Puequ Co Ltd

Puequ Co Ltd maintains a debt-to-equity ratio of 1.32, indicating a moderate reliance on debt financing, while its current ratio of 1.38 suggests adequate short-term liquidity to cover immediate obligations. The company holds JPY 2.78 billion in cash and equivalents, but this is offset by JPY 5.58 billion in long-term debt, resulting in a net cash position that is negative. This capital structure implies a need for careful liquidity management to avoid refinancing risks.

The company's profitability metrics are below the typical thresholds for the industrial machinery sector. Return on equity (ROE) stands at 1.66%, and return on assets (ROA) is 0.64%, both of which are significantly lower than the industry median for capital-intensive firms. Gross profit of JPY 466.2 million and operating income of JPY 97.6 million reflect a narrow margin profile, which may limit the company's ability to absorb cost shocks or invest in innovation.

Puequ Co Ltd's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to sector-specific downturns and regional economic volatility. The company does not report revenue by geographic region, making it difficult to assess the extent of regional concentration risk.

Looking ahead, the company's revenue growth is expected to remain flat, with no significant changes in the current fiscal year or the next. Historical revenue trends show a lack of consistent growth, and the absence of disclosed expansion plans or new product launches suggests a conservative growth strategy. The company's operating income is also unlikely to see meaningful improvement without cost optimization or margin expansion.

The risk assessment highlights liquidity as a medium concern, with the company's net cash position being negative after accounting for long-term debt. While dilution risk is currently low, the company's capital structure leaves room for potential equity issuance in the event of a liquidity crunch. No recent dilutive events have been disclosed, and the company's shares outstanding have remained unchanged.

Recent filings and transcripts do not indicate any material events or strategic shifts. The company's last actual revenue of JPY 10.11 billion and EPS of 123.64 JPY align with the most recent financial statements, suggesting stable but unremarkable performance.

Revenue grew 20.8% year-over-year to JPY 10.1 billion in fiscal 2025, demonstrating strong top-line expansion momentum.

Net income surged 193.0% to JPY 573.5 million in fiscal 2025, indicating significant improvement in bottom-line profitability.

Operating income increased 86.5% to JPY 873.8 million in fiscal 2025, reflecting robust core operational performance growth.

Gross profit expanded to JPY 2.66 billion in fiscal 2025, supporting the company's ability to generate margin on sales.

The four-year revenue CAGR of 12.8% suggests sustained long-term growth trajectory for the industrial machinery business.

Long-term debt rose to JPY 8.78 billion in fiscal 2025, increasing financial leverage and potential interest burden significantly.

The debt-to-equity ratio of 1.32 places the company in the bottom quartile of its industrial machinery cohort.

Revenue ¥2.54B, −6,8% YoY; Operating income −29,7% YoY.

• ▍Revenue ¥2.54B, −6,8% YoY
• ▍Operating income −29,7% YoY
• ▍Net income −40,4% YoY
• ▍Net margin 4.4%

Revenue ¥2.76B, +8,5% YoY; Operating income +1,5% YoY.

• ▍Revenue ¥2.76B, +8,5% YoY
• ▍Operating income +1,5% YoY
• ▍Net income +4,8% YoY
• ▍Net margin 5.0%

Revenue ¥2.49B, +19,0% YoY; Operating income +533,6% YoY.

• ▍Revenue ¥2.49B, +19,0% YoY
• ▍Operating income +533,6% YoY
• ▍Net income +262,4% YoY
• ▍Net margin 7.0%

Revenue ¥2.35B, +12,9% YoY; Operating income +97,4% YoY.

• ▍Revenue ¥2.35B, +12,9% YoY
• ▍Operating income +97,4% YoY
• ▍Net income +10,5% YoY
• ▍Net margin 3.3%

Revenue ¥2.73B; Operating income ¥279.1M.

• ▍Revenue ¥2.73B
• ▍Operating income ¥279.1M
• ▍Net margin 6.9%

Revenue ¥2.54B; Operating income ¥212.6M.

• ▍Revenue ¥2.54B
• ▍Operating income ¥212.6M
• ▍Net margin 5.2%

Revenue ¥2.09B; Operating income ¥29.9M.

• ▍Revenue ¥2.09B
• ▍Operating income ¥29.9M
• ▍Net margin -5.2%

Revenue ¥2.08B; Operating income ¥97.6M.

• ▍Revenue ¥2.08B
• ▍Operating income ¥97.6M
• ▍Net margin 3.4%

Revenue ¥10.11B, +20,8% YoY; Operating income +86,5% YoY.

• ▍Revenue ¥10.11B, +20,8% YoY
• ▍Operating income +86,5% YoY
• ▍Net income +193,0% YoY
• ▍Free cash flow −1 015,0% YoY
• ▍Net margin 5.7%

Revenue ¥8.37B, +18,7% YoY; Operating income +18,5% YoY.

• ▍Revenue ¥8.37B, +18,7% YoY
• ▍Operating income +18,5% YoY
• ▍Net income −26,2% YoY
• ▍Free cash flow −454,7% YoY
• ▍Net margin 2.3%

Revenue ¥7.05B, +21,5% YoY; Operating income +415,7% YoY.

• ▍Revenue ¥7.05B, +21,5% YoY
• ▍Operating income +415,7% YoY
• ▍Net income +1 210,1% YoY
• ▍Free cash flow +107,1% YoY
• ▍Net margin 3.8%

Revenue ¥5.81B, −7,2% YoY; Operating income −74,1% YoY.

• ▍Revenue ¥5.81B, −7,2% YoY
• ▍Operating income −74,1% YoY
• ▍Net income −112,4% YoY
• ▍Free cash flow −321,9% YoY
• ▍Net margin -0.4%