Okano Valve Mfg. Co Ltd

Okano Valve Mfg. Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥3.73 billion, representing 29.6% of total assets. The company's current ratio of 7.73 indicates a robust ability to meet short-term obligations, well above the typical threshold of 1.5 for industrial firms. The debt-to-equity ratio of 0.1 suggests a conservative capital structure, with long-term debt accounting for only 10.5% of total equity.

Profitability metrics reveal a mixed picture. The company's return on equity (ROE) of 2.37% and return on assets (ROA) of 1.92% are below the industry median for industrial machinery firms, which typically report ROE in the 5-8% range. Gross margin of 32.6% (¥512 million gross profit on ¥1.57 billion revenue) is in line with industry norms, but operating margin of 17.1% (¥269 million operating income) is slightly below the median for firms in this sector.

Geographically, Okano Valve Mfg. Co Ltd's revenue is concentrated in Japan, with no disclosed international operations in the latest financial filings. The company's exposure to domestic markets may limit growth potential in a low-growth environment, though it benefits from stable domestic demand in industrial sectors.

Looking ahead, the company's revenue is projected to grow by 93.5% in the current fiscal year, based on the most recent actual revenue of ¥8.17 billion compared to the full-year ¥1.57 billion reported. This represents a significant acceleration, though the baseline is low. The outlook for the next fiscal year remains uncertain, with no specific guidance provided in the available data.

Risk factors include low liquidity risk and low dilution potential, with no immediate filing-based flags detected. The company's price-to-earnings ratio of 115.66 is significantly higher than the industry median, suggesting potential overvaluation. The high P/E is partially explained by the low net income of ¥242 million, which may not reflect the company's long-term earnings potential.

Recent events include the latest actual EPS of ¥688.48 and revenue of ¥8.17 billion, as reported in the most recent analyst estimates. No material changes in business operations or strategic direction were disclosed in the available filings or transcripts.

Revenue ¥2.25B, −8,7% YoY; Operating income +9 500,0% YoY.

• ▍Revenue ¥2.25B, −8,7% YoY
• ▍Operating income +9 500,0% YoY
• ▍Net income +76,6% YoY
• ▍Net margin 18.5%

Revenue ¥2.79B, +26,7% YoY; Operating income +20,3% YoY.

• ▍Revenue ¥2.79B, +26,7% YoY
• ▍Operating income +20,3% YoY
• ▍Net income +28,1% YoY
• ▍Net margin 16.2%

Revenue ¥1.44B, −8,2% YoY; Operating income −35,7% YoY.

• ▍Revenue ¥1.44B, −8,2% YoY
• ▍Operating income −35,7% YoY
• ▍Net income −43,0% YoY
• ▍Net margin 9.6%

Revenue ¥2.46B; Operating income ¥6.0M.

• ▍Revenue ¥2.46B
• ▍Operating income ¥6.0M
• ▍Net margin 9.6%

Revenue ¥1.94B; Operating income ¥400.0M.

• ▍Revenue ¥1.94B
• ▍Operating income ¥400.0M
• ▍Net margin 14.0%

Revenue ¥2.20B; Operating income ¥487.0M.

• ▍Revenue ¥2.20B
• ▍Operating income ¥487.0M
• ▍Net margin 16.0%

Revenue ¥1.57B; Operating income ¥269.0M.

• ▍Revenue ¥1.57B
• ▍Operating income ¥269.0M
• ▍Net margin 15.4%

Revenue ¥7.01B, −14,2% YoY; Operating income −33,2% YoY.

• ▍Revenue ¥7.01B, −14,2% YoY
• ▍Operating income −33,2% YoY
• ▍Net income −25,1% YoY
• ▍Net margin 11.8%

Revenue ¥8.17B, +10,3% YoY; Operating income +44,0% YoY.

• ▍Revenue ¥8.17B, +10,3% YoY
• ▍Operating income +44,0% YoY
• ▍Net income +57,9% YoY
• ▍Free cash flow +17,9% YoY
• ▍Net margin 13.5%

Revenue ¥7.41B, +7,5% YoY; Operating income +68,8% YoY.

• ▍Revenue ¥7.41B, +7,5% YoY
• ▍Operating income +68,8% YoY
• ▍Net income +44,5% YoY
• ▍Free cash flow +24,9% YoY
• ▍Net margin 9.4%

Revenue ¥6.89B, +17,7% YoY; Operating income +68,3% YoY.

• ▍Revenue ¥6.89B, +17,7% YoY
• ▍Operating income +68,3% YoY
• ▍Net income +58,9% YoY
• ▍Free cash flow +17,0% YoY
• ▍Net margin 7.0%