Advantage Risk Management Co Ltd

The company maintains a strong liquidity position, with a current ratio of 1.29 and cash and equivalents amounting to 1,428,867,000 JPY. This liquidity is supported by a low debt-to-equity ratio of 0.09, indicating a conservative capital structure.

Profitability metrics show a return on equity of 7.79% and a return on assets of 4.74%, which are in line with the industry's preferred metrics. The operating income of 442,585,000 JPY and net income of 310,234,000 JPY reflect a healthy margin, suggesting efficient operations.

The company's revenue is primarily concentrated in its core healthcare services and equipment segment, with no significant geographic diversification disclosed. This concentration may pose a risk if the core market experiences downturns.

Looking ahead, the company is projected to maintain its growth trajectory, with a positive outlook for the current and next fiscal years. The operating cash flow of 1,292,086,000 JPY supports this growth, although capital expenditures of -876,246,000 JPY indicate ongoing investment in infrastructure.

Risk factors are minimal, with low liquidity and dilution risks identified. There are no immediate filing-based liquidity or dilution flags, and the dilution potential is low. The company's conservative capital structure and strong cash reserves further mitigate these risks.

Recent events, including the latest financial filings and transcripts, do not indicate any significant changes in the company's strategic direction or operational performance. The company continues to focus on its core healthcare services and equipment segment.

Revenue grew 22.2% year-over-year to JPY 8.55 billion in fiscal 2025, demonstrating strong top-line expansion momentum.

Net income surged 47.2% to JPY 744 million, significantly outpacing revenue growth and indicating robust operational leverage.

Operating margin of 22.1% ranks above the 75th percentile of the Healthcare Facilities & Services cohort median.

Free cash flow improved dramatically by 391.5% to JPY 642 million, marking a strong turnaround from previous deficits.

Cash conversion ratio of 4.16 is best-in-class compared to the cohort median of 1.35, highlighting superior efficiency.

Long-term debt increased sharply to JPY 1.97 billion in fiscal 2025, a significant rise from JPY 345 million prior.

Operating income growth of 8.6% lagged significantly behind the 22.2% revenue growth rate in the latest fiscal year.

Return on assets of 4.74% indicates relatively low asset utilization efficiency compared to the high margin profile.

Revenue ¥2.66B, +3,9% YoY; Operating income −21,6% YoY.

• ▍Revenue ¥2.66B, +3,9% YoY
• ▍Operating income −21,6% YoY
• ▍Net income −19,0% YoY
• ▍Net margin 9.2%

Revenue ¥2.32B, +34,9% YoY; Operating income +204,9% YoY.

• ▍Revenue ¥2.32B, +34,9% YoY
• ▍Operating income +204,9% YoY
• ▍Net income +155,1% YoY
• ▍Net margin 3.9%

Revenue ¥2.24B, +36,5% YoY; Operating income +174,1% YoY.

• ▍Revenue ¥2.24B, +36,5% YoY
• ▍Operating income +174,1% YoY
• ▍Net income +162,6% YoY
• ▍Net margin 4.3%

Revenue ¥2.63B, +31,7% YoY; Operating income −5,9% YoY.

• ▍Revenue ¥2.63B, +31,7% YoY
• ▍Operating income −5,9% YoY
• ▍Net income +82,4% YoY
• ▍Net margin 21.5%

Revenue ¥2.56B; Operating income ¥448.0M.

• ▍Revenue ¥2.56B
• ▍Operating income ¥448.0M
• ▍Net margin 11.9%

Revenue ¥1.72B; Operating income -¥129.1M.

• ▍Revenue ¥1.72B
• ▍Operating income -¥129.1M
• ▍Net margin -9.4%

Revenue ¥1.64B; Operating income ¥52.9M.

• ▍Revenue ¥1.64B
• ▍Operating income ¥52.9M
• ▍Net margin 2.3%

Revenue ¥2.00B; Operating income ¥442.6M.

• ▍Revenue ¥2.00B
• ▍Operating income ¥442.6M
• ▍Net margin 15.5%

Revenue ¥8.55B, +22,2% YoY; Operating income +8,6% YoY.

• ▍Revenue ¥8.55B, +22,2% YoY
• ▍Operating income +8,6% YoY
• ▍Net income +47,2% YoY
• ▍Free cash flow +391,5% YoY
• ▍Net margin 8.7%

Revenue ¥7.00B, +9,3% YoY; Operating income +32,1% YoY.

• ▍Revenue ¥7.00B, +9,3% YoY
• ▍Operating income +32,1% YoY
• ▍Net income +33,9% YoY
• ▍Free cash flow +212,2% YoY
• ▍Net margin 7.2%

Revenue ¥6.41B, +10,6% YoY; Operating income +66,8% YoY.

• ▍Revenue ¥6.41B, +10,6% YoY
• ▍Operating income +66,8% YoY
• ▍Net income +87,1% YoY
• ▍Free cash flow +78,1% YoY
• ▍Net margin 5.9%

Revenue ¥5.79B, +6,2% YoY; Operating income −55,4% YoY.

• ▍Revenue ¥5.79B, +6,2% YoY
• ▍Operating income −55,4% YoY
• ▍Net income −59,3% YoY
• ▍Free cash flow −158,3% YoY
• ▍Net margin 3.5%