Tsudakoma Corp

Tsudakoma Corp maintains a liquidity position with a price-to-book ratio of 4.52 and a current ratio of 0.93, indicating moderate short-term liquidity risk. The company's cash and equivalents of ¥4.395 billion are offset by long-term debt of ¥12.973 billion, resulting in a debt-to-equity ratio of 6.46, which is significantly higher than the industry median.

Profitability metrics show a return on equity of 32.98%, which is strong compared to the industry median, but return on assets of 2.14% is below the industry average, suggesting underutilization of assets. Gross profit of ¥1.852 billion and operating income of ¥381 million reflect a gross margin of 16.84% and an operating margin of 3.46%, both of which are below the industry median for industrial machinery firms.

The company's revenue is concentrated in a few key markets, with disclosed operations primarily in Japan and limited geographic diversification. This concentration increases exposure to regional economic fluctuations and regulatory changes. No specific segment breakdown is available, but the company's primary business is industrial machinery, with no material diversification into other product lines.

Tsudakoma Corp's revenue of ¥10.998 billion in the latest period shows a decline compared to the analyst estimate of ¥35.447 billion, indicating a significant negative variance. The company's capital expenditures of -¥81 million suggest a reduction in investment, which may impact long-term growth. The outlook for the current fiscal year is negative, with a projected decline in revenue and earnings.

The risk assessment highlights a medium liquidity risk due to the company's high debt levels and low cash reserves. The dilution risk is low, but the company's capital structure is heavily leveraged, which increases financial risk. The key flag of negative net cash after subtracting total debt underscores the company's financial vulnerability.

Recent events include a significant drop in revenue and earnings, as reflected in the latest financial report. The company's operating cash flow of ¥1.926 billion is insufficient to cover its long-term debt obligations, indicating a need for strategic financial adjustments. No recent filings or transcripts are available to provide additional context on the company's operational performance.

The company achieved a net margin of 6.02%, which exceeds the 4.87% median for its peer cohort.

Revenue grew at a 6.3% CAGR over the last four years, demonstrating consistent top-line expansion.

Cash conversion of 2.91 is above the 75th percentile, indicating superior efficiency in generating cash from operations.

Long-term debt decreased to 12.1 billion JPY in FY2026, showing a reduction in leverage from prior years.

The debt-to-equity ratio of 6.46 places Tsudakoma in the bottom quartile, signaling extreme financial leverage risk.

Operating margin of 3.46% remains below the 6.21% industry median, reflecting weaker profitability than peers.

Revenue ¥6.94B, +15,2% YoY; Operating income +51,3% YoY.

• ▍Revenue ¥6.94B, +15,2% YoY
• ▍Operating income +51,3% YoY
• ▍Net income +36,1% YoY
• ▍Net margin -2.7%

Revenue ¥10.97B, +3,2% YoY; Operating income −47,4% YoY.

• ▍Revenue ¥10.97B, +3,2% YoY
• ▍Operating income −47,4% YoY
• ▍Net income −41,8% YoY
• ▍Net margin 2.7%

Revenue ¥7.10B, +7,9% YoY; Operating income −825,0% YoY.

• ▍Revenue ¥7.10B, +7,9% YoY
• ▍Operating income −825,0% YoY
• ▍Net income −8,7% YoY
• ▍Net margin -2.8%

Revenue ¥11.35B, +3,2% YoY; Operating income −76,9% YoY.

• ▍Revenue ¥11.35B, +3,2% YoY
• ▍Operating income −76,9% YoY
• ▍Net income −109,4% YoY
• ▍Net margin -0.5%

Revenue ¥6.03B; Operating income -¥275.0M.

• ▍Revenue ¥6.03B
• ▍Operating income -¥275.0M
• ▍Net margin -4.8%

Revenue ¥10.63B; Operating income ¥475.0M.

• ▍Revenue ¥10.63B
• ▍Operating income ¥475.0M
• ▍Net margin 4.7%

Revenue ¥6.58B; Operating income -¥20.0M.

• ▍Revenue ¥6.58B
• ▍Operating income -¥20.0M
• ▍Net margin -2.8%

Revenue ¥11.00B; Operating income ¥381.0M.

• ▍Revenue ¥11.00B
• ▍Operating income ¥381.0M
• ▍Net margin 6.0%

Revenue ¥35.45B, −2,7% YoY; Operating income −132,9% YoY.

• ▍Revenue ¥35.45B, −2,7% YoY
• ▍Operating income −132,9% YoY
• ▍Net income −153,4% YoY
• ▍Free cash flow −96,2% YoY
• ▍Net margin -0.7%

Revenue ¥36.45B, −7,2% YoY; Operating income +130,5% YoY.

• ▍Revenue ¥36.45B, −7,2% YoY
• ▍Operating income +130,5% YoY
• ▍Net income +139,3% YoY
• ▍Free cash flow +362,7% YoY
• ▍Net margin 1.3%

Revenue ¥39.28B, +25,9% YoY; Operating income +54,4% YoY.

• ▍Revenue ¥39.28B, +25,9% YoY
• ▍Operating income +54,4% YoY
• ▍Net income +51,5% YoY
• ▍Free cash flow +77,4% YoY
• ▍Net margin -3.2%

Revenue ¥31.19B, +12,2% YoY; Operating income +42,2% YoY.

• ▍Revenue ¥31.19B, +12,2% YoY
• ▍Operating income +42,2% YoY
• ▍Net income +42,9% YoY
• ▍Free cash flow +54,0% YoY
• ▍Net margin -8.2%