Narasaki Sangyo Co Ltd

Narasaki Sangyo maintains a strong liquidity position with a current ratio of 1.42 and a significant cash and equivalents balance of ¥15,076,000,000, which supports its operational flexibility and short-term obligations. The company's debt-to-equity ratio of 0.17 indicates a conservative capital structure, with long-term debt amounting to ¥4,065,000,000 against total equity of ¥24,032,000,000. This low leverage position reduces financial risk and provides room for future capital deployment.

The company's profitability metrics show a return on equity of 4.51% and a return on assets of 1.79%, which are below the industry median for industrial machinery and equipment firms. This suggests that Narasaki Sangyo is underperforming in terms of asset utilization and shareholder returns. The operating margin of 3.62% (calculated from operating income of ¥1,158,000,000 on revenue of ¥32,023,000,000) is also below the industry average, indicating potential inefficiencies in cost management or pricing power.

Narasaki Sangyo'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 company's operating cash flow of ¥3,160,000,000 supports its capital expenditure of -¥374,000,000, indicating that it is reinvesting in its operations to maintain competitiveness.

The company's revenue growth trajectory is not explicitly stated in the available data, but the reported revenue of ¥32,023,000,000 suggests a stable or slightly growing business. The absence of significant capital expenditure and the conservative debt structure indicate a focus on maintaining current operations rather than aggressive expansion. The company's liquidity position remains strong, with no immediate dilution or liquidity risks identified.

Recent filings and transcripts do not indicate any material changes in the company's operations or strategic direction. The absence of significant events suggests a stable business environment, but also limits visibility into future growth initiatives. The company's financial health is supported by its strong cash reserves and low debt levels, which provide a buffer against economic downturns.

Revenue grew at a 6.6% CAGR over four years, demonstrating consistent top-line expansion for the industrial machinery company.

Net income achieved an 11.1% CAGR over four years, indicating strong historical profitability growth despite recent fluctuations.

Return on equity of 4.51% exceeds the 3.56% cohort median, suggesting superior capital efficiency relative to peers.

Cash conversion ratio of 2.92 ranks in the top quartile, highlighting exceptional ability to turn earnings into cash.

Debt-to-equity ratio of 0.17 is below the cohort median of 0.20, reflecting a conservative and stable capital structure.

Net income declined 2.6% year-over-year, breaking the previous growth trend and raising concerns about near-term profitability.

Net margin of 3.38% falls below the 4.94% cohort median, suggesting limited pricing power or higher cost structures.

Revenue ¥32.59B, +9,6% YoY; Operating income +16,3% YoY.

• ▍Revenue ¥32.59B, +9,6% YoY
• ▍Operating income +16,3% YoY
• ▍Net income +9,7% YoY
• ▍Net margin 1.7%

Revenue ¥29.10B, +14,5% YoY; Operating income +78,5% YoY.

• ▍Revenue ¥29.10B, +14,5% YoY
• ▍Operating income +78,5% YoY
• ▍Net income +89,1% YoY
• ▍Net margin 2.1%

Revenue ¥24.37B, +1,7% YoY; Operating income −101,4% YoY.

• ▍Revenue ¥24.37B, +1,7% YoY
• ▍Operating income −101,4% YoY
• ▍Net income −93,6% YoY
• ▍Net margin 0.1%

Revenue ¥33.37B, +4,2% YoY; Operating income +19,9% YoY.

• ▍Revenue ¥33.37B, +4,2% YoY
• ▍Operating income +19,9% YoY
• ▍Net income −1,3% YoY
• ▍Net margin 3.2%

Revenue ¥29.75B; Operating income ¥699.0M.

• ▍Revenue ¥29.75B
• ▍Operating income ¥699.0M
• ▍Net margin 1.7%

Revenue ¥25.43B; Operating income ¥520.0M.

• ▍Revenue ¥25.43B
• ▍Operating income ¥520.0M
• ▍Net margin 1.3%

Revenue ¥23.97B; Operating income ¥422.0M.

• ▍Revenue ¥23.97B
• ▍Operating income ¥422.0M
• ▍Net margin 1.4%

Revenue ¥32.02B; Operating income ¥1.16B.

• ▍Revenue ¥32.02B
• ▍Operating income ¥1.16B
• ▍Net margin 3.4%

Revenue ¥112.51B, +4,7% YoY; Operating income +4,2% YoY.

• ▍Revenue ¥112.51B, +4,7% YoY
• ▍Operating income +4,2% YoY
• ▍Net income −2,6% YoY
• ▍Free cash flow −63,9% YoY
• ▍Net margin 2.0%

Revenue ¥107.45B, +7,5% YoY; Operating income +4,2% YoY.

• ▍Revenue ¥107.45B, +7,5% YoY
• ▍Operating income +4,2% YoY
• ▍Net income +7,5% YoY
• ▍Free cash flow +7,5% YoY
• ▍Net margin 2.1%

Revenue ¥99.93B, +5,4% YoY; Operating income +21,5% YoY.

• ▍Revenue ¥99.93B, +5,4% YoY
• ▍Operating income +21,5% YoY
• ▍Net income +36,6% YoY
• ▍Free cash flow +23,2% YoY
• ▍Net margin 2.1%

Revenue ¥94.80B, +8,8% YoY; Operating income +23,4% YoY.

• ▍Revenue ¥94.80B, +8,8% YoY
• ▍Operating income +23,4% YoY
• ▍Net income +6,4% YoY
• ▍Free cash flow +21,6% YoY
• ▍Net margin 1.7%