Hayashikane Sangyo Co Ltd

Hayashikane Sangyo Co Ltd exhibits a capital structure with a debt-to-equity ratio of 0.84, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 1.22, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the company's net cash position is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics reveal a challenging financial position for the company. The return on equity (ROE) is -2.94%, and the return on assets (ROA) is -1.12%, both significantly below the industry median for the Fishing & Farming sector. The operating income is negative at -494.91 million JPY, and the net income is also negative at -326.16 million JPY, indicating a loss-making operation.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases the company's exposure to regional economic fluctuations and market-specific risks. The absence of segment or geographic breakdown in the financial data limits the ability to assess the company's exposure to different markets.

The company's growth trajectory is uncertain, with no disclosed revenue growth in the most recent fiscal year. The operating cash flow is positive at 3,579.82 million JPY, but this is offset by a capital expenditure of -592.81 million JPY. The company's future growth will depend on its ability to improve profitability and manage its capital expenditures effectively.

Risk factors include a medium liquidity risk due to the negative net cash position after debt. The company's dilution risk is assessed as low, with no significant dilution potential in the near term. The risk assessment also highlights the need for the company to address its negative operating and net income to improve its financial stability.

Recent events and filings do not provide specific details on the company's strategic initiatives or operational changes. The company's financial performance, as reflected in the latest financial data, indicates a need for strategic adjustments to improve profitability and liquidity. The absence of recent significant events or strategic announcements suggests a period of operational stability but also a lack of transformative initiatives.

FY2025 free cash flow surged 74.6% year-over-year to JPY 1.33 billion, demonstrating significant improvement in cash generation capabilities.

Long-term debt decreased steadily to JPY 8.41 billion in FY2025, reflecting a consistent deleveraging trend over the past four fiscal years.

FY2025 net income grew 41% year-over-year to JPY 1.06 billion, indicating a strong recovery in profitability from previous lows.

Revenue reached JPY 49.27 billion in FY2025, marking a 4.0% increase and continuing a multi-year upward trajectory in top-line sales.

Operating income expanded 37.1% to JPY 942 million in FY2025, suggesting improved operational efficiency and cost management within the business.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or servicing existing debt levels effectively.

Net margin of -3.35% places the company in the bottom quartile of the Fishing & Farming cohort, indicating severe profitability challenges.

Return on equity stands at -2.94%, ranking in the bottom quartile of peers and demonstrating poor capital efficiency for shareholders.

A four-year net income CAGR of -4.9% reveals a long-term decline in earnings despite recent single-year improvements.

Cash conversion ratio of -10.98% is in the bottom quartile of the cohort, highlighting weak ability to convert earnings into cash.

Revenue ¥13.25B, −11,5% YoY; Operating income −1,6% YoY.

• ▍Revenue ¥13.25B, −11,5% YoY
• ▍Operating income −1,6% YoY
• ▍Net income −17,1% YoY
• ▍Net margin 4.6%

Revenue ¥11.40B, −14,2% YoY; Operating income +33,1% YoY.

• ▍Revenue ¥11.40B, −14,2% YoY
• ▍Operating income +33,1% YoY
• ▍Net income +43,6% YoY
• ▍Net margin 3.3%

Revenue ¥10.96B, −3,8% YoY; Operating income +491,0% YoY.

• ▍Revenue ¥10.96B, −3,8% YoY
• ▍Operating income +491,0% YoY
• ▍Net income +2 122,2% YoY
• ▍Net margin 3.3%

Revenue ¥9.62B, −1,2% YoY; Operating income +84,6% YoY.

• ▍Revenue ¥9.62B, −1,2% YoY
• ▍Operating income +84,6% YoY
• ▍Net income +123,6% YoY
• ▍Net margin 0.8%

Revenue ¥14.97B; Operating income ¥822.0M.

• ▍Revenue ¥14.97B
• ▍Operating income ¥822.0M
• ▍Net margin 4.9%

Revenue ¥13.29B; Operating income ¥296.0M.

• ▍Revenue ¥13.29B
• ▍Operating income ¥296.0M
• ▍Net margin 1.9%

Revenue ¥11.39B; Operating income -¥100.0M.

• ▍Revenue ¥11.39B
• ▍Operating income -¥100.0M
• ▍Net margin -0.2%

Revenue ¥9.74B; Operating income -¥494.9M.

• ▍Revenue ¥9.74B
• ▍Operating income -¥494.9M
• ▍Net margin -3.3%

Revenue ¥49.27B, +4,0% YoY; Operating income +37,1% YoY.

• ▍Revenue ¥49.27B, +4,0% YoY
• ▍Operating income +37,1% YoY
• ▍Net income +41,0% YoY
• ▍Free cash flow +74,6% YoY
• ▍Net margin 2.1%

Revenue ¥47.38B, +11,4% YoY; Operating income +116,0% YoY.

• ▍Revenue ¥47.38B, +11,4% YoY
• ▍Operating income +116,0% YoY
• ▍Net income +124,8% YoY
• ▍Free cash flow +37,2% YoY
• ▍Net margin 1.6%

Revenue ¥42.54B, +5,3% YoY; Operating income −55,8% YoY.

• ▍Revenue ¥42.54B, +5,3% YoY
• ▍Operating income −55,8% YoY
• ▍Net income −52,9% YoY
• ▍Free cash flow −49,4% YoY
• ▍Net margin 0.8%

Revenue ¥40.39B, −9,0% YoY; Operating income +166,0% YoY.

• ▍Revenue ¥40.39B, −9,0% YoY
• ▍Operating income +166,0% YoY
• ▍Net income −45,2% YoY
• ▍Free cash flow −0,8% YoY
• ▍Net margin 1.8%