Higashi Holdings Co Ltd

Higashi Holdings maintains a debt-to-equity ratio of 0.7, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.14, suggesting it can cover short-term obligations but with limited buffer. Free cash flow is negative at -1,082,775,000 JPY, reflecting significant capital expenditures of -3,586,888,000 JPY, which outpace operating cash flow of 2,367,852,000 JPY. The company's return on equity of 13.37% and return on assets of 5.72% indicate strong profitability relative to equity but moderate efficiency in asset utilization.

The company's operating income of 2,642,201,000 JPY and net income of 1,805,859,000 JPY suggest a healthy margin profile, though the gross profit of 9,025,980,000 JPY implies a relatively low gross margin of 18.75%. These figures are in line with industry norms for ground freight and logistics, where asset-heavy operations and competitive pricing pressure often limit gross margins.

Higashi Holdings' revenue of 48,126,040,000 JPY is concentrated in a single business segment, with no disclosed geographic diversification. This lack of segment or geographic diversification increases exposure to regional economic shifts and operational disruptions. The company's capital structure is supported by total assets of 31,596,980,000 JPY, with long-term debt of 9,466,450,000 JPY and cash and equivalents of 4,679,456,000 JPY.

The company's growth trajectory is not explicitly outlined in the available data, but the negative free cash flow and high capital expenditures suggest a focus on expansion or asset renewal. Analysts have recorded the last actual revenue at 48,126,000,000 JPY and the last actual EPS at 136.77 JPY, indicating stable performance in the most recent reporting period. However, the absence of forward-looking guidance or detailed growth plans limits visibility into future performance.

Risk factors include a medium liquidity risk, with net cash being negative after subtracting total debt. The company's dilution risk is assessed as low, with no near-term pressure from share issuance or dilutive events. The risk assessment does not identify any significant regulatory or geopolitical risks specific to the company's operations.

Recent events include the latest financial reporting, which shows consistent revenue and earnings performance. No material changes in business strategy or significant capital events are disclosed in the available data.