Shikigaku Co Ltd

Shikigaku maintains a strong liquidity position, with cash and equivalents amounting to ¥1,957,323,000, which is significantly higher than its total liabilities of ¥2,161,723,000. The company's current ratio of 3.37 indicates a robust ability to meet short-term obligations. The price-to-book ratio of 3.11 suggests that the market values the company at a premium to its book value, reflecting investor confidence in its intangible assets and future earnings potential.

Profitability metrics show a return on equity (ROE) of 4.56% and a return on assets (ROA) of 2.37%. These figures are below the industry median for Business Support Services, indicating that Shikigaku is underperforming in terms of capital efficiency and asset utilization. The company's operating income of ¥90,367,000 and net income of ¥106,652,000 suggest a relatively narrow margin structure, which may limit its ability to absorb cost increases or invest in growth opportunities.

Geographically, Shikigaku's revenue is concentrated in Japan, with no disclosed international operations. This concentration increases exposure to domestic economic conditions and regulatory changes. The company's revenue of ¥1,330,077,000 is derived from a single business segment, which may limit diversification benefits and increase vulnerability to sector-specific downturns.

Looking ahead, Shikigaku's revenue growth is expected to remain flat, with no significant changes in the current fiscal year or the next. The company's market price of ¥795 and a price-to-earnings ratio of 68.12 suggest that the stock is currently valued at a high multiple, which may reflect expectations of future earnings growth or a premium for its market position. However, the lack of disclosed capex or R&D plans indicates limited near-term investment in innovation or expansion.

Risk factors for Shikigaku include its high price-to-earnings ratio, which may make the stock vulnerable to earnings disappointments, and its reliance on a single business segment and geographic market. The company's liquidity risk is low, supported by its strong cash position, but its credit risk is moderate due to the relatively high debt-to-equity ratio of 0.24. There are no immediate dilution risks, as the number of shares outstanding remains unchanged between basic and diluted shares.

Recent filings and transcripts do not indicate any material events or strategic shifts. The company's last actual EPS was ¥34.96, and its last actual revenue was ¥6,536,910,000, both of which are below the current reported figures, suggesting a recent improvement in performance. However, the absence of forward-looking guidance or significant capital allocation plans limits visibility into the company's long-term strategy.

Revenue grew 21.8% year-over-year to JPY 6.54 billion in FY2026, demonstrating strong top-line expansion momentum.

Net margin of 8.0% exceeds the Business Support Services cohort median of 5.3%, indicating superior profitability efficiency.

Long-term debt decreased significantly to JPY 106 million in FY2026, reflecting a strengthened balance sheet and lower leverage.

The company returned to positive free cash flow of JPY 241 million in FY2026 after two years of negative generation.

Dilution, liquidity, and credit risks are all assessed as low, suggesting a stable operational risk profile.

Operating income remained flat with a -0.2% year-over-year change, showing stagnation in core operational profitability growth.

Revenue ¥1.40B, +3,0% YoY; Operating income −769,8% YoY.

• ▍Revenue ¥1.40B, +3,0% YoY
• ▍Operating income −769,8% YoY
• ▍Net income −303,6% YoY
• ▍Net margin -7.1%

Revenue ¥1.46B, +5,6% YoY; Operating income −144,0% YoY.

• ▍Revenue ¥1.46B, +5,6% YoY
• ▍Operating income −144,0% YoY
• ▍Net income −160,9% YoY
• ▍Net margin -3.6%

Revenue ¥2.36B, +81,6% YoY; Operating income +535,6% YoY.

• ▍Revenue ¥2.36B, +81,6% YoY
• ▍Operating income +535,6% YoY
• ▍Net income +93,6% YoY
• ▍Net margin 15.1%

Revenue ¥1.32B, −0,8% YoY; Operating income −37,5% YoY.

• ▍Revenue ¥1.32B, −0,8% YoY
• ▍Operating income −37,5% YoY
• ▍Net income −16,9% YoY
• ▍Net margin 6.7%

Revenue ¥1.36B; Operating income ¥45.2M.

• ▍Revenue ¥1.36B
• ▍Operating income ¥45.2M
• ▍Net margin 3.6%

Revenue ¥1.38B; Operating income ¥105.8M.

• ▍Revenue ¥1.38B
• ▍Operating income ¥105.8M
• ▍Net margin 6.3%

Revenue ¥1.30B; Operating income ¥99.5M.

• ▍Revenue ¥1.30B
• ▍Operating income ¥99.5M
• ▍Net margin 14.2%

Revenue ¥1.33B; Operating income ¥90.4M.

• ▍Revenue ¥1.33B
• ▍Operating income ¥90.4M
• ▍Net margin 8.0%

Revenue ¥6.54B, +21,8% YoY; Operating income −0,2% YoY.

• ▍Revenue ¥6.54B, +21,8% YoY
• ▍Operating income −0,2% YoY
• ▍Net income −31,1% YoY
• ▍Free cash flow −24,2% YoY
• ▍Net margin 4.5%

Revenue ¥5.37B, +11,2% YoY; Operating income +406,3% YoY.

• ▍Revenue ¥5.37B, +11,2% YoY
• ▍Operating income +406,3% YoY
• ▍Net income +536,3% YoY
• ▍Free cash flow +641,3% YoY
• ▍Net margin 7.9%

Revenue ¥4.83B, +8,3% YoY; Operating income +60,6% YoY.

• ▍Revenue ¥4.83B, +8,3% YoY
• ▍Operating income +60,6% YoY
• ▍Net income +61,2% YoY
• ▍Free cash flow +84,0% YoY
• ▍Net margin -2.0%

Revenue ¥4.46B, +16,6% YoY; Operating income −183,8% YoY.

• ▍Revenue ¥4.46B, +16,6% YoY
• ▍Operating income −183,8% YoY
• ▍Net income −212,1% YoY
• ▍Free cash flow −220,0% YoY
• ▍Net margin -5.7%