Kyokuto Boeki Kaisha Ltd

Kyokuto Boeki Kaisha Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.17, significantly below the industry median of 0.45, indicating a low reliance on debt financing. The company's liquidity position is robust, with cash and equivalents amounting to ¥8.64 billion, representing 17.4% of total assets. However, the operating cash flow is negative at ¥1.02 billion, which may signal inefficiencies in working capital management or operational performance.

Profitability metrics for Kyokuto Boeki Kaisha Ltd are modest, with a return on equity (ROE) of 1.82% and a return on assets (ROA) of 0.94%, both below the industry median of 3.2% and 1.8%, respectively. The company's gross margin of 20.97% is in line with the industry median, but its operating margin of 3.76% is below the median of 5.1%, suggesting higher operating costs or lower pricing power.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the latest financial report. This lack of diversification increases exposure to regional economic fluctuations and regulatory changes. The company's capital expenditures of ¥252 million in the latest period reflect a modest investment in growth, with a capex-to-revenue ratio of 0.2%, below the industry median of 1.5%.

Looking ahead, Kyokuto Boeki Kaisha Ltd is projected to experience a 12.3% year-over-year revenue decline in the current fiscal year, followed by a 5.7% recovery in the next fiscal year. This trajectory is influenced by the company's exposure to global supply chain disruptions and a slowdown in industrial demand in key markets. The company's recent operating cash flow deficit and low ROE suggest that earnings growth may be constrained in the near term.

Risk factors for Kyokuto Boeki Kaisha Ltd include exposure to global trade tensions and currency fluctuations, which could impact its import and export operations. The company's liquidity risk is low, supported by its strong cash reserves, but its credit risk is moderate due to the potential for declining revenues to affect its ability to service debt. There are no immediate dilution risks, as the company has not issued new shares in the past 12 months and has no outstanding shelf registration or ATM facilities.

Recent filings and transcripts indicate that Kyokuto Boeki Kaisha Ltd is focusing on optimizing its supply chain and expanding its product portfolio to mitigate the impact of global economic uncertainties. The company has also emphasized cost control measures to improve its operating margin.

Net income surged 221.6% year-over-year to JPY 3.7 billion in fiscal 2025, demonstrating significant earnings acceleration.

Operating income jumped 267.1% to JPY 3.9 billion in fiscal 2025, indicating substantial improvement in core operational profitability.

Free cash flow exploded 954.4% to JPY 2.7 billion in fiscal 2025, highlighting dramatically improved cash generation capabilities.

Gross profit reached JPY 10.9 billion in fiscal 2025, maintaining a strong top-line buffer despite revenue fluctuations over the period.

The company maintains low dilution, liquidity, and credit risk flags, suggesting a stable financial foundation with minimal immediate threats.

Revenue declined at a 2.0% CAGR over four years, indicating a shrinking top-line business despite recent profit growth.

Cash conversion ratio of -2.18 sits in the bottom quartile, signaling weak ability to translate earnings into actual cash flow.

Long-term debt increased to JPY 7.6 billion in fiscal 2025, nearly doubling from the previous year's JPY 4.3 billion level.

Revenue ¥15.79B, +14,3% YoY; Operating income −79,1% YoY.

• ▍Revenue ¥15.79B, +14,3% YoY
• ▍Operating income −79,1% YoY
• ▍Net income −78,3% YoY
• ▍Net margin 3.3%

Revenue ¥15.78B, +46,2% YoY; Operating income −7,0% YoY.

• ▍Revenue ¥15.78B, +46,2% YoY
• ▍Operating income −7,0% YoY
• ▍Net income −52,7% YoY
• ▍Net margin 1.9%

Revenue ¥16.04B, +53,0% YoY; Operating income +443,7% YoY.

• ▍Revenue ¥16.04B, +53,0% YoY
• ▍Operating income +443,7% YoY
• ▍Net income +392,2% YoY
• ▍Net margin 4.0%

Revenue ¥17.89B, +40,6% YoY; Operating income +25,3% YoY.

• ▍Revenue ¥17.89B, +40,6% YoY
• ▍Operating income +25,3% YoY
• ▍Net income +10,3% YoY
• ▍Net margin 2.9%

Revenue ¥13.82B; Operating income ¥2.60B.

• ▍Revenue ¥13.82B
• ▍Operating income ¥2.60B
• ▍Net margin 17.6%

Revenue ¥10.79B; Operating income ¥582.0M.

• ▍Revenue ¥10.79B
• ▍Operating income ¥582.0M
• ▍Net margin 5.9%

Revenue ¥10.49B; Operating income ¥135.0M.

• ▍Revenue ¥10.49B
• ▍Operating income ¥135.0M
• ▍Net margin 1.2%

Revenue ¥12.72B; Operating income ¥478.0M.

• ▍Revenue ¥12.72B
• ▍Operating income ¥478.0M
• ▍Net margin 3.7%

Revenue ¥52.98B, +21,4% YoY; Operating income +267,1% YoY.

• ▍Revenue ¥52.98B, +21,4% YoY
• ▍Operating income +267,1% YoY
• ▍Net income +221,6% YoY
• ▍Free cash flow +954,4% YoY
• ▍Net margin 7.0%

Revenue ¥43.66B, +2,4% YoY; Operating income +50,9% YoY.

• ▍Revenue ¥43.66B, +2,4% YoY
• ▍Operating income +50,9% YoY
• ▍Net income +13,7% YoY
• ▍Free cash flow +3,6% YoY
• ▍Net margin 2.6%

Revenue ¥42.66B, +7,4% YoY; Operating income +111,0% YoY.

• ▍Revenue ¥42.66B, +7,4% YoY
• ▍Operating income +111,0% YoY
• ▍Net income +30,1% YoY
• ▍Free cash flow +212,5% YoY
• ▍Net margin 2.4%

Revenue ¥39.70B, −30,8% YoY; Operating income +5,0% YoY.

• ▍Revenue ¥39.70B, −30,8% YoY
• ▍Operating income +5,0% YoY
• ▍Net income +181,3% YoY
• ▍Free cash flow +233,3% YoY
• ▍Net margin 2.0%