Kinki Sharyo Co Ltd

Kinki Sharyo maintains a strong liquidity position, with cash and equivalents amounting to ¥11.73 billion, representing 38.7% of total assets. The company's liquidity FPT (free cash flow to total liabilities) is robust, and its current ratio of 1.94 indicates a solid ability to meet short-term obligations. The price-to-book ratio of 0.48 suggests the company is trading at a discount to its book value, which may reflect market skepticism about asset quality or growth potential.

Profitability metrics show a return on equity (ROE) of 3.07% and a return on assets (ROA) of 1.68%, both below the industry median for heavy machinery and vehicles. The company's operating margin of 5.96% (¥800 million operating income on ¥13.42 billion revenue) is also below the sector average, indicating room for improvement in cost control or pricing power. Gross profit of ¥1.95 billion on ¥13.42 billion in revenue yields a gross margin of 14.5%, which is in line with industry norms but not exceptional.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification beyond Japan and international markets. This lack of segmental or geographic diversification increases exposure to regional economic downturns or regulatory shifts. The company's capital expenditures of ¥677 million in the latest period suggest a moderate investment in growth, though the negative value indicates a reduction in capital spending compared to prior periods.

Looking ahead, the company is projected to see a modest increase in revenue, with a year-over-year growth rate of 0.5% in the current fiscal year and 1.2% in the next fiscal year. These growth rates are below the industry average, suggesting limited market expansion or competitive pressures. The company's net income of ¥998 million in the latest period reflects a 7.4% net margin, which is in line with industry peers but not a standout performance.

Risk factors for Kinki Sharyo include low liquidity risk and low dilution potential, with no immediate filing-based flags detected. The company's debt-to-equity ratio of 0.15 indicates a conservative capital structure, reducing financial leverage risk. However, the company's low ROE and ROA suggest that management may need to improve asset utilization or generate higher returns on equity to meet investor expectations.

Recent events include the filing of the latest financial results, which show a revenue of ¥13.42 billion and a net income of ¥998 million. The company's market price of ¥2,250 per share and a market cap of ¥15.48 billion reflect a moderate valuation relative to its earnings and book value. Analysts have noted the company's last actual EPS of ¥81.39 and revenue of ¥30.26 billion, which are consistent with the reported financials.

Revenue ¥9.26B, +16,3% YoY; Operating income +14,0% YoY.

• ▍Revenue ¥9.26B, +16,3% YoY
• ▍Operating income +14,0% YoY
• ▍Net income −47,8% YoY
• ▍Net margin 5.6%

Revenue ¥8.67B, +37,2% YoY; Operating income +288,9% YoY.

• ▍Revenue ¥8.67B, +37,2% YoY
• ▍Operating income +288,9% YoY
• ▍Net income +138,3% YoY
• ▍Net margin 3.6%

Revenue ¥7.59B, +4,6% YoY; Operating income −101,2% YoY.

• ▍Revenue ¥7.59B, +4,6% YoY
• ▍Operating income −101,2% YoY
• ▍Net income −104,5% YoY
• ▍Net margin -0.5%

Revenue ¥8.71B, −35,1% YoY; Operating income −149,8% YoY.

• ▍Revenue ¥8.71B, −35,1% YoY
• ▍Operating income −149,8% YoY
• ▍Net income −144,9% YoY
• ▍Net margin -5.1%

Revenue ¥7.96B; Operating income ¥250.0M.

• ▍Revenue ¥7.96B
• ▍Operating income ¥250.0M
• ▍Net margin 12.6%

Revenue ¥6.32B; Operating income -¥144.0M.

• ▍Revenue ¥6.32B
• ▍Operating income -¥144.0M
• ▍Net margin -12.9%

Revenue ¥7.26B; Operating income ¥487.0M.

• ▍Revenue ¥7.26B
• ▍Operating income ¥487.0M
• ▍Net margin 11.3%

Revenue ¥13.41B; Operating income ¥800.0M.

• ▍Revenue ¥13.41B
• ▍Operating income ¥800.0M
• ▍Net margin 7.4%

Revenue ¥30.26B, −29,9% YoY; Operating income −95,4% YoY.

• ▍Revenue ¥30.26B, −29,9% YoY
• ▍Operating income −95,4% YoY
• ▍Net income −87,2% YoY
• ▍Free cash flow −89,9% YoY
• ▍Net margin 1.9%

Revenue ¥43.15B, +20,3% YoY; Operating income +246,1% YoY.

• ▍Revenue ¥43.15B, +20,3% YoY
• ▍Operating income +246,1% YoY
• ▍Net income +269,6% YoY
• ▍Free cash flow +207,2% YoY
• ▍Net margin 10.1%

Revenue ¥35.87B, −8,8% YoY; Operating income −48,2% YoY.

• ▍Revenue ¥35.87B, −8,8% YoY
• ▍Operating income −48,2% YoY
• ▍Net income −57,2% YoY
• ▍Free cash flow −48,2% YoY
• ▍Net margin 3.3%

Revenue ¥39.33B, −20,4% YoY; Operating income +641,2% YoY.

• ▍Revenue ¥39.33B, −20,4% YoY
• ▍Operating income +641,2% YoY
• ▍Net income +317,8% YoY
• ▍Free cash flow +105,7% YoY
• ▍Net margin 7.0%