Tanaka Co Ltd

Tanaka Co Ltd maintains a capital structure with a debt-to-equity ratio of 0.31, indicating a relatively conservative leverage position compared to industry norms. The company holds 4.196 billion JPY in cash and equivalents, but after subtracting long-term debt of 4.469 billion JPY, the net cash position is negative, signaling potential liquidity constraints. The current ratio of 1.23 suggests the company has sufficient short-term assets to cover its short-term liabilities, but the margin is narrow, leaving little room for unexpected cash outflows.

Profitability metrics for Tanaka Co Ltd are modest, with a return on equity (ROE) of 1.01% and a return on assets (ROA) of 0.46%. These figures are below the typical thresholds for industrial companies, which often aim for ROE above 10% and ROA above 5%. The company's operating margin is 3.08% (calculated as operating income of 352.25 million JPY divided by revenue of 11.44 billion JPY), which is also below the median for the electrical components and equipment industry.

Geographically and segment-wise, Tanaka Co Ltd's revenue is concentrated in Japan, as disclosed in its financial statements. The company does not report detailed segment breakdowns, but its primary business activity is the distribution and sale of industrial goods. This concentration increases exposure to domestic economic conditions and regulatory changes, which could affect demand and pricing power.

Looking ahead, Tanaka Co Ltd's revenue growth is expected to remain flat, with no significant changes in the current fiscal year or the next. The company's capital expenditures are negative at -954.82 million JPY, indicating asset disposals or a reduction in investment. This may reflect a strategic shift or a response to market conditions, but it could also signal a lack of growth initiatives.

Risk factors for Tanaka Co Ltd include liquidity constraints due to the negative net cash position and the potential for margin compression in a competitive industrial goods market. The company's dilution risk is currently low, as there is no indication of share issuance or dilutive events in the near term. However, the risk assessment notes that net cash is negative after subtracting total debt, which could necessitate future financing and potentially lead to dilution.

Recent events for Tanaka Co Ltd include the publication of its latest financial results, which show a revenue of 11.44 billion JPY and a net income of 142.84 million JPY. Analysts have noted the company's performance against estimates, with actual revenue and EPS aligning with expectations. No major regulatory or operational events have been disclosed in the latest filings, suggesting a stable but unremarkable business environment.

Revenue grew at a 7.8% CAGR over four years, demonstrating consistent top-line expansion for Tanaka Co Ltd.

Cash conversion of 17.57% ranks best-in-class among 602 peers, indicating superior operational efficiency relative to the cohort.

Net income CAGR of 6.2% over four years shows sustained profitability growth despite recent quarterly fluctuations.

Long-term debt decreased to JPY 4.06 billion in FY2025, reflecting a modest improvement in leverage management.

Dilution and credit risks are rated low, suggesting a stable capital structure with minimal immediate financial threats.

Free cash flow declined 4.1% year-over-year in FY2025, reducing the company's financial flexibility for growth.

Revenue ¥11.37B, +0,9% YoY; Operating income −12,2% YoY.

• ▍Revenue ¥11.37B, +0,9% YoY
• ▍Operating income −12,2% YoY
• ▍Net income −0,8% YoY
• ▍Net margin 2.8%

Revenue ¥10.51B, +5,3% YoY; Operating income +1,6% YoY.

• ▍Revenue ¥10.51B, +5,3% YoY
• ▍Operating income +1,6% YoY
• ▍Net income −14,6% YoY
• ▍Net margin 1.6%

Revenue ¥9.36B, +10,0% YoY; Operating income +9,2% YoY.

• ▍Revenue ¥9.36B, +10,0% YoY
• ▍Operating income +9,2% YoY
• ▍Net income +22,4% YoY
• ▍Net margin 1.7%

Revenue ¥11.70B, +2,3% YoY; Operating income −24,1% YoY.

• ▍Revenue ¥11.70B, +2,3% YoY
• ▍Operating income −24,1% YoY
• ▍Net income +53,9% YoY
• ▍Net margin 1.9%

Revenue ¥11.27B; Operating income ¥457.0M.

• ▍Revenue ¥11.27B
• ▍Operating income ¥457.0M
• ▍Net margin 2.9%

Revenue ¥9.98B; Operating income ¥311.6M.

• ▍Revenue ¥9.98B
• ▍Operating income ¥311.6M
• ▍Net margin 2.0%

Revenue ¥8.51B; Operating income ¥184.8M.

• ▍Revenue ¥8.51B
• ▍Operating income ¥184.8M
• ▍Net margin 1.6%

Revenue ¥11.44B; Operating income ¥352.2M.

• ▍Revenue ¥11.44B
• ▍Operating income ¥352.2M
• ▍Net margin 1.2%

Revenue ¥41.45B, −0,8% YoY; Operating income −32,5% YoY.

• ▍Revenue ¥41.45B, −0,8% YoY
• ▍Operating income −32,5% YoY
• ▍Net income −25,4% YoY
• ▍Free cash flow −4,1% YoY
• ▍Net margin 2.1%

Revenue ¥41.78B, +17,0% YoY; Operating income +121,4% YoY.

• ▍Revenue ¥41.78B, +17,0% YoY
• ▍Operating income +121,4% YoY
• ▍Net income +20,6% YoY
• ▍Free cash flow +20,3% YoY
• ▍Net margin 2.8%

Revenue ¥35.71B, +7,9% YoY; Operating income −22,4% YoY.

• ▍Revenue ¥35.71B, +7,9% YoY
• ▍Operating income −22,4% YoY
• ▍Net income +39,7% YoY
• ▍Free cash flow −69,9% YoY
• ▍Net margin 2.7%

Revenue ¥33.08B, +7,6% YoY; Operating income +2,0% YoY.

• ▍Revenue ¥33.08B, +7,6% YoY
• ▍Operating income +2,0% YoY
• ▍Net income +1,1% YoY
• ▍Free cash flow +49,0% YoY
• ▍Net margin 2.1%