Mental Health Technologies Co Ltd

Mental Health Technologies Co Ltd has a liquidity position that is characterized by a current ratio of 1.81, indicating that the company has sufficient current assets to cover its current liabilities. However, the company's debt to equity ratio is 2.64, which suggests a high level of leverage and potential financial risk. The company's cash and equivalents amount to 1,062,614,000 JPY, but this is offset by long-term debt of 2,694,387,000 JPY, resulting in a net cash position that is negative after subtracting total debt.

In terms of profitability, the company reported a net loss of 285,942,000 JPY and an operating loss of 235,804,000 JPY, which indicates that the company is not currently generating positive returns on its operations. The return on equity is -0.2799 and the return on assets is -0.0666, both of which are negative and suggest that the company is not effectively utilizing its equity and assets to generate profits.

The company's revenue is primarily derived from its IT services and consulting business, with no specific segments or geographic regions disclosed in the provided data. The company's total revenue for the period is 869,359,000 JPY, but there is no information provided on the distribution of this revenue across different segments or geographic locations.

Looking at the company's growth trajectory, the most recent actual revenue was 6,435,360,000 JPY, while the mean revenue estimate for the next period is 7,800,000,000 JPY, indicating a potential growth in revenue. However, the company's net loss and negative returns on equity and assets suggest that this growth has not yet translated into profitability.

The company's risk assessment indicates a medium level of liquidity risk and a low level of dilution risk. The key flag of a negative net cash position after subtracting total debt highlights the company's financial leverage and potential liquidity constraints. There is no mention of dilution potential or adjustments applied in the custom valuations, suggesting that the company's capital structure is relatively stable.

Recent events and filings do not provide specific details on the company's operations or financial performance beyond the disclosed financial snapshot and risk assessment. The company's performance is being monitored by analysts, with the mean EPS estimate at 41.20 JPY and the last actual EPS at 24.56 JPY, indicating a potential for improvement in earnings.

Revenue surged 25.3% year-over-year to JPY 6.4 billion in fiscal 2026, demonstrating strong top-line growth momentum.

Net income rebounded sharply with a 956% year-over-year increase to JPY 255 million in fiscal 2026.

Operating income expanded by 403.3% year-over-year to JPY 585 million in fiscal 2026, indicating improved operational efficiency.

Free cash flow grew 554.8% year-over-year to JPY 306 million in fiscal 2026, enhancing liquidity generation capabilities.

The company achieved a four-year revenue CAGR of 45.1%, reflecting sustained long-term growth trajectory from fiscal 2022 to 2026.

The debt-to-equity ratio stands at 2.64, significantly exceeding the cohort median of 0.12 and indicating high leverage risk.

The company faces high credit risk according to internal risk flags, suggesting potential difficulties in meeting financial obligations.

Revenue ¥1.76B, +20,4% YoY; Operating income +26,4% YoY.

• ▍Revenue ¥1.76B, +20,4% YoY
• ▍Operating income +26,4% YoY
• ▍Net income −96,1% YoY
• ▍Net margin 0.3%

Revenue ¥1.65B, +18,2% YoY; Operating income +66,4% YoY.

• ▍Revenue ¥1.65B, +18,2% YoY
• ▍Operating income +66,4% YoY
• ▍Net income +134,2% YoY
• ▍Net margin 5.7%

Revenue ¥1.57B, +11,7% YoY; Operating income +6,7% YoY.

• ▍Revenue ¥1.57B, +11,7% YoY
• ▍Operating income +6,7% YoY
• ▍Net income +2,7% YoY
• ▍Net margin 5.5%

Revenue ¥1.45B, +67,1% YoY; Operating income +155,0% YoY.

• ▍Revenue ¥1.45B, +67,1% YoY
• ▍Operating income +155,0% YoY
• ▍Net income +124,5% YoY
• ▍Net margin 4.8%

Revenue ¥1.46B; Operating income ¥117.8M.

• ▍Revenue ¥1.46B
• ▍Operating income ¥117.8M
• ▍Net margin 9.1%

Revenue ¥1.40B; Operating income ¥94.2M.

• ▍Revenue ¥1.40B
• ▍Operating income ¥94.2M
• ▍Net margin 2.9%

Revenue ¥1.41B; Operating income ¥140.0M.

• ▍Revenue ¥1.41B
• ▍Operating income ¥140.0M
• ▍Net margin 6.0%

Revenue ¥869.4M; Operating income -¥235.8M.

• ▍Revenue ¥869.4M
• ▍Operating income -¥235.8M
• ▍Net margin -32.9%

Revenue ¥6.44B, +25,3% YoY; Operating income +403,3% YoY.

• ▍Revenue ¥6.44B, +25,3% YoY
• ▍Operating income +403,3% YoY
• ▍Net income +956,0% YoY
• ▍Free cash flow +554,8% YoY
• ▍Net margin 4.0%

Revenue ¥5.13B, +96,8% YoY; Operating income −78,0% YoY.

• ▍Revenue ¥5.13B, +96,8% YoY
• ▍Operating income −78,0% YoY
• ▍Net income −106,8% YoY
• ▍Free cash flow −88,6% YoY
• ▍Net margin -0.6%

Revenue ¥2.61B, +14,0% YoY; Operating income +25,4% YoY.

• ▍Revenue ¥2.61B, +14,0% YoY
• ▍Operating income +25,4% YoY
• ▍Net income +66,5% YoY
• ▍Free cash flow +70,8% YoY
• ▍Net margin 16.9%

Revenue ¥2.29B, +57,4% YoY; Operating income +206,8% YoY.

• ▍Revenue ¥2.29B, +57,4% YoY
• ▍Operating income +206,8% YoY
• ▍Net income +63,8% YoY
• ▍Free cash flow +45,3% YoY
• ▍Net margin 11.6%