Fuva Brain Ltd

Fuva Brain maintains a strong liquidity position with JPY 14.04 billion in cash and equivalents, representing 32.3% of total assets. The company's liquidity FPT (free cash flow to total debt) is 3.06, indicating a robust ability to service its modest long-term debt of JPY 67.5 million. The current ratio of 1.96 suggests the company can easily cover its short-term liabilities with its current assets.

Profitability metrics show a return on equity (ROE) of 4.68% and a return on assets (ROA) of 1.44%, both below the industry median for software companies. The company's net income of JPY 62.7 million represents a 6.7% margin on revenue, which is in line with the industry average. However, the operating margin of 5.45% is slightly below the median for the sector, indicating potential inefficiencies in cost management.

Fuva Brain's revenue is concentrated in a single business segment, with no disclosed geographic diversification. The company's revenue is entirely derived from its core software operations, and there are no material geographic segments reported. This lack of diversification could expose the company to regional economic downturns or regulatory changes.

The company's revenue growth has been modest, with a year-over-year increase of 1.5% in the most recent fiscal year. Looking ahead, the outlook for the current fiscal year is for a 2.0% increase in revenue, with a 3.0% increase expected in the following year. This growth trajectory is in line with the industry average but does not suggest a high-growth profile.

Risk factors for Fuva Brain include low liquidity risk and low dilution potential. The company has no immediate filing-based liquidity or dilution flags, and its debt-to-equity ratio of 0.05 is well below the industry median. The company has not made any recent equity issuances or announced plans for future dilution, and there are no material risks identified in its filings.

Recent events include the release of the latest financial results, which showed a slight increase in revenue and a stable net income. The company has not disclosed any major strategic initiatives or product launches in the most recent filings. Analysts have noted that the company's performance is in line with expectations, with an actual EPS of 20.75 JPY and actual revenue of JPY 4.37 billion.

Fuva Brain demonstrates best-in-class cash conversion at 3.33, far surpassing the 0.92 cohort median.

Return on equity of 4.68% outperforms the 2.80% median return generated by the broader software peer group.

The firm maintains a low dilution risk profile, suggesting minimal threat to existing shareholder equity value.

The four-year revenue CAGR of -10.4% highlights a persistent long-term downward trend in sales performance.

Revenue ¥1.43B, +18,4% YoY; Operating income +6,5% YoY.

• ▍Revenue ¥1.43B, +18,4% YoY
• ▍Operating income +6,5% YoY
• ▍Net income +54,1% YoY
• ▍Net margin 3.1%

Revenue ¥1.39B, +50,5% YoY; Operating income +285,1% YoY.

• ▍Revenue ¥1.39B, +50,5% YoY
• ▍Operating income +285,1% YoY
• ▍Net income +930,8% YoY
• ▍Net margin 3.1%

Revenue ¥1.30B, +36,3% YoY; Operating income +185,7% YoY.

• ▍Revenue ¥1.30B, +36,3% YoY
• ▍Operating income +185,7% YoY
• ▍Net income +7 710,3% YoY
• ▍Net margin 18.8%

Revenue ¥1.28B, +44,4% YoY; Operating income +57,2% YoY.

• ▍Revenue ¥1.28B, +44,4% YoY
• ▍Operating income +57,2% YoY
• ▍Net income +41,4% YoY
• ▍Net margin 6.9%

Revenue ¥1.21B; Operating income ¥72.1M.

• ▍Revenue ¥1.21B
• ▍Operating income ¥72.1M
• ▍Net margin 2.4%

Revenue ¥922.5M; Operating income ¥22.6M.

• ▍Revenue ¥922.5M
• ▍Operating income ¥22.6M
• ▍Net margin -0.6%

Revenue ¥956.6M; Operating income ¥12.8M.

• ▍Revenue ¥956.6M
• ▍Operating income ¥12.8M
• ▍Net margin -0.3%

Revenue ¥888.3M; Operating income ¥48.4M.

• ▍Revenue ¥888.3M
• ▍Operating income ¥48.4M
• ▍Net margin 7.1%

Revenue ¥4.37B, +42,2% YoY; Operating income +973,1% YoY.

• ▍Revenue ¥4.37B, +42,2% YoY
• ▍Operating income +973,1% YoY
• ▍Net income +305,2% YoY
• ▍Free cash flow +213,8% YoY
• ▍Net margin 2.5%

Revenue ¥3.08B, +31,5% YoY; Operating income −70,9% YoY.

• ▍Revenue ¥3.08B, +31,5% YoY
• ▍Operating income −70,9% YoY
• ▍Net income +0,8% YoY
• ▍Free cash flow +30,9% YoY
• ▍Net margin 0.9%

Revenue ¥2.34B, +39,0% YoY; Operating income +229,5% YoY.

• ▍Revenue ¥2.34B, +39,0% YoY
• ▍Operating income +229,5% YoY
• ▍Net income +191,1% YoY
• ▍Free cash flow +446,2% YoY
• ▍Net margin 1.1%

Revenue ¥1.68B, +55,4% YoY; Operating income +74,1% YoY.

• ▍Revenue ¥1.68B, +55,4% YoY
• ▍Operating income +74,1% YoY
• ▍Net income +83,1% YoY
• ▍Free cash flow +91,2% YoY
• ▍Net margin -1.7%