Ebara Foods Industry Inc

Ebara Foods Industry Inc has a strong liquidity position, with cash and equivalents amounting to ¥15,228,000,000, which represents a significant portion of its total assets of ¥47,947,000,000. The company's liquidity FPT (free cash flow to total assets) is supported by a current ratio of 2.82, indicating a robust ability to meet short-term obligations. However, the company reported a negative operating income of ¥-354,000,000 and a net loss of ¥-182,000,000, which suggests challenges in maintaining profitability.

The company's return on equity (ROE) is -0.55%, and its return on assets (ROA) is -0.38%, both of which are below the industry median for food processing companies. These metrics indicate that the company is not generating returns that meet the expectations of its shareholders or asset base. The debt-to-equity ratio of 0.02 is relatively low, suggesting that the company is not heavily leveraged and has a conservative capital structure.

Ebara Foods Industry Inc's revenue for the latest period was ¥10,088,000,000, but the company's operating cash flow was only ¥767,000,000, and its free cash flow was negative at ¥-268,000,000. This indicates that the company is not generating sufficient cash from operations to cover its capital expenditures, which were ¥-3,427,000,000. The company's capital expenditures are a significant portion of its operating cash flow, which may be a concern for its long-term sustainability.

The company's growth trajectory appears to be under pressure, as it reported a net loss and negative operating income. The outlook for the current fiscal year is not optimistic, with no significant revenue growth expected. The company's revenue history shows a decline from the analyst estimate of ¥47,963,000,000 to the actual reported revenue of ¥10,088,000,000, indicating a substantial drop in performance. This decline may be attributed to various factors, including market conditions, operational inefficiencies, or increased competition.

The risk assessment for Ebara Foods Industry Inc indicates a low level of liquidity and dilution risk. There are no immediate filing-based liquidity or dilution flags, which suggests that the company is not currently facing significant financial distress. However, the company's negative net income and operating income may raise concerns about its ability to maintain its current operations without additional financing. The dilution potential is also low, as the number of shares outstanding has not changed significantly between basic and diluted shares.

Recent events, such as the company's financial performance and capital expenditures, have been disclosed in filings and transcripts. The company's management has not indicated any major strategic changes or new initiatives that could reverse the current negative trend. The absence of significant events or announcements may suggest a lack of direction or innovation, which could further impact the company's performance.

Ebara Foods generated JPY 47.96 billion in revenue for fiscal year 2025, representing a 6.1% year-over-year increase.

The company maintains a highly conservative balance sheet with a debt-to-equity ratio of 0.02, well below the cohort median.

Gross profit remained relatively stable at JPY 16.52 billion in fiscal 2025, suggesting some resilience in core production margins.

The company recorded negative free cash flow of JPY 974 million in fiscal 2025, continuing a deteriorating cash generation trend.

Operating and net margins rank in the bottom quartile of the food processing cohort, signaling inferior profitability relative to peers.

Return on equity turned negative at -0.55%, underperforming the cohort median of 4.99% and indicating poor capital efficiency.

Revenue ¥15.22B, +6,0% YoY; Operating income +34,8% YoY.

• ▍Revenue ¥15.22B, +6,0% YoY
• ▍Operating income +34,8% YoY
• ▍Net income +30,6% YoY
• ▍Free cash flow +1 014,6% YoY
• ▍Net margin 9.2%

Revenue ¥12.28B, +3,1% YoY; Operating income −22,2% YoY.

• ▍Revenue ¥12.28B, +3,1% YoY
• ▍Operating income −22,2% YoY
• ▍Net income +118,5% YoY
• ▍Free cash flow −497,9% YoY
• ▍Net margin 5.5%

Revenue ¥12.06B, +1,1% YoY; Operating income −63,1% YoY.

• ▍Revenue ¥12.06B, +1,1% YoY
• ▍Operating income −63,1% YoY
• ▍Net income −69,8% YoY
• ▍Free cash flow +118,3% YoY
• ▍Net margin 1.4%

Revenue ¥9.77B, −3,2% YoY; Operating income −83,6% YoY.

• ▍Revenue ¥9.77B, −3,2% YoY
• ▍Operating income −83,6% YoY
• ▍Net income −185,2% YoY
• ▍Free cash flow −154,5% YoY
• ▍Net margin -5.3%

Revenue ¥14.36B; Operating income ¥1.42B.

• ▍Revenue ¥14.36B
• ▍Operating income ¥1.42B
• ▍Net margin 7.5%

Revenue ¥11.91B; Operating income ¥505.0M.

• ▍Revenue ¥11.91B
• ▍Operating income ¥505.0M
• ▍Net margin 2.6%

Revenue ¥11.93B; Operating income ¥723.0M.

• ▍Revenue ¥11.93B
• ▍Operating income ¥723.0M
• ▍Net margin 4.5%

Revenue ¥10.09B; Operating income -¥354.0M.

• ▍Revenue ¥10.09B
• ▍Operating income -¥354.0M
• ▍Net margin -1.8%

Revenue ¥47.96B, +6,1% YoY; Operating income −17,1% YoY.

• ▍Revenue ¥47.96B, +6,1% YoY
• ▍Operating income −17,1% YoY
• ▍Net income −22,3% YoY
• ▍Free cash flow −1,8% YoY
• ▍Net margin 2.9%

Revenue ¥45.22B, +4,1% YoY; Operating income −18,9% YoY.

• ▍Revenue ¥45.22B, +4,1% YoY
• ▍Operating income −18,9% YoY
• ▍Net income −17,2% YoY
• ▍Free cash flow −179,2% YoY
• ▍Net margin 4.0%

Revenue ¥43.42B, +0,2% YoY; Operating income −11,1% YoY.

• ▍Revenue ¥43.42B, +0,2% YoY
• ▍Operating income −11,1% YoY
• ▍Net income −19,5% YoY
• ▍Free cash flow −35,3% YoY
• ▍Net margin 5.0%

Revenue ¥43.34B, −15,6% YoY; Operating income −4,7% YoY.

• ▍Revenue ¥43.34B, −15,6% YoY
• ▍Operating income −4,7% YoY
• ▍Net income +7,9% YoY
• ▍Free cash flow −24,6% YoY
• ▍Net margin 6.2%