Maruyama MFG Co Inc

Maruyama MFG Co Inc has a market price of 2,523 JPY per share, with a market capitalization of 9.89 billion JPY, and a price-to-earnings ratio of 29.87, which is above the industry median of 22.0. The company's price-to-book ratio of 0.51 suggests that the market values the company at a discount to its book value, which may reflect concerns about asset quality or future earnings potential.

The company's return on equity (ROE) of 1.71% is significantly below the industry median of 8.5%, indicating weak profitability relative to its equity base. Similarly, its return on assets (ROA) of 0.87% is below the industry median of 3.2%, suggesting that the company is not efficiently utilizing its assets to generate returns. The operating margin of 4.83% is also below the industry median of 7.5%, further highlighting the company's underperformance in converting revenue into operating profit.

Maruyama MFG Co Inc's revenue is concentrated in Japan, with no disclosed international segments, and the company does not report revenue by product lines. This lack of diversification increases its exposure to domestic economic conditions and regulatory changes. The company's revenue concentration in a single geographic market is a notable risk factor.

The company's revenue in the latest period was 10.82 billion JPY, which is below the analyst estimate of 41.27 billion JPY. This discrepancy suggests either a significant underperformance or a misalignment in expectations. Looking ahead, the company is expected to see a decline in revenue, with no clear drivers of growth identified in the current financial data. The capital expenditure of -998 million JPY indicates a reduction in investment, which may signal a strategic shift or financial constraints.

The company's liquidity position is characterized by a current ratio of 1.47, which is below the industry median of 1.8, indicating a moderate risk of short-term liquidity stress. The company has negative net cash of -3.13 billion JPY after subtracting total debt, which raises concerns about its ability to meet short-term obligations without additional financing. The risk assessment highlights liquidity as a medium concern, with dilution risk rated as low.

Recent events include a negative operating cash flow of -843 million JPY, which suggests that the company is not generating sufficient cash from operations to sustain its activities. The company has not disclosed any recent filings or transcripts that provide insight into its strategic direction or operational performance. The absence of recent communication from management increases uncertainty for investors.

Net income grew 24.4% year-over-year to JPY 744 million in fiscal 2025, demonstrating recent profitability improvement.

Gross profit reached JPY 10.6 billion in fiscal 2025, indicating stable top-line generation despite operating margin compression.

The debt-to-equity ratio of 0.36 is slightly below the cohort median of 0.35, suggesting manageable leverage levels.

Revenue maintained a positive 2.4% CAGR over four years, showing consistent long-term sales growth trajectory.

Dilution risk is assessed as low, providing some protection for existing shareholders against equity value erosion.

Free cash flow turned negative at JPY -203 million in fiscal 2025, signaling significant cash generation challenges.

Return on equity of 1.71% is significantly below the cohort median of 4.43%, indicating poor capital efficiency.

Credit risk is flagged as high, posing substantial potential threats to the company's financial stability and borrowing costs.

Cash conversion ratio of -2.55 places the company in the bottom quartile of its heavy machinery cohort.

Revenue ¥8.71B, +17,3% YoY; Operating income +105,4% YoY.

• ▍Revenue ¥8.71B, +17,3% YoY
• ▍Operating income +105,4% YoY
• ▍Net income +109,0% YoY
• ▍Net margin 0.2%

Revenue ¥11.59B, +6,2% YoY; Operating income +270,8% YoY.

• ▍Revenue ¥11.59B, +6,2% YoY
• ▍Operating income +270,8% YoY
• ▍Net income +301,2% YoY
• ▍Net margin 1.5%

Revenue ¥11.37B, −1,0% YoY; Operating income +0,5% YoY.

• ▍Revenue ¥11.37B, −1,0% YoY
• ▍Operating income +0,5% YoY
• ▍Net income +9,8% YoY
• ▍Net margin 5.2%

Revenue ¥10.88B, +0,5% YoY; Operating income −23,5% YoY.

• ▍Revenue ¥10.88B, +0,5% YoY
• ▍Operating income −23,5% YoY
• ▍Net income −52,0% YoY
• ▍Net margin 1.5%

Revenue ¥7.42B; Operating income -¥424.0M.

• ▍Revenue ¥7.42B
• ▍Operating income -¥424.0M
• ▍Net margin -2.4%

Revenue ¥10.92B; Operating income ¥72.0M.

• ▍Revenue ¥10.92B
• ▍Operating income ¥72.0M
• ▍Net margin -0.8%

Revenue ¥11.49B; Operating income ¥832.0M.

• ▍Revenue ¥11.49B
• ▍Operating income ¥832.0M
• ▍Net margin 4.7%

Revenue ¥10.82B; Operating income ¥523.0M.

• ▍Revenue ¥10.82B
• ▍Operating income ¥523.0M
• ▍Net margin 3.1%

Revenue ¥41.27B, +3,1% YoY; Operating income −7,6% YoY.

• ▍Revenue ¥41.27B, +3,1% YoY
• ▍Operating income −7,6% YoY
• ▍Net income +24,4% YoY
• ▍Free cash flow −63,7% YoY
• ▍Net margin 1.8%

Revenue ¥40.01B, −3,4% YoY; Operating income −33,9% YoY.

• ▍Revenue ¥40.01B, −3,4% YoY
• ▍Operating income −33,9% YoY
• ▍Net income −51,0% YoY
• ▍Free cash flow −179,0% YoY
• ▍Net margin 1.5%

Revenue ¥41.43B, +4,5% YoY; Operating income +11,5% YoY.

• ▍Revenue ¥41.43B, +4,5% YoY
• ▍Operating income +11,5% YoY
• ▍Net income +5,3% YoY
• ▍Free cash flow −86,8% YoY
• ▍Net margin 2.9%

Revenue ¥39.64B, +5,7% YoY; Operating income +23,3% YoY.

• ▍Revenue ¥39.64B, +5,7% YoY
• ▍Operating income +23,3% YoY
• ▍Net income +35,4% YoY
• ▍Free cash flow +81,2% YoY
• ▍Net margin 2.9%