Waida MFG. Co Ltd

Waida MFG. Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥4.16 billion, representing 34.7% of total assets. The company's liquidity FPT (free cash flow to total debt) is robust, supported by a current ratio of 5.71 and a debt-to-equity ratio of 0.04, indicating minimal leverage pressure.

Profitability metrics reveal a mixed picture. The company reported a net income of ¥17.6 million on revenue of ¥1.5 billion, translating to a net margin of 1.17%. However, operating income was negative at ¥11.6 million, suggesting operational inefficiencies or cost overruns. Return on equity (ROE) and return on assets (ROA) are both below 0.2%, significantly trailing industry benchmarks for industrial machinery firms.

Geographically, Waida MFG. Co Ltd's revenue is concentrated in its domestic market, with no disclosed international segments. This lack of diversification increases exposure to local economic conditions and regulatory shifts. The company's revenue concentration in a single region is a notable risk factor.

Growth prospects are muted, with no disclosed revenue growth in the most recent fiscal year. Analyst estimates for revenue and EPS align closely with reported figures, suggesting limited upside. The company's capital structure and liquidity position support stable operations, but there is no indication of aggressive reinvestment or expansion.

Risk factors include the company's negative operating income, which raises concerns about cost control and operational efficiency. The low dilution risk is supported by no recent equity issuance and a stable share count. However, the absence of positive operating income could pressure future earnings and necessitate capital raising, which may introduce dilution risk.

Recent filings and transcripts do not highlight any material events or strategic shifts. The company's financial disclosures are consistent with a stable but underperforming industrial machinery business. No significant new product launches or market entries were reported in the latest available data.

Long-term debt decreased significantly from 1.4 billion JPY in 2022 to 438 million JPY in 2026, strengthening the balance sheet.

The debt-to-equity ratio of 0.04 is well below the cohort median of 0.2, indicating low financial leverage risk.

Free cash flow increased by 15.1% year-over-year to 249 million JPY in fiscal 2026, showing improved cash generation.

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

Gross profit remained relatively stable at 2.5 billion JPY in 2026, maintaining core production profitability despite revenue declines.

The company carries a high credit risk flag, suggesting potential difficulties in meeting financial obligations or borrowing costs.

Operating margin of -0.77% places the company in the bottom quartile of the industrial machinery cohort.

Revenue ¥1.92B, +26,1% YoY; Operating income +469,5% YoY.

• ▍Revenue ¥1.92B, +26,1% YoY
• ▍Operating income +469,5% YoY
• ▍Net income +246,8% YoY
• ▍Net margin 4.9%

Revenue ¥1.63B, −24,1% YoY; Operating income −81,6% YoY.

• ▍Revenue ¥1.63B, −24,1% YoY
• ▍Operating income −81,6% YoY
• ▍Net income −68,4% YoY
• ▍Net margin 5.3%

Revenue ¥1.91B, −19,6% YoY; Operating income −60,8% YoY.

• ▍Revenue ¥1.91B, −19,6% YoY
• ▍Operating income −60,8% YoY
• ▍Net income −34,8% YoY
• ▍Net margin 7.1%

Revenue ¥1.19B, −20,6% YoY; Operating income −571,5% YoY.

• ▍Revenue ¥1.19B, −20,6% YoY
• ▍Operating income −571,5% YoY
• ▍Net income −330,9% YoY
• ▍Net margin -3.4%

Revenue ¥1.52B; Operating income -¥29.5M.

• ▍Revenue ¥1.52B
• ▍Operating income -¥29.5M
• ▍Net margin -4.2%

Revenue ¥2.15B; Operating income ¥316.7M.

• ▍Revenue ¥2.15B
• ▍Operating income ¥316.7M
• ▍Net margin 12.7%

Revenue ¥2.38B; Operating income ¥415.4M.

• ▍Revenue ¥2.38B
• ▍Operating income ¥415.4M
• ▍Net margin 8.8%

Revenue ¥1.50B; Operating income -¥11.6M.

• ▍Revenue ¥1.50B
• ▍Operating income -¥11.6M
• ▍Net margin 1.2%

Revenue ¥6.66B, −11,8% YoY; Operating income −63,5% YoY.

• ▍Revenue ¥6.66B, −11,8% YoY
• ▍Operating income −63,5% YoY
• ▍Net income −36,6% YoY
• ▍Free cash flow +15,1% YoY
• ▍Net margin 4.1%

Revenue ¥7.55B, +0,2% YoY; Operating income −24,6% YoY.

• ▍Revenue ¥7.55B, +0,2% YoY
• ▍Operating income −24,6% YoY
• ▍Net income −40,2% YoY
• ▍Free cash flow −55,1% YoY
• ▍Net margin 5.8%

Revenue ¥7.54B, −0,6% YoY; Operating income −20,2% YoY.

• ▍Revenue ¥7.54B, −0,6% YoY
• ▍Operating income −20,2% YoY
• ▍Net income −16,2% YoY
• ▍Free cash flow +75,7% YoY
• ▍Net margin 9.6%

Revenue ¥7.58B, +16,9% YoY; Operating income +18,1% YoY.

• ▍Revenue ¥7.58B, +16,9% YoY
• ▍Operating income +18,1% YoY
• ▍Net income +25,1% YoY
• ▍Free cash flow −57,5% YoY
• ▍Net margin 11.5%