Okumura Corp

Okumura Corp's capital structure shows a debt-to-equity ratio of 0.39, indicating a relatively conservative leverage position compared to the industry median of 0.55. The company's liquidity position is mixed, with a current ratio of 1.38 and negative free cash flow of -19,080,000,000 JPY, suggesting potential short-term liquidity constraints. The company holds 28,714,000,000 JPY in cash and equivalents, but this is offset by 69,002,000,000 JPY in long-term debt, resulting in a net cash position of -40,288,000,000 JPY.

Profitability metrics for Okumura Corp are below industry norms. The company's return on equity (ROE) is 1.54%, significantly lower than the industry median of 5.2%, and its return on assets (ROA) is 0.69%, compared to a median of 2.1%. Operating income is negative at -4,922,000,000 JPY, which is a concern given the industry's typical positive operating margins. Gross profit of 31,688,000,000 JPY represents a 10.6% margin, slightly above the industry median of 10.2%.

Geographically, Okumura Corp's revenue is concentrated in Japan, with no disclosed international operations. The company's business is entirely within the industrial and commercial services segment, with no diversification across product lines or geographic regions. This concentration increases exposure to local economic conditions and regulatory changes.

The company's growth trajectory is uncertain. Revenue for the latest period was 298,222,000,000 JPY, with no disclosed year-over-year growth rate. The operating cash flow is negative at -11,830,000,000 JPY, and capital expenditures of -6,635,000,000 JPY suggest ongoing investment in infrastructure. However, the negative free cash flow indicates that the company is not generating sufficient cash to fund operations and investments without external financing.

Risk factors for Okumura Corp include medium liquidity risk due to negative free cash flow and a net cash position that is negative after subtracting total debt. The company's dilution risk is low, with no significant dilution potential in the near term. However, the negative operating income and declining cash reserves could necessitate future equity or debt financing, which may lead to dilution.

Recent events include the disclosure of a negative operating income and a decline in operating cash flow. The company's ESG scores indicate moderate social and governance performance, with a high ESG controversies score of 100.00, suggesting a lack of major controversies but also limited ESG leadership.