Sophia Holdings Co Ltd

Sophia Holdings Co Ltd has a liquidity position that is characterized by a current ratio of 1.54, indicating that the company has sufficient current assets to cover its current liabilities. The company's cash and equivalents amount to 2,813,879,000 JPY, which is partially offset by long-term debt of 3,229,387,000 JPY, resulting in a negative net cash position. This suggests that the company may need to manage its debt obligations carefully to maintain liquidity.

In terms of profitability, Sophia Holdings Co Ltd reported a net loss of 155,830,000 JPY and an operating loss of 69,097,000 JPY, indicating a challenging financial performance. The return on equity (ROE) is -5.55%, and the return on assets (ROA) is -1.87%, both of which are below the industry median for drug retailers. These metrics suggest that the company is not generating returns that meet industry expectations.

The company's revenue is concentrated in the drug retailing segment, with no disclosed geographic diversification in the provided data. This lack of geographic diversification could expose the company to regional economic fluctuations and regulatory changes that may impact its operations and revenue.

Looking at the growth trajectory, the company's recent financial performance shows a decline in profitability, with a net loss and operating loss reported. The capital expenditure of -32,102,000 JPY indicates that the company is not investing heavily in new projects or infrastructure, which may affect its long-term growth potential. The operating cash flow of 775,335,000 JPY provides some positive cash generation, but it is not sufficient to offset the net loss and debt obligations.

The risk assessment for Sophia Holdings Co Ltd indicates a medium liquidity risk and a low dilution risk. The company's debt-to-equity ratio of 1.15 suggests a moderate level of leverage, which could increase financial risk if interest rates rise or if the company's earnings decline further. The key flag of negative net cash after subtracting total debt highlights the need for careful debt management to avoid liquidity constraints.

Recent events and filings do not provide specific details on new initiatives or strategic changes for Sophia Holdings Co Ltd. The company's financial performance and risk profile suggest that it may need to focus on improving profitability and managing its debt to ensure long-term stability.

Long-term debt decreased significantly from 4.67 billion JPY in 2021 to 2.31 billion JPY in 2025.

The company maintains positive free cash flow of 171.6 million JPY in fiscal year 2025.

Capital expenditure relative to revenue is above the drug retailer cohort median, indicating efficient investment.

The company faces high credit risk and medium liquidity risk according to risk flag assessments.

Revenue ¥2.14B, −0,1% YoY; Operating income −82,7% YoY.

• ▍Revenue ¥2.14B, −0,1% YoY
• ▍Operating income −82,7% YoY
• ▍Net income −75,7% YoY
• ▍Net margin 1.7%

Revenue ¥2.03B, −4,0% YoY; Operating income −146,8% YoY.

• ▍Revenue ¥2.03B, −4,0% YoY
• ▍Operating income −146,8% YoY
• ▍Net income −182,1% YoY
• ▍Net margin -0.5%

Revenue ¥1.98B, −4,2% YoY; Operating income −89,4% YoY.

• ▍Revenue ¥1.98B, −4,2% YoY
• ▍Operating income −89,4% YoY
• ▍Net income −86,9% YoY
• ▍Net margin 0.5%

Revenue ¥2.14B; Operating income ¥469.3M.

• ▍Revenue ¥2.14B
• ▍Operating income ¥469.3M
• ▍Net margin 6.9%

Revenue ¥2.11B; Operating income ¥59.6M.

• ▍Revenue ¥2.11B
• ▍Operating income ¥59.6M
• ▍Net margin 0.5%

Revenue ¥2.07B; Operating income ¥240.6M.

• ▍Revenue ¥2.07B
• ▍Operating income ¥240.6M
• ▍Net margin 3.6%

Revenue ¥2.25B; Operating income -¥69.1M.

• ▍Revenue ¥2.25B
• ▍Operating income -¥69.1M
• ▍Net margin -6.9%

Revenue ¥8.36B, −7,4% YoY; Operating income −14,5% YoY.

• ▍Revenue ¥8.36B, −7,4% YoY
• ▍Operating income −14,5% YoY
• ▍Net income −58,6% YoY
• ▍Free cash flow −55,1% YoY
• ▍Net margin 1.1%

Revenue ¥9.03B, −4,1% YoY; Operating income +106,8% YoY.

• ▍Revenue ¥9.03B, −4,1% YoY
• ▍Operating income +106,8% YoY
• ▍Net income +990,0% YoY
• ▍Free cash flow −8,2% YoY
• ▍Net margin 2.5%

Revenue ¥9.42B, −20,0% YoY; Operating income −77,8% YoY.

• ▍Revenue ¥9.42B, −20,0% YoY
• ▍Operating income −77,8% YoY
• ▍Net income −96,6% YoY
• ▍Free cash flow −54,4% YoY
• ▍Net margin 0.2%

Revenue ¥11.78B, +3,5% YoY; Operating income +47,2% YoY.

• ▍Revenue ¥11.78B, +3,5% YoY
• ▍Operating income +47,2% YoY
• ▍Net income +22,2% YoY
• ▍Free cash flow −3,0% YoY
• ▍Net margin 5.2%

Revenue ¥11.38B; Operating income ¥596.2M.

• ▍Revenue ¥11.38B
• ▍Operating income ¥596.2M
• ▍Net margin 4.4%