The Why How Do Company Inc

The company's capital structure is characterized by a low debt-to-equity ratio of 0.34, indicating a conservative leverage position relative to its equity base. With cash and equivalents amounting to 617,022,000 JPY, the firm maintains a strong liquidity position, as reflected in a current ratio of 5.65. The price-to-book ratio of 3.85 suggests that the market is valuing the company's equity at a premium to its book value.

Profitability metrics reveal a challenging operating environment, with a net loss of 144,338,000 JPY and a return on equity of -10.37%. These figures fall significantly below the industry's median performance, indicating a need for operational improvements or strategic shifts to enhance returns. The company's gross profit margin of 32.97% is a key area for scrutiny, as it represents a critical determinant of long-term profitability.

Geographically and segment-wise, the company's exposure is not explicitly detailed in the available data, but the absence of disclosed revenue concentration suggests a potentially diversified business model. This diversification could mitigate the impact of regional or sector-specific downturns, although the lack of detailed segment reporting limits the ability to assess risk exposure with precision.

The company's growth trajectory is currently constrained, with a net loss and negative operating income reported in the latest financial period. Analyst estimates for revenue and earnings per share are not indicative of a strong growth outlook, and without a clear path to profitability, the company may struggle to meet or exceed market expectations in the near term. The absence of disclosed capital expenditures or R&D investments further complicates the assessment of future growth potential.

Risk factors are currently assessed as low for both liquidity and dilution, with no immediate filing-based flags detected. The company's low debt load and strong cash position reduce the likelihood of near-term liquidity stress. However, the negative net income and operating loss suggest a need for close monitoring of cash flow generation and cost management. The absence of dilution risk is a positive sign, but the company's financial performance may necessitate future capital raising, which could introduce dilution pressure.

Recent events and filings do not indicate any material changes in the company's operations or financial condition. The lack of disclosed events or significant changes in the business model suggests a stable, albeit underperforming, operational environment. Investors should remain attentive to any future disclosures that may signal strategic shifts or operational improvements.

Revenue surged 134.3% year-over-year to JPY 1.75 billion in fiscal 2025, demonstrating significant top-line growth momentum.

Net income improved by 92.8% year-over-year, narrowing the loss to JPY 69 million in fiscal 2025.

Free cash flow improved by 96.6% year-over-year, reducing the outflow to JPY 59.9 million in fiscal 2025.

Gross profit expanded significantly to JPY 900 million in fiscal 2025, indicating improved core profitability before operating expenses.

The company maintains a low dilution risk profile, suggesting current equity structure stability for existing shareholders.

The company faces high credit risk, indicating potential difficulties in meeting financial obligations or securing favorable financing.

Debt-to-equity ratio of 0.34 is nearly triple the cohort median of 0.12, signaling higher leverage than peers.

Revenue ¥892.3M, +121,8% YoY; Operating income −633,3% YoY.

• ▍Revenue ¥892.3M, +121,8% YoY
• ▍Operating income −633,3% YoY
• ▍Net income −1 300,1% YoY
• ▍Net margin -42.9%

Revenue ¥806.7M, +98,3% YoY; Operating income −857,5% YoY.

• ▍Revenue ¥806.7M, +98,3% YoY
• ▍Operating income −857,5% YoY
• ▍Net income −275,8% YoY
• ▍Net margin -19.4%

Revenue ¥476.8M, +127,6% YoY; Operating income +91,9% YoY.

• ▍Revenue ¥476.8M, +127,6% YoY
• ▍Operating income +91,9% YoY
• ▍Net income +95,1% YoY
• ▍Net margin -6.5%

Revenue ¥465.6M, +195,8% YoY; Operating income +65,1% YoY.

• ▍Revenue ¥465.6M, +195,8% YoY
• ▍Operating income +65,1% YoY
• ▍Net income +121,6% YoY
• ▍Net margin 6.7%

Revenue ¥402.3M; Operating income -¥10.0M.

• ▍Revenue ¥402.3M
• ▍Operating income -¥10.0M
• ▍Net margin -6.8%

Revenue ¥406.8M; Operating income -¥17.1M.

• ▍Revenue ¥406.8M
• ▍Operating income -¥17.1M
• ▍Net margin -10.3%

Revenue ¥209.5M; Operating income -¥598.6M.

• ▍Revenue ¥209.5M
• ▍Operating income -¥598.6M
• ▍Net margin -306.3%

Revenue ¥157.4M; Operating income -¥144.5M.

• ▍Revenue ¥157.4M
• ▍Operating income -¥144.5M
• ▍Net margin -91.7%

Revenue ¥1.75B, +134,3% YoY; Operating income +87,0% YoY.

• ▍Revenue ¥1.75B, +134,3% YoY
• ▍Operating income +87,0% YoY
• ▍Net income +92,8% YoY
• ▍Free cash flow +96,6% YoY
• ▍Net margin -3.9%

Revenue ¥747.6M, −20,6% YoY; Operating income −256,1% YoY.

• ▍Revenue ¥747.6M, −20,6% YoY
• ▍Operating income −256,1% YoY
• ▍Net income −176,7% YoY
• ▍Free cash flow −374,9% YoY
• ▍Net margin -128.6%

Revenue ¥941.1M, +2,4% YoY; Operating income +29,1% YoY.

• ▍Revenue ¥941.1M, +2,4% YoY
• ▍Operating income +29,1% YoY
• ▍Net income +13,8% YoY
• ▍Free cash flow +2,0% YoY
• ▍Net margin -36.9%

Revenue ¥919.1M, +1,9% YoY; Operating income +44,6% YoY.

• ▍Revenue ¥919.1M, +1,9% YoY
• ▍Operating income +44,6% YoY
• ▍Net income +30,6% YoY
• ▍Free cash flow +4,5% YoY
• ▍Net margin -43.9%