Tekken Corp

Tekken Corp's capital structure is characterized by a debt-to-equity ratio of 0.8, indicating a moderate reliance on debt financing. The company's liquidity position is mixed, with a current ratio of 1.14 and negative net cash after subtracting total debt, signaling potential short-term liquidity constraints. Free cash flow of 2.09 billion JPY provides some flexibility, but the negative operating cash flow of -20.29 billion JPY raises concerns about the company's ability to fund operations from core activities. Profitability metrics show a return on equity of 4.91% and a return on assets of 1.52%, both below the industry median for construction and engineering firms. The operating margin of 1.46% (calculated from operating income of 2.71 billion JPY on revenue of 185.11 billion JPY) is also weak compared to peers, suggesting inefficiencies in cost management or pricing power. 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 downturns or regulatory changes affecting the construction and engineering sector. Growth trajectory appears muted, with no disclosed revenue growth in the most recent fiscal year. The company's capital expenditure of -942 million JPY indicates a reduction in investment, which may signal a strategic shift or financial constraints. Analysts have recorded the last actual revenue at 185.11 billion JPY, with no significant upward or downward revision in the near term. Risk factors include medium liquidity risk due to negative net cash and a current ratio just above 1. The risk of dilution is low, with no recent share issuance or shelf registration activity reported. However, the negative operating cash flow and reliance on debt financing could pressure the company to raise additional capital in the future. Recent events include the filing of the latest financial results, which show a net income of 3.43 billion JPY. No material changes in management or strategic direction were disclosed in the most recent filings.