Matching Service Japan Co Ltd

Matching Service Japan Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥3.21 billion, representing a significant portion of its total assets of ¥10.16 billion. The company's current ratio of 4.86 indicates a robust ability to meet short-term obligations, and its debt-to-equity ratio of 0.0 suggests no long-term debt burden. The price-to-book ratio of 2.53 and price-to-tangible-book ratio of 2.53 reflect a moderate premium over its book value, consistent with the valuation norms for the Employment Services industry.

The company's profitability metrics show a return on equity (ROE) of 3.14% and a return on assets (ROA) of 2.79%. These figures are below the industry median for ROE and ROA, indicating that the company is underperforming relative to its peers in terms of capital efficiency and asset utilization. The operating margin, calculated as operating income of ¥443.19 million divided by revenue of ¥1.92 billion, is approximately 23.1%, which is in line with the industry average.

Geographically, the company's revenue is concentrated in Japan, as disclosed in its financial reports. There is no indication of significant international operations or revenue diversification. The company operates through a single business segment, which is employment services, and there are no disclosed regional breakdowns of revenue.

Looking ahead, the company's revenue is projected to grow, with the current fiscal year expected to see an increase from the previous year's ¥7.47 billion to ¥1.92 billion. This represents a significant growth rate, although the exact percentage is not disclosed. The company's price-to-earnings ratio of 80.6 is notably high, suggesting that investors are paying a premium for earnings, which may reflect expectations of future growth or a high valuation multiple relative to earnings.

The risk assessment for Matching Service Japan Co Ltd indicates low liquidity and dilution risks. There are no immediate filing-based liquidity or dilution flags, and the company's capital structure is free of long-term debt. The absence of dilution potential and the low risk of liquidity issues suggest a stable financial position. However, the high price-to-earnings ratio may indicate that the stock is overvalued relative to its earnings, which could pose a risk if earnings do not meet investor expectations.

Recent events and filings do not show any significant changes in the company's operations or financial position. The latest actual EPS was reported at 41.53 JPY, and the latest actual revenue was ¥7.47 billion. These figures are consistent with the company's financial performance and do not indicate any material changes in the business environment or operational strategy.

Revenue grew at a 19.4% CAGR over four years, showing consistent top-line expansion despite recent stabilization.

Free cash flow surged 1,036% year-over-year to JPY 74.6 million, highlighting improved cash generation capabilities.

The company maintains a zero debt-to-equity ratio, providing a conservative balance sheet with minimal leverage risk.

Net income CAGR was 0.0% over four years, revealing a lack of earnings growth despite revenue expansion.

Recent year-over-year revenue growth slowed to just 2.3%, signaling a significant deceleration in top-line momentum.

Long-term debt increased to JPY 213.6 million, introducing new leverage where none existed in prior fiscal years.

Revenue ¥1.92B, +4,5% YoY; Operating income +16,0% YoY.

• ▍Revenue ¥1.92B, +4,5% YoY
• ▍Operating income +16,0% YoY
• ▍Net income +19,0% YoY
• ▍Net margin 14.0%

Revenue ¥1.95B, +0,1% YoY; Operating income −1,1% YoY.

• ▍Revenue ¥1.95B, +0,1% YoY
• ▍Operating income −1,1% YoY
• ▍Net income −0,8% YoY
• ▍Net margin 15.6%

Revenue ¥1.97B, +2,5% YoY; Operating income +1,7% YoY.

• ▍Revenue ¥1.97B, +2,5% YoY
• ▍Operating income +1,7% YoY
• ▍Net income +0,8% YoY
• ▍Net margin 14.5%

Revenue ¥1.77B; Operating income ¥275.7M.

• ▍Revenue ¥1.77B
• ▍Operating income ¥275.7M
• ▍Net margin 12.3%

Revenue ¥1.83B; Operating income ¥369.8M.

• ▍Revenue ¥1.83B
• ▍Operating income ¥369.8M
• ▍Net margin 12.3%

Revenue ¥1.95B; Operating income ¥460.0M.

• ▍Revenue ¥1.95B
• ▍Operating income ¥460.0M
• ▍Net margin 15.7%

Revenue ¥1.92B; Operating income ¥443.2M.

• ▍Revenue ¥1.92B
• ▍Operating income ¥443.2M
• ▍Net margin 14.8%

Revenue ¥7.47B, +63,4% YoY; Operating income +5,2% YoY.

• ▍Revenue ¥7.47B, +63,4% YoY
• ▍Operating income +5,2% YoY
• ▍Net income −9,0% YoY
• ▍Free cash flow +105,8% YoY
• ▍Net margin 13.8%

Revenue ¥4.57B, +6,5% YoY; Operating income −13,1% YoY.

• ▍Revenue ¥4.57B, +6,5% YoY
• ▍Operating income −13,1% YoY
• ▍Net income −7,2% YoY
• ▍Free cash flow −114,3% YoY
• ▍Net margin 24.8%

Revenue ¥4.29B, +14,2% YoY; Operating income +9,2% YoY.

• ▍Revenue ¥4.29B, +14,2% YoY
• ▍Operating income +9,2% YoY
• ▍Net income +18,4% YoY
• ▍Free cash flow +15,4% YoY
• ▍Net margin 28.5%

Revenue ¥3.76B; Operating income ¥1.55B.

• ▍Revenue ¥3.76B
• ▍Operating income ¥1.55B
• ▍Net margin 27.5%