Cominix Co Ltd

Cominix Co Ltd maintains a relatively balanced capital structure, with a debt-to-equity ratio of 0.6, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium risk, with a current ratio of 1.8, suggesting it can cover its short-term obligations but with limited excess capacity. However, the company's net cash position is negative after subtracting total debt, which raises concerns about its ability to meet long-term obligations without additional financing.

In terms of profitability, Cominix's return on equity (ROE) of 2.14% and return on assets (ROA) of 0.9% are below the typical thresholds for industrial machinery and equipment firms, which often aim for ROE above 10% and ROA above 5%. This suggests that the company is underperforming relative to its industry peers in terms of capital efficiency and asset utilization.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no material geographic diversification reported. This lack of diversification increases exposure to regional economic fluctuations and supply chain disruptions, particularly in Japan, where the company is headquartered.

Looking ahead, Cominix's revenue outlook for the current fiscal year is flat, with no significant growth expected in the near term. The company's capital expenditures are negative, indicating asset disposals or a reduction in investment, which may signal a strategic shift or a response to market conditions. This trend could impact long-term growth potential if not offset by other revenue drivers.

The risk assessment highlights a medium liquidity risk and a low dilution risk, with no immediate pressure from share issuance or convertible debt conversion. However, the negative net cash position after debt suggests the company may need to raise additional capital in the future, which could introduce dilution risk if not managed carefully.

Recent filings and transcripts indicate that Cominix has not disclosed any major strategic initiatives or capital-raising plans in the near term. The company's focus appears to be on maintaining operational efficiency and managing its debt load, which may limit its ability to pursue aggressive growth opportunities.

Revenue grew 9.4% annually over four years, demonstrating consistent top-line expansion despite recent profit volatility.

Cash conversion of 9.38 significantly outperforms the cohort median of 0.95, indicating superior operational efficiency.

Gross profit increased to 6.76 billion JPY in FY2025, showing resilience in core production margins.

Dilution risk is assessed as low, providing some protection for existing shareholder equity value.

Long-term debt doubled to 10.34 billion JPY in FY2025, drastically increasing financial leverage and risk.

Credit risk is flagged as high, reflecting significant concerns regarding the company's ability to meet obligations.

Revenue ¥10.70B, +51,6% YoY; Operating income +198,0% YoY.

• ▍Revenue ¥10.70B, +51,6% YoY
• ▍Operating income +198,0% YoY
• ▍Net income +484,0% YoY
• ▍Net margin 2.7%

Revenue ¥9.53B, +34,2% YoY; Operating income −32,2% YoY.

• ▍Revenue ¥9.53B, +34,2% YoY
• ▍Operating income −32,2% YoY
• ▍Net income −75,0% YoY
• ▍Net margin 0.4%

Revenue ¥9.23B, +33,0% YoY; Operating income +173,5% YoY.

• ▍Revenue ¥9.23B, +33,0% YoY
• ▍Operating income +173,5% YoY
• ▍Net income +16,0% YoY
• ▍Net margin 0.3%

Revenue ¥9.03B, +26,8% YoY; Operating income −158,5% YoY.

• ▍Revenue ¥9.03B, +26,8% YoY
• ▍Operating income −158,5% YoY
• ▍Net income −206,6% YoY
• ▍Net margin -2.0%

Revenue ¥7.06B; Operating income ¥101.0M.

• ▍Revenue ¥7.06B
• ▍Operating income ¥101.0M
• ▍Net margin 0.7%

Revenue ¥7.10B; Operating income ¥208.0M.

• ▍Revenue ¥7.10B
• ▍Operating income ¥208.0M
• ▍Net margin 2.0%

Revenue ¥6.94B; Operating income ¥49.0M.

• ▍Revenue ¥6.94B
• ▍Operating income ¥49.0M
• ▍Net margin 0.4%

Revenue ¥7.12B; Operating income ¥200.0M.

• ▍Revenue ¥7.12B
• ▍Operating income ¥200.0M
• ▍Net margin 2.3%

Revenue ¥30.13B, +5,2% YoY; Operating income −65,9% YoY.

• ▍Revenue ¥30.13B, +5,2% YoY
• ▍Operating income −65,9% YoY
• ▍Net income −93,1% YoY
• ▍Free cash flow −91,5% YoY
• ▍Net margin 0.1%

Revenue ¥28.64B, −0,7% YoY; Operating income −28,6% YoY.

• ▍Revenue ¥28.64B, −0,7% YoY
• ▍Operating income −28,6% YoY
• ▍Net income −27,5% YoY
• ▍Free cash flow −38,8% YoY
• ▍Net margin 1.9%

Revenue ¥28.85B, +7,1% YoY; Operating income +46,5% YoY.

• ▍Revenue ¥28.85B, +7,1% YoY
• ▍Operating income +46,5% YoY
• ▍Net income −16,4% YoY
• ▍Free cash flow −39,7% YoY
• ▍Net margin 2.6%

Revenue ¥26.93B, +28,3% YoY; Operating income +81,1% YoY.

• ▍Revenue ¥26.93B, +28,3% YoY
• ▍Operating income +81,1% YoY
• ▍Net income +201,2% YoY
• ▍Free cash flow +175,1% YoY
• ▍Net margin 3.3%