Art Green Co Ltd

Art Green Co Ltd maintains a strong liquidity position with cash and equivalents of ¥674.26 million, which is significantly higher than its total liabilities of ¥893.32 million, resulting in a current ratio of 2.62. The company's debt-to-equity ratio of 1.23 indicates a moderate level of leverage, with long-term debt of ¥646.53 million against total equity of ¥525.80 million. Profitability metrics show a weak return on equity of 0.65% and a return on assets of 0.24%, both below the typical thresholds for healthy returns in the industry. The company's operating income of ¥14.97 million and net income of ¥3.39 million suggest limited profitability, with a gross profit of ¥1.04 billion indicating some margin pressure in the business. The company's business is segmented into flower business support, nursery support, and funeral services. The flower business support is the primary revenue driver, with the company supplying fresh flowers to listed companies, affiliated companies, and retail stores. The nursery support business focuses on selling phalaenopsis seedlings to farmers, while the funeral business involves the sale of cut flowers to funeral-related flower shops. Growth trajectory appears modest, with the company's revenue at ¥2.51 billion in the latest period. Analyst estimates align with the reported revenue, suggesting no significant deviation in expectations. The company's capital expenditure of ¥25.77 million indicates ongoing investment in operations, but the negative free cash flow of ¥0.79 million suggests cash outflows exceeding operating cash flows. Risk factors include low liquidity and potential dilution, though no immediate filing-based flags were detected. The company's low dilution risk is supported by the absence of significant share issuance activity, with basic and diluted shares outstanding remaining equal at 1,171,309. The company's financial structure and operational performance suggest a cautious outlook for the near term. Recent events include the latest financial reporting, with the company disclosing its revenue and profitability figures. No significant regulatory or operational events were reported in the latest filings, and the company's business operations appear to be stable.