Trade Works Co Ltd

Trade Works Co Ltd has a market capitalization of ¥17.57 billion and a price-to-book ratio of 14.49, indicating a premium valuation relative to its book value. The company's liquidity position is strong, with ¥626.2 million in cash and equivalents, and a current ratio of 1.74, suggesting it can cover its short-term liabilities comfortably. However, the company's debt-to-equity ratio of 0.46 indicates a moderate level of leverage, which is below the industry median for software firms.

Profitability metrics are concerning, with a return on equity (ROE) of -8.71% and a return on assets (ROA) of -3.98%, both significantly below the industry median for software companies. The company reported a net loss of ¥105.7 million and an operating loss of ¥112.7 million in the latest period, reflecting ongoing challenges in achieving profitability. Gross profit of ¥149.2 million was insufficient to cover operating expenses, contributing to the negative operating income.

The company's revenue of ¥10.67 billion is concentrated in a single business segment, with no disclosed geographic diversification in the latest financials. This lack of diversification increases exposure to regional economic fluctuations and regulatory changes. Competitor context is limited, with no specific revenue shares or market positions disclosed for Microsoft, Salesforce, or ServiceNow.

Growth trajectory is mixed. The company's revenue of ¥10.67 billion in the latest period is consistent with analyst estimates of ¥5.05 billion for the trailing twelve months, but no forward-looking guidance is provided. The absence of a clear growth strategy or segment-specific outlook raises questions about the company's ability to scale operations and improve profitability.

Risk factors include the company's negative net income and operating income, which could pressure liquidity if cash burn accelerates. However, the risk assessment indicates low dilution and liquidity risk, with no immediate filing-based flags detected. The company's capital structure remains stable, with no dilution potential from basic shares and no recent issuance activity reported.

Recent events include the latest financial filing, which disclosed the operating and net losses. No material events such as acquisitions, regulatory actions, or major product launches were reported in the latest period.

Revenue grew to 5.05 billion JPY in FY2026, demonstrating top-line expansion despite recent volatility in profitability metrics.

The company faces high credit risk, posing a significant threat to financial stability and potential debt servicing capabilities.

Debt-to-equity ratio of 0.46 is in the bottom quartile, far exceeding the software cohort median of 0.05.

Revenue ¥1.51B, +6,3% YoY; Operating income −35,1% YoY.

• ▍Revenue ¥1.51B, +6,3% YoY
• ▍Operating income −35,1% YoY
• ▍Net income −79,1% YoY
• ▍Net margin 0.2%

Revenue ¥1.49B, +21,2% YoY; Operating income +274,8% YoY.

• ▍Revenue ¥1.49B, +21,2% YoY
• ▍Operating income +274,8% YoY
• ▍Net income +385,8% YoY
• ▍Net margin 8.2%

Revenue ¥1.16B, +32,5% YoY; Operating income +129,6% YoY.

• ▍Revenue ¥1.16B, +32,5% YoY
• ▍Operating income +129,6% YoY
• ▍Net income +131,7% YoY
• ▍Net margin 2.4%

Revenue ¥893.3M, −16,2% YoY; Operating income +19,8% YoY.

• ▍Revenue ¥893.3M, −16,2% YoY
• ▍Operating income +19,8% YoY
• ▍Net income +7,6% YoY
• ▍Net margin -10.9%

Revenue ¥1.42B; Operating income ¥90.8M.

• ▍Revenue ¥1.42B
• ▍Operating income ¥90.8M
• ▍Net margin 1.2%

Revenue ¥1.23B; Operating income ¥42.7M.

• ▍Revenue ¥1.23B
• ▍Operating income ¥42.7M
• ▍Net margin 2.1%

Revenue ¥873.0M; Operating income -¥123.6M.

• ▍Revenue ¥873.0M
• ▍Operating income -¥123.6M
• ▍Net margin -10.2%

Revenue ¥1.07B; Operating income -¥112.7M.

• ▍Revenue ¥1.07B
• ▍Operating income -¥112.7M
• ▍Net margin -9.9%

Revenue ¥5.05B, +10,0% YoY; Operating income +260,8% YoY.

• ▍Revenue ¥5.05B, +10,0% YoY
• ▍Operating income +260,8% YoY
• ▍Net income +137,5% YoY
• ▍Free cash flow +34,4% YoY
• ▍Net margin 1.1%

Revenue ¥4.59B, +22,3% YoY; Operating income −49,3% YoY.

• ▍Revenue ¥4.59B, +22,3% YoY
• ▍Operating income −49,3% YoY
• ▍Net income −184,6% YoY
• ▍Free cash flow −1 729,8% YoY
• ▍Net margin -3.3%

Revenue ¥3.75B, +14,8% YoY; Operating income −123,9% YoY.

• ▍Revenue ¥3.75B, +14,8% YoY
• ▍Operating income −123,9% YoY
• ▍Net income −126,6% YoY
• ▍Free cash flow −89,4% YoY
• ▍Net margin -1.4%

Revenue ¥3.27B, +28,1% YoY; Operating income +5,3% YoY.

• ▍Revenue ¥3.27B, +28,1% YoY
• ▍Operating income +5,3% YoY
• ▍Net income +5,4% YoY
• ▍Free cash flow +13,3% YoY
• ▍Net margin 6.1%