CVS Bay Area Inc

CVS Bay Area Inc maintains a capital structure with a debt-to-equity ratio of 1.65, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.97, suggesting that its current liabilities slightly exceed its current assets. The company holds JPY 2,094,150,000 in cash and equivalents, but this is offset by long-term debt of JPY 5,706,881,000, resulting in a net cash position that is negative after subtracting total debt.

In terms of profitability, the company's return on equity (ROE) is 4.51%, and its return on assets (ROA) is 1.44%. These figures are below the typical thresholds for strong performance in the Business Support Services industry, indicating that the company is generating relatively modest returns on its equity and asset base.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification may expose the company to higher operational and market risks, as it is not hedging against regional or sector-specific downturns.

Looking at the growth trajectory, the company's revenue for the latest period was JPY 1,997,243,000, with a gross profit of JPY 955,046,000. While the company has shown consistent revenue, the absence of detailed outlook data for the current and next fiscal years makes it difficult to assess future growth potential. The company's net income of JPY 156,356,000 indicates a profitable operation, but the low ROE and ROA suggest that there is room for improvement in capital efficiency.

The risk assessment highlights a medium liquidity risk, primarily due to the current ratio being slightly below 1. The company's dilution risk is assessed as low, with no significant dilution potential identified in the basic shares outstanding. However, the company's reliance on long-term debt and the negative net cash position may pose challenges in maintaining financial flexibility.

Recent events and filings do not provide specific details on new initiatives or strategic changes. The company's latest actual EPS was -230.91 JPY, and the actual revenue was JPY 7,902,050,000, which is lower than the previously reported revenue. These figures suggest a need for the company to address its earnings performance and revenue consistency.

Revenue grew at a 2.3% CAGR over four years, showing consistent top-line expansion despite recent volatility.

Gross profit reached 3.79 billion JPY in FY2026, maintaining a robust buffer before operating expenses.

Dilution risk is assessed as low, protecting existing shareholders from significant equity value erosion.

Debt-to-equity ratio of 1.65 sits in the bottom quartile, indicating excessive leverage compared to peers.

High credit risk and medium liquidity risk flags suggest significant financial stability concerns for the issuer.

Revenue ¥1.89B, +1,6% YoY; Operating income −2 054,9% YoY.

• ▍Revenue ¥1.89B, +1,6% YoY
• ▍Operating income −2 054,9% YoY
• ▍Net income −646,0% YoY
• ▍Net margin -58.7%

Revenue ¥2.03B, −1,1% YoY; Operating income −47,0% YoY.

• ▍Revenue ¥2.03B, −1,1% YoY
• ▍Operating income −47,0% YoY
• ▍Net income −62,7% YoY
• ▍Net margin 1.9%

Revenue ¥1.90B, −0,4% YoY; Operating income −122,3% YoY.

• ▍Revenue ¥1.90B, −0,4% YoY
• ▍Operating income −122,3% YoY
• ▍Net income −117,0% YoY
• ▍Net margin -5.9%

Revenue ¥2.08B, +4,0% YoY; Operating income −77,0% YoY.

• ▍Revenue ¥2.08B, +4,0% YoY
• ▍Operating income −77,0% YoY
• ▍Net income −70,5% YoY
• ▍Net margin 2.2%

Revenue ¥1.86B; Operating income -¥27.8M.

• ▍Revenue ¥1.86B
• ▍Operating income -¥27.8M
• ▍Net margin 10.9%

Revenue ¥2.06B; Operating income ¥168.8M.

• ▍Revenue ¥2.06B
• ▍Operating income ¥168.8M
• ▍Net margin 5.0%

Revenue ¥1.90B; Operating income ¥89.0M.

• ▍Revenue ¥1.90B
• ▍Operating income ¥89.0M
• ▍Net margin 34.6%

Revenue ¥2.00B; Operating income ¥193.3M.

• ▍Revenue ¥2.00B
• ▍Operating income ¥193.3M
• ▍Net margin 7.8%

Revenue ¥7.90B, +1,0% YoY; Operating income −214,7% YoY.

• ▍Revenue ¥7.90B, +1,0% YoY
• ▍Operating income −214,7% YoY
• ▍Net income −201,5% YoY
• ▍Free cash flow −362,2% YoY
• ▍Net margin -14.4%

Revenue ¥7.82B, +4,0% YoY; Operating income −14,1% YoY.

• ▍Revenue ¥7.82B, +4,0% YoY
• ▍Operating income −14,1% YoY
• ▍Net income +61,0% YoY
• ▍Free cash flow +11,6% YoY
• ▍Net margin 14.4%

Revenue ¥7.52B, +8,6% YoY; Operating income +1 541,2% YoY.

• ▍Revenue ¥7.52B, +8,6% YoY
• ▍Operating income +1 541,2% YoY
• ▍Net income +5 256,9% YoY
• ▍Free cash flow −920,7% YoY
• ▍Net margin 9.3%

Revenue ¥6.93B, −3,9% YoY; Operating income +103,9% YoY.

• ▍Revenue ¥6.93B, −3,9% YoY
• ▍Operating income +103,9% YoY
• ▍Net income +98,4% YoY
• ▍Free cash flow +105,5% YoY
• ▍Net margin -0.2%