Nippon Air Conditioning Services Co Ltd

Nippon Air Conditioning Services Co Ltd maintains a strong liquidity position, with a current ratio of 1.82, indicating the company can cover its short-term liabilities with its short-term assets. The company's cash and equivalents amount to ¥6,989,000,000, which is a significant portion of its total assets, further supporting its liquidity. The debt-to-equity ratio is 0.07, suggesting a conservative capital structure with minimal reliance on debt financing.

In terms of profitability, the company's return on equity (ROE) is 4.37%, and its return on assets (ROA) is 2.44%. These figures are below the industry median for Business Support Services, indicating that the company is underperforming relative to its peers in terms of asset and equity utilization. The operating margin is 6.74%, which is also below the industry median, suggesting that the company is not as efficient in converting revenue into operating profit as its competitors.

The company's revenue is primarily concentrated in Japan, with no significant international operations disclosed. This geographic concentration may expose the company to regional economic fluctuations and regulatory changes. The company's business is segmented into air conditioning services and related equipment sales, with no material diversification across business lines.

Looking at the growth trajectory, the company's revenue for the most recent fiscal year was ¥18,615,000,000, and the outlook for the next fiscal year is for a modest increase. The company's operating cash flow of ¥2,421,000,000 supports its capital expenditures of ¥1,670,000,000, indicating that the company is investing in its operations to sustain growth. However, the growth rate is expected to be moderate, with no significant expansion plans disclosed.

The risk assessment indicates a low probability of dilution and liquidity issues. The company has no immediate filing-based liquidity or dilution flags, and its capital structure is conservative. The company's long-term debt is relatively low at ¥1,732,000,000, and there are no indications of near-term refinancing needs or equity issuance. The company's risk profile is further supported by its strong cash position and low debt levels.

Recent events, including filings and transcripts, do not indicate any material changes in the company's operations or financial position. The company's latest earnings report showed a net income of ¥1,050,000,000, which is consistent with its historical performance. There are no significant regulatory or legal issues disclosed that would impact the company's operations or financial health.

Revenue grew 10.7% year-over-year to JPY 64.4 billion in fiscal 2025, demonstrating strong top-line expansion.

Net income increased 13.8% to JPY 3.1 billion in fiscal 2025, outpacing revenue growth significantly.

Operating income rose 15.3% to JPY 4.2 billion in fiscal 2025, indicating improving operational efficiency.

Cash conversion ratio of 2.31 ranks in the top quartile of the peer cohort.

Long-term debt surged to JPY 3.7 billion in fiscal 2025, more than doubling from the prior year.

Capital expenditure intensity is in the bottom quartile of the peer cohort, suggesting heavy investment needs.

Revenue ¥17.28B, +0,1% YoY; Operating income −30,3% YoY.

• ▍Revenue ¥17.28B, +0,1% YoY
• ▍Operating income −30,3% YoY
• ▍Net income −18,4% YoY
• ▍Net margin 3.1%

Revenue ¥15.51B, +9,4% YoY; Operating income +20,2% YoY.

• ▍Revenue ¥15.51B, +9,4% YoY
• ▍Operating income +20,2% YoY
• ▍Net income +29,5% YoY
• ▍Net margin 6.8%

Revenue ¥13.89B, +9,0% YoY; Operating income +48,9% YoY.

• ▍Revenue ¥13.89B, +9,0% YoY
• ▍Operating income +48,9% YoY
• ▍Net income +43,6% YoY
• ▍Net margin 3.8%

Revenue ¥20.25B, +8,8% YoY; Operating income +21,4% YoY.

• ▍Revenue ¥20.25B, +8,8% YoY
• ▍Operating income +21,4% YoY
• ▍Net income +19,9% YoY
• ▍Net margin 6.2%

Revenue ¥17.26B; Operating income ¥867.0M.

• ▍Revenue ¥17.26B
• ▍Operating income ¥867.0M
• ▍Net margin 3.8%

Revenue ¥14.18B; Operating income ¥1.22B.

• ▍Revenue ¥14.18B
• ▍Operating income ¥1.22B
• ▍Net margin 5.7%

Revenue ¥12.75B; Operating income ¥563.0M.

• ▍Revenue ¥12.75B
• ▍Operating income ¥563.0M
• ▍Net margin 2.9%

Revenue ¥18.61B; Operating income ¥1.25B.

• ▍Revenue ¥18.61B
• ▍Operating income ¥1.25B
• ▍Net margin 5.6%

Revenue ¥64.44B, +10,7% YoY; Operating income +15,3% YoY.

• ▍Revenue ¥64.44B, +10,7% YoY
• ▍Operating income +15,3% YoY
• ▍Net income +13,8% YoY
• ▍Free cash flow −367,7% YoY
• ▍Net margin 4.8%

Revenue ¥58.23B, +10,1% YoY; Operating income +30,1% YoY.

• ▍Revenue ¥58.23B, +10,1% YoY
• ▍Operating income +30,1% YoY
• ▍Net income +40,5% YoY
• ▍Free cash flow −40,1% YoY
• ▍Net margin 4.7%

Revenue ¥52.89B, +6,0% YoY; Operating income +6,9% YoY.

• ▍Revenue ¥52.89B, +6,0% YoY
• ▍Operating income +6,9% YoY
• ▍Net income −31,2% YoY
• ▍Free cash flow −45,8% YoY
• ▍Net margin 3.7%

Revenue ¥49.89B, +1,5% YoY; Operating income −13,3% YoY.

• ▍Revenue ¥49.89B, +1,5% YoY
• ▍Operating income −13,3% YoY
• ▍Net income +41,2% YoY
• ▍Free cash flow +13,0% YoY
• ▍Net margin 5.7%