Hokuryo Co Ltd

Hokuryo Co Ltd maintains a strong liquidity position with JPY 3.9 billion in cash and equivalents, representing 22% of total assets, and a current ratio of 1.74, which is above the industry median of 1.5. The company's liquidity_fpt score of 0.85 indicates a robust ability to meet short-term obligations without reliance on external financing. However, the company's return on equity of -1.07% and return on assets of -0.74% indicate a negative return to shareholders and underutilization of assets, both of which are below the industry median of 3.2% and 2.1%, respectively.

The company's profitability is challenged by a negative operating income of JPY 227 million and a net loss of JPY 132 million, which contrasts with the industry's median operating margin of 5.8%. The gross profit of JPY 55 million is also below the median of JPY 120 million for the Fishing & Farming industry. These figures suggest that Hokuryo is underperforming in terms of cost control and pricing power.

Hokuryo's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic downturns and supply chain disruptions. The company's revenue concentration is high, with 100% of revenue derived from its core food production and distribution activities.

Looking ahead, Hokuryo is projected to see a 21% increase in revenue in the current fiscal year, driven by improved demand in the domestic market and cost optimization initiatives. However, the company's operating cash flow of JPY 3.375 billion is expected to decline by 12% in the next fiscal year due to higher capital expenditures of JPY 1.251 billion, which are necessary to modernize production facilities and expand capacity.

The company's risk assessment indicates a low probability of dilution and no immediate liquidity concerns. However, the negative net income and operating income raise concerns about the company's ability to sustain operations without external financing. The risk assessment also notes no filing-based flags for liquidity or dilution, but the negative returns suggest a need for operational improvements.

Recent events include the company's Q4 earnings report, which showed a net loss of JPY 132 million, and the announcement of a JPY 1.251 billion capital expenditure plan for the next fiscal year. Analysts have revised their revenue estimates upward to JPY 23.5 billion for the current fiscal year, reflecting improved market conditions and the company's cost-cutting measures.

Operating income surged to 3.0 billion yen in FY2025, marking a significant recovery from the 1.1 billion yen recorded in FY2023.

Net income reached 2.2 billion yen in FY2025, nearly doubling the 1.2 billion yen reported in the previous fiscal year.

The debt-to-equity ratio of 0.14 is well below the cohort median of 0.35, suggesting a conservative capital structure.

Free cash flow turned positive at 826 million yen in FY2025, recovering from a negative 178 million yen in FY2023.

Operating margin is negative 5.4%, significantly underperforming the 3.7% median for the Fishing and Farming cohort.

The company faces high credit risk, which could impair financial stability despite recent improvements in operating income.

Revenue ¥5.99B, +13,3% YoY; Operating income +70,2% YoY.

• ▍Revenue ¥5.99B, +13,3% YoY
• ▍Operating income +70,2% YoY
• ▍Net income +67,2% YoY
• ▍Net margin 16.5%

Revenue ¥5.68B, +25,9% YoY; Operating income −1,2% YoY.

• ▍Revenue ¥5.68B, +25,9% YoY
• ▍Operating income −1,2% YoY
• ▍Net income +0,4% YoY
• ▍Net margin 14.7%

Revenue ¥5.86B, +33,7% YoY; Operating income +451,6% YoY.

• ▍Revenue ¥5.86B, +33,7% YoY
• ▍Operating income +451,6% YoY
• ▍Net income +414,5% YoY
• ▍Net margin 16.3%

Revenue ¥5.21B, +24,9% YoY; Operating income +421,1% YoY.

• ▍Revenue ¥5.21B, +24,9% YoY
• ▍Operating income +421,1% YoY
• ▍Net income +536,4% YoY
• ▍Net margin 11.0%

Revenue ¥5.29B; Operating income ¥827.0M.

• ▍Revenue ¥5.29B
• ▍Operating income ¥827.0M
• ▍Net margin 11.2%

Revenue ¥4.51B; Operating income ¥1.20B.

• ▍Revenue ¥4.51B
• ▍Operating income ¥1.20B
• ▍Net margin 18.4%

Revenue ¥4.39B; Operating income ¥248.0M.

• ▍Revenue ¥4.39B
• ▍Operating income ¥248.0M
• ▍Net margin 4.2%

Revenue ¥4.17B; Operating income -¥227.0M.

• ▍Revenue ¥4.17B
• ▍Operating income -¥227.0M
• ▍Net margin -3.2%

Revenue ¥19.40B, +2,6% YoY; Operating income +29,8% YoY.

• ▍Revenue ¥19.40B, +2,6% YoY
• ▍Operating income +29,8% YoY
• ▍Net income +31,8% YoY
• ▍Free cash flow −35,1% YoY
• ▍Net margin 11.2%

Revenue ¥18.90B, +6,0% YoY; Operating income +102,3% YoY.

• ▍Revenue ¥18.90B, +6,0% YoY
• ▍Operating income +102,3% YoY
• ▍Net income +122,3% YoY
• ▍Free cash flow +814,6% YoY
• ▍Net margin 8.8%

Revenue ¥17.82B, +16,0% YoY; Operating income −11,9% YoY.

• ▍Revenue ¥17.82B, +16,0% YoY
• ▍Operating income −11,9% YoY
• ▍Net income −37,5% YoY
• ▍Free cash flow −116,4% YoY
• ▍Net margin 4.2%

Revenue ¥15.36B, +17,6% YoY; Operating income +793,7% YoY.

• ▍Revenue ¥15.36B, +17,6% YoY
• ▍Operating income +793,7% YoY
• ▍Net income +797,1% YoY
• ▍Free cash flow +485,4% YoY
• ▍Net margin 7.8%