Tohbu Network Co Ltd

Tohbu Network's capital structure is characterized by a low debt-to-equity ratio of 0.04, indicating a conservative leverage profile. The company holds significant liquidity with cash and equivalents amounting to ¥4.59 billion, which is 19.1% of total assets. The current ratio of 3.66 suggests strong short-term liquidity, with current assets comfortably covering current liabilities.

Profitability metrics show a challenging performance, with a negative return on equity (ROE) of -1.13% and a return on assets (ROA) of -0.93%. These figures fall below the typical thresholds for healthy performance in the ground freight and logistics industry, where ROE and ROA are usually positive and above 5% and 2%, respectively.

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 operational risks. The absence of segment-specific data limits the ability to assess the performance of individual business lines.

Growth trajectory appears mixed. While the company reported revenue of ¥23.32 billion in the latest period, the operating income was negative at ¥240.46 million. Analyst estimates suggest a revenue of ¥10.37 billion for the most recent quarter, but this is not indicative of a clear growth trend. The company's capital expenditure of ¥578.41 million indicates ongoing investment, but the negative operating cash flow of ¥957.04 million raises concerns about operational efficiency.

Risk factors include the company's negative net income of ¥227.54 million and operating loss of ¥240.46 million, which signal financial stress. The risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. However, the negative operating income and net income suggest potential future dilution if the company needs to raise additional capital.

Recent events include the latest financial filing showing a negative operating income and net income. No significant recent filings or transcripts were identified that would indicate major strategic shifts or operational changes. The company's performance remains under pressure, with no clear signs of improvement in the near term.

Free cash flow surged 141.5% year-over-year, demonstrating significant improvement in cash generation capabilities despite operating income declines.

The company maintains a low debt-to-equity ratio of 0.04, ranking above the 75th percentile within its ground freight cohort.

Revenue growth of 3.4% year-over-year indicates modest top-line expansion in the latest reported fiscal period.

Dilution and liquidity risks are assessed as low, suggesting stable capital structure and adequate market trading conditions.

Gross profit increased to 1.05 billion JPY in FY2025, showing resilience in core profitability before operating expenses.

Operating margin of -10.3% places the company in the bottom quartile compared to the 4.8% cohort median.

The company faces high credit risk, indicating potential difficulties in meeting financial obligations or maintaining creditworthiness.

Net margin of -9.76% falls into the bottom quartile, lagging far behind the 3.12% industry median.

Revenue ¥2.56B, +1,2% YoY; Operating income +1 043,2% YoY.

• ▍Revenue ¥2.56B, +1,2% YoY
• ▍Operating income +1 043,2% YoY
• ▍Net income −70,4% YoY
• ▍Net margin 1.7%

Revenue ¥2.66B, −2,8% YoY; Operating income +103,9% YoY.

• ▍Revenue ¥2.66B, −2,8% YoY
• ▍Operating income +103,9% YoY
• ▍Net income +238,7% YoY
• ▍Net margin 3.2%

Revenue ¥2.54B, −6,7% YoY; Operating income +278,4% YoY.

• ▍Revenue ¥2.54B, −6,7% YoY
• ▍Operating income +278,4% YoY
• ▍Net income +286,8% YoY
• ▍Net margin 5.2%

Revenue ¥2.38B, +2,2% YoY; Operating income +116,0% YoY.

• ▍Revenue ¥2.38B, +2,2% YoY
• ▍Operating income +116,0% YoY
• ▍Net income +100,6% YoY
• ▍Net margin 0.1%

Revenue ¥2.53B; Operating income ¥4.0M.

• ▍Revenue ¥2.53B
• ▍Operating income ¥4.0M
• ▍Net margin 6.0%

Revenue ¥2.73B; Operating income ¥61.8M.

• ▍Revenue ¥2.73B
• ▍Operating income ¥61.8M
• ▍Net margin 0.9%

Revenue ¥2.72B; Operating income -¥72.7M.

• ▍Revenue ¥2.72B
• ▍Operating income -¥72.7M
• ▍Net margin -2.6%

Revenue ¥2.33B; Operating income -¥240.5M.

• ▍Revenue ¥2.33B
• ▍Operating income -¥240.5M
• ▍Net margin -9.8%

Revenue ¥10.37B, +0,7% YoY; Operating income −85,0% YoY.

• ▍Revenue ¥10.37B, +0,7% YoY
• ▍Operating income −85,0% YoY
• ▍Net income +33,9% YoY
• ▍Free cash flow +234,1% YoY
• ▍Net margin 1.0%

Revenue ¥10.30B, +4,3% YoY; Operating income −57,1% YoY.

• ▍Revenue ¥10.30B, +4,3% YoY
• ▍Operating income −57,1% YoY
• ▍Net income −81,0% YoY
• ▍Free cash flow −75,0% YoY
• ▍Net margin 0.8%

Revenue ¥9.87B, +11,7% YoY; Operating income +61,3% YoY.

• ▍Revenue ¥9.87B, +11,7% YoY
• ▍Operating income +61,3% YoY
• ▍Net income +51,4% YoY
• ▍Free cash flow +134,1% YoY
• ▍Net margin 4.2%