Pharmarise Holdings Corp

Pharmarise Holdings Corp has a liquidity position that is relatively stable, with cash and equivalents amounting to ¥7.15 billion, which is a significant portion of its total assets of ¥29.49 billion. However, the company's liquidity is constrained by its high level of long-term debt, which stands at ¥12.75 billion, resulting in a debt-to-equity ratio of 1.73. This indicates a leveraged capital structure, which could pose a risk if the company's cash flows were to decline.

The company's profitability is currently negative, with an operating loss of ¥596 million and a net loss of ¥529 million. Its return on equity is -7.19%, and return on assets is -1.79%, both of which are below the industry norms for profitable drug retailers. The gross profit of ¥1.99 billion is insufficient to cover operating expenses, highlighting the need for cost optimization or revenue growth to improve profitability.

Pharmarise's geographic and segment exposure is not explicitly detailed in the available data, but the company's revenue concentration is likely within Japan, given the JPY financials and the absence of international segment breakdowns. This lack of diversification could increase the company's vulnerability to local economic conditions and regulatory changes.

The company's growth trajectory is uncertain, with no specific outlook provided for the current or next fiscal year. The operating cash flow of ¥2.72 billion is positive, which is a positive sign, but the capital expenditure of -¥619 million suggests ongoing investment in operations. The company's ability to sustain growth will depend on its capacity to convert these investments into higher revenues and improved profitability.

The risk assessment for Pharmarise indicates a medium liquidity risk, primarily due to the company's high debt levels and the fact that net cash is negative after subtracting total debt. The dilution risk is assessed as low, suggesting that the company is not currently issuing a significant number of new shares that could dilute existing shareholders' equity. However, the company's financial performance and leverage could change this assessment if the company needs to raise additional capital.

Recent events and filings have not been detailed in the provided data, so it is unclear whether there have been any significant developments that could impact the company's financial position or strategic direction. The absence of recent events does not necessarily indicate a lack of activity, but it does suggest that the company's public disclosures may not be extensive or recent.

Revenue grew 16.6% year-over-year to JPY 63.5 billion in fiscal 2025, demonstrating strong top-line expansion.

Gross profit increased to JPY 8.97 billion in fiscal 2025, indicating sustained core profitability despite net losses.

Free cash flow improved by 73.2% year-over-year to JPY 142 million, showing better cash generation efficiency.

The company maintains a five-year revenue CAGR of 5.0%, suggesting consistent long-term growth trajectory.

Dilution risk is assessed as low, providing some protection for existing shareholders against equity erosion.

Net income deteriorated to a loss of JPY 412 million in fiscal 2025, worsening from the prior year.

Long-term debt surged to JPY 14.28 billion in fiscal 2025, increasing financial leverage and credit risk.

The debt-to-equity ratio of 1.73 is significantly higher than the cohort median of 0.38, indicating high leverage.

Revenue ¥16.95B, +5,7% YoY; Operating income +952,4% YoY.

• ▍Revenue ¥16.95B, +5,7% YoY
• ▍Operating income +952,4% YoY
• ▍Net income +19,9% YoY
• ▍Net margin -0.7%

Revenue ¥16.85B, +10,0% YoY; Operating income +405,7% YoY.

• ▍Revenue ¥16.85B, +10,0% YoY
• ▍Operating income +405,7% YoY
• ▍Net income +664,7% YoY
• ▍Net margin 0.8%

Revenue ¥16.75B, +10,0% YoY; Operating income +200,0% YoY.

• ▍Revenue ¥16.75B, +10,0% YoY
• ▍Operating income +200,0% YoY
• ▍Net income +85,6% YoY
• ▍Net margin -0.1%

Revenue ¥16.93B, +22,8% YoY; Operating income +106,2% YoY.

• ▍Revenue ¥16.93B, +22,8% YoY
• ▍Operating income +106,2% YoY
• ▍Net income +73,3% YoY
• ▍Net margin -0.8%

Revenue ¥16.04B; Operating income -¥21.0M.

• ▍Revenue ¥16.04B
• ▍Operating income -¥21.0M
• ▍Net margin -1.0%

Revenue ¥15.31B; Operating income ¥53.0M.

• ▍Revenue ¥15.31B
• ▍Operating income ¥53.0M
• ▍Net margin 0.1%

Revenue ¥15.23B; Operating income ¥51.0M.

• ▍Revenue ¥15.23B
• ▍Operating income ¥51.0M
• ▍Net margin -0.9%

Revenue ¥13.79B; Operating income -¥596.0M.

• ▍Revenue ¥13.79B
• ▍Operating income -¥596.0M
• ▍Net margin -3.8%

Revenue ¥63.51B, +16,6% YoY; Operating income −42,6% YoY.

• ▍Revenue ¥63.51B, +16,6% YoY
• ▍Operating income −42,6% YoY
• ▍Net income −17,4% YoY
• ▍Free cash flow +73,2% YoY
• ▍Net margin -0.6%

Revenue ¥54.47B, +4,7% YoY; Operating income −80,3% YoY.

• ▍Revenue ¥54.47B, +4,7% YoY
• ▍Operating income −80,3% YoY
• ▍Net income −205,4% YoY
• ▍Free cash flow −90,9% YoY
• ▍Net margin -0.6%

Revenue ¥52.03B, +0,8% YoY; Operating income −18,5% YoY.

• ▍Revenue ¥52.03B, +0,8% YoY
• ▍Operating income −18,5% YoY
• ▍Net income −25,7% YoY
• ▍Free cash flow −23,2% YoY
• ▍Net margin 0.6%

Revenue ¥51.61B, −1,4% YoY; Operating income +48,3% YoY.

• ▍Revenue ¥51.61B, −1,4% YoY
• ▍Operating income +48,3% YoY
• ▍Net income +5,2% YoY
• ▍Free cash flow +7,9% YoY
• ▍Net margin 0.9%