Convano Inc

Convano Inc's capital structure is characterized by a debt-to-equity ratio of 0.5, indicating a relatively balanced mix of debt and equity financing. The company maintains a strong liquidity position with a current ratio of 1.68, supported by cash and equivalents of 923.1 million JPY. Despite this, the company reported a negative operating income of 155.7 million JPY and a net loss of 255.0 million JPY, reflecting challenges in profitability.

In terms of profitability, Convano Inc's return on equity (ROE) is -15.51%, and its return on assets (ROA) is -8.5%, both significantly below typical industry benchmarks for personal services. The company's gross profit of 197.9 million JPY on revenue of 610.4 million JPY suggests a gross margin of approximately 32.4%, which is in line with industry norms but insufficient to offset operating and net losses.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no geographic diversification provided in the available data. This lack of diversification may expose the company to higher operational and market risks, particularly in the personal services sector, which is sensitive to consumer spending patterns.

Looking ahead, Convano Inc's growth trajectory appears uncertain. The company reported a net loss in the most recent fiscal year, and there are no clear indicators of a turnaround in the near term. Analyst estimates for revenue and EPS are based on historical performance, with no forward-looking guidance provided in the available data. The company's capital expenditure of 62.9 million JPY and free cash flow of -205.2 million JPY suggest ongoing investment in operations, but the negative free cash flow indicates that the company is not generating sufficient cash to fund its operations without external financing.

Risk factors for Convano Inc include its negative net income and operating income, which could impact its ability to service debt and maintain liquidity. The company's liquidity risk is currently assessed as low, and there are no immediate filing-based dilution flags. However, the company's negative free cash flow and ongoing losses may necessitate additional financing in the future, which could lead to dilution or increased debt levels.

Recent events and filings do not indicate any significant changes in the company's financial or operational status. The company's latest actual EPS and revenue figures are in line with analyst estimates, but there is no indication of a recovery in profitability or cash flow generation.

Revenue grew 25.2% year-over-year to 3.24 billion JPY in fiscal 2025, demonstrating strong top-line expansion momentum.

Net income surged 139.2% to 77.8 million JPY in fiscal 2025, marking a significant return to profitability.

Free cash flow improved dramatically by 57,248% to 345.2 million JPY in fiscal 2025, indicating robust cash generation.

Long-term debt decreased to 705.1 million JPY in fiscal 2025, reflecting a strengthening balance sheet and reduced leverage.

Operating income jumped 329.9% to 134.7 million JPY in fiscal 2025, highlighting improved operational efficiency and margins.

Cash conversion ratio of -1.32 is in the bottom quartile, significantly underperforming the 1.89 cohort median.

Revenue ¥5.34B, +545,3% YoY; Operating income +6 223,3% YoY.

• ▍Revenue ¥5.34B, +545,3% YoY
• ▍Operating income +6 223,3% YoY
• ▍Net income +4 983,9% YoY
• ▍Free cash flow −10 210,6% YoY
• ▍Net margin 31.7%

Revenue ¥2.80B, +243,9% YoY; Operating income +3 720,0% YoY.

• ▍Revenue ¥2.80B, +243,9% YoY
• ▍Operating income +3 720,0% YoY
• ▍Net income +2 495,3% YoY
• ▍Free cash flow −67 458,4% YoY
• ▍Net margin 40.9%

Revenue ¥1.06B, +50,9% YoY; Operating income +442,4% YoY.

• ▍Revenue ¥1.06B, +50,9% YoY
• ▍Operating income +442,4% YoY
• ▍Net income +320,9% YoY
• ▍Free cash flow +4 349,6% YoY
• ▍Net margin 11.0%

Revenue ¥899.7M, +47,4% YoY; Operating income +234,8% YoY.

• ▍Revenue ¥899.7M, +47,4% YoY
• ▍Operating income +234,8% YoY
• ▍Net income +164,3% YoY
• ▍Free cash flow +213,0% YoY
• ▍Net margin 18.2%

Revenue ¥827.7M; Operating income ¥40.7M.

• ▍Revenue ¥827.7M
• ▍Operating income ¥40.7M
• ▍Net margin 4.0%

Revenue ¥813.7M; Operating income -¥46.1M.

• ▍Revenue ¥813.7M
• ▍Operating income -¥46.1M
• ▍Net margin -5.9%

Revenue ¥699.5M; Operating income -¥50.8M.

• ▍Revenue ¥699.5M
• ▍Operating income -¥50.8M
• ▍Net margin -7.5%

Revenue ¥610.4M; Operating income -¥155.7M.

• ▍Revenue ¥610.4M
• ▍Operating income -¥155.7M
• ▍Net margin -41.8%

Revenue ¥3.24B, +25,2% YoY; Operating income +329,9% YoY.

• ▍Revenue ¥3.24B, +25,2% YoY
• ▍Operating income +329,9% YoY
• ▍Net income +139,2% YoY
• ▍Free cash flow +57 248,0% YoY
• ▍Net margin 2.4%

Revenue ¥2.59B, +11,1% YoY; Operating income −63,4% YoY.

• ▍Revenue ¥2.59B, +11,1% YoY
• ▍Operating income −63,4% YoY
• ▍Net income −478,3% YoY
• ▍Free cash flow −100,3% YoY
• ▍Net margin -7.7%

Revenue ¥2.33B, +8,7% YoY; Operating income −140,4% YoY.

• ▍Revenue ¥2.33B, +8,7% YoY
• ▍Operating income −140,4% YoY
• ▍Net income −167,3% YoY
• ▍Free cash flow −6,8% YoY
• ▍Net margin -1.5%

Revenue ¥2.14B, +32,6% YoY; Operating income +128,3% YoY.

• ▍Revenue ¥2.14B, +32,6% YoY
• ▍Operating income +128,3% YoY
• ▍Net income +123,5% YoY
• ▍Free cash flow +3 526,9% YoY
• ▍Net margin 2.4%