Hokuyaku Takeyama Holdings Inc

Hokuyaku Takeyama Holdings Inc maintains a strong liquidity position, with cash and equivalents amounting to ¥20.813 billion, representing 14.13% of total assets. The company's liquidity FPT (free cash flow to total liabilities) is 6.25%, indicating a moderate ability to service liabilities from operating cash flow. The current ratio of 1.25 suggests a balanced short-term liquidity profile, with current assets slightly exceeding current liabilities.

Profitability metrics show a return on equity (ROE) of 0.61% and a return on assets (ROA) of 0.25%, both below the industry median for pharmaceutical firms. The company's operating margin is 5.32%, and net margin is 0.56%, indicating relatively low profitability compared to peers. Gross profit of ¥5.101 billion supports a gross margin of 7.7%, which is in line with the industry average.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. 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 breakdown limits visibility into risk distribution.

Looking ahead, the company is projected to maintain stable revenue, with no significant growth expected in the next fiscal year. The operating cash flow of ¥5.727 billion and free cash flow of ¥542 million support a conservative capital structure, with long-term debt at ¥14 million and a debt-to-equity ratio of 0. The capital expenditure of -¥2.378 billion indicates a reduction in investment, which may signal a focus on cost control or asset optimization.

Risk factors include low liquidity and dilution risk, with no immediate filing-based flags detected. The company's shares are not expected to be diluted in the near term, and no recent equity issuance or ATM/shelf registration has been disclosed. The absence of dilution risk supports a stable equity base, but the low ROE and ROA suggest limited returns for shareholders.

Recent events include the latest actual EPS of 116.41 JPY and revenue of ¥289.534 billion, as reported by analysts. No material changes in earnings or revenue have been disclosed in the latest filings or transcripts.

Revenue grew 4.9% annually over four years, demonstrating consistent top-line expansion for the pharmaceutical company.

Net income compounded at 13.4% annually, significantly outpacing revenue growth and indicating improving profitability trends.

The company ranks best-in-class for cash conversion within its pharmaceutical cohort, highlighting superior operational efficiency.

Operating income increased 10.6% year-over-year, reflecting strong underlying operational performance in the latest fiscal period.

Free cash flow surged 80.7% year-over-year, providing substantial liquidity for future investments or shareholder returns.

Net margin of 0.56% is significantly lower than the 3.9% industry median, suggesting high cost structures.

Return on assets of 0.25% indicates minimal value generation from the company's total asset base.

Return on invested capital of 0.58% suggests the company struggles to generate adequate returns on capital employed.

Revenue ¥82.14B, +3,6% YoY; Operating income −57,9% YoY.

• ▍Revenue ¥82.14B, +3,6% YoY
• ▍Operating income −57,9% YoY
• ▍Net income −55,3% YoY
• ▍Free cash flow −85,3% YoY
• ▍Net margin 0.8%

Revenue ¥74.46B, +5,3% YoY; Operating income −27,3% YoY.

• ▍Revenue ¥74.46B, +5,3% YoY
• ▍Operating income −27,3% YoY
• ▍Net income +29,8% YoY
• ▍Free cash flow +117,9% YoY
• ▍Net margin 0.6%

Revenue ¥74.00B, +5,0% YoY; Operating income −11,3% YoY.

• ▍Revenue ¥74.00B, +5,0% YoY
• ▍Operating income −11,3% YoY
• ▍Net income +28,9% YoY
• ▍Free cash flow +96,9% YoY
• ▍Net margin 0.9%

Revenue ¥69.07B, +4,3% YoY; Operating income −75,0% YoY.

• ▍Revenue ¥69.07B, +4,3% YoY
• ▍Operating income −75,0% YoY
• ▍Net income −48,9% YoY
• ▍Free cash flow −96,1% YoY
• ▍Net margin 0.3%

Revenue ¥79.26B; Operating income ¥1.84B.

• ▍Revenue ¥79.26B
• ▍Operating income ¥1.84B
• ▍Net margin 1.8%

Revenue ¥70.71B; Operating income ¥553.0M.

• ▍Revenue ¥70.71B
• ▍Operating income ¥553.0M
• ▍Net margin 0.5%

Revenue ¥70.50B; Operating income ¥512.0M.

• ▍Revenue ¥70.50B
• ▍Operating income ¥512.0M
• ▍Net margin 0.7%

Revenue ¥66.20B; Operating income ¥352.0M.

• ▍Revenue ¥66.20B
• ▍Operating income ¥352.0M
• ▍Net margin 0.6%

Revenue ¥289.53B, +5,2% YoY; Operating income +10,6% YoY.

• ▍Revenue ¥289.53B, +5,2% YoY
• ▍Operating income +10,6% YoY
• ▍Net income +13,7% YoY
• ▍Free cash flow +80,7% YoY
• ▍Net margin 0.9%

Revenue ¥275.36B, +4,9% YoY; Operating income −14,4% YoY.

• ▍Revenue ¥275.36B, +4,9% YoY
• ▍Operating income −14,4% YoY
• ▍Net income −20,3% YoY
• ▍Free cash flow −69,7% YoY
• ▍Net margin 0.8%

Revenue ¥262.55B, +5,7% YoY; Operating income +63,6% YoY.

• ▍Revenue ¥262.55B, +5,7% YoY
• ▍Operating income +63,6% YoY
• ▍Net income −2,6% YoY
• ▍Free cash flow +26,6% YoY
• ▍Net margin 1.0%

Revenue ¥248.37B, +3,7% YoY; Operating income +54,0% YoY.

• ▍Revenue ¥248.37B, +3,7% YoY
• ▍Operating income +54,0% YoY
• ▍Net income +87,8% YoY
• ▍Free cash flow +552,5% YoY
• ▍Net margin 1.1%