Nakakita Seisakusho Co Ltd

Nakakita Seisakusho maintains a strong liquidity position, with cash and equivalents amounting to ¥4.82 billion, representing 15.2% of total assets. The company's liquidity FPT (free cash flow to total debt) is robust, supported by an operating cash flow of ¥811.5 million and a current ratio of 3.39. The debt-to-equity ratio of 0.07 indicates a conservative capital structure with minimal leverage.

Profitability metrics show a mixed picture. The company's return on equity (ROE) of 0.56% and return on assets (ROA) of 0.44% are below the industry median for industrial machinery firms, which typically report ROE in the 3-5% range. Gross profit of ¥756.9 million represents 14.7% of revenue, but operating income of ¥143.4 million reflects a 2.8% margin, which is in line with the industry average.

Geographically, Nakakita Seisakusho's revenue is concentrated in Japan, with no disclosed international operations. The company's exposure to domestic industrial demand is a key risk factor, as it lacks diversification across regions or markets. Segment-wise, the company operates as a single business unit, with no material diversification across product lines or customer bases.

Growth prospects are modest, with revenue of ¥5.16 billion in the latest period. Analyst estimates suggest a recent actual revenue of ¥23.77 billion, but this appears to be a historical or multi-period aggregate. The company's outlook for the current fiscal year shows no significant revenue growth, with a flat trajectory expected. Capex of ¥309.6 million was recorded, but the company's capital expenditure outlook remains neutral.

Risk factors include low liquidity and dilution risk, with no immediate filing-based flags detected. The company's low debt load and strong cash position mitigate credit risk. However, the high price-to-earnings ratio of 136.63 and price-to-book ratio of 0.77 suggest a valuation that is not supported by current earnings or asset values. No dilution sources were identified in recent filings, and the dilution potential remains low.

Recent events include the latest financial filing, which shows a net income of ¥139.5 million. No material changes in business strategy or capital structure were disclosed in the most recent 10-K or earnings call transcripts. The company's recent performance has been stable, with no significant operational or financial disruptions reported.

Revenue surged 17.9% year-over-year to JPY 23.8 billion, demonstrating strong top-line growth momentum.

Operating income jumped 47.6% year-over-year, indicating significant improvement in core operational profitability.

Free cash flow increased 122.8% year-over-year to JPY 825 million, highlighting robust cash generation.

Cash conversion ratio of 5.82 ranks best-in-class among 854 industrial machinery peers.

Net income grew 26.6% year-over-year to JPY 1.73 billion, reflecting expanding bottom-line results.

Return on equity of 0.56% significantly underperforms the 3.56% median for comparable industrial firms.

Four-year revenue CAGR of -5.9% indicates a long-term declining trend despite recent recovery.

Long-term debt increased to JPY 3.08 billion, up from JPY 1.2 billion four years ago.

Revenue ¥6.71B; Operating income ¥273.3M.

• ▍Revenue ¥6.71B
• ▍Operating income ¥273.3M
• ▍Net margin 5.5%

Revenue ¥7.31B, +21,6% YoY; Operating income +44,0% YoY.

• ▍Revenue ¥7.31B, +21,6% YoY
• ▍Operating income +44,0% YoY
• ▍Net income +80,3% YoY
• ▍Net margin 6.2%

Revenue ¥7.08B, +45,9% YoY; Operating income +204,9% YoY.

• ▍Revenue ¥7.08B, +45,9% YoY
• ▍Operating income +204,9% YoY
• ▍Net income −45,3% YoY
• ▍Net margin 6.2%

Revenue ¥7.79B, +51,0% YoY; Operating income +240,8% YoY.

• ▍Revenue ¥7.79B, +51,0% YoY
• ▍Operating income +240,8% YoY
• ▍Net income +247,6% YoY
• ▍Net margin 6.2%

Revenue ¥23.77B, +27,7% YoY; Operating income −3,6% YoY.

• ▍Revenue ¥23.77B, +27,7% YoY
• ▍Operating income −3,6% YoY
• ▍Net income +69,5% YoY
• ▍Free cash flow +28,5% YoY
• ▍Net margin 7.3%