Convum Ltd

Convum Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥2,682,526,000, representing a significant portion of its total assets. The company's current ratio of 18.28 indicates a robust ability to meet short-term obligations, and its debt-to-equity ratio of 0.0 suggests a conservative capital structure with no long-term debt.

In terms of profitability, Convum Ltd's return on equity (ROE) of 0.84% and return on assets (ROA) of 0.78% are below the typical thresholds for industrial machinery firms, which often aim for ROE above 10% and ROA above 5%. The company's operating margin, calculated as operating income of ¥65,868,000 divided by revenue of ¥427,779,000, is approximately 15.4%, which is in line with the industry median of 15%.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification may expose the company to regional economic fluctuations and market-specific risks. The absence of segment or geographic breakdown in the financial data limits the ability to assess the resilience of different parts of the business.

Convum Ltd's growth trajectory appears stable, with no significant changes in revenue or earnings reported in the latest financial data. The company's revenue of ¥427,779,000 and net income of ¥48,182,000 suggest a consistent performance, but the absence of forward-looking guidance or analyst estimates for the next fiscal year makes it difficult to project future growth.

The risk assessment indicates a low probability of liquidity and dilution issues, with no immediate filing-based flags detected. The company's low debt levels and high cash reserves reduce the risk of financial distress. However, the high price-to-earnings ratio of 104.65 suggests that the stock may be overvalued relative to its earnings, which could pose a risk to investors.

Recent events, including the latest financial filings and transcripts, do not indicate any material changes in the company's operations or strategic direction. The absence of significant news or events in the recent period suggests a stable but potentially uneventful business environment for Convum Ltd.

The company maintains a zero long-term debt position, eliminating interest expenses and providing a stronger balance sheet than the 0.2 median debt-to-equity ratio.

Free cash flow surged 44.9% year-over-year to 289 million JPY in FY2026, indicating robust cash generation capabilities despite revenue fluctuations.

Low dilution, liquidity, and credit risk flags suggest a stable operational environment with minimal immediate financial distress threats.

Revenue declined at a 5.3% compound annual growth rate over four years, signaling a persistent contraction in top-line business activity.

Operating income decreased 3.6% year-over-year in FY2026, reflecting pressure on core operational earnings despite stable net income.

Revenue ¥526.1M, +11,5% YoY; Operating income −20,3% YoY.

• ▍Revenue ¥526.1M, +11,5% YoY
• ▍Operating income −20,3% YoY
• ▍Net income +1,8% YoY
• ▍Net margin 12.6%

Revenue ¥475.7M, +1,3% YoY; Operating income −8,7% YoY.

• ▍Revenue ¥475.7M, +1,3% YoY
• ▍Operating income −8,7% YoY
• ▍Net income −6,2% YoY
• ▍Net margin 12.7%

Revenue ¥494.5M, +2,7% YoY; Operating income −14,9% YoY.

• ▍Revenue ¥494.5M, +2,7% YoY
• ▍Operating income −14,9% YoY
• ▍Net income −23,7% YoY
• ▍Net margin 10.9%

Revenue ¥485.9M, +13,6% YoY; Operating income +33,9% YoY.

• ▍Revenue ¥485.9M, +13,6% YoY
• ▍Operating income +33,9% YoY
• ▍Net income +41,8% YoY
• ▍Net margin 14.1%

Revenue ¥471.8M; Operating income ¥67.0M.

• ▍Revenue ¥471.8M
• ▍Operating income ¥67.0M
• ▍Net margin 13.8%

Revenue ¥469.6M; Operating income ¥78.9M.

• ▍Revenue ¥469.6M
• ▍Operating income ¥78.9M
• ▍Net margin 13.7%

Revenue ¥481.5M; Operating income ¥83.8M.

• ▍Revenue ¥481.5M
• ▍Operating income ¥83.8M
• ▍Net margin 14.6%

Revenue ¥427.8M; Operating income ¥65.9M.

• ▍Revenue ¥427.8M
• ▍Operating income ¥65.9M
• ▍Net margin 11.3%

Revenue ¥1.98B, +7,1% YoY; Operating income −3,6% YoY.

• ▍Revenue ¥1.98B, +7,1% YoY
• ▍Operating income −3,6% YoY
• ▍Net income +0,3% YoY
• ▍Free cash flow +44,9% YoY
• ▍Net margin 12.5%

Revenue ¥1.85B, −3,8% YoY; Operating income +0,5% YoY.

• ▍Revenue ¥1.85B, −3,8% YoY
• ▍Operating income +0,5% YoY
• ▍Net income +4,4% YoY
• ▍Free cash flow +6,9% YoY
• ▍Net margin 13.4%

Revenue ¥1.92B, −19,2% YoY; Operating income −51,4% YoY.

• ▍Revenue ¥1.92B, −19,2% YoY
• ▍Operating income −51,4% YoY
• ▍Net income −48,2% YoY
• ▍Free cash flow −48,6% YoY
• ▍Net margin 12.3%

Revenue ¥2.38B, −3,6% YoY; Operating income +14,8% YoY.

• ▍Revenue ¥2.38B, −3,6% YoY
• ▍Operating income +14,8% YoY
• ▍Net income +13,9% YoY
• ▍Free cash flow +3 341,4% YoY
• ▍Net margin 19.3%