Central Forest Group Inc

Central Forest Group Inc maintains a strong liquidity position with a current ratio of 1.18, indicating that its current assets exceed its current liabilities. The company holds JPY 15.79 billion in cash and equivalents, which is a significant portion of its total assets of JPY 110.48 billion. This liquidity provides a buffer against short-term obligations and supports operational flexibility.

In terms of profitability, the company's return on equity (ROE) is 1.31%, and its return on assets (ROA) is 0.38%, both of which are below the typical thresholds for high-performing firms in the retail sector. The operating income of JPY 530 million and net income of JPY 422 million suggest that the company is generating modest profits relative to its revenue of JPY 86.14 billion. These figures indicate that the company may be facing competitive pressures or margin compression in its core operations.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no significant geographic diversification reported. This concentration could expose the company to regional economic fluctuations and supply chain disruptions, which may impact its overall performance.

Looking at the growth trajectory, the company's operating cash flow is negative at JPY -1.36 billion, and capital expenditure is JPY -301 million, suggesting that the company is investing in its operations while managing cash outflows. The absence of long-term debt and the presence of a robust cash reserve indicate that the company is not relying on external financing for its operations, which is a positive sign for financial stability.

The risk assessment for Central Forest Group Inc indicates low liquidity and dilution risks, with no immediate filing-based flags detected. The company's debt-to-equity ratio is 0.0, reflecting a conservative capital structure with no long-term debt obligations. This structure minimizes financial leverage and reduces the risk of insolvency.

Recent events, as reflected in the financial data, show that the company has maintained a consistent revenue stream, with the last actual revenue reported at JPY 366.06 billion. The company's earnings per share (EPS) were reported at 299.32 JPY, indicating a stable performance in terms of profitability. These figures suggest that the company is performing in line with analyst expectations and maintaining a steady financial position.

Net income grew at a 23.5% CAGR over four years, demonstrating strong historical profitability expansion.

Revenue increased 5.3% annually over four years, indicating consistent top-line growth momentum.

Long-term debt decreased significantly from 924 million JPY in 2022 to 528 million JPY in 2025.

The company maintains a zero debt-to-equity ratio, reflecting a conservative capital structure with no leverage risk.

Free cash flow reached 2.04 billion JPY in fiscal 2025, supporting strong liquidity generation.

Operating margin of 0.62% ranks in the bottom quartile among 164 food retail peers.

Return on equity of 1.31% is significantly below the 5.08% median for comparable companies.

Cash conversion ratio of -3.21 places the company in the bottom quartile of its peer group.

Free cash flow growth stalled at 0.1% year-over-year in fiscal 2026, showing limited expansion.

Revenue ¥86.30B, +4,4% YoY; Operating income +18,7% YoY.

• ▍Revenue ¥86.30B, +4,4% YoY
• ▍Operating income +18,7% YoY
• ▍Net income +35,9% YoY
• ▍Net margin 0.3%

Revenue ¥97.15B, +4,2% YoY; Operating income +1,2% YoY.

• ▍Revenue ¥97.15B, +4,2% YoY
• ▍Operating income +1,2% YoY
• ▍Net income −3,3% YoY
• ▍Net margin 1.0%

Revenue ¥96.47B, +5,6% YoY; Operating income +52,9% YoY.

• ▍Revenue ¥96.47B, +5,6% YoY
• ▍Operating income +52,9% YoY
• ▍Net income +47,8% YoY
• ▍Net margin 0.8%

Revenue ¥89.79B, +4,2% YoY; Operating income −7,2% YoY.

• ▍Revenue ¥89.79B, +4,2% YoY
• ▍Operating income −7,2% YoY
• ▍Net income +16,8% YoY
• ▍Net margin 0.5%

Revenue ¥82.65B; Operating income ¥294.0M.

• ▍Revenue ¥82.65B
• ▍Operating income ¥294.0M
• ▍Net margin 0.3%

Revenue ¥93.27B; Operating income ¥1.17B.

• ▍Revenue ¥93.27B
• ▍Operating income ¥1.17B
• ▍Net margin 1.1%

Revenue ¥91.34B; Operating income ¥719.0M.

• ▍Revenue ¥91.34B
• ▍Operating income ¥719.0M
• ▍Net margin 0.6%

Revenue ¥86.14B; Operating income ¥530.0M.

• ▍Revenue ¥86.14B
• ▍Operating income ¥530.0M
• ▍Net margin 0.5%

Revenue ¥366.06B, +5,2% YoY; Operating income +8,9% YoY.

• ▍Revenue ¥366.06B, +5,2% YoY
• ▍Operating income +8,9% YoY
• ▍Net income +8,8% YoY
• ▍Free cash flow +0,1% YoY
• ▍Net margin 0.7%

Revenue ¥348.07B, +5,8% YoY; Operating income +11,9% YoY.

• ▍Revenue ¥348.07B, +5,8% YoY
• ▍Operating income +11,9% YoY
• ▍Net income +14,8% YoY
• ▍Free cash flow +23,8% YoY
• ▍Net margin 0.6%

Revenue ¥328.84B, +5,2% YoY; Operating income +60,6% YoY.

• ▍Revenue ¥328.84B, +5,2% YoY
• ▍Operating income +60,6% YoY
• ▍Net income +54,5% YoY
• ▍Free cash flow +27,8% YoY
• ▍Net margin 0.6%

Revenue ¥312.65B, +4,8% YoY; Operating income +39,5% YoY.

• ▍Revenue ¥312.65B, +4,8% YoY
• ▍Operating income +39,5% YoY
• ▍Net income +20,6% YoY
• ▍Free cash flow +52,4% YoY
• ▍Net margin 0.4%