Yushin Co

Yushin Co maintains a strong liquidity position, with cash and equivalents amounting to ¥13.4 billion, representing 31.3% of total assets. The company's liquidity FPT (free cash flow to total debt) is robust, given its minimal long-term debt of ¥8.9 million and a current ratio of 3.65, indicating a solid ability to meet short-term obligations. The price-to-book ratio of 0.64 suggests the company is trading at a discount to its book value, which may reflect market skepticism or undervaluation.

In terms of profitability, Yushin Co's return on equity (ROE) of 2.26% and return on assets (ROA) of 1.8% are below the industry median for Industrial Machinery & Equipment, which typically sees ROE in the 5-8% range and ROA in the 3-5% range. The company's gross margin of 42.3% is in line with industry norms, but its operating margin of 15.7% is slightly below the median of 17.5%. This suggests that while the company is efficient in controlling production costs, it may face challenges in managing operating expenses.

Geographically, Yushin Co's revenue is concentrated in Japan, with no disclosed international segments in the latest financials. This concentration may expose the company to domestic economic fluctuations and regulatory changes. The company's revenue of ¥7.2 billion is derived from a single business segment, industrial machinery and equipment, which increases its vulnerability to sector-specific downturns.

Looking ahead, Yushin Co's revenue is projected to grow by 12.3% in the current fiscal year and 8.1% in the next, based on analyst estimates and historical performance. The company's capital expenditure of -¥344.4 million indicates a reduction in investment, which may signal a shift toward cost optimization or a slowdown in expansion plans. This aligns with the broader industry trend of capital discipline in response to macroeconomic uncertainty.

The company's risk profile is characterized by low liquidity and dilution risks, with no immediate filing-based flags detected. The debt-to-equity ratio of 0.0 underscores a conservative capital structure, and the absence of dilution potential in both basic and diluted shares suggests no near-term pressure from equity issuance. However, the company's low ROE and ROA highlight the need for operational improvements to enhance shareholder returns.

Recent events, including the latest 10-K filing and earnings transcript, indicate a stable business environment with no material changes in operations or strategy. The company's management has emphasized cost control and operational efficiency as key priorities for the upcoming fiscal year.

Revenue grew 10.6% year-over-year to JPY 26.1 billion, demonstrating strong top-line expansion momentum.

Net margin of 10.7% significantly exceeds the cohort median of 4.9%, indicating superior profitability.

Free cash flow increased 12.1% year-over-year to JPY 1.18 billion, supporting financial flexibility.

The company maintains a zero debt-to-equity ratio, providing a pristine balance sheet with low credit risk.

Cash conversion ratio of 0.15 is well below the cohort median of 0.95, suggesting poor cash generation.

Long-term debt increased significantly from JPY 1.2 billion in 2022 to JPY 8.9 billion in 2024.

Operating income growth of 6.1% lagged behind the 10.6% revenue growth rate, indicating margin compression.

Revenue ¥6.12B, −8,0% YoY; Operating income −68,3% YoY.

• ▍Revenue ¥6.12B, −8,0% YoY
• ▍Operating income −68,3% YoY
• ▍Net income −70,3% YoY
• ▍Net margin 2.1%

Revenue ¥5.31B, −18,9% YoY; Operating income −99,1% YoY.

• ▍Revenue ¥5.31B, −18,9% YoY
• ▍Operating income −99,1% YoY
• ▍Net income −90,0% YoY
• ▍Net margin 0.8%

Revenue ¥5.32B, −4,8% YoY; Operating income +28,6% YoY.

• ▍Revenue ¥5.32B, −4,8% YoY
• ▍Operating income +28,6% YoY
• ▍Net income −30,2% YoY
• ▍Net margin 1.4%

Revenue ¥7.34B, +1,9% YoY; Operating income +4,8% YoY.

• ▍Revenue ¥7.34B, +1,9% YoY
• ▍Operating income +4,8% YoY
• ▍Net income −6,3% YoY
• ▍Net margin 9.8%

Revenue ¥6.65B; Operating income ¥493.6M.

• ▍Revenue ¥6.65B
• ▍Operating income ¥493.6M
• ▍Net margin 6.6%

Revenue ¥6.54B; Operating income ¥788.4M.

• ▍Revenue ¥6.54B
• ▍Operating income ¥788.4M
• ▍Net margin 6.6%

Revenue ¥5.59B; Operating income ¥123.0M.

• ▍Revenue ¥5.59B
• ▍Operating income ¥123.0M
• ▍Net margin 1.9%

Revenue ¥7.20B; Operating income ¥1.13B.

• ▍Revenue ¥7.20B
• ▍Operating income ¥1.13B
• ▍Net margin 10.7%

Revenue ¥26.13B, +10,6% YoY; Operating income +6,1% YoY.

• ▍Revenue ¥26.13B, +10,6% YoY
• ▍Operating income +6,1% YoY
• ▍Net income +0,0% YoY
• ▍Free cash flow +12,1% YoY
• ▍Net margin 6.5%

Revenue ¥23.62B, +5,5% YoY; Operating income −7,7% YoY.

• ▍Revenue ¥23.62B, +5,5% YoY
• ▍Operating income −7,7% YoY
• ▍Net income −12,0% YoY
• ▍Free cash flow −30,5% YoY
• ▍Net margin 7.2%

Revenue ¥22.37B, +7,2% YoY; Operating income −8,7% YoY.

• ▍Revenue ¥22.37B, +7,2% YoY
• ▍Operating income −8,7% YoY
• ▍Net income −9,0% YoY
• ▍Free cash flow +34,6% YoY
• ▍Net margin 8.6%

Revenue ¥20.87B, +13,0% YoY; Operating income +14,6% YoY.

• ▍Revenue ¥20.87B, +13,0% YoY
• ▍Operating income +14,6% YoY
• ▍Net income +15,6% YoY
• ▍Free cash flow −39,0% YoY
• ▍Net margin 10.1%