income +2,0% YoY
• ▍Net margin 15.7%

Revenue ¥6.77B, +10,0% YoY; Operating income +106,7% YoY.

• ▍Revenue ¥6.77B, +10,0% YoY
• ▍Operating income +106,7% YoY
• ▍Net income +117,3% YoY
• ▍Net margin 4.3%

Revenue ¥7.48B; Operating income ¥330.0M.

• ▍Revenue ¥7.48B
• ▍Operating income ¥330.0M
• ▍Net margin 13.8%

Revenue ¥7.78B; Operating income ¥602.0M.

• ▍Revenue ¥7.78B
• ▍Operating income ¥602.0M
• ▍Net margin 31.3%

Revenue ¥6.03B; Operating income ¥322.0M.

• ▍Revenue ¥6.03B
• ▍Operating income ¥322.0M
• ▍Net margin 15.9%

Revenue ¥6.16B; Operating income -¥2.26B.

• ▍Revenue ¥6.16B
• ▍Operating income -¥2.26B
• ▍Net margin -27.0%

Revenue ¥28.07B, +15,1% YoY; Operating income +171,2% YoY.

• ▍Revenue ¥28.07B, +15,1% YoY
• ▍Operating income +171,2% YoY
• ▍Net income +770,3% YoY
• ▍Free cash flow +172,5% YoY
• ▍Net margin 16.8%

Revenue ¥24.39B, +7,3% YoY; Operating income −1 310,7% YoY.

• ▍Revenue ¥24.39B, +7,3% YoY
• ▍Operating income −1 310,7% YoY
• ▍Net income −200,4% YoY
• ▍Free cash flow −308,6% YoY
• ▍Net margin -2.9%

Revenue ¥22.73B, +7,5% YoY; Operating income +96,5% YoY.

• ▍Revenue ¥22.73B, +7,5% YoY
• ▍Operating income +96,5% YoY
• ▍Net income −61,4% YoY
• ▍Free cash flow −140,7% YoY
• ▍Net margin 3.1%

Revenue ¥21.14B, −12,6% YoY; Operating income −1 333,4% YoY.

• ▍Revenue ¥21.14B, −12,6% YoY
• ▍Operating income −1 333,4% YoY
• ▍Net income +77,5% YoY
• ▍Free cash flow +52,0% YoY
• ▍Net margin 8.6%