Japan Power Fastening Co Ltd

Japan Power Fastening Co Ltd has a price-to-book ratio of 0.58 and a price-to-tangible-book ratio of 0.58, indicating that the company is trading at a discount relative to its book value. The company's liquidity position is characterized by a current ratio of 1.66, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the company's enterprise value to EBITDA ratio is negative at -60.19, reflecting a loss in operating income and a lack of positive earnings.

The company's profitability is underperforming, with a return on equity of -1.27% and a return on assets of -0.62%, both significantly below the industry median for Industrial Machinery & Equipment firms. The operating margin is negative, and the company reported a net loss of 43.37 million JPY, indicating a challenging operating environment.

The company's revenue is concentrated in a few key segments, with disclosed operations in industrial machinery and equipment. The geographic exposure is primarily within Japan, with no significant international revenue disclosed in the latest financials. This concentration may expose the company to regional economic fluctuations and regulatory changes.

The company's growth trajectory is mixed, with a reported revenue of 11.22 billion JPY in the latest period. However, the operating income is negative, and the company is not generating positive earnings, which may limit its ability to invest in growth initiatives. The debt-to-equity ratio of 0.62 suggests a moderate level of leverage, but the negative net cash position raises concerns about liquidity.

The risk assessment indicates a medium liquidity risk and a low dilution risk. The company's key financial flags include a negative net cash position after subtracting total debt, which could impact its ability to meet short-term obligations. The company's recent financial performance, including a net loss and negative operating income, may also affect its creditworthiness and investor confidence.

Recent events, including the latest financial filings, show a continued decline in profitability. The company's last actual EPS was -2.11 JPY, and the last actual revenue was 5.06 billion JPY, both indicating a challenging operating environment. The company's management will need to address these issues to restore profitability and investor confidence.

Long-term debt decreased to JPY 2.05 billion in FY2026, indicating a consistent deleveraging trend over the past four fiscal years.

Gross profit remained relatively stable at JPY 1.21 billion in FY2026, suggesting some resilience in core production margins despite revenue declines.

The company reported positive free cash flow of JPY 155 million in FY2025, demonstrating intermittent ability to generate cash from operations.

Net income plummeted to a loss of JPY 30.2 million in FY2026, reflecting severe profitability deterioration compared to prior years.

Operating income turned negative at JPY -3.1 million in FY2026, signaling that core business operations are currently unprofitable.

Revenue declined with a negative 1.3% CAGR over four years, indicating a shrinking top line and lack of growth momentum.

Operating and net margins sit in the bottom quartile of the Industrial Machinery cohort, highlighting significant competitive disadvantage.

The company faces high credit risk and medium liquidity risk, posing substantial threats to financial stability and operational continuity.

Revenue ¥1.31B, −6,1% YoY; Operating income +1 056,5% YoY.

• ▍Revenue ¥1.31B, −6,1% YoY
• ▍Operating income +1 056,5% YoY
• ▍Net income −40,4% YoY
• ▍Net margin 3.1%

Revenue ¥1.30B, −0,7% YoY; Operating income +110,0% YoY.

• ▍Revenue ¥1.30B, −0,7% YoY
• ▍Operating income +110,0% YoY
• ▍Net income −89,4% YoY
• ▍Net margin 1.0%

Revenue ¥1.28B, +5,3% YoY; Operating income +103,3% YoY.

• ▍Revenue ¥1.28B, +5,3% YoY
• ▍Operating income +103,3% YoY
• ▍Net income −101,5% YoY
• ▍Net margin -0.4%

Revenue ¥1.17B, +4,7% YoY; Operating income −53,0% YoY.

• ▍Revenue ¥1.17B, +4,7% YoY
• ▍Operating income −53,0% YoY
• ▍Net income −81,2% YoY
• ▍Net margin -6.7%

Revenue ¥1.39B; Operating income ¥3.1M.

• ▍Revenue ¥1.39B
• ▍Operating income ¥3.1M
• ▍Net margin 4.9%

Revenue ¥1.31B; Operating income -¥163.0M.

• ▍Revenue ¥1.31B
• ▍Operating income -¥163.0M
• ▍Net margin 9.5%

Revenue ¥1.22B; Operating income -¥120.6M.

• ▍Revenue ¥1.22B
• ▍Operating income -¥120.6M
• ▍Net margin 29.6%

Revenue ¥1.12B; Operating income -¥38.7M.

• ▍Revenue ¥1.12B
• ▍Operating income -¥38.7M
• ▍Net margin -3.9%

Revenue ¥5.06B, +0,5% YoY; Operating income +99,0% YoY.

• ▍Revenue ¥5.06B, +0,5% YoY
• ▍Operating income +99,0% YoY
• ▍Net income −105,9% YoY
• ▍Free cash flow −142,4% YoY
• ▍Net margin -0.6%

Revenue ¥5.04B, −1,3% YoY; Operating income −117,5% YoY.

• ▍Revenue ¥5.04B, −1,3% YoY
• ▍Operating income −117,5% YoY
• ▍Net income +569,7% YoY
• ▍Free cash flow +561,1% YoY
• ▍Net margin 10.1%

Revenue ¥5.11B, −4,6% YoY; Operating income −350,1% YoY.

• ▍Revenue ¥5.11B, −4,6% YoY
• ▍Operating income −350,1% YoY
• ▍Net income −369,6% YoY
• ▍Free cash flow −176,4% YoY
• ▍Net margin -2.1%

Revenue ¥5.35B, +0,4% YoY; Operating income +298,4% YoY.

• ▍Revenue ¥5.35B, +0,4% YoY
• ▍Operating income +298,4% YoY
• ▍Net income −98,1% YoY
• ▍Free cash flow −98,0% YoY
• ▍Net margin 0.8%