Quantum Solutions Co Ltd

Quantum Solutions Co Ltd exhibits a highly leveraged capital structure, with a debt-to-equity ratio of 5.7, significantly above the industry median for IT Services & Consulting firms. The company maintains a liquidity position of JPY 157.81 million in cash and equivalents, but its current ratio of 0.95 indicates limited short-term liquidity to cover liabilities.

Profitability metrics are sharply negative, with a return on equity of -5.21% and a return on assets of -11.2%. These figures fall well below the industry median for IT Services, where positive ROIC and ROA are typically expected for firms with stable cash flows and recurring revenue models.

The company's revenue is concentrated in a single business segment, IT Services, with no disclosed geographic diversification. This lack of segment or geographic diversification increases exposure to sector-specific downturns and regional economic shifts.

Growth trajectory is negative, with operating income declining by JPY 126.83 million and net income turning negative at JPY 45.70 million. Analyst estimates for revenue and EPS also show a downward trend, with last actual revenue at JPY 266.76 million and EPS at -JPY 54.07.

Risk factors include a low liquidity score and a debt burden that could constrain operational flexibility. The company has no immediate filing-based dilution flags, but its equity base is small at JPY 8.77 million, making it vulnerable to dilution from new capital raises or convertible instruments.

Recent filings and transcripts show no material changes in business strategy or capital structure. The company remains focused on IT services, with no disclosed investments in emerging technologies or R&D initiatives to drive future growth.

The company maintains zero long-term debt for four of the last five fiscal years, indicating historical financial flexibility.

Dilution and liquidity risks are assessed as low, suggesting manageable capital structure pressures despite operational losses.

Revenue showed a 1.0% CAGR over the four-year period, indicating slight top-line stability amidst volatility.

The debt-to-equity ratio surged to 5.7, placing the company in the bottom quartile of its peer cohort.

The company faces high credit risk, reflecting significant concerns regarding its ability to meet financial obligations.

Revenue ¥62.1M, −13,1% YoY; Operating income −147,1% YoY.

• ▍Revenue ¥62.1M, −13,1% YoY
• ▍Operating income −147,1% YoY
• ▍Net income −1 010,7% YoY
• ▍Net margin -2103.6%

Revenue ¥67.2M, +6,0% YoY; Operating income −6,0% YoY.

• ▍Revenue ¥67.2M, +6,0% YoY
• ▍Operating income −6,0% YoY
• ▍Net income −730,1% YoY
• ▍Net margin -1398.6%

Revenue ¥60.6M, −87,0% YoY; Operating income −244,4% YoY.

• ▍Revenue ¥60.6M, −87,0% YoY
• ▍Operating income −244,4% YoY
• ▍Net income −243,6% YoY
• ▍Net margin -231.2%

Revenue ¥76.9M, −21,4% YoY; Operating income +13,9% YoY.

• ▍Revenue ¥76.9M, −21,4% YoY
• ▍Operating income +13,9% YoY
• ▍Net income −250,7% YoY
• ▍Net margin -208.4%

Revenue ¥71.5M; Operating income -¥110.1M.

• ▍Revenue ¥71.5M
• ▍Operating income -¥110.1M
• ▍Net margin -164.5%

Revenue ¥63.4M; Operating income -¥188.2M.

• ▍Revenue ¥63.4M
• ▍Operating income -¥188.2M
• ▍Net margin -178.5%

Revenue ¥465.3M; Operating income ¥95.1M.

• ▍Revenue ¥465.3M
• ▍Operating income ¥95.1M
• ▍Net margin -8.8%

Revenue ¥97.9M; Operating income -¥126.8M.

• ▍Revenue ¥97.9M
• ▍Operating income -¥126.8M
• ▍Net margin -46.7%

Revenue ¥266.8M, −61,8% YoY; Operating income −117,5% YoY.

• ▍Revenue ¥266.8M, −61,8% YoY
• ▍Operating income −117,5% YoY
• ▍Net income −702,6% YoY
• ▍Free cash flow −703,4% YoY
• ▍Net margin -954.6%

Revenue ¥698.1M, +240,1% YoY; Operating income +69,0% YoY.

• ▍Revenue ¥698.1M, +240,1% YoY
• ▍Operating income +69,0% YoY
• ▍Net income +64,8% YoY
• ▍Free cash flow +65,1% YoY
• ▍Net margin -45.4%

Revenue ¥205.2M, −22,3% YoY; Operating income +11,3% YoY.

• ▍Revenue ¥205.2M, −22,3% YoY
• ▍Operating income +11,3% YoY
• ▍Net income +5,4% YoY
• ▍Free cash flow +3,5% YoY
• ▍Net margin -439.7%

Revenue ¥264.3M, +3,0% YoY; Operating income −266,7% YoY.

• ▍Revenue ¥264.3M, +3,0% YoY
• ▍Operating income −266,7% YoY
• ▍Net income −239,8% YoY
• ▍Free cash flow −99,0% YoY
• ▍Net margin -361.1%