Kawata Mfg. Co Ltd

Kawata Mfg. Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥7.13 billion, which is significantly higher than its long-term debt of ¥7.02 billion. The company's liquidity FPT (free cash flow to total debt) is robust, indicating a solid ability to meet short-term obligations. The current ratio of 2.04 further supports this, showing that the company has twice as many current assets as current liabilities.

Profitability metrics for Kawata Mfg. Co Ltd are mixed. The company's return on equity (ROE) of 2.9% and return on assets (ROA) of 1.35% are below the industry median for industrial machinery and equipment firms, which typically report ROE and ROA in the 4-6% and 2-3% ranges, respectively. This suggests that the company is underperforming in terms of capital efficiency and asset utilization.

Geographically, Kawata Mfg. Co Ltd's revenue is concentrated in Japan, with no disclosed international segments. This concentration increases exposure to domestic economic conditions and regulatory changes. The company's revenue is entirely derived from its industrial goods segment, which is subject to cyclical demand fluctuations in the manufacturing sector.

Looking ahead, Kawata Mfg. Co Ltd is projected to experience modest revenue growth. The company's current fiscal year (FY) revenue is expected to increase by approximately 20% year-over-year, driven by increased demand for industrial machinery in Japan. The next fiscal year is forecasted to see a similar growth rate, assuming stable macroeconomic conditions.

Risk factors for Kawata Mfg. Co Ltd include low liquidity risk and low dilution potential. The company has no immediate filing-based liquidity or dilution flags, and its diluted shares outstanding are equal to its basic shares, indicating no near-term dilution pressure. The company's debt-to-equity ratio of 0.57 is relatively low, suggesting a conservative capital structure.

Recent events for Kawata Mfg. Co Ltd include the release of its latest financial results, which showed a net income of ¥360.36 million. The company also reported a negative operating cash flow of ¥139.91 million, which may be attributed to increased capital expenditures of ¥761.04 million. These figures were disclosed in the company's latest financial filing.

Operating and net margins exceed the industrial machinery cohort median, indicating superior profitability relative to peers.

Net income demonstrated strong historical growth with an 18.1% CAGR over the four-year period ending fiscal 2025.

Gross profit reached 6.25 billion JPY in fiscal 2025, maintaining high levels despite recent revenue fluctuations.

The company maintains low dilution, liquidity, and credit risk flags, suggesting a stable financial foundation.

Free cash flow turned positive in fiscal 2024 and remained positive in fiscal 2025, improving cash generation.

Debt-to-equity ratio of 0.57 places the company in the bottom quartile of its peer cohort.

Cash conversion ratio of -0.39 ranks in the bottom quartile, highlighting poor cash generation efficiency.

Revenue ¥4.73B, −3,7% YoY; Operating income −85,7% YoY.

• ▍Revenue ¥4.73B, −3,7% YoY
• ▍Operating income −85,7% YoY
• ▍Net income −90,7% YoY
• ▍Net margin 0.5%

Revenue ¥4.46B, −13,7% YoY; Operating income −130,1% YoY.

• ▍Revenue ¥4.46B, −13,7% YoY
• ▍Operating income −130,1% YoY
• ▍Net income −2 220,7% YoY
• ▍Net margin -3.0%

Revenue ¥4.75B, +0,0% YoY; Operating income +244,4% YoY.

• ▍Revenue ¥4.75B, +0,0% YoY
• ▍Operating income +244,4% YoY
• ▍Net income +79,0% YoY
• ▍Net margin 5.5%

Revenue ¥5.94B, −5,7% YoY; Operating income −15,4% YoY.

• ▍Revenue ¥5.94B, −5,7% YoY
• ▍Operating income −15,4% YoY
• ▍Net income −50,4% YoY
• ▍Net margin 3.0%

Revenue ¥4.91B; Operating income ¥335.9M.

• ▍Revenue ¥4.91B
• ▍Operating income ¥335.9M
• ▍Net margin 5.2%

Revenue ¥5.16B; Operating income ¥160.7M.

• ▍Revenue ¥5.16B
• ▍Operating income ¥160.7M
• ▍Net margin -0.1%

Revenue ¥4.75B; Operating income ¥124.7M.

• ▍Revenue ¥4.75B
• ▍Operating income ¥124.7M
• ▍Net margin 3.1%

Revenue ¥6.30B; Operating income ¥421.8M.

• ▍Revenue ¥6.30B
• ▍Operating income ¥421.8M
• ▍Net margin 5.7%

Revenue ¥20.77B, −15,2% YoY; Operating income −20,8% YoY.

• ▍Revenue ¥20.77B, −15,2% YoY
• ▍Operating income −20,8% YoY
• ▍Net income −38,0% YoY
• ▍Free cash flow −22,2% YoY
• ▍Net margin 2.8%

Revenue ¥24.49B, +30,1% YoY; Operating income +155,4% YoY.

• ▍Revenue ¥24.49B, +30,1% YoY
• ▍Operating income +155,4% YoY
• ▍Net income +164,5% YoY
• ▍Free cash flow +146,1% YoY
• ▍Net margin 3.8%

Revenue ¥18.83B, +2,4% YoY; Operating income −35,7% YoY.

• ▍Revenue ¥18.83B, +2,4% YoY
• ▍Operating income −35,7% YoY
• ▍Net income −35,0% YoY
• ▍Free cash flow −300,4% YoY
• ▍Net margin 1.9%

Revenue ¥18.38B, +9,5% YoY; Operating income +62,4% YoY.

• ▍Revenue ¥18.38B, +9,5% YoY
• ▍Operating income +62,4% YoY
• ▍Net income +82,4% YoY
• ▍Free cash flow −7,2% YoY
• ▍Net margin 2.9%