Fuji Latex Co Ltd

Fuji Latex maintains a capital structure with a debt-to-equity ratio of 1.43, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 1.31, suggesting it can cover its short-term obligations, but with limited excess capacity. The price-to-book ratio of 0.63 implies that the company's market value is below its book value, which may reflect market skepticism about its asset quality or future earnings potential.

Profitability metrics for Fuji Latex are weak compared to industry norms. The company's return on equity (ROE) is 0.83%, and its return on assets (ROA) is 0.28%, both significantly below the typical performance of firms in the Industrial Machinery & Equipment sector. These low returns suggest that the company is not effectively utilizing its equity or assets to generate profits.

Fuji Latex's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the provided data. This lack of diversification increases the company's exposure to sector-specific risks and regional economic fluctuations. The absence of segment or geographic breakdowns in the financial data limits the ability to assess the company's risk profile in detail.

The company's growth trajectory is modest, with no significant revenue growth indicated in the provided data. The outlook for the current fiscal year does not suggest a material change in revenue performance, and the absence of forward-looking guidance makes it difficult to assess future growth potential. The company's operating cash flow of 210.996 million JPY is positive but not robust, and capital expenditures of -116.387 million JPY indicate a net outflow from investment activities.

Fuji Latex faces moderate liquidity risk, as noted in the risk assessment, and the company's net cash position is negative after accounting for total debt. The risk of dilution is currently low, but the company's high debt-to-equity ratio and limited equity cushion could increase the likelihood of future dilution if additional financing is required. No recent events or filings have been disclosed that would significantly alter the company's risk profile.

Recent financial filings and transcripts do not indicate any major strategic shifts or operational changes at Fuji Latex. The company's financial performance remains stable but unremarkable, with no significant deviations from historical trends. The absence of recent news or disclosures suggests a lack of volatility in the company's operations, but also a lack of momentum or innovation.

Fuji Latex generated JPY 345.6 million in free cash flow in FY2025, demonstrating positive cash generation despite revenue declines.

The company achieved a 6.6 cash conversion ratio, ranking as best-in-class compared to the 0.95 cohort median.

Long-term debt decreased to JPY 5.3 billion in FY2025, reflecting a consistent reduction in leverage over the four-year period.

Net income grew at a 15.1% CAGR from FY2021 to FY2025, indicating improving profitability trends over the long term.

Dilution risk is assessed as low, suggesting minimal threat to existing shareholder equity value from share issuance.

The debt-to-equity ratio stands at 1.43, placing Fuji Latex in the bottom quartile of its industrial machinery cohort.

Credit risk is flagged as high, indicating significant potential for financial distress or default given the company's leverage profile.

Revenue declined 4.1% year-over-year to JPY 7.2 billion in FY2025, showing a contraction in top-line business activity.

Return on equity of 0.83% is significantly below the 3.56% cohort median, highlighting inefficient capital utilization.

Revenue ¥1.69B, −9,2% YoY; Operating income +151,6% YoY.

• ▍Revenue ¥1.69B, −9,2% YoY
• ▍Operating income +151,6% YoY
• ▍Net income +46,8% YoY
• ▍Net margin 3.4%

Revenue ¥1.70B, −6,9% YoY; Operating income +224,5% YoY.

• ▍Revenue ¥1.70B, −6,9% YoY
• ▍Operating income +224,5% YoY
• ▍Net income +408,1% YoY
• ▍Net margin 2.5%

Revenue ¥1.73B, −4,9% YoY; Operating income −84,9% YoY.

• ▍Revenue ¥1.73B, −4,9% YoY
• ▍Operating income −84,9% YoY
• ▍Net income −107,0% YoY
• ▍Net margin -0.3%

Revenue ¥1.70B, −4,9% YoY; Operating income −89,1% YoY.

• ▍Revenue ¥1.70B, −4,9% YoY
• ▍Operating income −89,1% YoY
• ▍Net income +528,2% YoY
• ▍Net margin 11.8%

Revenue ¥1.86B; Operating income ¥40.3M.

• ▍Revenue ¥1.86B
• ▍Operating income ¥40.3M
• ▍Net margin 2.1%

Revenue ¥1.83B; Operating income -¥62.1M.

• ▍Revenue ¥1.83B
• ▍Operating income -¥62.1M
• ▍Net margin -0.8%

Revenue ¥1.81B; Operating income ¥93.9M.

• ▍Revenue ¥1.81B
• ▍Operating income ¥93.9M
• ▍Net margin 4.0%

Revenue ¥1.79B; Operating income ¥61.9M.

• ▍Revenue ¥1.79B
• ▍Operating income ¥61.9M
• ▍Net margin 1.8%

Revenue ¥7.20B, −4,1% YoY; Operating income −81,8% YoY.

• ▍Revenue ¥7.20B, −4,1% YoY
• ▍Operating income −81,8% YoY
• ▍Net income +2,9% YoY
• ▍Free cash flow −18,4% YoY
• ▍Net margin 4.1%

Revenue ¥7.51B, −7,1% YoY; Operating income −42,4% YoY.

• ▍Revenue ¥7.51B, −7,1% YoY
• ▍Operating income −42,4% YoY
• ▍Net income −44,0% YoY
• ▍Free cash flow −42,4% YoY
• ▍Net margin 3.9%

Revenue ¥8.09B, −0,8% YoY; Operating income +3 835,9% YoY.

• ▍Revenue ¥8.09B, −0,8% YoY
• ▍Operating income +3 835,9% YoY
• ▍Net income +462,3% YoY
• ▍Free cash flow +477,6% YoY
• ▍Net margin 6.4%

Revenue ¥8.15B, +18,9% YoY; Operating income −107,5% YoY.

• ▍Revenue ¥8.15B, +18,9% YoY
• ▍Operating income −107,5% YoY
• ▍Net income −183,9% YoY
• ▍Free cash flow −74,7% YoY
• ▍Net margin -1.8%