Kakiyasu Honten Co Ltd

Kakiyasu Honten maintains a strong liquidity position, with cash and equivalents amounting to ¥10.7 billion, representing nearly half of its total assets. The company's liquidity FPT (free cash flow to total liabilities) is robust, supported by a current ratio of 4.06 and a debt-to-equity ratio of 0.0, indicating minimal leverage and strong short-term solvency. The company's operating cash flow of ¥1.41 billion further reinforces its ability to fund operations and capital expenditures without external financing.

Profitability metrics show a mixed performance. The company's return on equity (ROE) of 1.17% and return on assets (ROA) of 0.95% are below the industry median for Food Processing, which typically sees ROE in the 5-10% range. Gross profit of ¥4.69 billion and operating income of ¥287 million suggest a narrow margin structure, with net income of ¥207 million representing a 2.45% margin on revenue. These figures indicate that Kakiyasu Honten is not capitalizing on economies of scale or premium pricing as effectively as its peers.

Geographically, Kakiyasu Honten's revenue is concentrated in Japan, with no disclosed international operations. The company's business is heavily reliant on domestic demand, which exposes it to local economic fluctuations and regulatory changes. No material segment disclosures are available, but the lack of diversification increases vulnerability to regional downturns.

Looking ahead, the company's revenue is expected to grow modestly, with a current FY outlook of ¥8.43 billion and a next FY projection of ¥8.85 billion, representing a 5% year-over-year increase. However, the growth trajectory is constrained by the company's limited capital expenditure and a lack of significant new product or market expansion initiatives. The capital expenditure of -¥1.03 billion (negative due to currency conversion) suggests a reduction in investment activity, which may limit long-term growth potential.

Risk factors for Kakiyasu Honten include low liquidity risk and low dilution potential, as the company has no immediate filing-based flags for either. The absence of long-term debt and a strong cash position reduce financial risk. However, the company's reliance on a single geographic market and narrow profit margins pose operational and competitive risks. No dilution sources were identified in recent filings, and the dilution near-term probability is assessed as low.

Recent events include the latest financial filing, which shows a revenue of ¥8.43 billion and net income of ¥207 million. Analyst estimates for the last actual EPS and revenue were ¥71.51 and ¥36.1 billion, respectively, suggesting a significant discrepancy between reported and estimated figures. This may indicate a need for further scrutiny of the company's financial reporting practices or a shift in business strategy.

The company generated JPY 7.01 billion in net income for FY2025, representing a significant 18.9% four-year compound annual growth rate.

With a debt-to-equity ratio of 0.0, the firm maintains a pristine balance sheet, ranking in the top quartile of its cohort.

Cash conversion efficiency stands at 6.81, significantly outperforming the cohort median of 0.98 and indicating superior operational cash generation.

The company faces low dilution, liquidity, and credit risks, providing a stable financial foundation for future strategic initiatives.

Free cash flow turned negative at JPY -551 million in FY2025, reversing the positive cash generation seen in previous fiscal years.

Return on equity of 1.2% is well below the cohort median of 5.0%, suggesting inefficient use of shareholder capital compared to peers.

Revenue ¥10.89B, −0,4% YoY; Operating income −9,7% YoY.

• ▍Revenue ¥10.89B, −0,4% YoY
• ▍Operating income −9,7% YoY
• ▍Net income −10,8% YoY
• ▍Net margin 5.9%

Revenue ¥8.39B, +2,5% YoY; Operating income −12,0% YoY.

• ▍Revenue ¥8.39B, +2,5% YoY
• ▍Operating income −12,0% YoY
• ▍Net income −14,7% YoY
• ▍Net margin 0.3%

Revenue ¥8.66B, +0,4% YoY; Operating income −4,8% YoY.

• ▍Revenue ¥8.66B, +0,4% YoY
• ▍Operating income −4,8% YoY
• ▍Net income +2,8% YoY
• ▍Net margin 1.7%

Revenue ¥8.37B, −0,8% YoY; Operating income −188,2% YoY.

• ▍Revenue ¥8.37B, −0,8% YoY
• ▍Operating income −188,2% YoY
• ▍Net income −192,8% YoY
• ▍Net margin -2.3%

Revenue ¥36.10B, −2,6% YoY; Operating income −44,4% YoY.

• ▍Revenue ¥36.10B, −2,6% YoY
• ▍Operating income −44,4% YoY
• ▍Net income −50,0% YoY
• ▍Free cash flow −2 855,0% YoY
• ▍Net margin 1.9%