DN Holdings Co Ltd

DN Holdings maintains a capital structure with a debt-to-equity ratio of 0.77, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 1.45, suggesting it can cover its short-term obligations with its current assets. However, the company's net cash position is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics show a return on equity (ROE) of 7.99% and a return on assets (ROA) of 3.27%. These figures are below the industry median for ROE and ROA, indicating that DN Holdings is underperforming its peers in terms of capital efficiency and asset utilization.

The company's revenue is concentrated in the construction and engineering sector, with no disclosed geographic diversification. This concentration increases exposure to sector-specific risks, such as regulatory changes or economic downturns in the construction industry.

DN Holdings reported a revenue of ¥9.75 billion in the latest period, with a gross profit of ¥3.14 billion. The company's outlook for the current fiscal year indicates a growth trajectory, though specific numeric deltas are not provided. The absence of detailed growth projections suggests a cautious approach to future expectations.

Risk factors include a medium liquidity risk due to the current ratio and a negative net cash position. 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 may pose credit risk if interest rates rise or if the company's credit rating is downgraded.

Recent events include the latest financial filing, which disclosed the company's financial position and performance. No recent earnings call transcripts or significant regulatory filings were identified in the available data.

Operating income surged 38.7% year-over-year to JPY 2.7 billion, demonstrating strong top-line and bottom-line momentum.

Free cash flow jumped 41.6% to JPY 1.58 billion, highlighting robust cash generation capabilities.

Return on equity of 7.99% outperforms the 4.72% median for the construction and engineering cohort.

Long-term debt decreased to JPY 843.5 million in FY2025, reducing leverage compared to the prior year.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or debt servicing.

Debt-to-equity ratio of 0.77 is substantially higher than the 0.29 cohort median, indicating elevated leverage.

Medium liquidity risk suggests potential challenges in meeting short-term financial obligations without significant asset sales.

Return on invested capital of 5.07% suggests modest value creation relative to the capital employed in operations.

Revenue ¥9.78B, −2,0% YoY; Operating income −31,0% YoY.

• ▍Revenue ¥9.78B, −2,0% YoY
• ▍Operating income −31,0% YoY
• ▍Net income −36,3% YoY
• ▍Net margin 4.7%

Revenue ¥7.72B, +3,6% YoY; Operating income −128,8% YoY.

• ▍Revenue ¥7.72B, +3,6% YoY
• ▍Operating income −128,8% YoY
• ▍Net income −84,2% YoY
• ▍Net margin -2.7%

Revenue ¥9.23B, −7,3% YoY; Operating income −74,1% YoY.

• ▍Revenue ¥9.23B, −7,3% YoY
• ▍Operating income −74,1% YoY
• ▍Net income −61,6% YoY
• ▍Net margin 4.2%

Revenue ¥10.30B, +5,7% YoY; Operating income +30,1% YoY.

• ▍Revenue ¥10.30B, +5,7% YoY
• ▍Operating income +30,1% YoY
• ▍Net income −3,9% YoY
• ▍Net margin 8.9%

Revenue ¥9.99B; Operating income ¥1.04B.

• ▍Revenue ¥9.99B
• ▍Operating income ¥1.04B
• ▍Net margin 7.2%

Revenue ¥7.46B; Operating income -¥113.4M.

• ▍Revenue ¥7.46B
• ▍Operating income -¥113.4M
• ▍Net margin -1.5%

Revenue ¥9.96B; Operating income ¥1.43B.

• ▍Revenue ¥9.96B
• ▍Operating income ¥1.43B
• ▍Net margin 10.3%

Revenue ¥9.75B; Operating income ¥1.08B.

• ▍Revenue ¥9.75B
• ▍Operating income ¥1.08B
• ▍Net margin 9.8%

Revenue ¥36.98B, +8,3% YoY; Operating income +38,7% YoY.

• ▍Revenue ¥36.98B, +8,3% YoY
• ▍Operating income +38,7% YoY
• ▍Net income +23,4% YoY
• ▍Free cash flow +41,5% YoY
• ▍Net margin 5.2%

Revenue ¥34.13B, +4,8% YoY; Operating income −10,4% YoY.

• ▍Revenue ¥34.13B, +4,8% YoY
• ▍Operating income −10,4% YoY
• ▍Net income −11,3% YoY
• ▍Free cash flow −4,5% YoY
• ▍Net margin 4.6%

Revenue ¥32.58B, +1,5% YoY; Operating income +1,2% YoY.

• ▍Revenue ¥32.58B, +1,5% YoY
• ▍Operating income +1,2% YoY
• ▍Net income +16,7% YoY
• ▍Free cash flow −5,0% YoY
• ▍Net margin 5.4%

Revenue ¥32.11B, +75,2% YoY; Operating income +25,7% YoY.

• ▍Revenue ¥32.11B, +75,2% YoY
• ▍Operating income +25,7% YoY
• ▍Net income +21,9% YoY
• ▍Free cash flow +16,8% YoY
• ▍Net margin 4.7%