Nippon Crucible Co Ltd

Nippon Crucible Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.37, indicating a relatively low reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.82, suggesting it can cover its short-term obligations but with limited excess capacity. The liquidity_fpt metric reveals a net cash position that is negative after subtracting total debt, signaling potential near-term liquidity constraints.

Profitability metrics show a return on equity (ROE) of 2.22% and a return on assets (ROA) of 1.1%, both of which are below the industry median for industrial machinery and equipment firms. The company's gross margin is 26.75% (625,369,000 JPY gross profit / 2,338,382,000 JPY revenue), which is in line with the industry average, but its operating margin of 5.16% (120,610,000 JPY operating income / 2,338,382,000 JPY revenue) is below the median for the sector.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and industry-specific downturns. The company's capital expenditures of -301,085,000 JPY suggest a reduction in investment in new assets, which may indicate a strategic shift or financial constraints.

Looking ahead, the company's revenue is expected to remain stable, with no significant growth or contraction projected in the current or next fiscal year. The price-to-earnings (P/E) ratio of 36.99 and the enterprise value-to-EBITDA (EV/EBITDA) ratio of 38.74 suggest that the stock is trading at a premium relative to earnings and cash flow, which may reflect investor optimism about future performance or a lack of comparable growth opportunities in the sector.

The risk assessment highlights a medium liquidity risk and a low dilution risk. The company's net cash position is negative after subtracting total debt, which could limit its ability to fund operations or pursue growth opportunities without external financing. However, the low dilution risk indicates that the company is not expected to issue additional shares in the near term, preserving shareholder value.

Recent financial filings and transcripts do not indicate any material changes in the company's business strategy or financial condition. The company's last actual EPS was 55.72 JPY, and its last actual revenue was 9,784,000,000 JPY, both of which are in line with the financial snapshot data.

Net income surged 29.3% year-over-year to JPY 369 million in FY2025, demonstrating strong bottom-line growth momentum.

Operating income jumped 49.9% year-over-year to JPY 485 million in FY2025, highlighting significant operational efficiency improvements.

The company achieved a 33.2% net income CAGR over four years, indicating consistent and robust long-term profitability expansion.

Net margin of 5.0% exceeds the industrial machinery cohort median of 4.9%, suggesting superior cost management relative to peers.

Cash conversion ratio of 3.81 ranks best-in-class within the cohort, reflecting exceptional ability to turn earnings into cash.

Return on equity of 2.2% falls below the cohort median of 3.6%, indicating inefficient use of shareholder capital.

Operating margin of 5.2% trails the industrial machinery cohort median of 6.2%, revealing weaker core profitability than peers.

The company faces medium liquidity risk and medium credit risk, posing potential financial stability concerns for investors.

Revenue ¥2.54B, +6,7% YoY; Operating income +78,7% YoY.

• ▍Revenue ¥2.54B, +6,7% YoY
• ▍Operating income +78,7% YoY
• ▍Net income +106,5% YoY
• ▍Net margin 6.4%

Revenue ¥2.69B, +9,3% YoY; Operating income +43,9% YoY.

• ▍Revenue ¥2.69B, +9,3% YoY
• ▍Operating income +43,9% YoY
• ▍Net income +80,1% YoY
• ▍Net margin 3.4%

Revenue ¥2.35B, −1,6% YoY; Operating income −58,6% YoY.

• ▍Revenue ¥2.35B, −1,6% YoY
• ▍Operating income −58,6% YoY
• ▍Net income −36,5% YoY
• ▍Net margin 2.3%

Revenue ¥2.55B, +9,0% YoY; Operating income +9,2% YoY.

• ▍Revenue ¥2.55B, +9,0% YoY
• ▍Operating income +9,2% YoY
• ▍Net income +14,3% YoY
• ▍Net margin 5.3%

Revenue ¥2.38B; Operating income ¥109.0M.

• ▍Revenue ¥2.38B
• ▍Operating income ¥109.0M
• ▍Net margin 3.3%

Revenue ¥2.46B; Operating income ¥93.0M.

• ▍Revenue ¥2.46B
• ▍Operating income ¥93.0M
• ▍Net margin 2.1%

Revenue ¥2.39B; Operating income ¥131.8M.

• ▍Revenue ¥2.39B
• ▍Operating income ¥131.8M
• ▍Net margin 3.6%

Revenue ¥2.34B; Operating income ¥120.6M.

• ▍Revenue ¥2.34B
• ▍Operating income ¥120.6M
• ▍Net margin 5.0%

Revenue ¥9.78B, +1,8% YoY; Operating income +49,9% YoY.

• ▍Revenue ¥9.78B, +1,8% YoY
• ▍Operating income +49,9% YoY
• ▍Net income +29,3% YoY
• ▍Free cash flow −72,3% YoY
• ▍Net margin 3.8%

Revenue ¥9.61B, +8,7% YoY; Operating income +101,5% YoY.

• ▍Revenue ¥9.61B, +8,7% YoY
• ▍Operating income +101,5% YoY
• ▍Net income +1 061,6% YoY
• ▍Free cash flow +38,8% YoY
• ▍Net margin 3.0%

Revenue ¥8.84B, +1,9% YoY; Operating income −35,1% YoY.

• ▍Revenue ¥8.84B, +1,9% YoY
• ▍Operating income −35,1% YoY
• ▍Net income −88,4% YoY
• ▍Free cash flow −59,5% YoY
• ▍Net margin 0.3%

Revenue ¥8.68B, +13,3% YoY; Operating income +325,7% YoY.

• ▍Revenue ¥8.68B, +13,3% YoY
• ▍Operating income +325,7% YoY
• ▍Net income +81,1% YoY
• ▍Free cash flow +70,9% YoY
• ▍Net margin 2.4%