I-Plug Inc

I-Plug Inc maintains a strong liquidity position, with cash and equivalents amounting to ¥2,164,680,000, significantly exceeding its total liabilities of ¥2,417,305,000. The company's liquidity FPT (free cash flow to total liabilities) is robust, indicating a solid ability to meet short-term obligations. The current ratio of 1.14 further supports this, showing that the company has sufficient current assets to cover its current liabilities.

Profitability metrics for I-Plug Inc show a return on equity (ROE) of 3.96% and a return on assets (ROA) of 0.97%. These figures are below the industry median for employment services, suggesting that the company is not generating returns as efficiently as its peers. The net income of ¥30,946,000 is relatively modest compared to the company's total assets, indicating potential inefficiencies in asset utilization.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements. There is no significant geographic diversification, with all operations reported in Japan. This concentration increases exposure to local economic conditions and regulatory changes, which could impact revenue stability.

Looking ahead, I-Plug Inc is projected to experience a modest growth in revenue, with a year-over-year increase expected in the current fiscal year. The company's capital expenditure of ¥-290,057,000 indicates a reduction in investment, which may affect long-term growth potential. The outlook for the next fiscal year remains cautiously optimistic, with a projected revenue increase of approximately 5%.

Risk factors for I-Plug Inc include low liquidity and dilution risks, with no immediate filing-based flags detected. The company's debt-to-equity ratio of 0.7 suggests a conservative capital structure, reducing financial risk. However, the low ROE and ROA highlight the need for operational improvements to enhance profitability.

Recent events, including the latest financial filings and transcripts, indicate a stable business environment for I-Plug Inc. The company has not disclosed any significant new projects or strategic shifts that would alter its current trajectory. The absence of dilution risks and strong liquidity position supports a stable outlook for the near term.

Revenue grew 24% annually over four years, demonstrating strong top-line expansion for the employment services company.

Operating margin of 9.5% significantly exceeds the 5.1% median for the employment services cohort.

Net income surged 408% year-over-year to 598 million JPY, marking a sharp profitability recovery.

Cash conversion of 15.84 is best-in-class, vastly outperforming the 1.16 cohort median.

Free cash flow turned positive to 428 million JPY, reversing previous years of negative cash generation.

Debt-to-equity ratio of 0.7 is in the bottom quartile, signaling higher leverage than most peers.

Return on assets of 1.0% remains low, reflecting modest asset utilization efficiency despite revenue growth.

Revenue ¥1.68B, +9,5% YoY; Operating income −4,3% YoY.

• ▍Revenue ¥1.68B, +9,5% YoY
• ▍Operating income −4,3% YoY
• ▍Net income −32,6% YoY
• ▍Net margin 18.9%

Revenue ¥1.38B, +7,7% YoY; Operating income −28,6% YoY.

• ▍Revenue ¥1.38B, +7,7% YoY
• ▍Operating income −28,6% YoY
• ▍Net income −33,4% YoY
• ▍Net margin 8.1%

Revenue ¥1.01B, +28,3% YoY; Operating income +7,1% YoY.

• ▍Revenue ¥1.01B, +28,3% YoY
• ▍Operating income +7,1% YoY
• ▍Net income +21,3% YoY
• ▍Net margin -17.9%

Revenue ¥1.48B, +4,5% YoY; Operating income −17,2% YoY.

• ▍Revenue ¥1.48B, +4,5% YoY
• ▍Operating income −17,2% YoY
• ▍Net income +502,1% YoY
• ▍Net margin 12.6%

Revenue ¥1.54B; Operating income ¥516.0M.

• ▍Revenue ¥1.54B
• ▍Operating income ¥516.0M
• ▍Net margin 30.8%

Revenue ¥1.28B; Operating income ¥256.5M.

• ▍Revenue ¥1.28B
• ▍Operating income ¥256.5M
• ▍Net margin 13.1%

Revenue ¥788.1M; Operating income -¥305.0M.

• ▍Revenue ¥788.1M
• ▍Operating income -¥305.0M
• ▍Net margin -29.2%

Revenue ¥1.41B; Operating income ¥134.0M.

• ▍Revenue ¥1.41B
• ▍Operating income ¥134.0M
• ▍Net margin 2.2%

Revenue ¥5.08B, +10,5% YoY; Operating income +588,9% YoY.

• ▍Revenue ¥5.08B, +10,5% YoY
• ▍Operating income +588,9% YoY
• ▍Net income +408,3% YoY
• ▍Free cash flow +213,0% YoY
• ▍Net margin 11.8%

Revenue ¥4.60B, +23,0% YoY; Operating income +71,3% YoY.

• ▍Revenue ¥4.60B, +23,0% YoY
• ▍Operating income +71,3% YoY
• ▍Net income +60,6% YoY
• ▍Free cash flow +41,9% YoY
• ▍Net margin -4.2%

Revenue ¥3.74B, +23,0% YoY; Operating income −212,1% YoY.

• ▍Revenue ¥3.74B, +23,0% YoY
• ▍Operating income −212,1% YoY
• ▍Net income −294,0% YoY
• ▍Free cash flow −377,9% YoY
• ▍Net margin -13.2%

Revenue ¥3.04B, +41,4% YoY; Operating income +17,1% YoY.

• ▍Revenue ¥3.04B, +41,4% YoY
• ▍Operating income +17,1% YoY
• ▍Net income +9,2% YoY
• ▍Free cash flow −7,4% YoY
• ▍Net margin 8.3%