Japan Animal Referral Medical Center Co Ltd

Japan Animal Referral Medical Center Co Ltd maintains a liquidity position with a current ratio of 1.16, indicating a moderate ability to meet short-term obligations. The company's liquidity_fpt metric shows a net cash position of -3,518,805,000 JPY, which is negative after subtracting total debt, signaling potential liquidity constraints. The debt-to-equity ratio of 1.01 suggests a balanced capital structure, with liabilities and equity nearly equal.

Profitability metrics show a return on equity (ROE) of 3.06% and a return on assets (ROA) of 1.33%, both below the typical thresholds for high-performing healthcare firms. The operating margin is 13.1%, and the net profit margin is 10.1%, which are in line with the industry's median profitability but indicate room for improvement in cost management and revenue generation.

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 shifts and regulatory changes. The company's revenue is entirely derived from its referral veterinary services, with no material contribution from other business lines.

Looking ahead, the company is projected to see a 16.2% increase in revenue in the current fiscal year and a 12.4% increase in the next fiscal year. These growth rates are above the industry median, suggesting strong demand for its services and potential for market expansion. The company's operating cash flow of 899,782,000 JPY supports its capital expenditure of -1,055,193,000 JPY, indicating a need for ongoing investment in facilities and equipment.

The risk assessment highlights a medium liquidity risk due to the negative net cash position and a low dilution risk, as the company has not issued additional shares recently. The dilution_potential_basic is low, and no material adjustments have been applied to the valuation metrics. The company's risk_score is moderate, with the primary concern being its liquidity position.

Recent filings and transcripts indicate that the company is focused on expanding its referral network and enhancing its digital health services. The company has also been investing in new diagnostic technologies to improve patient outcomes and attract a broader client base. These strategic moves are expected to drive future revenue growth and improve operational efficiency.

Revenue grew 23.6% year-over-year to JPY 5.28 billion in FY2025, demonstrating strong top-line expansion momentum.

Net income surged 54.5% to JPY 521 million in FY2025, significantly outpacing revenue growth rates.

Cash conversion ratio of 7.72 is best-in-class compared to the 1.35 cohort median.

Debt-to-equity ratio of 1.01 is in the bottom quartile, exceeding the 0.32 cohort median significantly.

Free cash flow turned negative at JPY -254 million in FY2024, signaling recent cash generation weakness.

High credit risk flag indicates potential financial stability concerns despite recent revenue growth trends.

Revenue ¥1.63B, +18,5% YoY; Operating income +57,3% YoY.

• ▍Revenue ¥1.63B, +18,5% YoY
• ▍Operating income +57,3% YoY
• ▍Net income +57,5% YoY
• ▍Net margin 16.1%

Revenue ¥1.56B, +18,3% YoY; Operating income +64,1% YoY.

• ▍Revenue ¥1.56B, +18,3% YoY
• ▍Operating income +64,1% YoY
• ▍Net income +66,6% YoY
• ▍Net margin 14.9%

Revenue ¥1.47B, +17,8% YoY; Operating income +72,8% YoY.

• ▍Revenue ¥1.47B, +17,8% YoY
• ▍Operating income +72,8% YoY
• ▍Net income +75,0% YoY
• ▍Net margin 12.2%

Revenue ¥1.34B, +15,7% YoY; Operating income −14,1% YoY.

• ▍Revenue ¥1.34B, +15,7% YoY
• ▍Operating income −14,1% YoY
• ▍Net income −4,1% YoY
• ▍Net margin 8.4%

Revenue ¥1.37B; Operating income ¥238.4M.

• ▍Revenue ¥1.37B
• ▍Operating income ¥238.4M
• ▍Net margin 12.1%

Revenue ¥1.32B; Operating income ¥201.5M.

• ▍Revenue ¥1.32B
• ▍Operating income ¥201.5M
• ▍Net margin 10.6%

Revenue ¥1.25B; Operating income ¥149.3M.

• ▍Revenue ¥1.25B
• ▍Operating income ¥149.3M
• ▍Net margin 8.2%

Revenue ¥1.15B; Operating income ¥151.3M.

• ▍Revenue ¥1.15B
• ▍Operating income ¥151.3M
• ▍Net margin 10.1%

Revenue ¥5.28B, +23,6% YoY; Operating income +50,6% YoY.

• ▍Revenue ¥5.28B, +23,6% YoY
• ▍Operating income +50,6% YoY
• ▍Net income +54,5% YoY
• ▍Free cash flow +129,3% YoY
• ▍Net margin 9.9%

Revenue ¥4.27B, +10,3% YoY; Operating income −14,5% YoY.

• ▍Revenue ¥4.27B, +10,3% YoY
• ▍Operating income −14,5% YoY
• ▍Net income −11,4% YoY
• ▍Free cash flow −601,3% YoY
• ▍Net margin 7.9%

Revenue ¥3.87B, +30,0% YoY; Operating income +32,1% YoY.

• ▍Revenue ¥3.87B, +30,0% YoY
• ▍Operating income +32,1% YoY
• ▍Net income +32,7% YoY
• ▍Free cash flow +168,3% YoY
• ▍Net margin 9.8%

Revenue ¥2.98B, +4,6% YoY; Operating income +5,7% YoY.

• ▍Revenue ¥2.98B, +4,6% YoY
• ▍Operating income +5,7% YoY
• ▍Net income +0,6% YoY
• ▍Free cash flow −116,8% YoY
• ▍Net margin 9.6%