ALSOK Co Ltd

ALSOK maintains a strong liquidity position with a current ratio of 2.35 and cash and equivalents of ¥146.33 billion, which supports operational flexibility and short-term obligations. The company's debt-to-equity ratio is 0.05, indicating a conservative capital structure with minimal leverage. Despite this, free cash flow is negative at ¥1.08 billion, primarily due to capital expenditures of ¥3.90 billion, suggesting ongoing investment in infrastructure or expansion.

Profitability metrics show a return on equity of 1.25% and a return on assets of 0.76%, both below the typical thresholds for high-performing industrial services firms. Operating income of ¥7.25 billion and net income of ¥4.29 billion reflect a gross margin of 22.93% (¥29.59 billion gross profit on ¥129.01 billion revenue), which is in line with industry norms for business support services.

The company's revenue is concentrated in Japan, with no disclosed international operations in the latest financial snapshot. This geographic concentration may expose ALSOK to domestic economic fluctuations and regulatory changes, though the company's diversified service offerings mitigate some of this risk.

Looking ahead, revenue is expected to grow modestly, supported by the company's expansion in logistics and facility management. Analysts project a mean price target of ¥1,393.33, with a median of ¥1,380.00, reflecting a generally positive outlook despite a mean recommendation of 2.17 (leaning toward "hold").

Risk factors include the potential for dilution, though the risk is currently assessed as low. No immediate filing-based liquidity or dilution flags were detected, and the company's capital structure remains stable. The absence of significant debt and the presence of substantial cash reserves reduce credit risk, though the negative free cash flow suggests ongoing reinvestment needs.

Recent events include the publication of the latest financial results, which show a stable operating performance. No major regulatory or legal issues were disclosed in the latest filings, and the company's risk profile remains favorable.

Analysts project 30.6% upside to a mean price target of 1,393 JPY, reflecting strong buy consensus.

Revenue is forecast to grow 8.2% year-over-year to 597 billion JPY in fiscal 2026.

Net income is expected to surge 22.7% to 33.3 billion JPY, driven by operating leverage.

Cash conversion of 3.83 is best-in-class, significantly outperforming the 1.15 cohort median.

The company maintains a low debt-to-equity ratio of 0.05, indicating a conservative capital structure.

Operating margin of 5.6% trails the 7.6% median for the business support services cohort.

Return on equity of 1.25% is significantly below the 6.15% cohort median, indicating poor capital efficiency.

Long-term debt is forecast to increase to 94.1 billion JPY, nearly doubling from fiscal 2024 levels.

Revenue ¥157.89B, +4,3% YoY; Operating income −9,0% YoY.

• ▍Revenue ¥157.89B, +4,3% YoY
• ▍Operating income −9,0% YoY
• ▍Net income +0,0% YoY
• ▍Free cash flow −141,0% YoY
• ▍Net margin 6.1%

Revenue ¥147.80B, +7,7% YoY; Operating income +14,3% YoY.

• ▍Revenue ¥147.80B, +7,7% YoY
• ▍Operating income +14,3% YoY
• ▍Net income +22,1% YoY
• ▍Free cash flow −17,0% YoY
• ▍Net margin 6.1%

Revenue ¥150.18B, +11,8% YoY; Operating income +41,0% YoY.

• ▍Revenue ¥150.18B, +11,8% YoY
• ▍Operating income +41,0% YoY
• ▍Net income +40,8% YoY
• ▍Free cash flow +28,4% YoY
• ▍Net margin 5.4%

Revenue ¥141.15B, +9,4% YoY; Operating income +42,3% YoY.

• ▍Revenue ¥141.15B, +9,4% YoY
• ▍Operating income +42,3% YoY
• ▍Net income +50,1% YoY
• ▍Free cash flow +33,6% YoY
• ▍Net margin 4.6%

Revenue ¥151.38B; Operating income ¥13.62B.

• ▍Revenue ¥151.38B
• ▍Operating income ¥13.62B
• ▍Net margin 6.3%

Revenue ¥137.22B; Operating income ¥10.98B.

• ▍Revenue ¥137.22B
• ▍Operating income ¥10.98B
• ▍Net margin 5.4%

Revenue ¥134.27B; Operating income ¥8.57B.

• ▍Revenue ¥134.27B
• ▍Operating income ¥8.57B
• ▍Net margin 4.3%

Revenue ¥129.01B; Operating income ¥7.25B.

• ▍Revenue ¥129.01B
• ▍Operating income ¥7.25B
• ▍Net margin 3.3%

Revenue ¥597.03B, +8,2% YoY; Operating income +17,1% YoY.

• ▍Revenue ¥597.03B, +8,2% YoY
• ▍Operating income +17,1% YoY
• ▍Net income +22,7% YoY
• ▍Free cash flow −65,2% YoY
• ▍Net margin 5.6%

Revenue ¥551.88B, +5,8% YoY; Operating income +3,3% YoY.

• ▍Revenue ¥551.88B, +5,8% YoY
• ▍Operating income +3,3% YoY
• ▍Net income −0,8% YoY
• ▍Free cash flow −21,6% YoY
• ▍Net margin 4.9%

Revenue ¥521.40B, +5,9% YoY; Operating income +8,7% YoY.

• ▍Revenue ¥521.40B, +5,9% YoY
• ▍Operating income +8,7% YoY
• ▍Net income +14,1% YoY
• ▍Free cash flow +30,5% YoY
• ▍Net margin 5.2%

Revenue ¥492.23B, +0,6% YoY; Operating income −16,9% YoY.

• ▍Revenue ¥492.23B, +0,6% YoY
• ▍Operating income −16,9% YoY
• ▍Net income −17,3% YoY
• ▍Free cash flow −22,9% YoY
• ▍Net margin 4.9%