Ohishi Sangyo Co Ltd
Ohishi Sangyo maintains a strong liquidity position with cash and equivalents of ¥7.44 billion, representing 27.9% of total assets, and a current ratio of 2.46, well above the industry median of 1.8. The company's liquidity_fpt score of 0.84 indicates robust short-term financial flexibility, supported by operating cash flow of ¥2.16 billion and a debt-to-equity ratio of 0.03, significantly lower than the industry median of 0.25. Profitability metrics show a return on equity (ROE) of 5.06% and return on assets (ROA) of 3.54%, both below the industry median ROE of 7.2% and ROA of 4.8%. The company's gross margin of 18.4% is in line with the industry median of 18.2%, but its operating margin of 4.7% lags behind the median of 6.1%, indicating potential inefficiencies in cost control or pricing power. The Cushioning Function Materials segment accounts for 52% of total revenue, followed by Packaging Function Materials at 38%, and the Others segment at 10%. Geographically, the company is entirely Japan-focused, with no disclosed international revenue, which presents a concentration risk in a single market. Revenue growth has been modest, with a 2.1% year-over-year increase in the latest fiscal year. Outlook for the next fiscal year projects a 1.8% revenue increase, driven by stable demand in the domestic packaging market. However, capital expenditures of ¥1.77 billion have led to negative free cash flow of ¥70 million, signaling reinvestment in operations rather than shareholder returns. Risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The company's diluted shares outstanding remain unchanged at 7.84 million, and no dilution sources were identified in recent filings. The absence of long-term debt (¥641 million) further reduces refinancing risk. Recent events include the filing of the latest annual report, which disclosed stable operating performance and no material legal or regulatory issues. The company's market price of ¥1,335 implies a price-to-earnings ratio of 11.08 and a price-to-book ratio of 0.56, both below the industry median of 14.2 and 1.2, respectively, suggesting potential undervaluation.
Business. Ohishi Sangyo Co Ltd is a Japan-based company engaged in the manufacture and sale of packaging-related materials, operating in three segments: Cushioning Function Materials, Packaging Function Materials, and Others.
Classification. Ohishi Sangyo is classified under the Basic Materials economic sector, Applied Resources business sector, and Paper Packaging industry with a confidence level of 0.92.
- Ohishi Sangyo maintains strong liquidity with a current ratio of 2.46 and ¥7.44 billion in cash and equivalents.
- The company's ROE of 5.06% and ROA of 3.54% lag behind industry medians, indicating room for improvement in profitability.
- Revenue is heavily concentrated in Japan, with the Cushioning Function Materials segment accounting for 52% of total revenue.
- Outlook for the next fiscal year projects modest revenue growth of 1.8%, supported by stable domestic demand.
- The company's low debt-to-equity ratio of 0.03 and absence of long-term debt reduce refinancing and leverage risk.
- The stock is trading at a discount to industry valuation multiples, with a P/E of 11.08 and P/B of 0.56.
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- No immediate filing-based liquidity or dilution flags were detected.