Rasa Corp

Rasa Corp maintains a strong liquidity position, with a current ratio of 2.37 and cash and equivalents of ¥4.65 billion, which supports operational flexibility and short-term obligations. The company's debt-to-equity ratio of 0.2 indicates a conservative capital structure, with long-term debt of ¥4.24 billion compared to total equity of ¥21.45 billion. This low leverage profile reduces financial risk and supports stable operations.

Profitability metrics show a return on equity (ROE) of 4.87% and a return on assets (ROA) of 3.21%, which are below the industry median for Industrial Machinery & Equipment firms. The company's operating income of ¥1.23 billion and net income of ¥1.04 billion reflect a gross margin of 28.8%, but these figures suggest room for improvement in cost control and pricing power.

Geographically, Rasa Corp's revenue is concentrated in Japan, with no disclosed international segments. This concentration increases exposure to domestic economic conditions and regulatory changes. The company's business model is heavily reliant on the industrial goods sector, with no material diversification into adjacent markets.

Looking ahead, Rasa Corp is projected to maintain stable revenue growth, with a capital expenditure of -¥57 million indicating a focus on cost efficiency rather than expansion. The company's operating cash flow of ¥718 million supports reinvestment and dividend sustainability, but the absence of significant new projects suggests a conservative growth strategy.

Risk factors include low liquidity and dilution risk, with no immediate filing-based flags detected. The company's low debt levels and strong equity position reduce credit risk, but the lack of diversification and reliance on a single geographic market remain key concerns.

Recent filings and transcripts show no material changes in the company's strategic direction or financial health. The last actual EPS of ¥189.92 and revenue of ¥26.57 billion align with the company's historical performance, indicating a stable but non-expansive trajectory.

Rasa Corp generated a 7.7% net income CAGR over four years, demonstrating consistent profitability growth despite revenue stagnation.

Operating and net margins exceed the 75th percentile of the Industrial Machinery cohort, indicating superior pricing power and cost control.

Free cash flow surged 14.1% year-over-year to JPY 1.5 billion, highlighting strong cash generation capabilities relative to earnings.

Long-term debt decreased to JPY 4.0 billion in FY2025, reducing leverage and strengthening the balance sheet against economic downturns.

The company maintains low dilution, liquidity, and credit risk flags, suggesting a stable financial structure with minimal immediate threats.

Revenue declined 4.8% year-over-year to JPY 26.6 billion, signaling weakening top-line growth and potential market share erosion.

The four-year revenue CAGR is negative at -0.1%, indicating a long-term stagnation in sales volume or pricing power.

Cash conversion ratio of 0.69 falls below the cohort median of 0.95, suggesting less efficient translation of earnings into cash.

Return on equity of 4.87% remains modest compared to high-margin peers, limiting the upside potential for shareholder value creation.

Gross profit declined from JPY 7.0 billion in FY2023 to JPY 6.85 billion in FY2025, pressuring overall profitability margins.

Revenue ¥7.66B, +13,8% YoY; Operating income +27,2% YoY.

• ▍Revenue ¥7.66B, +13,8% YoY
• ▍Operating income +27,2% YoY
• ▍Net income +21,1% YoY
• ▍Net margin 9.6%

Revenue ¥6.88B, +10,6% YoY; Operating income +28,1% YoY.

• ▍Revenue ¥6.88B, +10,6% YoY
• ▍Operating income +28,1% YoY
• ▍Net income +27,1% YoY
• ▍Net margin 7.8%

Revenue ¥5.77B, +2,7% YoY; Operating income +36,8% YoY.

• ▍Revenue ¥5.77B, +2,7% YoY
• ▍Operating income +36,8% YoY
• ▍Net income −3,3% YoY
• ▍Net margin 3.6%

Revenue ¥8.00B, −0,5% YoY; Operating income −9,9% YoY.

• ▍Revenue ¥8.00B, −0,5% YoY
• ▍Operating income −9,9% YoY
• ▍Net income −19,8% YoY
• ▍Net margin 10.5%

Revenue ¥6.73B; Operating income ¥713.0M.

• ▍Revenue ¥6.73B
• ▍Operating income ¥713.0M
• ▍Net margin 9.0%

Revenue ¥6.22B; Operating income ¥501.0M.

• ▍Revenue ¥6.22B
• ▍Operating income ¥501.0M
• ▍Net margin 6.7%

Revenue ¥5.62B; Operating income ¥212.0M.

• ▍Revenue ¥5.62B
• ▍Operating income ¥212.0M
• ▍Net margin 3.8%

Revenue ¥8.04B; Operating income ¥1.23B.

• ▍Revenue ¥8.04B
• ▍Operating income ¥1.23B
• ▍Net margin 13.0%

Revenue ¥26.57B, −4,8% YoY; Operating income +1,8% YoY.

• ▍Revenue ¥26.57B, −4,8% YoY
• ▍Operating income +1,8% YoY
• ▍Net income +4,0% YoY
• ▍Free cash flow +14,1% YoY
• ▍Net margin 7.8%

Revenue ¥27.92B, −5,9% YoY; Operating income −12,7% YoY.

• ▍Revenue ¥27.92B, −5,9% YoY
• ▍Operating income −12,7% YoY
• ▍Net income −5,5% YoY
• ▍Free cash flow −18,9% YoY
• ▍Net margin 7.2%

Revenue ¥29.66B, −5,3% YoY; Operating income +11,9% YoY.

• ▍Revenue ¥29.66B, −5,3% YoY
• ▍Operating income +11,9% YoY
• ▍Net income +5,0% YoY
• ▍Free cash flow −5,7% YoY
• ▍Net margin 7.1%

Revenue ¥31.33B, +17,2% YoY; Operating income +29,5% YoY.

• ▍Revenue ¥31.33B, +17,2% YoY
• ▍Operating income +29,5% YoY
• ▍Net income +30,4% YoY
• ▍Free cash flow +50,8% YoY
• ▍Net margin 6.4%