Kuroda Precision Industries Ltd

Kuroda Precision Industries Ltd maintains a relatively balanced capital structure, with a debt-to-equity ratio of 0.57, indicating moderate leverage. The company holds JPY 3.26 billion in cash and equivalents, but this is offset by JPY 6.58 billion in long-term debt, resulting in a net cash position of negative JPY 3.32 billion. The current ratio of 1.66 suggests the company has sufficient short-term assets to cover its liabilities, though the liquidity risk is assessed as medium.

Profitability metrics for Kuroda show a return on equity (ROE) of 1.53% and a return on assets (ROA) of 0.68%, both below the typical thresholds for industrial machinery firms. The company reported a net income of JPY 176.15 million despite an operating loss of JPY 720.88 million, indicating that non-operating gains or cost reductions offset operational underperformance.

The company's revenue is concentrated in a few key markets, with disclosed exposure to the automotive and general industrial sectors. No specific geographic breakdown is provided, but the company's operations are primarily based in Japan, with potential export exposure to other Asian and global markets.

Kuroda's growth trajectory appears mixed. While the company reported revenue of JPY 50.67 billion in the latest period, the operating cash flow of JPY 427.82 million and capital expenditures of JPY 1.40 billion suggest ongoing investment in operations. However, the operating loss and weak ROE indicate that growth is not yet translating into strong profitability.

The risk assessment highlights a medium liquidity risk and a low dilution risk. The company's net cash position is negative after subtracting total debt, which could constrain its ability to fund operations or new projects without external financing. No significant dilution sources are identified, and the dilution risk is assessed as low.

Recent financial filings and transcripts indicate that Kuroda is navigating a challenging industrial environment, with operating losses and pressure on margins. Analysts have noted the company's last actual revenue of JPY 17.28 billion and an EPS of 30.23 JPY, which may reflect a contraction in demand or pricing pressures.

Operating income surged 195.3% year-over-year to JPY 188 million, signaling a potential turnaround in core profitability.

Cash conversion ratio of 2.43 ranks in the top quartile, indicating superior efficiency in generating cash from operations.

Revenue maintained a 6.8% four-year CAGR, demonstrating long-term top-line growth resilience despite recent quarterly volatility.

Net income grew at an 8.0% CAGR over four years, showing historical ability to expand bottom-line earnings.

Dilution risk is assessed as low, providing reassurance to existing shareholders regarding potential equity value erosion.

Debt-to-equity ratio of 0.57 is in the bottom quartile, indicating higher leverage risk compared to peers.

High credit risk flags suggest significant concerns regarding the company's ability to meet its financial obligations.

Revenue ¥5.09B, +30,8% YoY; Operating income +20,4% YoY.

• ▍Revenue ¥5.09B, +30,8% YoY
• ▍Operating income +20,4% YoY
• ▍Net income −1 174,0% YoY
• ▍Net margin -2.0%

Revenue ¥5.03B, +7,9% YoY; Operating income −41,6% YoY.

• ▍Revenue ¥5.03B, +7,9% YoY
• ▍Operating income −41,6% YoY
• ▍Net income +2 850,0% YoY
• ▍Net margin 5.8%

Revenue ¥3.58B, −13,0% YoY; Operating income −193,8% YoY.

• ▍Revenue ¥3.58B, −13,0% YoY
• ▍Operating income −193,8% YoY
• ▍Net income −185,8% YoY
• ▍Net margin -4.8%

Revenue ¥4.61B, −9,0% YoY; Operating income +90,0% YoY.

• ▍Revenue ¥4.61B, −9,0% YoY
• ▍Operating income +90,0% YoY
• ▍Net income −116,3% YoY
• ▍Net margin -0.6%

Revenue ¥3.89B; Operating income -¥145.9M.

• ▍Revenue ¥3.89B
• ▍Operating income -¥145.9M
• ▍Net margin -0.2%

Revenue ¥4.67B; Operating income ¥199.3M.

• ▍Revenue ¥4.67B
• ▍Operating income ¥199.3M
• ▍Net margin 0.2%

Revenue ¥4.12B; Operating income ¥206.8M.

• ▍Revenue ¥4.12B
• ▍Operating income ¥206.8M
• ▍Net margin 4.8%

Revenue ¥5.07B; Operating income -¥720.9M.

• ▍Revenue ¥5.07B
• ▍Operating income -¥720.9M
• ▍Net margin 3.5%

Revenue ¥17.28B, −6,6% YoY; Operating income +195,3% YoY.

• ▍Revenue ¥17.28B, −6,6% YoY
• ▍Operating income +195,3% YoY
• ▍Net income −65,4% YoY
• ▍Free cash flow −364,7% YoY
• ▍Net margin 1.0%

Revenue ¥18.50B, −18,6% YoY; Operating income −116,4% YoY.

• ▍Revenue ¥18.50B, −18,6% YoY
• ▍Operating income −116,4% YoY
• ▍Net income −45,0% YoY
• ▍Free cash flow −142,4% YoY
• ▍Net margin 2.7%

Revenue ¥22.75B, +26,1% YoY; Operating income +29,5% YoY.

• ▍Revenue ¥22.75B, +26,1% YoY
• ▍Operating income +29,5% YoY
• ▍Net income +60,8% YoY
• ▍Free cash flow −52,6% YoY
• ▍Net margin 4.0%

Revenue ¥18.04B, +35,8% YoY; Operating income +272,4% YoY.

• ▍Revenue ¥18.04B, +35,8% YoY
• ▍Operating income +272,4% YoY
• ▍Net income +345,0% YoY
• ▍Free cash flow +3 719,3% YoY
• ▍Net margin 3.1%