3858.T

The company maintains a strong liquidity position, with cash and equivalents amounting to ¥1.35 billion, representing 39% of total assets. Its liquidity FPT (free cash flow to total liabilities) is robust, with free cash flow of ¥177.16 million and total liabilities of ¥1.05 billion, resulting in a liquidity buffer of 17%. The current ratio of 3.44 further supports its ability to meet short-term obligations.

Profitability metrics indicate a relatively modest return on equity (ROE) of 3.8% and return on assets (ROA) of 2.64%. These figures are below the industry median for software companies, which typically report ROE in the 10-15% range. The company's operating margin of 2.99% (¥123.93 million operating income on ¥4.14 billion revenue) is also below the median for the sector, suggesting room for improvement in cost management or pricing power.

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 risks and limits visibility into regional performance. The absence of geographic breakdown in the financials suggests a potential concentration risk, particularly if the company is heavily reliant on a single market.

Outlook data indicates a projected revenue growth of 4.2% for the current fiscal year and 3.1% for the following year. This growth is modest compared to the industry median of 6.5% and may reflect a maturing product lifecycle or market saturation. The company's capital expenditure of -¥36.69 million suggests a reduction in investment, which could signal a shift toward cost optimization or a lack of high-impact growth opportunities.

Risk assessment highlights low liquidity and dilution risk, with no immediate filing-based flags detected. The debt-to-equity ratio of 0.03 is well below the industry median of 0.25, indicating a conservative capital structure. However, the company's low ROE and ROA suggest that it is not effectively leveraging its equity base to generate returns. The absence of dilution risk is supported by the fact that basic and diluted shares are equal, with no recent issuance activity reported.

Recent events include the filing of the latest financial results, which show a net income of ¥91.08 million and a gross profit of ¥1.72 billion. Analyst estimates align closely with reported figures, with the last actual EPS of ¥9.28 and revenue of ¥4.14 billion. No material events or regulatory actions have been disclosed in the latest filings, and the company appears to be operating within a stable regulatory environment.