Sanno Co Ltd

Sanno Co Ltd maintains a strong liquidity position with JPY 3.61 billion in cash and equivalents, though its long-term debt of JPY 4.48 billion suggests a leveraged capital structure. The company's price-to-book ratio of 1.69 and debt-to-equity ratio of 0.66 indicate moderate leverage relative to equity. The current ratio of 1.75 suggests the company can cover its short-term obligations with its current assets. Profitability metrics show a return on equity of 11.33% and a return on assets of 5.96%, which are in line with industry norms for industrial machinery and equipment firms. The operating margin of 7.4% (calculated from operating income of JPY 801.4 million on revenue of JPY 10.83 billion) is consistent with the industry's median operating margin. The company's revenue is concentrated in two primary segments: precision press processing and surface treatment processing. No geographic revenue breakdown is available, but the company's operations are based in Japan, indicating a domestic focus. The lack of international diversification may expose the company to regional economic fluctuations. Outlook data indicates a stable growth trajectory, with no significant revenue changes expected in the current or next fiscal year. The company's free cash flow of JPY 593.4 million and operating cash flow of JPY 461.7 million support its operational stability. However, the capital expenditure of JPY 580.0 million suggests ongoing investment in production capabilities. Risk factors include a medium liquidity risk due to the company's net cash position being negative after subtracting total debt. The dilution risk is low, with no significant dilution potential reported. The company's risk assessment highlights the importance of monitoring its debt levels and cash flow generation. Recent events include the latest actual EPS of 172.65 JPY and revenue of JPY 10.83 billion, aligning with analyst estimates. No recent filings or transcripts have been disclosed that would significantly alter the company's risk profile.