CRG Holdings Co Ltd

CRG Holdings maintains a strong liquidity position with JPY 24.17 billion in cash and equivalents, representing 34.3% of total assets. The company's liquidity FPT score of 0.85 reflects this robust cash position, though operating cash flow has been negative at JPY -115.19 million. The current ratio of 1.32 indicates adequate short-term liquidity, but the negative operating income of JPY -31.13 million raises concerns about ongoing cash flow generation.

Profitability metrics show significant underperformance relative to industry norms. The company reported a net loss of JPY 40.96 million and an operating loss of JPY 31.13 million, resulting in a negative return on equity of -1.32% and return on assets of -0.58%. These results contrast sharply with the industry's median ROE of 6.2% and ROA of 2.1%. The gross margin of 21.7% is in line with the industry median, but operating margin is negative at -0.74%, indicating poor cost control.

Geographic and segment exposure data is not available in the current dataset. However, the company's revenue concentration appears to be within a single business line, as no segment breakdown is provided. This lack of diversification could increase vulnerability to sector-specific downturns.

Growth prospects are mixed. Revenue for the latest period was JPY 4.2 billion, a decline from the analyst-estimated JPY 16.42 billion. The company's outlook for the current fiscal year shows a negative revenue trajectory, with no clear path to profitability. Capital expenditures of JPY -175.38 million suggest ongoing investment, but without corresponding revenue growth, these expenditures may not yield returns.

Risk factors include the company's negative operating income and net loss, which could pressure liquidity if cash burn continues. The debt-to-equity ratio of 0.63 is moderate, but the negative EBITDA of JPY -31.13 million raises concerns about debt servicing capacity. No immediate dilution risks are identified, with shares outstanding remaining unchanged at 5.58 million.

Recent filings and transcripts do not indicate any material events that would significantly alter the company's risk profile. The absence of liquidity or dilution flags suggests no immediate financial distress, but the negative earnings trend warrants close monitoring.

Net income surged 141.5% year-over-year to JPY 153 million in fiscal 2025, signaling a strong operational turnaround.

Operating income jumped 548.7% to JPY 303 million in fiscal 2025, demonstrating significant improvement in core business profitability.

Free cash flow turned positive to JPY 132 million in fiscal 2025, reversing the previous year's substantial cash burn.

Cash conversion ratio of 2.81 places the company in the top quartile among 96 employment services peers.

Gross profit increased to JPY 4.1 billion in fiscal 2025, indicating resilience in top-line generation despite revenue declines.

Revenue declined 4.2% annually over four years, falling to JPY 16.4 billion in fiscal 2025, indicating persistent top-line weakness.

Long-term debt skyrocketed to JPY 8.5 billion in fiscal 2024, creating a high credit risk flag for the company.

Operating margin of -0.74% ranks in the bottom quartile compared to the 5.08% median for employment services peers.

Debt-to-equity ratio of 0.63 is substantially higher than the 0.19 median, placing leverage in the bottom quartile of peers.

Revenue ¥4.36B, −2,4% YoY; Operating income +351,2% YoY.

• ▍Revenue ¥4.36B, −2,4% YoY
• ▍Operating income +351,2% YoY
• ▍Net income −57,0% YoY
• ▍Net margin 0.8%

Revenue ¥3.89B, −3,2% YoY; Operating income +394,2% YoY.

• ▍Revenue ¥3.89B, −3,2% YoY
• ▍Operating income +394,2% YoY
• ▍Net income +129,1% YoY
• ▍Net margin 2.2%

Revenue ¥4.01B, +0,1% YoY; Operating income +188,7% YoY.

• ▍Revenue ¥4.01B, +0,1% YoY
• ▍Operating income +188,7% YoY
• ▍Net income +77,7% YoY
• ▍Net margin -0.4%

Revenue ¥4.06B, −3,5% YoY; Operating income +326,1% YoY.

• ▍Revenue ¥4.06B, −3,5% YoY
• ▍Operating income +326,1% YoY
• ▍Net income +111,2% YoY
• ▍Net margin 0.1%

Revenue ¥4.47B; Operating income ¥27.6M.

• ▍Revenue ¥4.47B
• ▍Operating income ¥27.6M
• ▍Net margin 1.8%

Revenue ¥4.02B; Operating income -¥52.0M.

• ▍Revenue ¥4.02B
• ▍Operating income -¥52.0M
• ▍Net margin -7.2%

Revenue ¥4.00B; Operating income -¥59.2M.

• ▍Revenue ¥4.00B
• ▍Operating income -¥59.2M
• ▍Net margin -1.7%

Revenue ¥4.20B; Operating income -¥31.1M.

• ▍Revenue ¥4.20B
• ▍Operating income -¥31.1M
• ▍Net margin -1.0%

Revenue ¥16.42B, −3,9% YoY; Operating income +548,6% YoY.

• ▍Revenue ¥16.42B, −3,9% YoY
• ▍Operating income +548,6% YoY
• ▍Net income +141,5% YoY
• ▍Free cash flow +113,5% YoY
• ▍Net margin 0.9%

Revenue ¥17.09B, −17,9% YoY; Operating income −159,7% YoY.

• ▍Revenue ¥17.09B, −17,9% YoY
• ▍Operating income −159,7% YoY
• ▍Net income −931,3% YoY
• ▍Free cash flow −120,3% YoY
• ▍Net margin -2.2%

Revenue ¥20.82B, −2,6% YoY; Operating income −76,6% YoY.

• ▍Revenue ¥20.82B, −2,6% YoY
• ▍Operating income −76,6% YoY
• ▍Net income −84,5% YoY
• ▍Free cash flow −261,1% YoY
• ▍Net margin 0.2%

Revenue ¥21.38B, +9,8% YoY; Operating income +28,5% YoY.

• ▍Revenue ¥21.38B, +9,8% YoY
• ▍Operating income +28,5% YoY
• ▍Net income −6,6% YoY
• ▍Free cash flow −13,5% YoY
• ▍Net margin 1.3%