Daisan Co Ltd

Daisan Co Ltd maintains a capital structure with a debt-to-equity ratio of 0.56, indicating moderate leverage. The company's liquidity position is characterized by a current ratio of 1.59, suggesting it can cover its short-term obligations. However, the company's net cash position is negative after subtracting total debt, signaling potential liquidity risk.

Profitability metrics show a return on equity (ROE) of 1.52% and a return on assets (ROA) of 0.79%, both below the industry median for construction and engineering firms. The company's operating margin is 4.51% (124,336,000 JPY / 2,757,086,000 JPY), which is also below the industry median, indicating lower operational efficiency.

Daisan's revenue is concentrated in the construction and engineering services segment, with no disclosed geographic diversification in the latest financial report. The company's exposure to a single business line increases its vulnerability to sector-specific downturns.

The company's revenue growth trajectory is not explicitly provided in the latest financial data, but the current fiscal year's revenue of 2,757,086,000 JPY suggests a stable or slightly declining trend compared to the analyst estimate of 10,837,530,000 JPY. The company's capital expenditure of -55,994,000 JPY indicates a reduction in investment in physical assets.

Daisan faces a medium liquidity risk and a low dilution risk, as per the risk assessment. The company's price-to-book ratio of 0.68 suggests it is trading at a discount to its book value, which may reflect market concerns about its asset quality or future earnings potential.

Recent financial filings and transcripts do not indicate any major strategic shifts or significant events that would alter the company's current trajectory. The company's market price of 569 JPY and a market cap of 3,648,904,822 JPY suggest it is a small-cap stock with limited market influence.

Net income surged 453.2% year-over-year to JPY 335 million, signaling a strong operational turnaround in fiscal 2025.

Operating income jumped 736.5% to JPY 375 million, demonstrating significant improvement in core business profitability margins.

Free cash flow increased 378.8% to JPY 406 million, indicating robust cash generation capabilities for future investments.

Cash conversion ratio of 3.83 exceeds the 75th percentile of the Construction & Engineering cohort peers.

Revenue grew 4.1% year-over-year to JPY 10.8 billion, maintaining steady top-line expansion despite market volatility.

The company faces high credit risk, potentially threatening financial stability and increasing the cost of capital significantly.

Debt-to-equity ratio of 0.56 is nearly double the 0.29 median, indicating higher financial leverage than peers.

Operating margin of 4.51% trails the 5.57% cohort median, suggesting lower efficiency in core operations.

Medium liquidity risk flags potential challenges in meeting short-term obligations without significant asset liquidation.

Revenue ¥2.91B, +6,2% YoY; Operating income −11,7% YoY.

• ▍Revenue ¥2.91B, +6,2% YoY
• ▍Operating income −11,7% YoY
• ▍Net income −33,6% YoY
• ▍Net margin 2.5%

Revenue ¥2.71B, −2,7% YoY; Operating income −43,9% YoY.

• ▍Revenue ¥2.71B, −2,7% YoY
• ▍Operating income −43,9% YoY
• ▍Net income −41,2% YoY
• ▍Net margin 2.1%

Revenue ¥2.60B, +1,8% YoY; Operating income +63,7% YoY.

• ▍Revenue ¥2.60B, +1,8% YoY
• ▍Operating income +63,7% YoY
• ▍Net income +168,7% YoY
• ▍Net margin 4.0%

Revenue ¥2.75B, −0,2% YoY; Operating income −35,4% YoY.

• ▍Revenue ¥2.75B, −0,2% YoY
• ▍Operating income −35,4% YoY
• ▍Net income +7,5% YoY
• ▍Net margin 3.2%

Revenue ¥2.74B; Operating income ¥125.8M.

• ▍Revenue ¥2.74B
• ▍Operating income ¥125.8M
• ▍Net margin 4.0%

Revenue ¥2.79B; Operating income ¥142.6M.

• ▍Revenue ¥2.79B
• ▍Operating income ¥142.6M
• ▍Net margin 3.5%

Revenue ¥2.56B; Operating income ¥25.7M.

• ▍Revenue ¥2.56B
• ▍Operating income ¥25.7M
• ▍Net margin 1.5%

Revenue ¥2.76B; Operating income ¥124.3M.

• ▍Revenue ¥2.76B
• ▍Operating income ¥124.3M
• ▍Net margin 3.0%

Revenue ¥10.84B, +4,1% YoY; Operating income +736,5% YoY.

• ▍Revenue ¥10.84B, +4,1% YoY
• ▍Operating income +736,5% YoY
• ▍Net income +453,2% YoY
• ▍Free cash flow +378,8% YoY
• ▍Net margin 3.1%

Revenue ¥10.41B, −1,0% YoY; Operating income +104,2% YoY.

• ▍Revenue ¥10.41B, −1,0% YoY
• ▍Operating income +104,2% YoY
• ▍Net income +106,0% YoY
• ▍Free cash flow +107,6% YoY
• ▍Net margin 0.6%

Revenue ¥10.51B, +8,4% YoY; Operating income −4 827,1% YoY.

• ▍Revenue ¥10.51B, +8,4% YoY
• ▍Operating income −4 827,1% YoY
• ▍Net income −2 127,8% YoY
• ▍Free cash flow −11 658,9% YoY
• ▍Net margin -9.7%

Revenue ¥9.70B, +12,1% YoY; Operating income +91,1% YoY.

• ▍Revenue ¥9.70B, +12,1% YoY
• ▍Operating income +91,1% YoY
• ▍Net income +44,2% YoY
• ▍Free cash flow +106,6% YoY
• ▍Net margin 0.5%