Computer Management Co Ltd

Computer Management Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥2.91 billion, representing 61.3% of total assets. The company operates with no long-term debt, resulting in a debt-to-equity ratio of 0.0 and a current ratio of 4.44, indicating robust short-term liquidity. The operating cash flow of ¥429.18 million supports ongoing operations and provides flexibility for future investments.

Profitability metrics show a return on equity (ROE) of 2.92% and a return on assets (ROA) of 1.96%, which are below the industry median for IT Services & Consulting firms. The net income of ¥93.25 million and operating income of ¥93.02 million reflect modest profitability relative to revenue of ¥1.88 billion. Gross profit of ¥441.24 million suggests a gross margin of 23.45%, which is in line with industry norms but leaves room for improvement in cost management.

The company's revenue is concentrated in its core IT services segment, with no disclosed geographic diversification in the latest financial report. This lack of geographic segmentation data limits visibility into regional exposure and potential concentration risks.

Looking ahead, the company is projected to maintain a stable revenue trajectory, with no significant growth or contraction expected in the next fiscal year. Capital expenditures are minimal, with a negative value of ¥23.85 million, suggesting a focus on optimizing existing assets rather than large-scale investments. The absence of long-term debt and low dilution risk further supports a conservative financial strategy.

Risk factors include the potential for regulatory changes in the IT services sector, particularly in Japan, where the company is headquartered. However, no immediate filing-based liquidity or dilution flags were detected in the latest reports. The company's low dilution risk is supported by the absence of dilutive instruments and a stable share count.

Recent financial filings and transcripts do not indicate any material events or strategic shifts. The company's last actual EPS was 195.43 JPY, and its last actual revenue was ¥7.90 billion, both in line with expectations. No significant changes in management or business strategy were disclosed in the latest investor communications.

Revenue grew 9.8% year-over-year to JPY 7.9 billion in fiscal 2025, demonstrating consistent top-line expansion.

Net income surged 21.5% to JPY 398 million in fiscal 2025, outpacing revenue growth significantly.

Free cash flow increased 29.9% to JPY 334 million, indicating strong operational cash generation capabilities.

The company maintains a zero long-term debt position, ranking above the 75th percentile for leverage safety.

Cash conversion of 4.6 is best-in-class compared to the IT Services cohort median of 1.0.

Operating margin of 4.9% remains below the IT Services cohort median of 5.1%, suggesting pricing pressure.

Net margin of 4.95% shows minimal improvement despite revenue growth, highlighting potential cost structure rigidity.

Revenue ¥2.05B, +3,7% YoY; Operating income +22,3% YoY.

• ▍Revenue ¥2.05B, +3,7% YoY
• ▍Operating income +22,3% YoY
• ▍Net income +25,9% YoY
• ▍Net margin 6.2%

Revenue ¥2.04B, +4,7% YoY; Operating income +26,1% YoY.

• ▍Revenue ¥2.04B, +4,7% YoY
• ▍Operating income +26,1% YoY
• ▍Net income +16,9% YoY
• ▍Net margin 4.6%

Revenue ¥1.91B, +0,6% YoY; Operating income +0,0% YoY.

• ▍Revenue ¥1.91B, +0,6% YoY
• ▍Operating income +0,0% YoY
• ▍Net income +7,1% YoY
• ▍Net margin 3.4%

Revenue ¥2.08B, +10,5% YoY; Operating income +73,2% YoY.

• ▍Revenue ¥2.08B, +10,5% YoY
• ▍Operating income +73,2% YoY
• ▍Net income +67,2% YoY
• ▍Net margin 7.5%

Revenue ¥1.98B; Operating income ¥146.5M.

• ▍Revenue ¥1.98B
• ▍Operating income ¥146.5M
• ▍Net margin 5.1%

Revenue ¥1.95B; Operating income ¥117.1M.

• ▍Revenue ¥1.95B
• ▍Operating income ¥117.1M
• ▍Net margin 4.1%

Revenue ¥1.90B; Operating income ¥89.5M.

• ▍Revenue ¥1.90B
• ▍Operating income ¥89.5M
• ▍Net margin 3.2%

Revenue ¥1.88B; Operating income ¥93.0M.

• ▍Revenue ¥1.88B
• ▍Operating income ¥93.0M
• ▍Net margin 5.0%

Revenue ¥7.90B, +9,8% YoY; Operating income +20,4% YoY.

• ▍Revenue ¥7.90B, +9,8% YoY
• ▍Operating income +20,4% YoY
• ▍Net income +21,5% YoY
• ▍Free cash flow +29,9% YoY
• ▍Net margin 5.0%

Revenue ¥7.19B, +3,8% YoY; Operating income −9,6% YoY.

• ▍Revenue ¥7.19B, +3,8% YoY
• ▍Operating income −9,6% YoY
• ▍Net income −3,0% YoY
• ▍Free cash flow +12,8% YoY
• ▍Net margin 4.6%

Revenue ¥6.93B, +6,8% YoY; Operating income −4,3% YoY.

• ▍Revenue ¥6.93B, +6,8% YoY
• ▍Operating income −4,3% YoY
• ▍Net income −4,4% YoY
• ▍Free cash flow −22,2% YoY
• ▍Net margin 4.9%

Revenue ¥6.49B, +4,1% YoY; Operating income +28,2% YoY.

• ▍Revenue ¥6.49B, +4,1% YoY
• ▍Operating income +28,2% YoY
• ▍Net income +23,7% YoY
• ▍Free cash flow +21,6% YoY
• ▍Net margin 5.4%