NS Tool Co Ltd

NS Tool Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥9.87 billion, representing nearly half of its total assets of ¥19.94 billion. The company has no long-term debt and a debt-to-equity ratio of 0.0, indicating a conservative capital structure. The current ratio of 10.6 suggests robust short-term liquidity, well above the typical threshold of 1.5 for industrial firms. Profitability metrics show a return on equity (ROE) of 6.87% and a return on assets (ROA) of 6.34%, both of which are in line with industry norms for industrial machinery and equipment firms. The company's operating income of ¥1.76 billion and net income of ¥1.26 billion reflect a healthy margin structure, with gross profit of ¥4.98 billion supporting these returns. The company operates in two segments: End Mill and Others. The End Mill segment is the core business, focusing on carbide small-diameter end mills, while the Others segment includes plastic moldings for tool cases. Revenue concentration is not disclosed by segment, but the End Mill segment is likely the dominant contributor given its focus on the primary product line. Looking ahead, the company is expected to maintain stable growth, supported by its strong cash position and low debt. The operating cash flow of ¥2.01 billion and free cash flow of ¥1.11 billion provide flexibility for reinvestment or shareholder returns. Capital expenditures were negative at ¥111.17 million, suggesting asset sales or reduced investment in the period. Risk factors are minimal, with no immediate liquidity or dilution flags detected. The company has no long-term debt, and both basic and diluted shares outstanding are identical at 23.48 million, indicating no near-term dilution pressure. The absence of dilution risk and strong liquidity position further support the company's financial stability. Recent financial filings and transcripts do not highlight any material events or strategic shifts. The company's last actual EPS was 50.80 JPY, and its last actual revenue was ¥9.43 billion, aligning with analyst estimates. No significant changes in business strategy or operational performance were reported in the latest disclosures.