Nanso Transport Co Ltd

Nanso Transport maintains a relatively balanced capital structure, with a debt-to-equity ratio of 0.43, indicating moderate leverage. The company's liquidity position is characterized as medium risk, with a current ratio of 1.43, suggesting it can cover short-term obligations but with limited buffer. Despite holding JPY 5.77 billion in cash and equivalents, the company's net cash position is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics show a return on equity of 1.15% and a return on assets of 0.71%, both below the industry median for ground freight and logistics firms. This suggests that Nanso Transport is underperforming in terms of capital efficiency and asset utilization. The operating margin of 10.07% (calculated from operating income of JPY 369.92 million on revenue of JPY 3.67 billion) is also below the industry average, indicating room for improvement in cost control and pricing power.

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 regulatory changes in Japan. The absence of segment-specific revenue breakdowns in the latest financials limits visibility into the company's operational performance across different lines of business.

Looking ahead, Nanso Transport is projected to see a modest increase in revenue, with a year-over-year growth rate of approximately 1.5% in the current fiscal year. However, the outlook for the next fiscal year remains uncertain, with no clear guidance provided in the latest filings. The company's capital expenditure of JPY 617.43 million in the most recent period reflects ongoing investment in infrastructure and fleet maintenance, which is necessary to maintain service quality in a competitive market.

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 pursue growth opportunities without external financing. No significant dilution events have been identified in the latest filings, and the number of shares outstanding has remained stable.

Recent events include the publication of the latest financial results, which show a revenue of JPY 3.67 billion and a net income of JPY 249.60 million. The company's earnings per share of 138.28 JPY align with analyst estimates, indicating that the company is meeting expectations in terms of profitability. No major regulatory or operational disruptions have been reported in the latest filings, suggesting a stable operating environment for the company.

Nanso Transport's operating margin of 10.1% significantly exceeds the 4.8% median for the Ground Freight & Logistics cohort.

Nanso Transport demonstrates best-in-class cash conversion at 10.31, far surpassing the cohort median of 1.87.

Revenue has grown at a 4.7% compound annual growth rate over the last four fiscal years.

The company maintains a debt-to-equity ratio of 0.43, which is below the cohort median of 0.41.

Nanso Transport faces high credit risk, indicating potential difficulties in meeting financial obligations or servicing debt.

The company carries medium liquidity risk, suggesting potential challenges in meeting short-term financial obligations.

Revenue ¥4.11B, +4,0% YoY; Operating income +2,0% YoY.

• ▍Revenue ¥4.11B, +4,0% YoY
• ▍Operating income +2,0% YoY
• ▍Net income +13,5% YoY
• ▍Net margin 8.1%

Revenue ¥4.39B, +3,4% YoY; Operating income +1,6% YoY.

• ▍Revenue ¥4.39B, +3,4% YoY
• ▍Operating income +1,6% YoY
• ▍Net income −15,2% YoY
• ▍Net margin 9.4%

Revenue ¥4.11B, +1,7% YoY; Operating income −4,8% YoY.

• ▍Revenue ¥4.11B, +1,7% YoY
• ▍Operating income −4,8% YoY
• ▍Net income −6,7% YoY
• ▍Net margin 9.1%

Revenue ¥3.86B, +5,1% YoY; Operating income −22,4% YoY.

• ▍Revenue ¥3.86B, +5,1% YoY
• ▍Operating income −22,4% YoY
• ▍Net income −23,1% YoY
• ▍Net margin 5.0%

Revenue ¥3.96B; Operating income ¥455.9M.

• ▍Revenue ¥3.96B
• ▍Operating income ¥455.9M
• ▍Net margin 7.4%

Revenue ¥4.25B; Operating income ¥620.9M.

• ▍Revenue ¥4.25B
• ▍Operating income ¥620.9M
• ▍Net margin 11.4%

Revenue ¥4.04B; Operating income ¥567.8M.

• ▍Revenue ¥4.04B
• ▍Operating income ¥567.8M
• ▍Net margin 9.9%

Revenue ¥3.67B; Operating income ¥369.9M.

• ▍Revenue ¥3.67B
• ▍Operating income ¥369.9M
• ▍Net margin 6.8%

Revenue ¥16.11B, +4,0% YoY; Operating income −1,4% YoY.

• ▍Revenue ¥16.11B, +4,0% YoY
• ▍Operating income −1,4% YoY
• ▍Net income −13,4% YoY
• ▍Free cash flow −67,7% YoY
• ▍Net margin 8.5%

Revenue ¥15.48B, +7,3% YoY; Operating income +22,9% YoY.

• ▍Revenue ¥15.48B, +7,3% YoY
• ▍Operating income +22,9% YoY
• ▍Net income +46,3% YoY
• ▍Free cash flow +367,1% YoY
• ▍Net margin 10.2%

Revenue ¥14.42B, +0,9% YoY; Operating income +7,6% YoY.

• ▍Revenue ¥14.42B, +0,9% YoY
• ▍Operating income +7,6% YoY
• ▍Net income +4,7% YoY
• ▍Free cash flow −902,2% YoY
• ▍Net margin 7.5%

Revenue ¥14.30B, +6,8% YoY; Operating income +31,4% YoY.

• ▍Revenue ¥14.30B, +6,8% YoY
• ▍Operating income +31,4% YoY
• ▍Net income +38,6% YoY
• ▍Free cash flow +103,2% YoY
• ▍Net margin 7.2%