EPCO Co Ltd

EPCO Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥24.2 billion, representing 41.5% of total assets. The company's liquidity FPT (free cash flow to total debt) is robust, supported by a current ratio of 3.11 and a debt-to-equity ratio of 0.11, indicating a conservative capital structure with minimal leverage.

Profitability metrics show a return on equity (ROE) of 0.41% and a return on assets (ROA) of 0.32%, both below the industry median for construction and engineering firms. Gross profit margin stands at 29.7%, while operating margin is 5.1%, suggesting moderate efficiency in cost control and operational performance.

The company's revenue is concentrated in a few key segments, with disclosed operations in industrial and commercial construction. Geographic exposure is primarily domestic, with no material international revenue disclosed in the latest financials. This concentration may limit diversification benefits in volatile markets.

Outlook for FY2024 shows a projected revenue increase of 1.2% year-over-year, with operating income expected to remain stable. The company's growth trajectory is modest, with no significant expansion in capital expenditures or R&D investment anticipated in the near term.

Risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The company has not issued new shares in the past 12 months, and diluted shares remain unchanged at 8.95 million. No material regulatory or geopolitical risks are currently impacting operations.

Recent filings and transcripts show no material changes in business strategy or financial position. The company continues to focus on core construction and engineering services, with no new product lines or geographic expansions disclosed in the latest 10-K equivalent filing.

Revenue grew 11.5% year-over-year to JPY 6.25 billion in FY2026, demonstrating consistent top-line expansion.

Net income surged 29.9% year-over-year to JPY 424.9 million in FY2026, indicating strong profitability recovery.

Free cash flow increased 86.0% year-over-year to JPY 170.2 million in FY2026, improving liquidity generation.

The company maintains a low debt-to-equity ratio of 0.11, well below the cohort median of 0.29.

Operating income rose 16.6% year-over-year to JPY 388.8 million in FY2026, showing operational efficiency gains.

Return on equity stands at 0.41%, placing it in the bottom quartile of the construction cohort.

Return on assets is merely 0.32%, indicating inefficient utilization of the company's asset base.

Revenue ¥1.51B, +6,4% YoY; Operating income +24,7% YoY.

• ▍Revenue ¥1.51B, +6,4% YoY
• ▍Operating income +24,7% YoY
• ▍Net income −46,8% YoY
• ▍Net margin 8.6%

Revenue ¥1.39B, −0,2% YoY; Operating income −17,2% YoY.

• ▍Revenue ¥1.39B, −0,2% YoY
• ▍Operating income −17,2% YoY
• ▍Net income +293,1% YoY
• ▍Net margin 6.8%

Revenue ¥1.86B, +29,0% YoY; Operating income +66,8% YoY.

• ▍Revenue ¥1.86B, +29,0% YoY
• ▍Operating income +66,8% YoY
• ▍Net income +255,9% YoY
• ▍Net margin 8.0%

Revenue ¥1.49B, +10,3% YoY; Operating income −19,8% YoY.

• ▍Revenue ¥1.49B, +10,3% YoY
• ▍Operating income −19,8% YoY
• ▍Net income +183,2% YoY
• ▍Net margin 3.5%

Revenue ¥1.42B; Operating income ¥66.7M.

• ▍Revenue ¥1.42B
• ▍Operating income ¥66.7M
• ▍Net margin 17.1%

Revenue ¥1.40B; Operating income ¥94.1M.

• ▍Revenue ¥1.40B
• ▍Operating income ¥94.1M
• ▍Net margin 1.7%

Revenue ¥1.44B; Operating income ¥103.1M.

• ▍Revenue ¥1.44B
• ▍Operating income ¥103.1M
• ▍Net margin 2.9%

Revenue ¥1.35B; Operating income ¥69.5M.

• ▍Revenue ¥1.35B
• ▍Operating income ¥69.5M
• ▍Net margin 1.4%

Revenue ¥6.25B, +11,5% YoY; Operating income +16,6% YoY.

• ▍Revenue ¥6.25B, +11,5% YoY
• ▍Operating income +16,6% YoY
• ▍Net income +29,9% YoY
• ▍Free cash flow +86,0% YoY
• ▍Net margin 6.8%

Revenue ¥5.61B, +10,8% YoY; Operating income +44,0% YoY.

• ▍Revenue ¥5.61B, +10,8% YoY
• ▍Operating income +44,0% YoY
• ▍Net income −47,8% YoY
• ▍Free cash flow −79,9% YoY
• ▍Net margin 5.8%

Revenue ¥5.06B, +5,0% YoY; Operating income +253,4% YoY.

• ▍Revenue ¥5.06B, +5,0% YoY
• ▍Operating income +253,4% YoY
• ▍Net income +74,4% YoY
• ▍Free cash flow +1 690,7% YoY
• ▍Net margin 12.4%

Revenue ¥4.82B, +2,6% YoY; Operating income −85,0% YoY.

• ▍Revenue ¥4.82B, +2,6% YoY
• ▍Operating income −85,0% YoY
• ▍Net income −45,4% YoY
• ▍Free cash flow −105,7% YoY
• ▍Net margin 7.5%