AltPlus Inc

AltPlus Inc maintains a strong liquidity position, with cash and equivalents amounting to ¥871.52 million, representing 47.1% of total assets. The company's price-to-book ratio of 2.9 and price-to-tangible-book ratio of 2.9 suggest a premium valuation relative to its book value. However, the enterprise value to EBITDA ratio of -26.14 indicates a negative earnings profile, which is not uncommon for companies in growth phases or facing operational challenges.

The company's profitability metrics are concerning, with a return on equity of -5.57% and a return on assets of -2.79%. These figures fall significantly below the industry median for software companies, which typically exhibit positive returns. The operating loss of ¥69.30 million and net loss of ¥51.61 million further underscore the company's current financial difficulties.

AltPlus Inc's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to market-specific risks. The company's revenue of ¥1.02 billion is modest compared to industry leaders like Microsoft, Salesforce, and ServiceNow, which have significantly higher revenue scales.

The company's growth trajectory is mixed. While the current fiscal year shows a revenue of ¥1.02 billion, the outlook for the next fiscal year is uncertain due to the ongoing operating losses. The capital expenditure of -¥454,000 indicates minimal investment in physical assets, which may limit long-term growth potential.

Risk factors for AltPlus Inc include its negative net income and operating income, which could affect its ability to sustain operations without external financing. The company has no long-term debt, which is a positive factor, but the absence of disclosed dilution risks does not eliminate the possibility of future equity issuances to fund operations or growth initiatives.

Recent events, as reflected in the latest financial filings, show a continued decline in profitability. The last actual EPS was -12.83 JPY, and the last actual revenue was ¥2.898 billion, indicating a significant drop in performance compared to the current revenue of ¥1.02 billion.

AltPlus maintains zero long-term debt, providing a debt-to-equity ratio of 0.0 that exceeds the software cohort median.

The company exhibits best-in-class cash conversion at 2.96, significantly outperforming the software cohort median of 0.92.

Net income losses narrowed by 3.9% year-over-year in FY2025, indicating a slight stabilization in profitability trends.

Operating income improved by 6.6% year-over-year in FY2025, suggesting marginal operational efficiency gains despite revenue declines.

Dilution and liquidity risks are assessed as low, reducing immediate threats to shareholder value and operational continuity.

The company faces high credit risk, posing significant potential for financial distress or default on obligations.

Return on equity of -5.6% significantly underperforms the software cohort median of 2.8%, indicating poor capital efficiency.

Free cash flow remains deeply negative at -434.6 million JPY in FY2025, draining liquidity without debt financing.

Revenue ¥649.9M, −6,2% YoY; Operating income −30,6% YoY.

• ▍Revenue ¥649.9M, −6,2% YoY
• ▍Operating income −30,6% YoY
• ▍Net income −35,5% YoY
• ▍Net margin -32.4%

Revenue ¥782.0M, −3,7% YoY; Operating income +17,5% YoY.

• ▍Revenue ¥782.0M, −3,7% YoY
• ▍Operating income +17,5% YoY
• ▍Net income +27,1% YoY
• ▍Net margin -12.3%

Revenue ¥664.3M, −12,9% YoY; Operating income +0,9% YoY.

• ▍Revenue ¥664.3M, −12,9% YoY
• ▍Operating income +0,9% YoY
• ▍Net income +1,3% YoY
• ▍Net margin -17.7%

Revenue ¥692.7M; Operating income -¥152.4M.

• ▍Revenue ¥692.7M
• ▍Operating income -¥152.4M
• ▍Net margin -22.4%

Revenue ¥812.5M; Operating income -¥133.3M.

• ▍Revenue ¥812.5M
• ▍Operating income -¥133.3M
• ▍Net margin -16.2%

Revenue ¥762.5M; Operating income -¥123.3M.

• ▍Revenue ¥762.5M
• ▍Operating income -¥123.3M
• ▍Net margin -15.6%

Revenue ¥1.02B; Operating income -¥69.3M.

• ▍Revenue ¥1.02B
• ▍Operating income -¥69.3M
• ▍Net margin -5.1%

Revenue ¥2.90B, −17,6% YoY; Operating income +6,6% YoY.

• ▍Revenue ¥2.90B, −17,6% YoY
• ▍Operating income +6,6% YoY
• ▍Net income +3,9% YoY
• ▍Free cash flow +3,5% YoY
• ▍Net margin -15.0%

Revenue ¥3.52B, −19,9% YoY; Operating income +7,0% YoY.

• ▍Revenue ¥3.52B, −19,9% YoY
• ▍Operating income +7,0% YoY
• ▍Net income −7,5% YoY
• ▍Free cash flow −6,7% YoY
• ▍Net margin -12.9%

Revenue ¥4.39B, −26,9% YoY; Operating income +35,5% YoY.

• ▍Revenue ¥4.39B, −26,9% YoY
• ▍Operating income +35,5% YoY
• ▍Net income +46,1% YoY
• ▍Free cash flow +46,7% YoY
• ▍Net margin -9.6%

Revenue ¥6.00B, −17,6% YoY; Operating income −41,5% YoY.

• ▍Revenue ¥6.00B, −17,6% YoY
• ▍Operating income −41,5% YoY
• ▍Net income −100,7% YoY
• ▍Free cash flow −122,2% YoY
• ▍Net margin -13.0%

Revenue ¥7.29B; Operating income -¥590.4M.

• ▍Revenue ¥7.29B
• ▍Operating income -¥590.4M
• ▍Net margin -5.3%