Nareru Group Inc

Nareru Group Inc maintains a relatively balanced capital structure, with a debt-to-equity ratio of 0.5, indicating moderate leverage. The company's liquidity position is characterized as medium, with a current ratio of 1.14, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the company's net cash position is negative after subtracting total debt, which could pose a liquidity risk if not managed effectively.

In terms of profitability, Nareru Group Inc reports a return on equity (ROE) of 3.26% and a return on assets (ROA) of 1.85%. These figures are below the industry median for ROE and ROA, indicating that the company is underperforming its peers in terms of generating returns from its equity and assets. The company's operating margin, calculated as operating income divided by revenue, is 11.3%, which is also below the industry median, suggesting that it is less efficient in converting revenue into operating profit.

Nareru Group Inc's revenue is primarily concentrated in Japan, with no significant international operations disclosed. The company's business is segmented into staffing and recruitment services, with no additional segments reported. This concentration in a single geographic market and business model may increase its exposure to local economic conditions and regulatory changes.

The company's growth trajectory is modest, with a current FY outlook indicating a slight increase in revenue. The next FY outlook is also projected to show a modest growth rate, although the exact numeric deltas are not provided. Historically, the company has shown a steady but slow revenue growth, which is in line with the broader industry trends.

The risk assessment for Nareru Group Inc highlights a medium liquidity risk and a low dilution risk. The company's key financial flags include a negative net cash position after subtracting total debt, which could affect its ability to meet short-term obligations. The dilution potential is low, as the number of shares outstanding for both basic and diluted scenarios is the same, indicating no imminent threat of share dilution.

Recent events and filings for Nareru Group Inc include the latest actual EPS and revenue figures, which align with the company's reported financial performance. The company's IR observations show that the last actual EPS was 238.74 JPY, and the last actual revenue was 24,158,930,000 JPY. These figures are consistent with the financial snapshot provided and indicate that the company is meeting its financial expectations.

Revenue grew 19.9% year-over-year, demonstrating strong top-line expansion momentum in recent periods.

Cash conversion ratio of 2.18 ranks in the top quartile of the Employment Services cohort.

Long-term debt decreased to 5.6 billion JPY in FY2025, indicating improved balance sheet leverage.

The company faces medium liquidity risk and medium credit risk according to internal risk assessments.

Return on assets of 1.9% indicates inefficient utilization of assets to generate profit.

Revenue ¥6.28B, +6,5% YoY; Operating income −19,6% YoY.

• ▍Revenue ¥6.28B, +6,5% YoY
• ▍Operating income −19,6% YoY
• ▍Net income −23,5% YoY
• ▍Free cash flow −128,6% YoY
• ▍Net margin 7.9%

Revenue ¥6.23B, +7,3% YoY; Operating income −41,2% YoY.

• ▍Revenue ¥6.23B, +7,3% YoY
• ▍Operating income −41,2% YoY
• ▍Net income −30,1% YoY
• ▍Free cash flow −30,2% YoY
• ▍Net margin 7.8%

Revenue ¥6.14B, +9,6% YoY; Operating income −11,0% YoY.

• ▍Revenue ¥6.14B, +9,6% YoY
• ▍Operating income −11,0% YoY
• ▍Net income −9,5% YoY
• ▍Free cash flow −47,0% YoY
• ▍Net margin 8.3%

Revenue ¥5.90B, +13,1% YoY; Operating income +7,8% YoY.

• ▍Revenue ¥5.90B, +13,1% YoY
• ▍Operating income +7,8% YoY
• ▍Net income +7,3% YoY
• ▍Free cash flow +2,9% YoY
• ▍Net margin 7.4%

Revenue ¥5.89B; Operating income ¥900.4M.

• ▍Revenue ¥5.89B
• ▍Operating income ¥900.4M
• ▍Net margin 11.0%

Revenue ¥5.81B; Operating income ¥961.8M.

• ▍Revenue ¥5.81B
• ▍Operating income ¥961.8M
• ▍Net margin 12.0%

Revenue ¥5.60B; Operating income ¥815.7M.

• ▍Revenue ¥5.60B
• ▍Operating income ¥815.7M
• ▍Net margin 10.1%

Revenue ¥5.22B; Operating income ¥589.0M.

• ▍Revenue ¥5.22B
• ▍Operating income ¥589.0M
• ▍Net margin 7.8%

Revenue ¥24.16B, +11,8% YoY; Operating income −9,1% YoY.

• ▍Revenue ¥24.16B, +11,8% YoY
• ▍Operating income −9,1% YoY
• ▍Net income −4,6% YoY
• ▍Free cash flow +5,8% YoY
• ▍Net margin 8.6%

Revenue ¥21.61B, +20,1% YoY; Operating income +26,0% YoY.

• ▍Revenue ¥21.61B, +20,1% YoY
• ▍Operating income +26,0% YoY
• ▍Net income +25,6% YoY
• ▍Free cash flow −37,7% YoY
• ▍Net margin 10.1%

Revenue ¥17.99B, +23,8% YoY; Operating income +21,1% YoY.

• ▍Revenue ¥17.99B, +23,8% YoY
• ▍Operating income +21,1% YoY
• ▍Net income +40,1% YoY
• ▍Free cash flow +37,1% YoY
• ▍Net margin 9.7%