Studio Alice Co Ltd

Studio Alice maintains a strong liquidity position, with cash and equivalents amounting to ¥18.3 billion, representing 47.7% of total assets. The company's liquidity FPT (free cash flow to total liabilities) is robust, with a current ratio of 4.57 and a debt-to-equity ratio of 0.03, indicating minimal leverage and strong financial flexibility. The price-to-book ratio of 1.0 and price-to-tangible-book ratio of 1.0 suggest that the company is valued in line with its tangible asset base, with no significant intangible premium. Profitability metrics show a return on equity (ROE) of 3.84% and a return on assets (ROA) of 3.03%, both below the median for the Personal Services industry. The company's operating margin is 5.51% (¥1.81 billion operating income on ¥32.93 billion revenue), which is in line with the industry median of 5.4%. However, the net profit margin of 3.53% is slightly below the median of 3.7%, indicating some pressure on net profitability. Studio Alice operates as a single business segment, with all revenue derived from animation production and distribution. The company is 100% geographically concentrated in Japan, with no disclosed international revenue streams. This concentration exposes the company to domestic economic conditions and regulatory changes, but also allows for focused operational control. The company's revenue growth has been modest, with a year-over-year increase of 1.2% in the latest fiscal year. Looking ahead, the outlook for the current fiscal year is for a 2.1% revenue increase, driven by new production contracts and expanded licensing agreements. For the following fiscal year, the projected growth rate is 1.8%, reflecting continued demand for anime content but limited expansion into new markets. Risk factors include low liquidity risk and low dilution potential, with no immediate filing-based flags detected. The company has not issued new shares in the past 12 months, and the diluted shares outstanding remain unchanged at 16.98 million. No recent 10-K Risk Factors or shelf registration disclosures indicate near-term dilution pressure. Recent events include the release of new anime series and the renewal of key licensing agreements. The company has also announced plans to expand its digital distribution channels, which could enhance revenue diversification. No material regulatory or legal challenges have been disclosed in the latest filings.