Iwabuchi Corp

Iwabuchi Corp maintains a strong liquidity position with a current ratio of 5.01 and a cash and equivalents balance of ¥6.73 billion, which is significantly higher than the typical liquidity requirements for its industry. The company's debt-to-equity ratio is 0.05, indicating a conservative capital structure with minimal reliance on long-term debt. This low leverage supports financial flexibility and reduces exposure to interest rate volatility.

The company's profitability metrics are modest compared to industry benchmarks. Return on equity (ROE) is 1.18%, and return on assets (ROA) is 0.88%, both below the median for industrial machinery firms. Gross profit margin is 30.6%, and operating margin is 10.1%, which are in line with the industry median but suggest limited pricing power or cost control advantages.

Iwabuchi Corp operates as a single-segment entity, with all revenue derived from industrial machinery and equipment. The company is entirely focused on the Japanese market, with no disclosed international operations. This geographic concentration exposes the company to domestic economic cycles and regulatory changes.

The company's revenue growth has been flat in recent periods, with no disclosed YoY growth in the latest financial snapshot. Analyst estimates for the current fiscal year suggest a revenue of ¥12.64 billion, which is below the reported ¥3.11 billion in the latest period, indicating a potential data inconsistency or reporting lag. Capital expenditures are negative, suggesting asset sales or write-downs, which may impact future growth capacity.

Risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The company's low debt levels and strong cash position reduce financial distress risk. However, the high price-to-earnings ratio of 62.17 suggests market expectations of future earnings growth that may not be supported by current fundamentals.

Recent events include the latest financial filing, which shows a net income of ¥219.98 million and operating income of ¥315.41 million. No recent earnings call transcripts or material regulatory filings were identified in the available data.

Revenue grew 7.4% year-over-year to JPY 12.6 billion in fiscal 2025, demonstrating consistent top-line expansion.

Net margin of 7.1% outperforms the 4.9% cohort median, reflecting strong profitability within the industrial machinery sector.

Cash conversion ratio of 1.52 surpasses the 0.95 industry median, highlighting robust cash generation capabilities.

Debt-to-equity ratio of 0.05 is well below the 0.20 cohort median, suggesting a conservative and stable capital structure.

Return on equity of 1.2% trails the 3.6% industry median, indicating inefficient use of shareholder capital.

Net income growth slowed to just 3.7% year-over-year, lagging behind the 7.4% revenue expansion rate.

Return on assets of 0.9% remains low, suggesting limited ability to generate profits from total asset base.

Capex intensity of -6.3% exceeds the -3.9% cohort median, implying higher reinvestment requirements than peers.

Revenue ¥3.58B, +3,8% YoY; Operating income +99,1% YoY.

• ▍Revenue ¥3.58B, +3,8% YoY
• ▍Operating income +99,1% YoY
• ▍Net income +50,5% YoY
• ▍Net margin 8.3%

Revenue ¥3.27B, +7,3% YoY; Operating income +65,6% YoY.

• ▍Revenue ¥3.27B, +7,3% YoY
• ▍Operating income +65,6% YoY
• ▍Net income +34,1% YoY
• ▍Net margin 5.9%

Revenue ¥3.13B, +11,7% YoY; Operating income +128,3% YoY.

• ▍Revenue ¥3.13B, +11,7% YoY
• ▍Operating income +128,3% YoY
• ▍Net income +123,1% YoY
• ▍Net margin 8.6%

Revenue ¥3.34B, +7,3% YoY; Operating income −10,2% YoY.

• ▍Revenue ¥3.34B, +7,3% YoY
• ▍Operating income −10,2% YoY
• ▍Net income +7,4% YoY
• ▍Net margin 7.1%

Revenue ¥3.45B; Operating income ¥239.4M.

• ▍Revenue ¥3.45B
• ▍Operating income ¥239.4M
• ▍Net margin 5.7%

Revenue ¥3.05B; Operating income ¥197.4M.

• ▍Revenue ¥3.05B
• ▍Operating income ¥197.4M
• ▍Net margin 4.8%

Revenue ¥2.80B; Operating income ¥157.1M.

• ▍Revenue ¥2.80B
• ▍Operating income ¥157.1M
• ▍Net margin 4.3%

Revenue ¥3.11B; Operating income ¥315.4M.

• ▍Revenue ¥3.11B
• ▍Operating income ¥315.4M
• ▍Net margin 7.1%

Revenue ¥12.64B, +7,4% YoY; Operating income +3,4% YoY.

• ▍Revenue ¥12.64B, +7,4% YoY
• ▍Operating income +3,4% YoY
• ▍Net income +3,7% YoY
• ▍Free cash flow −63,8% YoY
• ▍Net margin 5.5%

Revenue ¥11.77B, +6,2% YoY; Operating income −0,3% YoY.

• ▍Revenue ¥11.77B, +6,2% YoY
• ▍Operating income −0,3% YoY
• ▍Net income −14,2% YoY
• ▍Free cash flow +17,5% YoY
• ▍Net margin 5.7%

Revenue ¥11.08B, +8,0% YoY; Operating income +0,6% YoY.

• ▍Revenue ¥11.08B, +8,0% YoY
• ▍Operating income +0,6% YoY
• ▍Net income +4,0% YoY
• ▍Free cash flow −13,4% YoY
• ▍Net margin 7.1%

Revenue ¥10.26B, +3,7% YoY; Operating income +28,6% YoY.

• ▍Revenue ¥10.26B, +3,7% YoY
• ▍Operating income +28,6% YoY
• ▍Net income +47,6% YoY
• ▍Free cash flow +52,3% YoY
• ▍Net margin 7.4%