Taiheiyo Kouhatsu Inc

Taiheiyo Kouhatsu Inc maintains a liquidity position with a current ratio of 1.03, indicating a marginal ability to cover short-term liabilities with its short-term assets. The company's cash and equivalents amount to 5,188,000,000 JPY, but this is offset by a long-term debt of 17,188,000,000 JPY, resulting in a negative net cash position. The debt-to-equity ratio of 1.09 suggests a moderate reliance on debt financing, which could pose a liquidity risk if cash flows from operations are insufficient to service the debt.

In terms of profitability, the company's return on equity (ROE) is 0.82%, and its return on assets (ROA) is 0.29%, both of which are below the industry median for integrated oil and gas companies. These figures indicate that the company is generating relatively low returns on its equity and asset base, which may signal inefficiencies or a challenging operating environment.

The company's revenue is concentrated in the integrated oil and gas segment, with no disclosed geographic diversification. This lack of diversification could expose the company to regional economic downturns or regulatory changes that affect the fossil fuel industry. The absence of detailed segment or geographic breakdowns in the financial data limits the ability to assess the company's exposure to different markets.

Looking at the growth trajectory, the company's revenue has declined from 99,620,000,000 JPY to 42,076,000,000 JPY, as per the latest analyst estimates. This significant drop suggests a contraction in the company's core operations, potentially due to market conditions or operational challenges. The capital expenditure of -688,000,000 JPY indicates a reduction in investment, which could affect future growth prospects.

The risk assessment highlights a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt underscores the company's financial vulnerability. The dilution risk is low, as there is no indication of significant share issuance or dilution potential in the near term. However, the company's reliance on debt financing and the negative net cash position could increase financial risk if not managed effectively.

Recent events and filings do not provide specific details on the company's strategic initiatives or operational changes. The absence of recent transcripts or filings limits the ability to assess the company's current strategic direction and management's response to market challenges. The company's performance and future outlook will depend on its ability to navigate the volatile fossil fuel market and improve operational efficiency.

Taiheiyo Kouhatsu generated 10.9% revenue CAGR over four years, demonstrating consistent top-line growth momentum.

The company's cash conversion ratio of 3.86 ranks as best-in-class within the coal cohort of 77 peers.

Net margin of 1.3% exceeds the coal cohort median of 0.97%, indicating superior profitability relative to peers.

Capital expenditure intensity is above median at -6.91% of revenue, suggesting lower reinvestment needs than peers.

The debt-to-equity ratio of 1.09 places the company in the bottom quartile of the coal cohort, indicating high leverage.

Free cash flow turned negative to JPY -62 million, reversing the positive generation seen in the prior fiscal year.

Return on equity of 0.82% falls significantly below the coal cohort median of 1.76%, reflecting poor capital efficiency.

Revenue ¥9.75B, −17,2% YoY; Operating income −83,2% YoY.

• ▍Revenue ¥9.75B, −17,2% YoY
• ▍Operating income −83,2% YoY
• ▍Net income −156,2% YoY
• ▍Net margin -0.5%

Revenue ¥11.72B, +14,7% YoY; Operating income +61,1% YoY.

• ▍Revenue ¥11.72B, +14,7% YoY
• ▍Operating income +61,1% YoY
• ▍Net income +62,4% YoY
• ▍Net margin 1.8%

Revenue ¥10.30B, +21,9% YoY; Operating income +56,1% YoY.

• ▍Revenue ¥10.30B, +21,9% YoY
• ▍Operating income +56,1% YoY
• ▍Net income +94,7% YoY
• ▍Net margin 1.4%

Revenue ¥11.62B, +16,6% YoY; Operating income −16,8% YoY.

• ▍Revenue ¥11.62B, +16,6% YoY
• ▍Operating income −16,8% YoY
• ▍Net income −27,7% YoY
• ▍Net margin 0.8%

Revenue ¥11.78B; Operating income ¥196.0M.

• ▍Revenue ¥11.78B
• ▍Operating income ¥196.0M
• ▍Net margin 0.7%

Revenue ¥10.22B; Operating income ¥275.0M.

• ▍Revenue ¥10.22B
• ▍Operating income ¥275.0M
• ▍Net margin 1.3%

Revenue ¥8.46B; Operating income ¥130.0M.

• ▍Revenue ¥8.46B
• ▍Operating income ¥130.0M
• ▍Net margin 0.9%

Revenue ¥9.96B; Operating income ¥280.0M.

• ▍Revenue ¥9.96B
• ▍Operating income ¥280.0M
• ▍Net margin 1.3%

Revenue ¥42.08B, +2,4% YoY; Operating income −28,5% YoY.

• ▍Revenue ¥42.08B, +2,4% YoY
• ▍Operating income −28,5% YoY
• ▍Net income −38,9% YoY
• ▍Free cash flow −115,5% YoY
• ▍Net margin 0.9%

Revenue ¥41.10B, −19,4% YoY; Operating income −1,1% YoY.

• ▍Revenue ¥41.10B, −19,4% YoY
• ▍Operating income −1,1% YoY
• ▍Net income −9,8% YoY
• ▍Free cash flow −36,4% YoY
• ▍Net margin 1.5%

Revenue ¥51.02B, +55,3% YoY; Operating income +88,8% YoY.

• ▍Revenue ¥51.02B, +55,3% YoY
• ▍Operating income +88,8% YoY
• ▍Net income +89,4% YoY
• ▍Free cash flow +145,8% YoY
• ▍Net margin 1.4%

Revenue ¥32.85B, +18,1% YoY; Operating income −13,4% YoY.

• ▍Revenue ¥32.85B, +18,1% YoY
• ▍Operating income −13,4% YoY
• ▍Net income −17,9% YoY
• ▍Free cash flow −37,6% YoY
• ▍Net margin 1.1%