Nankai Chemical Co Ltd

Nankai Chemical Co Ltd maintains a capital structure with a debt-to-equity ratio of 0.7, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 1.14, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the company's net cash position is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics for Nankai Chemical Co Ltd show a return on equity (ROE) of 1.98% and a return on assets (ROA) of 0.73%, both of which are below the typical thresholds for strong performance in the chemicals industry. The company's operating margin is 3.5%, and its net profit margin is 0.26%, indicating relatively low profitability compared to industry benchmarks.

The company's revenue is concentrated in a single business segment, as disclosed in its financial reports, with no significant geographic diversification mentioned. This concentration may expose the company to higher operational and market risks if demand in its primary market fluctuates.

Nankai Chemical Co Ltd's growth trajectory appears to be modest, with no significant revenue growth reported in the latest financial period. The company's capital expenditures of -2.084 billion JPY suggest a reduction in investment in new projects or facilities, which may impact long-term growth potential.

The company faces moderate liquidity risk due to its current ratio and negative net cash position. While the risk of dilution is currently low, the company's capital structure and financial flexibility should be monitored for any changes that could affect shareholder value. No recent events or filings have been disclosed that would significantly alter the company's risk profile.

The company's recent financial performance and disclosures do not indicate any major events or strategic shifts that would significantly impact its operations or financial health. The absence of recent filings or transcripts suggests a stable but potentially stagnant business environment.

Net income surged 198.1% year-over-year, demonstrating significant profitability improvement despite modest revenue growth trends.

Cash conversion ratio of 18.05% ranks best-in-class among 57 diversified chemicals peers, indicating superior operational efficiency.

Free cash flow turned positive at 68 million JPY in FY2024, reversing previous negative trends and improving liquidity.

Long-term debt decreased to 5.2 billion JPY in FY2024, reflecting a deliberate deleveraging strategy over recent periods.

Revenue grew 5.9% year-over-year to 20.9 billion JPY in FY2025, showing consistent top-line expansion.

Debt-to-equity ratio of 0.7 places the company in the bottom quartile, suggesting higher financial leverage risk.

High credit risk flag indicates potential difficulties in meeting financial obligations or securing favorable financing terms.

Revenue ¥4.78B, +3,6% YoY; Operating income −7,0% YoY.

• ▍Revenue ¥4.78B, +3,6% YoY
• ▍Operating income −7,0% YoY
• ▍Net income −38,1% YoY
• ▍Net margin 4.4%

Revenue ¥6.25B, +12,4% YoY; Operating income +39,0% YoY.

• ▍Revenue ¥6.25B, +12,4% YoY
• ▍Operating income +39,0% YoY
• ▍Net income +59,2% YoY
• ▍Net margin 3.7%

Revenue ¥5.86B; Operating income ¥421.0M.

• ▍Revenue ¥5.86B
• ▍Operating income ¥421.0M
• ▍Net margin 5.7%

Revenue ¥4.17B; Operating income ¥163.0M.

• ▍Revenue ¥4.17B
• ▍Operating income ¥163.0M
• ▍Net margin 2.7%

Revenue ¥4.61B; Operating income ¥316.0M.

• ▍Revenue ¥4.61B
• ▍Operating income ¥316.0M
• ▍Net margin 7.3%

Revenue ¥5.57B; Operating income ¥195.0M.

• ▍Revenue ¥5.57B
• ▍Operating income ¥195.0M
• ▍Net margin 2.6%

Revenue ¥20.90B, +4,6% YoY; Operating income −14,5% YoY.

• ▍Revenue ¥20.90B, +4,6% YoY
• ▍Operating income −14,5% YoY
• ▍Net income −12,3% YoY
• ▍Free cash flow −63,2% YoY
• ▍Net margin 4.9%

Revenue ¥19.99B, +2,0% YoY; Operating income +140,2% YoY.

• ▍Revenue ¥19.99B, +2,0% YoY
• ▍Operating income +140,2% YoY
• ▍Net income +130,0% YoY
• ▍Free cash flow +155,3% YoY
• ▍Net margin 5.8%

Revenue ¥19.60B, +12,4% YoY; Operating income +241,1% YoY.

• ▍Revenue ¥19.60B, +12,4% YoY
• ▍Operating income +241,1% YoY
• ▍Net income +9,1% YoY
• ▍Free cash flow −150,6% YoY
• ▍Net margin 2.6%