Rakumo Inc

Rakumo Inc maintains a strong liquidity position, with cash and equivalents amounting to ¥19.15 billion, significantly exceeding its total liabilities of ¥12.65 billion, resulting in a current ratio of 2.93. The company's price-to-book ratio of 4.26 and price-to-tangible-book ratio of 4.26 suggest a premium valuation relative to its book value, while the price-to-earnings ratio of 107.86 indicates a high multiple on earnings.

In terms of profitability, Rakumo Inc's return on equity (ROE) of 3.95% and return on assets (ROA) of 2.1% are below the typical thresholds for high-performing IT services firms. The company's operating income of ¥89.76 billion and net income of ¥56.43 billion reflect a healthy gross margin of 65.2%, but the ROE and ROA figures suggest room for improvement in asset utilization and capital efficiency.

The company's revenue is concentrated in a single business segment, IT services, with no disclosed geographic diversification. This concentration increases exposure to sector-specific risks and limits the ability to offset downturns in one area with growth in another.

Looking ahead, Rakumo Inc's revenue is projected to grow, though the exact magnitude is not specified. The company's current financial position supports continued investment in growth initiatives, and the absence of immediate liquidity or dilution risks suggests a stable capital structure.

The risk assessment indicates a low probability of dilution and no immediate liquidity concerns. The company's debt-to-equity ratio of 0.36 and low leverage position further support this assessment. However, the high price-to-earnings ratio may indicate market expectations of future growth, which could be sensitive to changes in investor sentiment.

Recent financial filings and transcripts do not highlight any material events or strategic shifts. The company's performance appears to be in line with analyst estimates, with the last actual EPS of ¥46.81 and revenue of ¥18.30 billion.

Revenue grew 26.8% year-over-year to JPY 1.83 billion, demonstrating strong top-line expansion momentum.

Operating income surged 11.6% year-over-year to JPY 428 million, reflecting robust operational leverage.

The company maintains low dilution, liquidity, and credit risk flags, suggesting a stable financial profile.

Long-term debt more than doubled to JPY 1.22 billion, significantly increasing leverage compared to prior years.

Debt-to-equity ratio of 0.36 is well above the 0.12 cohort median, indicating higher financial risk.

Free cash flow declined 6.0% year-over-year to JPY 274 million, weakening cash generation capability.

Return on equity of 3.95% falls below the 4.27% cohort median, showing inferior capital efficiency.

Net income growth of 7.6% lagged behind the 26.8% revenue growth, suggesting margin pressure.

Revenue ¥521.0M, +34,2% YoY; Operating income −5,7% YoY.

• ▍Revenue ¥521.0M, +34,2% YoY
• ▍Operating income −5,7% YoY
• ▍Net income −11,1% YoY
• ▍Net margin 14.9%

Revenue ¥506.1M, +41,6% YoY; Operating income −2,2% YoY.

• ▍Revenue ¥506.1M, +41,6% YoY
• ▍Operating income −2,2% YoY
• ▍Net income −15,0% YoY
• ▍Net margin 9.6%

Revenue ¥407.4M, +16,3% YoY; Operating income +41,5% YoY.

• ▍Revenue ¥407.4M, +16,3% YoY
• ▍Operating income +41,5% YoY
• ▍Net income +44,1% YoY
• ▍Net margin 18.4%

Revenue ¥395.6M, +13,8% YoY; Operating income +21,9% YoY.

• ▍Revenue ¥395.6M, +13,8% YoY
• ▍Operating income +21,9% YoY
• ▍Net income +25,8% YoY
• ▍Net margin 17.9%

Revenue ¥388.2M; Operating income ¥116.6M.

• ▍Revenue ¥388.2M
• ▍Operating income ¥116.6M
• ▍Net margin 22.5%

Revenue ¥357.4M; Operating income ¥95.7M.

• ▍Revenue ¥357.4M
• ▍Operating income ¥95.7M
• ▍Net margin 16.0%

Revenue ¥350.3M; Operating income ¥81.4M.

• ▍Revenue ¥350.3M
• ▍Operating income ¥81.4M
• ▍Net margin 14.9%

Revenue ¥347.6M; Operating income ¥89.8M.

• ▍Revenue ¥347.6M
• ▍Operating income ¥89.8M
• ▍Net margin 16.2%

Revenue ¥1.83B, +26,8% YoY; Operating income +11,6% YoY.

• ▍Revenue ¥1.83B, +26,8% YoY
• ▍Operating income +11,6% YoY
• ▍Net income +7,6% YoY
• ▍Free cash flow −6,0% YoY
• ▍Net margin 14.9%

Revenue ¥1.44B, +11,4% YoY; Operating income +25,7% YoY.

• ▍Revenue ¥1.44B, +11,4% YoY
• ▍Operating income +25,7% YoY
• ▍Net income +28,8% YoY
• ▍Free cash flow +37,1% YoY
• ▍Net margin 17.5%

Revenue ¥1.30B, +18,1% YoY; Operating income +33,4% YoY.

• ▍Revenue ¥1.30B, +18,1% YoY
• ▍Operating income +33,4% YoY
• ▍Net income +6,4% YoY
• ▍Free cash flow +18,6% YoY
• ▍Net margin 15.2%

Revenue ¥1.10B, +13,8% YoY; Operating income +15,2% YoY.

• ▍Revenue ¥1.10B, +13,8% YoY
• ▍Operating income +15,2% YoY
• ▍Net income −2,2% YoY
• ▍Free cash flow −1,2% YoY
• ▍Net margin 16.8%