Wellneo Sugar Co Ltd

Wellneo Sugar Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.15, indicating a low reliance on debt financing. The company's liquidity position is characterized by a current ratio of 1.95, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the company reported negative operating cash flow of -1.84 billion JPY and free cash flow of -202 million JPY, signaling potential short-term liquidity constraints.

Profitability metrics for Wellneo Sugar Co Ltd show a return on equity of 2.29% and a return on assets of 1.75%, both of which are below the industry median for the Food Processing sector. The company's operating income of 2.31 billion JPY and net income of 1.62 billion JPY reflect modest profitability, with gross profit of 5.02 billion JPY indicating a relatively narrow margin structure.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification beyond Japan. This lack of diversification increases exposure to regional economic and regulatory risks. No material revenue concentration by geography is reported, but the absence of segmental or geographic breakdowns limits visibility into potential vulnerabilities.

Looking ahead, the company's growth trajectory is constrained by its current financial performance. The company's revenue of 24.4 billion JPY is flat compared to prior periods, and no significant growth is projected in the next fiscal year. The company's capital expenditure of -621 million JPY indicates a reduction in investment, which may signal a strategic shift or financial prudence.

Risk factors for Wellneo Sugar Co Ltd include medium liquidity risk due to negative operating and free cash flows, as well as a low dilution risk based on the absence of recent equity issuance or dilutive events. The company's net cash position is negative after subtracting total debt, which could limit its ability to fund operations or invest in growth without external financing.

Recent events include the disclosure of financial results showing a last actual EPS of 170.05 JPY and revenue of 97.07 billion JPY, which are below the company's reported revenue of 24.4 billion JPY. These discrepancies suggest potential issues with data alignment or reporting periods, warranting further investigation into the company's financial disclosures.

Revenue grew 25.1% CAGR over four years, reaching 112.9 billion JPY in FY2026.

Net income expanded 39.4% CAGR over four years, demonstrating strong earnings growth momentum.

Debt-to-equity ratio of 0.15 is well below the 0.32 cohort median, indicating low leverage.

Cash conversion ratio of -1.14 places the company in the bottom quartile of its cohort.

Long-term debt increased to 17.8 billion JPY in FY2025, up from 10.5 billion in FY2024.

The company faces medium liquidity risk according to internal risk flag assessments.

Revenue ¥25.39B, +14,2% YoY; Operating income +167,6% YoY.

• ▍Revenue ¥25.39B, +14,2% YoY
• ▍Operating income +167,6% YoY
• ▍Net income +211,5% YoY
• ▍Free cash flow −20,2% YoY
• ▍Net margin 2.0%

Revenue ¥29.74B, +11,7% YoY; Operating income +44,8% YoY.

• ▍Revenue ¥29.74B, +11,7% YoY
• ▍Operating income +44,8% YoY
• ▍Net income +23,1% YoY
• ▍Free cash flow +236,0% YoY
• ▍Net margin 8.0%

Revenue ¥27.62B, +15,9% YoY; Operating income +5,7% YoY.

• ▍Revenue ¥27.62B, +15,9% YoY
• ▍Operating income +5,7% YoY
• ▍Net income +1,2% YoY
• ▍Free cash flow −4,5% YoY
• ▍Net margin 6.7%

Revenue ¥30.15B, +23,6% YoY; Operating income +9,5% YoY.

• ▍Revenue ¥30.15B, +23,6% YoY
• ▍Operating income +9,5% YoY
• ▍Net income +5,4% YoY
• ▍Free cash flow −462,4% YoY
• ▍Net margin 5.7%

Revenue ¥22.23B; Operating income ¥413.0M.

• ▍Revenue ¥22.23B
• ▍Operating income ¥413.0M
• ▍Net margin 0.7%

Revenue ¥26.61B; Operating income ¥2.78B.

• ▍Revenue ¥26.61B
• ▍Operating income ¥2.78B
• ▍Net margin 7.3%

Revenue ¥23.82B; Operating income ¥2.52B.

• ▍Revenue ¥23.82B
• ▍Operating income ¥2.52B
• ▍Net margin 7.7%

Revenue ¥24.40B; Operating income ¥2.31B.

• ▍Revenue ¥24.40B
• ▍Operating income ¥2.31B
• ▍Net margin 6.6%

Revenue ¥112.90B, +16,3% YoY; Operating income +28,7% YoY.

• ▍Revenue ¥112.90B, +16,3% YoY
• ▍Operating income +28,7% YoY
• ▍Net income +16,3% YoY
• ▍Free cash flow −49,5% YoY
• ▍Net margin 5.7%

Revenue ¥97.07B, +5,3% YoY; Operating income +38,3% YoY.

• ▍Revenue ¥97.07B, +5,3% YoY
• ▍Operating income +38,3% YoY
• ▍Net income +0,8% YoY
• ▍Free cash flow −50,2% YoY
• ▍Net margin 5.7%

Revenue ¥92.19B, +58,0% YoY; Operating income +261,3% YoY.

• ▍Revenue ¥92.19B, +58,0% YoY
• ▍Operating income +261,3% YoY
• ▍Net income +419,7% YoY
• ▍Free cash flow +800,2% YoY
• ▍Net margin 6.0%

Revenue ¥58.35B, +26,7% YoY; Operating income −25,8% YoY.

• ▍Revenue ¥58.35B, +26,7% YoY
• ▍Operating income −25,8% YoY
• ▍Net income −38,0% YoY
• ▍Free cash flow −143,5% YoY
• ▍Net margin 1.8%