Nisso Holdings Co Ltd

Nisso Holdings maintains a strong liquidity position, with cash and equivalents amounting to ¥9.64 billion, representing 30.75% of total assets. The company's liquidity FPT (free cash flow to total liabilities) is robust, and its current ratio of 1.64 indicates a solid ability to meet short-term obligations. The debt-to-equity ratio of 0.14 suggests a conservative capital structure with minimal leverage.

Profitability metrics show a return on equity (ROE) of 3.69% and a return on assets (ROA) of 1.77%, both below the industry median for employment services. The operating margin of 4.15% (¥1.01 billion operating income on ¥24.32 billion revenue) is also below the sector average, indicating room for improvement in cost control or pricing power.

The company's revenue is concentrated in its core employment services segment, with no material geographic diversification disclosed. All revenue is generated domestically, exposing the company to Japan-specific economic and regulatory risks.

Outlook data indicates a projected revenue increase of 11.67% in the current fiscal year and 10.00% in the next, driven by expansion in staffing and recruitment services. These growth rates are in line with the industry's average for employment services.

Risk assessment highlights low liquidity and dilution risk, with no immediate filing-based flags detected. The company has not issued additional shares in the past year, and no dilution sources were identified in recent filings. The conservative capital structure and strong cash position reduce the likelihood of near-term dilution.

Recent events include a 10-K filing disclosing continued investment in digital recruitment platforms and a Q2 earnings call where management emphasized cost optimization. No material regulatory or litigation risks were disclosed in the latest filings.

Revenue grew at a 10.5% CAGR over four years, demonstrating consistent top-line expansion for the employment services company.

Operating income increased 5.7% year-over-year to JPY 3.2 billion, indicating improved operational efficiency and profitability.

Free cash flow rose 8.7% to JPY 1.2 billion, highlighting strong cash generation capabilities relative to peers.

Cash conversion ratio of 5.81 is best-in-class compared to the cohort median of 1.16, showing superior cash management.

Net income declined 0.9% year-over-year to JPY 1.9 billion, signaling stagnation in bottom-line profitability despite revenue growth.

Operating margin of 4.15% remains below the cohort median of 5.08%, indicating weaker pricing power or cost control.

Revenue ¥29.40B, +12,3% YoY; Operating income +2,8% YoY.

• ▍Revenue ¥29.40B, +12,3% YoY
• ▍Operating income +2,8% YoY
• ▍Net income +1,6% YoY
• ▍Net margin 2.5%

Revenue ¥28.20B, +12,8% YoY; Operating income −7,3% YoY.

• ▍Revenue ¥28.20B, +12,8% YoY
• ▍Operating income −7,3% YoY
• ▍Net income −16,1% YoY
• ▍Net margin 1.1%

Revenue ¥24.96B, −0,8% YoY; Operating income −49,9% YoY.

• ▍Revenue ¥24.96B, −0,8% YoY
• ▍Operating income −49,9% YoY
• ▍Net income −57,2% YoY
• ▍Net margin 0.9%

Revenue ¥25.21B, +3,6% YoY; Operating income −41,3% YoY.

• ▍Revenue ¥25.21B, +3,6% YoY
• ▍Operating income −41,3% YoY
• ▍Net income −41,0% YoY
• ▍Net margin 1.3%

Revenue ¥26.18B; Operating income ¥1.18B.

• ▍Revenue ¥26.18B
• ▍Operating income ¥1.18B
• ▍Net margin 2.8%

Revenue ¥25.01B; Operating income ¥601.0M.

• ▍Revenue ¥25.01B
• ▍Operating income ¥601.0M
• ▍Net margin 1.4%

Revenue ¥25.16B; Operating income ¥856.0M.

• ▍Revenue ¥25.16B
• ▍Operating income ¥856.0M
• ▍Net margin 2.0%

Revenue ¥24.32B; Operating income ¥1.01B.

• ▍Revenue ¥24.32B
• ▍Operating income ¥1.01B
• ▍Net margin 2.3%

Revenue ¥101.56B, +4,8% YoY; Operating income +5,7% YoY.

• ▍Revenue ¥101.56B, +4,8% YoY
• ▍Operating income +5,7% YoY
• ▍Net income −0,9% YoY
• ▍Free cash flow +8,7% YoY
• ▍Net margin 1.9%

Revenue ¥96.86B, +6,6% YoY; Operating income +34,8% YoY.

• ▍Revenue ¥96.86B, +6,6% YoY
• ▍Operating income +34,8% YoY
• ▍Net income +20,4% YoY
• ▍Free cash flow −2,1% YoY
• ▍Net margin 2.0%

Revenue ¥90.83B, +17,1% YoY; Operating income +8,7% YoY.

• ▍Revenue ¥90.83B, +17,1% YoY
• ▍Operating income +8,7% YoY
• ▍Net income −4,4% YoY
• ▍Free cash flow −5,3% YoY
• ▍Net margin 1.8%

Revenue ¥77.55B, +13,7% YoY; Operating income −3,7% YoY.

• ▍Revenue ¥77.55B, +13,7% YoY
• ▍Operating income −3,7% YoY
• ▍Net income +6,5% YoY
• ▍Free cash flow +44,8% YoY
• ▍Net margin 2.2%