Japan Logistic Systems Corp

Japan Logistic Systems Corp maintains a capital structure with a debt-to-equity ratio of 1.56, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 0.87, suggesting potential short-term liquidity constraints. Additionally, the firm's cash and equivalents amount to 4,008,590,000 JPY, which is insufficient to cover its long-term debt of 23,228,930,000 JPY, resulting in a net cash deficit.

In terms of profitability, the company's return on equity is 1.08%, and its return on assets is 0.34%, both of which are below the industry median for ground freight and logistics firms. This suggests that the company is underperforming relative to its peers in generating returns for shareholders and utilizing its assets efficiently.

The company's revenue is concentrated in its core transportation services, with no disclosed segment breakdown. Geographically, the firm is primarily exposed to the Japanese market, and there is no indication of significant international operations or diversification.

Looking at the growth trajectory, the company's recent revenue of 15,521,979,000 JPY reflects a decline compared to the analyst-estimated revenue of 66,001,550,000 JPY. This significant drop indicates a potential downturn in the company's performance, which may be attributed to market conditions or internal operational challenges.

The risk assessment highlights a medium liquidity risk and a low dilution risk. The company's net cash deficit after subtracting total debt is a key flag, indicating potential liquidity pressures. However, the dilution risk is low, suggesting that the company is not expected to issue additional shares in the near term.

Recent events, such as the latest actual EPS of 340.58 JPY and the significant drop in revenue, are indicative of the company's current financial performance. These figures are based on the most recent financial data and may reflect the impact of recent market conditions on the company's operations.

Revenue grew 5.2% annually over four years, demonstrating consistent top-line expansion in the logistics sector.

Free cash flow surged 17.6% year-over-year to JPY 1.16 billion, indicating strong cash generation capabilities.

Cash conversion ratio of 20.41 is best-in-class, significantly outperforming the cohort median of 1.87.

Gross profit increased to JPY 4.82 billion in FY2025, reflecting improving gross margins despite revenue growth.

Long-term debt decreased slightly to JPY 23.09 billion in FY2025, suggesting modest leverage management efforts.

Debt-to-equity ratio of 1.56 sits in the bottom quartile, indicating significantly higher leverage than peers.

Operating margin of 1.86% is well below the cohort median of 4.79%, highlighting weak operational efficiency.

High credit risk flag suggests potential difficulties in meeting financial obligations given the leverage profile.

Revenue ¥18.66B, +9,3% YoY; Operating income −30,6% YoY.

• ▍Revenue ¥18.66B, +9,3% YoY
• ▍Operating income −30,6% YoY
• ▍Net income −33,2% YoY
• ▍Net margin 0.9%

Revenue ¥17.65B, +9,2% YoY; Operating income +85,2% YoY.

• ▍Revenue ¥17.65B, +9,2% YoY
• ▍Operating income +85,2% YoY
• ▍Net income +73,6% YoY
• ▍Net margin 1.4%

Revenue ¥17.18B, +8,6% YoY; Operating income +236,1% YoY.

• ▍Revenue ¥17.18B, +8,6% YoY
• ▍Operating income +236,1% YoY
• ▍Net income +411,2% YoY
• ▍Net margin 1.8%

Revenue ¥16.95B, +9,2% YoY; Operating income −130,5% YoY.

• ▍Revenue ¥16.95B, +9,2% YoY
• ▍Operating income −130,5% YoY
• ▍Net income −99,9% YoY
• ▍Net margin 0.0%

Revenue ¥17.07B; Operating income ¥441.5M.

• ▍Revenue ¥17.07B
• ▍Operating income ¥441.5M
• ▍Net margin 1.5%

Revenue ¥16.17B; Operating income ¥195.2M.

• ▍Revenue ¥16.17B
• ▍Operating income ¥195.2M
• ▍Net margin 0.9%

Revenue ¥15.82B; Operating income ¥145.0M.

• ▍Revenue ¥15.82B
• ▍Operating income ¥145.0M
• ▍Net margin 0.4%

Revenue ¥15.52B; Operating income ¥288.8M.

• ▍Revenue ¥15.52B
• ▍Operating income ¥288.8M
• ▍Net margin 1.0%

Revenue ¥66.00B, +4,8% YoY; Operating income −23,5% YoY.

• ▍Revenue ¥66.00B, +4,8% YoY
• ▍Operating income −23,5% YoY
• ▍Net income −7,7% YoY
• ▍Free cash flow +17,6% YoY
• ▍Net margin 0.7%

Revenue ¥62.97B, +0,8% YoY; Operating income +2,1% YoY.

• ▍Revenue ¥62.97B, +0,8% YoY
• ▍Operating income +2,1% YoY
• ▍Net income −4,6% YoY
• ▍Free cash flow +1 533,7% YoY
• ▍Net margin 0.8%

Revenue ¥62.48B, +7,5% YoY; Operating income −5,0% YoY.

• ▍Revenue ¥62.48B, +7,5% YoY
• ▍Operating income −5,0% YoY
• ▍Net income −17,2% YoY
• ▍Free cash flow −104,9% YoY
• ▍Net margin 0.8%

Revenue ¥58.10B, +7,7% YoY; Operating income +26,8% YoY.

• ▍Revenue ¥58.10B, +7,7% YoY
• ▍Operating income +26,8% YoY
• ▍Net income +39,4% YoY
• ▍Free cash flow +273,4% YoY
• ▍Net margin 1.1%