Tomita Co Ltd

Tomita Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥6.23 billion, representing 33.8% of total assets. The company's liquidity FPT (free cash flow to total liabilities) is robust, supported by a current ratio of 2.67 and a low debt-to-equity ratio of 0.02, indicating minimal leverage risk.

Profitability metrics show a return on equity (ROE) of 1.21% and a return on assets (ROA) of 0.76%, both below the industry median for industrial machinery and equipment firms. Operating income of ¥109.3 million and net income of ¥139.7 million reflect modest returns relative to revenue of ¥6.12 billion, suggesting limited margin expansion potential.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of segmentation increases exposure to sector-specific downturns and regional economic shifts.

Growth prospects are constrained, with no significant revenue acceleration in the current fiscal year. Analyst estimates for revenue and EPS align closely with reported figures, indicating a stable but non-expansive trajectory.

Risk factors are minimal, with no immediate liquidity or dilution concerns. The company's low leverage and strong cash reserves mitigate financial stress, and no dilution sources were identified in recent filings.

Recent filings and transcripts show no material changes in business strategy or financial position. The company continues to operate within its core industrial machinery and equipment segment without significant capital reallocation or new market entry.

Net income grew 18.7% annually over four years, demonstrating strong and consistent profitability expansion for Tomita Co Ltd.

Operating income surged 23.3% year-over-year in fiscal 2025, indicating significant improvement in core operational efficiency and margins.

Long-term debt decreased to 165 million JPY in fiscal 2025, reflecting a strengthened balance sheet and reduced financial leverage.

Free cash flow increased 8.4% year-over-year to 524 million JPY, supporting robust liquidity and potential for shareholder returns.

The company maintains a low debt-to-equity ratio of 0.02, significantly below the industry median of 0.20, ensuring financial stability.

Operating margin of 1.79% remains well below the industry median of 6.24%, suggesting persistent competitive pressure on pricing power.

Net margin of 2.28% trails the cohort median of 4.94%, indicating lower profitability relative to peers in industrial machinery.

Return on equity of 1.21% is significantly below the industry median of 3.56%, highlighting inefficient capital utilization.

Revenue growth slowed to just 1.7% year-over-year in fiscal 2025, signaling potential stagnation in top-line expansion.

Cash conversion metrics rank in the bottom quartile of the cohort, raising concerns about the quality of earnings.

Revenue ¥5.07B, −19,1% YoY; Operating income +29,1% YoY.

• ▍Revenue ¥5.07B, −19,1% YoY
• ▍Operating income +29,1% YoY
• ▍Net income −8,4% YoY
• ▍Net margin 4.6%

Revenue ¥6.04B, +17,8% YoY; Operating income +35,2% YoY.

• ▍Revenue ¥6.04B, +17,8% YoY
• ▍Operating income +35,2% YoY
• ▍Net income +253,6% YoY
• ▍Net margin 4.3%

Revenue ¥4.96B, +9,6% YoY; Operating income −43,0% YoY.

• ▍Revenue ¥4.96B, +9,6% YoY
• ▍Operating income −43,0% YoY
• ▍Net income −63,8% YoY
• ▍Net margin 1.4%

Revenue ¥5.76B, −5,9% YoY; Operating income +118,8% YoY.

• ▍Revenue ¥5.76B, −5,9% YoY
• ▍Operating income +118,8% YoY
• ▍Net income −15,1% YoY
• ▍Net margin 2.1%

Revenue ¥6.27B; Operating income ¥164.0M.

• ▍Revenue ¥6.27B
• ▍Operating income ¥164.0M
• ▍Net margin 4.0%

Revenue ¥5.13B; Operating income ¥225.5M.

• ▍Revenue ¥5.13B
• ▍Operating income ¥225.5M
• ▍Net margin 1.4%

Revenue ¥4.52B; Operating income ¥119.8M.

• ▍Revenue ¥4.52B
• ▍Operating income ¥119.8M
• ▍Net margin 4.1%

Revenue ¥6.12B; Operating income ¥109.3M.

• ▍Revenue ¥6.12B
• ▍Operating income ¥109.3M
• ▍Net margin 2.3%

Revenue ¥21.68B, +1,7% YoY; Operating income +23,2% YoY.

• ▍Revenue ¥21.68B, +1,7% YoY
• ▍Operating income +23,2% YoY
• ▍Net income +12,2% YoY
• ▍Free cash flow +8,4% YoY
• ▍Net margin 2.9%

Revenue ¥21.31B, +5,5% YoY; Operating income +9,1% YoY.

• ▍Revenue ¥21.31B, +5,5% YoY
• ▍Operating income +9,1% YoY
• ▍Net income +21,3% YoY
• ▍Free cash flow +20,3% YoY
• ▍Net margin 2.6%

Revenue ¥20.20B, +4,1% YoY; Operating income +33,5% YoY.

• ▍Revenue ¥20.20B, +4,1% YoY
• ▍Operating income +33,5% YoY
• ▍Net income −5,4% YoY
• ▍Free cash flow −11,1% YoY
• ▍Net margin 2.3%

Revenue ¥19.40B, +12,0% YoY; Operating income +75,4% YoY.

• ▍Revenue ¥19.40B, +12,0% YoY
• ▍Operating income +75,4% YoY
• ▍Net income +54,3% YoY
• ▍Free cash flow +79,5% YoY
• ▍Net margin 2.5%