Sougou Shouken Co Ltd

Sougou Shouken's capital structure shows a debt-to-equity ratio of 0.94, indicating moderate leverage, while its liquidity position is characterized by a current ratio of 1.3. The company's price-to-book ratio of 0.82 suggests that the market values the firm below its book value, and the price-to-tangible-book ratio is identical, implying no intangible asset premium.

Profitability metrics are weak, with a negative return on equity of -5.81% and a return on assets of -2.15%. These figures fall significantly below the industry median for commercial printing services, which typically exhibit positive returns on equity and assets. The company's operating income is negative at -285.88 million JPY, and net income is also negative at -181.50 million JPY, indicating a lack of profitability.

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 sector-specific risks. The absence of segment or geographic breakdown in the financial data limits the ability to assess risk distribution.

Growth trajectory is negative, with a current fiscal year outlook showing a decline in revenue and earnings. The company's revenue of 2.3 billion JPY is below the industry median, and the negative operating and net income figures suggest a challenging operating environment. The absence of positive growth signals in the financial data indicates a need for strategic intervention.

Risk factors include medium liquidity risk due to a current ratio of 1.3 and a negative net cash position after subtracting total debt. The dilution risk is low, with no significant dilution potential in the basic shares outstanding. The company's financial leverage and negative cash flow position are key concerns for investors.

Recent events include the disclosure of a negative net income and a decline in operating income. The company's financial filings show a lack of recent positive developments, and the absence of significant capital expenditures or research and development investments suggests a conservative operational approach.

Operating income surged 39.0% year-over-year to JPY 350.9 million in fiscal 2025, demonstrating significant operational leverage.

Net income grew 16.5% to JPY 319.7 million in fiscal 2025, reflecting improved bottom-line profitability trends.

Long-term debt decreased steadily to JPY 2.83 billion in fiscal 2025, indicating a consistent deleveraging strategy.

Gross profit expanded to JPY 5.02 billion in fiscal 2025, showing resilience in core revenue generation capabilities.

Free cash flow increased 24.5% year-over-year to JPY 445.7 million, enhancing liquidity for potential strategic investments.

Return on equity of -5.8% falls in the bottom quartile, signaling inefficient use of shareholder capital.

Debt-to-equity ratio of 0.94 is in the bottom quartile, indicating higher financial leverage than most peers.

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

Revenue ¥5.91B, −7,1% YoY; Operating income −18,8% YoY.

• ▍Revenue ¥5.91B, −7,1% YoY
• ▍Operating income −18,8% YoY
• ▍Net income −17,8% YoY
• ▍Net margin 10.1%

Revenue ¥4.96B, +1,4% YoY; Operating income +17,4% YoY.

• ▍Revenue ¥4.96B, +1,4% YoY
• ▍Operating income +17,4% YoY
• ▍Net income +34,1% YoY
• ▍Net margin 2.1%

Revenue ¥2.35B, +9,0% YoY; Operating income −46,8% YoY.

• ▍Revenue ¥2.35B, +9,0% YoY
• ▍Operating income −46,8% YoY
• ▍Net income −57,9% YoY
• ▍Net margin -16.0%

Revenue ¥2.63B, +14,3% YoY; Operating income +51,6% YoY.

• ▍Revenue ¥2.63B, +14,3% YoY
• ▍Operating income +51,6% YoY
• ▍Net income +43,2% YoY
• ▍Net margin -3.9%

Revenue ¥6.36B; Operating income ¥1.03B.

• ▍Revenue ¥6.36B
• ▍Operating income ¥1.03B
• ▍Net margin 11.4%

Revenue ¥4.90B; Operating income ¥87.5M.

• ▍Revenue ¥4.90B
• ▍Operating income ¥87.5M
• ▍Net margin 1.6%

Revenue ¥2.15B; Operating income -¥426.2M.

• ▍Revenue ¥2.15B
• ▍Operating income -¥426.2M
• ▍Net margin -11.1%

Revenue ¥2.30B; Operating income -¥285.9M.

• ▍Revenue ¥2.30B
• ▍Operating income -¥285.9M
• ▍Net margin -7.9%

Revenue ¥16.24B, +2,8% YoY; Operating income +39,0% YoY.

• ▍Revenue ¥16.24B, +2,8% YoY
• ▍Operating income +39,0% YoY
• ▍Net income +16,4% YoY
• ▍Free cash flow +24,5% YoY
• ▍Net margin 2.0%

Revenue ¥15.80B, −0,4% YoY; Operating income +26,1% YoY.

• ▍Revenue ¥15.80B, −0,4% YoY
• ▍Operating income +26,1% YoY
• ▍Net income +32,3% YoY
• ▍Free cash flow −32,2% YoY
• ▍Net margin 1.7%

Revenue ¥15.86B, +3,6% YoY; Operating income +21,3% YoY.

• ▍Revenue ¥15.86B, +3,6% YoY
• ▍Operating income +21,3% YoY
• ▍Net income +16,0% YoY
• ▍Free cash flow +42,9% YoY
• ▍Net margin 1.3%

Revenue ¥15.31B, −5,2% YoY; Operating income −41,0% YoY.

• ▍Revenue ¥15.31B, −5,2% YoY
• ▍Operating income −41,0% YoY
• ▍Net income −30,2% YoY
• ▍Free cash flow −30,4% YoY
• ▍Net margin 1.2%