Saftec Co Ltd

Saftec Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥4,125,552,000, which is significantly higher than its total liabilities of ¥5,287,521,000, resulting in a current ratio of 1.98. The company's price-to-book ratio of 0.39 indicates that the market value is trading below the book value, suggesting potential undervaluation. Additionally, the price-to-tangible-book ratio is also 0.39, reinforcing the notion that the company's tangible assets are not being fully capitalized in the market.

In terms of profitability, Saftec's return on equity (ROE) is 1.3%, and its return on assets (ROA) is 0.75%, both of which are below the industry median for the business support supplies sector. The company's operating income of ¥99,371,000 and net income of ¥92,508,000 reflect a relatively modest profit margin, which is consistent with the industry's average performance. The gross profit of ¥1,106,356,000 indicates that the company is managing its cost of goods sold effectively, but the operating margin is constrained by other operating expenses.

Saftec's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the provided data. This lack of diversification could pose a concentration risk, as the company's performance is heavily dependent on the industrial services segment. The absence of geographic breakdowns suggests that the company may be more vulnerable to regional economic fluctuations.

Looking at the growth trajectory, Saftec's revenue for the latest period is ¥2,333,159,000, which is higher than the analyst-estimated revenue of ¥10,312,000,000. This discrepancy may indicate a potential overestimation by analysts or a significant underperformance by the company. The company's capital expenditure of -¥27,473,000 suggests a reduction in investment, which could impact future growth. The operating cash flow of ¥849,586,000 is positive, indicating that the company is generating sufficient cash from operations to support its activities.

The risk assessment for Saftec indicates a low liquidity risk, supported by its substantial cash reserves and low debt-to-equity ratio of 0.48. The company's dilution risk is also low, with no immediate filing-based liquidity or dilution flags detected. The absence of significant financial risks suggests that the company is in a stable financial position. However, the low ROE and ROA highlight the need for the company to improve its profitability and asset utilization.

Recent events and filings do not show any significant changes in the company's financial or operational status. The company's last actual EPS was 129.39 JPY, which is in line with its net income of ¥92,508,000. The lack of recent events or filings suggests that the company is maintaining a stable and predictable business model.

Saftec's net margin of 3.96% exceeds the Business Support Supplies cohort median of 3.69%, indicating superior profitability relative to peers.

The company demonstrates best-in-class cash conversion at 9.18, significantly outperforming the cohort median of 0.8, ensuring strong liquidity generation.

Revenue growth remained stable with a 1.9% year-over-year increase to JPY 10.3 billion in fiscal 2025, showing resilience despite margin pressures.

Saftec maintains low dilution, liquidity, and credit risk flags, suggesting a stable financial structure with minimal immediate balance sheet threats.

Long-term debt decreased slightly to JPY 3.35 billion in fiscal 2025, reflecting a modest reduction in leverage obligations over the period.

The debt-to-equity ratio of 0.48 places Saftec in the bottom quartile of its cohort, indicating higher leverage risk than most peers.

Revenue ¥2.84B, +0,7% YoY; Operating income +6,2% YoY.

• ▍Revenue ¥2.84B, +0,7% YoY
• ▍Operating income +6,2% YoY
• ▍Net income −3,3% YoY
• ▍Net margin 4.8%

Revenue ¥2.57B, −2,4% YoY; Operating income +7,1% YoY.

• ▍Revenue ¥2.57B, −2,4% YoY
• ▍Operating income +7,1% YoY
• ▍Net income +17,6% YoY
• ▍Net margin 3.3%

Revenue ¥2.51B, −1,5% YoY; Operating income −71,4% YoY.

• ▍Revenue ¥2.51B, −1,5% YoY
• ▍Operating income −71,4% YoY
• ▍Net income −42,0% YoY
• ▍Net margin -2.3%

Revenue ¥2.32B, −0,7% YoY; Operating income −41,3% YoY.

• ▍Revenue ¥2.32B, −0,7% YoY
• ▍Operating income −41,3% YoY
• ▍Net income −39,1% YoY
• ▍Net margin 2.4%

Revenue ¥2.82B; Operating income ¥192.4M.

• ▍Revenue ¥2.82B
• ▍Operating income ¥192.4M
• ▍Net margin 5.0%

Revenue ¥2.63B; Operating income ¥93.5M.

• ▍Revenue ¥2.63B
• ▍Operating income ¥93.5M
• ▍Net margin 2.7%

Revenue ¥2.54B; Operating income -¥15.7M.

• ▍Revenue ¥2.54B
• ▍Operating income -¥15.7M
• ▍Net margin -1.6%

Revenue ¥2.33B; Operating income ¥99.4M.

• ▍Revenue ¥2.33B
• ▍Operating income ¥99.4M
• ▍Net margin 4.0%

Revenue ¥10.31B, +1,9% YoY; Operating income −31,4% YoY.

• ▍Revenue ¥10.31B, +1,9% YoY
• ▍Operating income −31,4% YoY
• ▍Net income −33,7% YoY
• ▍Free cash flow −20,0% YoY
• ▍Net margin 2.2%

Revenue ¥10.12B, +1,6% YoY; Operating income −44,1% YoY.

• ▍Revenue ¥10.12B, +1,6% YoY
• ▍Operating income −44,1% YoY
• ▍Net income −39,8% YoY
• ▍Free cash flow −21,3% YoY
• ▍Net margin 3.4%

Revenue ¥9.97B, −3,7% YoY; Operating income −29,8% YoY.

• ▍Revenue ¥9.97B, −3,7% YoY
• ▍Operating income −29,8% YoY
• ▍Net income −28,9% YoY
• ▍Free cash flow −16,6% YoY
• ▍Net margin 5.8%

Revenue ¥10.35B, +2,4% YoY; Operating income +19,5% YoY.

• ▍Revenue ¥10.35B, +2,4% YoY
• ▍Operating income +19,5% YoY
• ▍Net income +21,3% YoY
• ▍Free cash flow +13,0% YoY
• ▍Net margin 7.8%