Toyokumo Inc

Toyokumo Inc maintains a strong liquidity position, with cash and equivalents amounting to ¥30.86 billion, significantly exceeding its total liabilities of ¥10.85 billion, resulting in a current ratio of 3.01. The company has no long-term debt, and its debt-to-equity ratio is 0.0, indicating a conservative capital structure with no leverage. The price-to-book ratio of 9.8 and price-to-tangible-book ratio of 9.8 suggest that the market is valuing the company's intangible assets at a premium.

In terms of profitability, Toyokumo Inc reported a net income of ¥179.95 billion and an operating income of ¥260.91 billion, translating to a return on equity (ROE) of 7.78% and a return on assets (ROA) of 5.3%. These figures are in line with the industry's preferred metrics for IT services and consulting, which emphasize high-margin service delivery and efficient asset utilization.

The company's revenue is concentrated in its core IT services and consulting business, with no disclosed geographic diversification in the latest financial data. This concentration may expose the company to regional economic fluctuations, particularly in Japan, where the majority of its operations are based.

Toyokumo Inc's growth trajectory appears stable, with a revenue of ¥69.90 billion in the latest reporting period. While no specific growth rates are provided, the company's strong liquidity and lack of debt suggest it has the financial flexibility to pursue expansion opportunities. The absence of dilution risk and low liquidity risk further supports a conservative but stable growth outlook.

The risk assessment indicates low liquidity and dilution risks, with no immediate filing-based flags detected. The company's conservative capital structure, with no long-term debt and a high cash reserve, minimizes financial distress risk. However, the high price-to-earnings ratio of 125.87 and ev-to-ebitda of 74.99 suggest that the stock is currently trading at a premium, which could be a concern if earnings growth does not meet expectations.

Recent events, including analyst estimates of ¥99.31 JPY for the last actual EPS and ¥4.86 billion for the last actual revenue, indicate that the company is performing in line with market expectations. No significant deviations or unexpected events were reported in the latest filings or transcripts, suggesting a stable operational environment.

Operating margin of 37.3% significantly exceeds the 5.1% IT Services cohort median, indicating best-in-class profitability.

Net margin of 25.7% far surpasses the 3.9% cohort median, demonstrating superior bottom-line efficiency relative to peers.

Return on assets of 5.3% suggests modest efficiency in converting total assets into net earnings.

Revenue ¥1.35B, +50,3% YoY; Operating income −5,1% YoY.

• ▍Revenue ¥1.35B, +50,3% YoY
• ▍Operating income −5,1% YoY
• ▍Net income −9,6% YoY
• ▍Net margin 17.4%

Revenue ¥1.26B, +57,7% YoY; Operating income +57,6% YoY.

• ▍Revenue ¥1.26B, +57,7% YoY
• ▍Operating income +57,6% YoY
• ▍Net income +47,5% YoY
• ▍Net margin 22.8%

Revenue ¥1.17B, +56,1% YoY; Operating income +76,0% YoY.

• ▍Revenue ¥1.17B, +56,1% YoY
• ▍Operating income +76,0% YoY
• ▍Net income +66,2% YoY
• ▍Net margin 29.3%

Revenue ¥1.08B, +54,1% YoY; Operating income +26,9% YoY.

• ▍Revenue ¥1.08B, +54,1% YoY
• ▍Operating income +26,9% YoY
• ▍Net income +22,2% YoY
• ▍Net margin 20.4%

Revenue ¥895.4M; Operating income ¥320.4M.

• ▍Revenue ¥895.4M
• ▍Operating income ¥320.4M
• ▍Net margin 28.9%

Revenue ¥802.0M; Operating income ¥282.4M.

• ▍Revenue ¥802.0M
• ▍Operating income ¥282.4M
• ▍Net margin 24.4%

Revenue ¥749.7M; Operating income ¥298.3M.

• ▍Revenue ¥749.7M
• ▍Operating income ¥298.3M
• ▍Net margin 27.5%

Revenue ¥699.0M; Operating income ¥260.9M.

• ▍Revenue ¥699.0M
• ▍Operating income ¥260.9M
• ▍Net margin 25.7%

Revenue ¥4.86B, +54,4% YoY; Operating income +38,1% YoY.

• ▍Revenue ¥4.86B, +54,4% YoY
• ▍Operating income +38,1% YoY
• ▍Net income +29,1% YoY
• ▍Free cash flow +61,8% YoY
• ▍Net margin 22.4%

Revenue ¥3.15B, +29,2% YoY; Operating income +32,8% YoY.

• ▍Revenue ¥3.15B, +29,2% YoY
• ▍Operating income +32,8% YoY
• ▍Net income +33,2% YoY
• ▍Free cash flow +18,3% YoY
• ▍Net margin 26.7%