Naito & Co Ltd

Naito & Co Ltd's capital structure is characterized by a low debt-to-equity ratio of 0.08, indicating a conservative leverage position. The company's liquidity is assessed as medium, with a current ratio of 2.96, suggesting it can cover short-term obligations. However, the company's price-to-book ratio of 0.57 and price-to-tangible-book ratio of 0.57 indicate that the market values the company below its book value, potentially signaling undervaluation or financial distress.

Profitability metrics show a concerning trend, with a negative return on equity (ROE) of -0.0001 and a similarly negative return on assets (ROA) of -0.0001. These figures suggest the company is not generating returns for shareholders or effectively utilizing its assets. The operating income is negative at -11,000,000 JPY, and the net income is also negative at -1,000,000 JPY, indicating operational losses.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and sector-specific risks. The absence of segment or geographic breakdown in the financial data limits the ability to assess the company's risk profile comprehensively.

Growth trajectory appears to be negative, with the company reporting a net loss in the most recent fiscal year. The operating and net income figures are both negative, and there is no indication of a turnaround in the near term. The company's revenue of 10,674,000,000 JPY is a key metric, but without a clear growth path or margin improvement, future performance remains uncertain.

Risk factors include liquidity concerns, as the company's net cash position is negative after subtracting total debt. The dilution risk is assessed as low, with no significant dilution potential in the near term. However, the company's negative operating and net income raise concerns about its ability to sustain operations without external financing.

Recent events include the disclosure of a negative operating income and net income, which are critical indicators of financial health. The company's market price of 132 JPY and market cap of 7,228,482,360 JPY reflect investor sentiment, but the negative earnings suggest a lack of confidence in the company's future performance.

Naito & Co maintains a low debt-to-equity ratio of 0.08, significantly below the cohort median of 0.20.

The company faces only low dilution risk, suggesting minimal threat to existing shareholder equity value.

Long-term debt decreased to JPY 101 million in FY2026, indicating a conservative balance sheet structure.

Operating and net margins rank in the bottom quartile compared to the industrial machinery cohort median.

The company carries a high credit risk flag, indicating significant potential for financial distress or default.

Revenue ¥10.84B, −3,9% YoY; Operating income −101,2% YoY.

• ▍Revenue ¥10.84B, −3,9% YoY
• ▍Operating income −101,2% YoY
• ▍Net income −103,6% YoY
• ▍Net margin -0.0%

Revenue ¥10.66B, −1,4% YoY; Operating income +8,5% YoY.

• ▍Revenue ¥10.66B, −1,4% YoY
• ▍Operating income +8,5% YoY
• ▍Net income +13,9% YoY
• ▍Net margin 0.9%

Revenue ¥11.04B, +3,4% YoY; Operating income +700,0% YoY.

• ▍Revenue ¥11.04B, +3,4% YoY
• ▍Operating income +700,0% YoY
• ▍Net income +5 400,0% YoY
• ▍Net margin 0.5%

Revenue ¥10.79B; Operating income ¥260.0M.

• ▍Revenue ¥10.79B
• ▍Operating income ¥260.0M
• ▍Net margin 1.6%

Revenue ¥11.28B; Operating income ¥84.0M.

• ▍Revenue ¥11.28B
• ▍Operating income ¥84.0M
• ▍Net margin 0.5%

Revenue ¥10.81B; Operating income ¥130.0M.

• ▍Revenue ¥10.81B
• ▍Operating income ¥130.0M
• ▍Net margin 0.8%

Revenue ¥10.67B; Operating income -¥11.0M.

• ▍Revenue ¥10.67B
• ▍Operating income -¥11.0M
• ▍Net margin -0.0%

Revenue ¥43.52B, −0,1% YoY; Operating income −13,0% YoY.

• ▍Revenue ¥43.52B, −0,1% YoY
• ▍Operating income −13,0% YoY
• ▍Net income −9,6% YoY
• ▍Free cash flow −54,6% YoY
• ▍Net margin 0.7%

Revenue ¥43.55B, −1,2% YoY; Operating income −5,3% YoY.

• ▍Revenue ¥43.55B, −1,2% YoY
• ▍Operating income −5,3% YoY
• ▍Net income −9,0% YoY
• ▍Free cash flow +939,3% YoY
• ▍Net margin 0.7%

Revenue ¥44.06B, −0,9% YoY; Operating income −44,8% YoY.

• ▍Revenue ¥44.06B, −0,9% YoY
• ▍Operating income −44,8% YoY
• ▍Net income −52,9% YoY
• ▍Free cash flow −96,0% YoY
• ▍Net margin 0.8%

Revenue ¥44.46B, +1,9% YoY; Operating income +40,9% YoY.

• ▍Revenue ¥44.46B, +1,9% YoY
• ▍Operating income +40,9% YoY
• ▍Net income +63,4% YoY
• ▍Free cash flow +128,9% YoY
• ▍Net margin 1.6%

Revenue ¥43.62B; Operating income ¥628.0M.

• ▍Revenue ¥43.62B
• ▍Operating income ¥628.0M
• ▍Net margin 1.0%