Gokurakuyu Holdings Co Ltd

Gokurakuyu Holdings Co Ltd maintains a capital structure with a debt-to-equity ratio of 1.41, indicating a moderate reliance on debt financing. The company holds cash and equivalents of ¥2,865,547,000, but this is offset by long-term debt of ¥4,215,779,000, resulting in a net cash position that is negative after subtracting total debt. The current ratio of 1.23 suggests the company has sufficient short-term assets to cover its short-term liabilities, though not with a large margin of safety.

In terms of profitability, the company reports a return on equity (ROE) of 20.59% and a return on assets (ROA) of 5.44%. These figures are strong relative to the industry's typical performance, indicating efficient use of equity and assets to generate returns. The operating margin, calculated as operating income of ¥295,180,000 divided by revenue of ¥3,373,319,000, is approximately 8.75%, which is in line with or above the median for the Personal Services industry.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements. There is no geographic diversification data provided, but the company's operations are likely concentrated in Japan, given the local listing and currency. This lack of diversification may expose the company to regional economic or regulatory risks.

Looking ahead, the company's revenue is expected to grow, though the exact rate is not specified. The operating cash flow of ¥1,173,318,000 and capital expenditure of -¥1,044,659,000 indicate that the company is investing heavily in its operations, which could support future growth. The capital expenditure is negative, suggesting that the company is generating more cash from operations than it is spending on capital projects, which is a positive sign for liquidity and reinvestment flexibility.

The company faces a medium liquidity risk due to its capital structure and the negative net cash position after subtracting total debt. The dilution risk is assessed as low, with no significant dilution potential identified in the basic shares outstanding. The company has not made any recent public filings or transcripts that would indicate significant changes in its business strategy or financial position.

Recent events and filings do not show any material changes in the company's operations or financial health. The company's last actual EPS was 24.69 JPY, and the last actual revenue was ¥15,164,190,000. These figures suggest that the company is performing in line with analyst expectations, though the revenue figure is significantly lower than the reported annual revenue, which may indicate a quarterly or semi-annual reporting period.

Revenue grew 14.7% annually over four years, reaching 15.2 billion JPY in fiscal 2025.

Operating income surged 50.9% year-over-year to 1.02 billion JPY, demonstrating strong operational leverage.

Long-term debt decreased substantially to 3.2 billion JPY in fiscal 2025, improving the balance sheet.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations.

Debt-to-equity ratio of 1.41 is in the bottom quartile, indicating higher leverage than peers.

Medium liquidity risk suggests potential challenges in managing short-term cash flow requirements.

Return on invested capital of 4.1% remains modest despite strong profitability metrics.

Revenue ¥3.90B, +8,2% YoY; Operating income −18,3% YoY.

• ▍Revenue ¥3.90B, +8,2% YoY
• ▍Operating income −18,3% YoY
• ▍Net income −38,1% YoY
• ▍Net margin 1.6%

Revenue ¥4.14B, +11,8% YoY; Operating income −1,1% YoY.

• ▍Revenue ¥4.14B, +11,8% YoY
• ▍Operating income −1,1% YoY
• ▍Net income −3,6% YoY
• ▍Net margin 11.3%

Revenue ¥3.81B, +16,1% YoY; Operating income −2,5% YoY.

• ▍Revenue ¥3.81B, +16,1% YoY
• ▍Operating income −2,5% YoY
• ▍Net income −9,4% YoY
• ▍Net margin 3.4%

Revenue ¥4.57B, +35,5% YoY; Operating income −25,3% YoY.

• ▍Revenue ¥4.57B, +35,5% YoY
• ▍Operating income −25,3% YoY
• ▍Net income −93,5% YoY
• ▍Net margin 0.9%

Revenue ¥3.61B; Operating income ¥74.6M.

• ▍Revenue ¥3.61B
• ▍Operating income ¥74.6M
• ▍Net margin 2.9%

Revenue ¥3.71B; Operating income ¥526.6M.

• ▍Revenue ¥3.71B
• ▍Operating income ¥526.6M
• ▍Net margin 13.1%

Revenue ¥3.28B; Operating income ¥197.8M.

• ▍Revenue ¥3.28B
• ▍Operating income ¥197.8M
• ▍Net margin 4.3%

Revenue ¥3.37B; Operating income ¥295.2M.

• ▍Revenue ¥3.37B
• ▍Operating income ¥295.2M
• ▍Net margin 18.3%

Revenue ¥15.16B, +7,7% YoY; Operating income +50,9% YoY.

• ▍Revenue ¥15.16B, +7,7% YoY
• ▍Operating income +50,9% YoY
• ▍Net income +10,4% YoY
• ▍Free cash flow +11,8% YoY
• ▍Net margin 5.1%

Revenue ¥14.08B, +10,3% YoY; Operating income +227,8% YoY.

• ▍Revenue ¥14.08B, +10,3% YoY
• ▍Operating income +227,8% YoY
• ▍Net income +329,1% YoY
• ▍Free cash flow +181,7% YoY
• ▍Net margin 5.0%

Revenue ¥12.77B, +27,2% YoY; Operating income +83,1% YoY.

• ▍Revenue ¥12.77B, +27,2% YoY
• ▍Operating income +83,1% YoY
• ▍Net income +84,6% YoY
• ▍Free cash flow +108,0% YoY
• ▍Net margin -2.4%

Revenue ¥10.04B, +14,5% YoY; Operating income −13,0% YoY.

• ▍Revenue ¥10.04B, +14,5% YoY
• ▍Operating income −13,0% YoY
• ▍Net income +35,8% YoY
• ▍Free cash flow +36,3% YoY
• ▍Net margin -19.7%