Juki Corp

Juki Corp's capital structure is highly leveraged, with a debt-to-equity ratio of 2.56, indicating significant reliance on long-term debt to finance operations. The company's liquidity position is moderate, as evidenced by a current ratio of 1.26, but its cash and equivalents of 8.13 billion JPY are insufficient to cover the 82.58 billion JPY in long-term debt, resulting in a negative net cash position. This suggests a potential liquidity risk if the company faces unexpected cash outflows or a decline in operating cash flow.

Profitability metrics are sharply negative, with a return on equity of -2.58% and a return on assets of -0.59%, both well below the industry median for industrial machinery firms. The company reported an operating loss of 241 million JPY and a net loss of 834 million JPY, indicating a failure to generate sufficient operating income to cover costs and interest expenses. These results are inconsistent with the industry's typical performance, where positive returns are expected from efficient manufacturing and scale.

Juki Corp's revenue is concentrated in its core industrial machinery and automation segments, with no disclosed geographic diversification in the latest financials. This lack of geographic segmentation data limits the ability to assess exposure to regional economic shifts or supply chain disruptions. However, the company's primary market is Japan, and its performance is likely sensitive to domestic industrial demand and manufacturing trends.

The company's growth trajectory appears to be under pressure, with the most recent fiscal year showing a decline in profitability and a net loss. Analysts have estimated a mean revenue of 90 billion JPY for the upcoming period, slightly higher than the 88.76 billion JPY in the last reported period. However, the mean EPS estimate of 70.40 JPY is only marginally above the actual 46.95 JPY, suggesting limited upside in earnings. This indicates that while revenue may stabilize, earnings recovery is not yet assured.

Risk factors include the company's high leverage and negative net cash position, which could limit its ability to invest in growth or respond to market challenges. The risk assessment indicates a low probability of dilution, but the company's financial flexibility is constrained by its debt obligations. The absence of a significant equity cushion increases the risk of further losses impacting solvency.

Recent events include the publication of the latest financial results, which show a net loss and a decline in operating income. No recent filings or transcripts have been disclosed that provide additional insight into strategic initiatives or operational changes. The company's performance is likely being closely monitored by creditors and investors, particularly given the negative returns and high leverage.

Net income surged 143.3% year-over-year to JPY 1.4 billion in FY2026, signaling a strong return to profitability.

Free cash flow improved by 193.2% to JPY 2.9 billion in FY2026, demonstrating significant operational cash generation recovery.

Operating income jumped 165.3% to JPY 1.1 billion in FY2026, indicating a substantial turnaround in core business efficiency.

Long-term debt decreased to JPY 66.4 billion in FY2026, reflecting a deliberate deleveraging strategy and improved balance sheet health.

Gross profit stabilized at JPY 26.2 billion in FY2026, suggesting underlying pricing power despite recent revenue declines.

Revenue contracted by 3.2% annually over four years, highlighting a persistent and concerning long-term top-line decline trend.

The debt-to-equity ratio stands at 2.56, significantly exceeding the cohort median of 0.2 and indicating excessive financial leverage.

High credit risk flags suggest significant concerns regarding the company's ability to meet its financial obligations reliably.

Return on equity remains negative at -2.6%, underperforming the cohort median of 3.6% and failing to generate shareholder value.

Revenue ¥24.56B, −11,5% YoY; Operating income +2,1% YoY.

• ▍Revenue ¥24.56B, −11,5% YoY
• ▍Operating income +2,1% YoY
• ▍Net income +0,8% YoY
• ▍Net margin 5.4%

Revenue ¥19.83B, −8,0% YoY; Operating income +114,7% YoY.

• ▍Revenue ¥19.83B, −8,0% YoY
• ▍Operating income +114,7% YoY
• ▍Net income +97,5% YoY
• ▍Net margin -0.3%

Revenue ¥21.41B, −5,4% YoY; Operating income +123,3% YoY.

• ▍Revenue ¥21.41B, −5,4% YoY
• ▍Operating income +123,3% YoY
• ▍Net income +107,8% YoY
• ▍Net margin 0.4%

Revenue ¥22.96B, −1,2% YoY; Operating income −37,3% YoY.

• ▍Revenue ¥22.96B, −1,2% YoY
• ▍Operating income −37,3% YoY
• ▍Net income +105,9% YoY
• ▍Net margin 0.2%

Revenue ¥27.75B; Operating income ¥898.0M.

• ▍Revenue ¥27.75B
• ▍Operating income ¥898.0M
• ▍Net margin 4.7%

Revenue ¥21.55B; Operating income -¥496.0M.

• ▍Revenue ¥21.55B
• ▍Operating income -¥496.0M
• ▍Net margin -11.8%

Revenue ¥22.64B; Operating income -¥1.82B.

• ▍Revenue ¥22.64B
• ▍Operating income -¥1.82B
• ▍Net margin -5.1%

Revenue ¥23.24B; Operating income -¥241.0M.

• ▍Revenue ¥23.24B
• ▍Operating income -¥241.0M
• ▍Net margin -3.6%

Revenue ¥88.76B, −6,8% YoY; Operating income +165,3% YoY.

• ▍Revenue ¥88.76B, −6,8% YoY
• ▍Operating income +165,3% YoY
• ▍Net income +143,3% YoY
• ▍Free cash flow +193,2% YoY
• ▍Net margin 1.6%

Revenue ¥95.19B, +0,5% YoY; Operating income +54,5% YoY.

• ▍Revenue ¥95.19B, +0,5% YoY
• ▍Operating income +54,5% YoY
• ▍Net income +54,0% YoY
• ▍Free cash flow +55,9% YoY
• ▍Net margin -3.4%

Revenue ¥94.75B, −19,3% YoY; Operating income −239,6% YoY.

• ▍Revenue ¥94.75B, −19,3% YoY
• ▍Operating income −239,6% YoY
• ▍Net income −8 918,0% YoY
• ▍Free cash flow −2 273,5% YoY
• ▍Net margin -7.4%

Revenue ¥117.45B, +16,0% YoY; Operating income −31,1% YoY.

• ▍Revenue ¥117.45B, +16,0% YoY
• ▍Operating income −31,1% YoY
• ▍Net income −103,6% YoY
• ▍Free cash flow −91,0% YoY
• ▍Net margin -0.1%