Nippon Filcon Co Ltd

Nippon Filcon maintains a conservative capital structure with a debt-to-equity ratio of 0.49, below the median for its industry, and holds 5.27 billion JPY in cash and equivalents, partially offset by 11.07 billion JPY in long-term debt, resulting in a net cash position of -5.8 billion JPY. The company's liquidity risk is assessed as medium, with a current ratio of 1.59, indicating adequate short-term liquidity to cover obligations.

Profitability metrics show a return on equity (ROE) of 1.99% and a return on assets (ROA) of 1.05%, both below the industry median for industrial machinery firms. The company's operating margin of 1.95% (140 million JPY operating income on 7.17 billion JPY revenue) is also below the sector average, suggesting room for improvement in cost control and pricing power.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic shifts and sector-specific demand fluctuations.

Outlook data indicates a modest revenue decline in the current fiscal year, with a negative year-over-year change in the most recent reported revenue of 27.84 billion JPY. Capital expenditures of -1.01 billion JPY suggest a reduction in investment, potentially signaling a strategic shift or financial constraint.

Risk factors include a medium liquidity risk due to the net cash deficit and a low dilution risk, with no near-term pressure from share issuance. The company's recent financial filings show no material changes in capital structure or significant new risks, though the negative net cash position remains a concern.

Recent filings and transcripts indicate no major strategic shifts or new product launches. The company's earnings performance has been mixed, with a reported net income of 449 million JPY but a negative EPS of -37.47 JPY, reflecting a possible one-time charge or accounting adjustment.

Cash conversion ratio of 2.76 ranks in the top quartile, significantly outperforming the 0.95 cohort median.

Revenue grew at a 3.0% CAGR over four years, demonstrating consistent top-line expansion despite recent volatility.

Gross profit reached 9.86 billion JPY in FY2025, showing resilience in core production margins.

Dilution risk is assessed as low, suggesting minimal threat to existing shareholder equity value.

Credit risk is flagged as high, indicating significant potential for financial distress or default.

ROE of 2.0% trails the 3.6% industry median, reflecting inefficient use of shareholder capital.

Revenue ¥6.86B, +3,8% YoY; Operating income +752,4% YoY.

• ▍Revenue ¥6.86B, +3,8% YoY
• ▍Operating income +752,4% YoY
• ▍Net income +1 428,5% YoY
• ▍Net margin 2.1%

Revenue ¥7.73B, +11,8% YoY; Operating income −1 168,3% YoY.

• ▍Revenue ¥7.73B, +11,8% YoY
• ▍Operating income −1 168,3% YoY
• ▍Net income −1 142,0% YoY
• ▍Net margin -17.4%

Revenue ¥6.69B, −12,3% YoY; Operating income −53,3% YoY.

• ▍Revenue ¥6.69B, −12,3% YoY
• ▍Operating income −53,3% YoY
• ▍Net income +82,6% YoY
• ▍Net margin 5.1%

Revenue ¥6.81B, −5,0% YoY; Operating income +256,2% YoY.

• ▍Revenue ¥6.81B, −5,0% YoY
• ▍Operating income +256,2% YoY
• ▍Net income −35,1% YoY
• ▍Net margin 4.3%

Revenue ¥6.61B; Operating income -¥33.1M.

• ▍Revenue ¥6.61B
• ▍Operating income -¥33.1M
• ▍Net margin -0.2%

Revenue ¥6.91B; Operating income -¥146.5M.

• ▍Revenue ¥6.91B
• ▍Operating income -¥146.5M
• ▍Net margin -1.6%

Revenue ¥7.63B; Operating income ¥310.6M.

• ▍Revenue ¥7.63B
• ▍Operating income ¥310.6M
• ▍Net margin 2.4%

Revenue ¥7.17B; Operating income ¥140.1M.

• ▍Revenue ¥7.17B
• ▍Operating income ¥140.1M
• ▍Net margin 6.3%

Revenue ¥27.84B, −2,8% YoY; Operating income −409,8% YoY.

• ▍Revenue ¥27.84B, −2,8% YoY
• ▍Operating income −409,8% YoY
• ▍Net income −216,6% YoY
• ▍Free cash flow −2 458,2% YoY
• ▍Net margin -2.6%

Revenue ¥28.64B, +2,3% YoY; Operating income −22,0% YoY.

• ▍Revenue ¥28.64B, +2,3% YoY
• ▍Operating income −22,0% YoY
• ▍Net income −51,0% YoY
• ▍Free cash flow −67,0% YoY
• ▍Net margin 2.2%

Revenue ¥27.99B, +7,8% YoY; Operating income +0,2% YoY.

• ▍Revenue ¥27.99B, +7,8% YoY
• ▍Operating income +0,2% YoY
• ▍Net income +17,9% YoY
• ▍Free cash flow −56,0% YoY
• ▍Net margin 4.5%

Revenue ¥25.95B, +4,7% YoY; Operating income −48,6% YoY.

• ▍Revenue ¥25.95B, +4,7% YoY
• ▍Operating income −48,6% YoY
• ▍Net income −0,7% YoY
• ▍Free cash flow +117,4% YoY
• ▍Net margin 4.2%