Shobido Corp

Shobido Corp maintains a strong liquidity position with JPY 4.96 billion in cash and equivalents, but its long-term debt of JPY 5.91 billion results in a net cash position of negative JPY 945.8 million. The company's liquidity_fpt of 0.84 indicates a moderate ability to cover long-term obligations, supported by a current ratio of 2.02. The price-to-book ratio of 1.6 and price-to-tangible-book ratio of 1.6 suggest the market values the company at a slight premium to its equity book value.

Profitability metrics show a return on equity (ROE) of 4.69% and return on assets (ROA) of 1.99%, both below the industry median for personal care products. The company's operating margin of 5.9% and net margin of 5.95% are in line with the sector average, but the low ROE suggests inefficiencies in capital deployment. The debt-to-equity ratio of 0.87 indicates a moderate leverage profile, with total liabilities of JPY 9.19 billion against total equity of JPY 6.76 billion.

Geographically, Shobido Corp is heavily concentrated in the Japanese domestic market, with no disclosed international revenue segments. The company's revenue concentration in a single market increases exposure to local economic and regulatory risks. No material segment disclosures are available, but the lack of diversification is a notable risk factor.

The company's revenue growth has been modest, with a 4.8% year-over-year increase in the most recent fiscal year. Analysts expect a 4.9% revenue growth in the next fiscal year, with earnings per share (EPS) expected to rise from 74.03 JPY to 75.70 JPY. The capital expenditure of -JPY 82.98 million indicates a reduction in investment, which may signal a focus on cost control or asset optimization.

Risk factors include a medium liquidity risk due to the negative net cash position and a debt-to-equity ratio of 0.87. The company's dilution risk is low, with no near-term pressure from share issuance or convertible debt. However, the risk assessment flags a negative net cash position as a key liquidity concern. No recent filings or transcripts indicate material changes in strategy or operations.

Recent analyst estimates suggest a slight outperformance in revenue and EPS compared to actual results, with a 4.9% expected revenue growth and a 2.3% expected EPS increase. The company's market price of 854 JPY implies a price-to-earnings ratio of 34.05, which is higher than the industry median, suggesting a premium valuation.

Operating income surged 50.4% year-over-year to JPY 1.52 billion, demonstrating significant operational leverage and profitability expansion.

Free cash flow jumped 55.4% to JPY 786.5 million, indicating strong cash generation capabilities relative to recent periods.

Net income grew 47.3% annually over four years, reaching JPY 977.9 million in fiscal 2025.

Operating margin of 5.9% exceeds the Personal Products cohort median of 5.2%, highlighting superior efficiency.

Return on equity of 4.7% outperforms the cohort median of 3.0%, reflecting better capital utilization.

Debt-to-equity ratio of 0.87 sits in the bottom quartile of the cohort, signaling elevated financial leverage risk.

Cash conversion of 0.31 is well below the cohort median of 0.97, suggesting weaker cash realization from earnings.

The company faces medium liquidity risk, which could constrain operational flexibility during market stress periods.

Medium credit risk flags indicate potential challenges in maintaining favorable borrowing terms or credit ratings.

Revenue growth slowed to 5.7% year-over-year, suggesting a deceleration in top-line expansion momentum.

Revenue ¥5.93B, +11,5% YoY; Operating income +96,5% YoY.

• ▍Revenue ¥5.93B, +11,5% YoY
• ▍Operating income +96,5% YoY
• ▍Net income +74,4% YoY
• ▍Net margin 6.3%

Revenue ¥5.77B, +11,1% YoY; Operating income +120,2% YoY.

• ▍Revenue ¥5.77B, +11,1% YoY
• ▍Operating income +120,2% YoY
• ▍Net income +67,4% YoY
• ▍Net margin 2.8%

Revenue ¥5.62B, +9,9% YoY; Operating income +119,8% YoY.

• ▍Revenue ¥5.62B, +9,9% YoY
• ▍Operating income +119,8% YoY
• ▍Net income +117,9% YoY
• ▍Net margin 6.3%

Revenue ¥5.42B, +1,8% YoY; Operating income +18,8% YoY.

• ▍Revenue ¥5.42B, +1,8% YoY
• ▍Operating income +18,8% YoY
• ▍Net income −22,4% YoY
• ▍Net margin 4.5%

Revenue ¥5.32B; Operating income ¥348.0M.

• ▍Revenue ¥5.32B
• ▍Operating income ¥348.0M
• ▍Net margin 4.0%

Revenue ¥5.19B; Operating income ¥126.4M.

• ▍Revenue ¥5.19B
• ▍Operating income ¥126.4M
• ▍Net margin 1.9%

Revenue ¥5.11B; Operating income ¥236.7M.

• ▍Revenue ¥5.11B
• ▍Operating income ¥236.7M
• ▍Net margin 3.2%

Revenue ¥5.33B; Operating income ¥313.9M.

• ▍Revenue ¥5.33B
• ▍Operating income ¥313.9M
• ▍Net margin 6.0%

Revenue ¥22.12B, +5,8% YoY; Operating income +50,4% YoY.

• ▍Revenue ¥22.12B, +5,8% YoY
• ▍Operating income +50,4% YoY
• ▍Net income +26,4% YoY
• ▍Free cash flow +55,4% YoY
• ▍Net margin 4.4%

Revenue ¥20.92B, +2,3% YoY; Operating income +32,9% YoY.

• ▍Revenue ¥20.92B, +2,3% YoY
• ▍Operating income +32,9% YoY
• ▍Net income +62,8% YoY
• ▍Free cash flow +2,9% YoY
• ▍Net margin 3.7%

Revenue ¥20.44B, +18,3% YoY; Operating income +25,6% YoY.

• ▍Revenue ¥20.44B, +18,3% YoY
• ▍Operating income +25,6% YoY
• ▍Net income −7,1% YoY
• ▍Free cash flow +6,5% YoY
• ▍Net margin 2.3%

Revenue ¥17.28B, +22,3% YoY; Operating income +120,8% YoY.

• ▍Revenue ¥17.28B, +22,3% YoY
• ▍Operating income +120,8% YoY
• ▍Net income +146,6% YoY
• ▍Free cash flow +69,5% YoY
• ▍Net margin 3.0%