GRID Inc

The company maintains a strong liquidity position, with cash and equivalents amounting to ¥2,684,951,000, significantly exceeding its total liabilities of ¥394,590,000, resulting in a current ratio of 9.05. Its price-to-book ratio of 2.91 and price-to-tangible-book ratio of 2.91 indicate that the market values the company at nearly three times its book value, suggesting a premium valuation relative to its tangible assets. The low debt-to-equity ratio of 0.03 further supports a conservative capital structure with minimal leverage.

Profitability metrics show a return on equity (ROE) of 2.47% and a return on assets (ROA) of 2.21%, which are below the industry median for IT Services & Consulting firms. This suggests that the company is not generating returns as efficiently as its peers. The operating margin, calculated as operating income of ¥100,372,000 on revenue of ¥411,862,000, is approximately 24.37%, which is in line with the industry average.

Geographically, GRID Inc's revenue is concentrated in Japan, with no disclosed international operations in the latest financial report. The company's business is primarily driven by domestic demand for IT services, which may expose it to regional economic fluctuations. There are no disclosed segments beyond the core IT Services & Consulting business, indicating a lack of diversification in revenue streams.

Looking ahead, the company is expected to see a significant increase in revenue, with analysts forecasting ¥3,200,000,000 for the current fiscal year, compared to the actual ¥2,063,420,000 in the previous period. This represents a year-over-year growth of approximately 55.1%. However, the price-to-earnings ratio of 117.66 is notably high, indicating that the market is pricing in substantial future earnings growth expectations.

Risk factors include the company's reliance on a single geographic market and the potential for regulatory changes in the IT services sector. The risk assessment indicates low liquidity and dilution risks, with no immediate filing-based flags detected. The company has not issued any new shares recently, and there are no indications of near-term dilution pressure.

Recent events include the release of the latest financial report, which shows a strong balance sheet and a high cash position. The company has not disclosed any major strategic initiatives or acquisitions in the latest filings. Analysts have raised their revenue estimates for the current fiscal year, reflecting confidence in the company's growth prospects.

Debt-to-equity ratio of 0.03 is well below the 0.12 cohort median, reflecting a conservative and stable capital structure.

Revenue grew 28.8% year-over-year to JPY 2.06 billion, showing robust top-line expansion in the latest period.

Four-year revenue CAGR of -9.4% reveals a long-term structural decline despite recent short-term growth.

Revenue ¥712.8M, +61,2% YoY; Operating income +594,8% YoY.

• ▍Revenue ¥712.8M, +61,2% YoY
• ▍Operating income +594,8% YoY
• ▍Net income +647,1% YoY
• ▍Net margin 15.0%

Revenue ¥602.8M, +34,5% YoY; Operating income +191,5% YoY.

• ▍Revenue ¥602.8M, +34,5% YoY
• ▍Operating income +191,5% YoY
• ▍Net income +221,1% YoY
• ▍Net margin 13.1%

Revenue ¥547.8M, −9,0% YoY; Operating income −51,9% YoY.

• ▍Revenue ¥547.8M, −9,0% YoY
• ▍Operating income −51,9% YoY
• ▍Net income −69,1% YoY
• ▍Net margin 19.0%

Revenue ¥625.2M, +51,8% YoY; Operating income +136,0% YoY.

• ▍Revenue ¥625.2M, +51,8% YoY
• ▍Operating income +136,0% YoY
• ▍Net income +90,4% YoY
• ▍Net margin 24.8%

Revenue ¥442.1M; Operating income ¥23.5M.

• ▍Revenue ¥442.1M
• ▍Operating income ¥23.5M
• ▍Net margin 3.2%

Revenue ¥448.3M; Operating income ¥39.4M.

• ▍Revenue ¥448.3M
• ▍Operating income ¥39.4M
• ▍Net margin 5.5%

Revenue ¥601.8M; Operating income ¥261.2M.

• ▍Revenue ¥601.8M
• ▍Operating income ¥261.2M
• ▍Net margin 56.0%

Revenue ¥411.9M; Operating income ¥100.4M.

• ▍Revenue ¥411.9M
• ▍Operating income ¥100.4M
• ▍Net margin 19.8%

Revenue ¥2.06B, +24,9% YoY; Operating income +16,5% YoY.

• ▍Revenue ¥2.06B, +24,9% YoY
• ▍Operating income +16,5% YoY
• ▍Net income −26,1% YoY
• ▍Free cash flow −25,9% YoY
• ▍Net margin 14.5%

Revenue ¥1.65B, +22,0% YoY; Operating income +76,8% YoY.

• ▍Revenue ¥1.65B, +22,0% YoY
• ▍Operating income +76,8% YoY
• ▍Net income +76,7% YoY
• ▍Free cash flow +78,7% YoY
• ▍Net margin 24.4%

Revenue ¥1.35B, +48,7% YoY; Operating income +152,5% YoY.

• ▍Revenue ¥1.35B, +48,7% YoY
• ▍Operating income +152,5% YoY
• ▍Net income +148,5% YoY
• ▍Free cash flow +2 218,1% YoY
• ▍Net margin 16.9%