Okaya Electric Industries Co Ltd

Okaya Electric Industries Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥4.89 billion, representing 28.7% of total assets. The company's liquidity FPT score indicates a low liquidity risk, supported by a current ratio of 2.36, which is above the industry median of 1.85. However, the company reported negative operating income of ¥352.7 million and a net loss of ¥357.3 million in the latest period, indicating a significant decline in profitability compared to the industry median ROIC of 8.2%.

The company's return on equity (ROE) was -3.95%, and return on assets (ROA) was -2.09%, both well below the industry median ROE of 5.1% and ROA of 3.4%. This underperformance is primarily attributed to declining demand in the industrial goods sector and rising production costs. The company's gross profit margin of 17.1% is also below the industry median of 22.3%, further highlighting operational inefficiencies.

Okaya Electric Industries Co Ltd derives the majority of its revenue from the electrical components and equipment segment, with a geographic concentration in Japan, where it generates approximately 78% of its total revenue. The company has limited exposure to international markets, which may limit its growth potential in the face of domestic economic headwinds. The company's revenue concentration in a single geographic region increases its vulnerability to local economic and regulatory changes.

The company's revenue in the latest period was ¥2.94 billion, representing a decline from the previous year. Analysts estimate that revenue will remain flat in the next fiscal year, with no significant growth expected. The company's capital expenditures were ¥398.1 million, primarily directed toward maintaining existing production facilities. The company's capex is below the industry median of ¥520 million, suggesting a conservative approach to reinvestment.

The company's risk assessment indicates a low dilution risk, with no immediate filing-based liquidity or dilution flags detected. The company's debt-to-equity ratio of 0.53 is below the industry median of 0.75, indicating a relatively conservative capital structure. However, the company's negative net income and operating income raise concerns about its ability to service its ¥4.76 billion in long-term debt. The company's liquidity position remains strong, but its profitability challenges could impact its long-term financial stability.

Recent filings and transcripts indicate that the company is focusing on cost optimization and supply chain efficiency to improve its financial performance. The company has also been exploring new markets in Southeast Asia to diversify its revenue base. However, these initiatives are still in the early stages, and their impact on the company's financial results remains to be seen.

Revenue ¥2.51B, +3,2% YoY; Operating income −0,5% YoY.

• ▍Revenue ¥2.51B, +3,2% YoY
• ▍Operating income −0,5% YoY
• ▍Net income +22,1% YoY
• ▍Net margin -11.1%

Revenue ¥2.65B, +20,1% YoY; Operating income −0,4% YoY.

• ▍Revenue ¥2.65B, +20,1% YoY
• ▍Operating income −0,4% YoY
• ▍Net income −27,5% YoY
• ▍Net margin -18.3%

Revenue ¥2.33B, +0,0% YoY; Operating income −24,7% YoY.

• ▍Revenue ¥2.33B, +0,0% YoY
• ▍Operating income −24,7% YoY
• ▍Net income −17,1% YoY
• ▍Net margin -21.0%

Revenue ¥2.63B, −10,6% YoY; Operating income −58,6% YoY.

• ▍Revenue ¥2.63B, −10,6% YoY
• ▍Operating income −58,6% YoY
• ▍Net income −53,3% YoY
• ▍Net margin -20.8%

Revenue ¥2.44B; Operating income -¥306.6M.

• ▍Revenue ¥2.44B
• ▍Operating income -¥306.6M
• ▍Net margin -14.8%

Revenue ¥2.21B; Operating income -¥465.3M.

• ▍Revenue ¥2.21B
• ▍Operating income -¥465.3M
• ▍Net margin -17.3%

Revenue ¥2.33B; Operating income -¥432.8M.

• ▍Revenue ¥2.33B
• ▍Operating income -¥432.8M
• ▍Net margin -17.9%

Revenue ¥2.94B; Operating income -¥352.7M.

• ▍Revenue ¥2.94B
• ▍Operating income -¥352.7M
• ▍Net margin -12.2%

Revenue ¥9.60B, −33,0% YoY; Operating income −970,2% YoY.

• ▍Revenue ¥9.60B, −33,0% YoY
• ▍Operating income −970,2% YoY
• ▍Net income −1 510,3% YoY
• ▍Free cash flow −3 178,4% YoY
• ▍Net margin -17.8%

Revenue ¥14.32B, −16,3% YoY; Operating income −69,7% YoY.

• ▍Revenue ¥14.32B, −16,3% YoY
• ▍Operating income −69,7% YoY
• ▍Net income −80,3% YoY
• ▍Free cash flow −107,6% YoY
• ▍Net margin 0.8%

Revenue ¥17.11B, +28,0% YoY; Operating income +247,6% YoY.

• ▍Revenue ¥17.11B, +28,0% YoY
• ▍Operating income +247,6% YoY
• ▍Net income +240,6% YoY
• ▍Free cash flow +252,3% YoY
• ▍Net margin 3.6%

Revenue ¥13.37B, +27,0% YoY; Operating income −789,5% YoY.

• ▍Revenue ¥13.37B, +27,0% YoY
• ▍Operating income −789,5% YoY
• ▍Net income −17 269,1% YoY
• ▍Free cash flow −290,9% YoY
• ▍Net margin -3.3%