Toho Acetylene Co Ltd

Toho Acetylene maintains a strong liquidity position, with cash and equivalents amounting to ¥9.5 billion, representing 28.2% of total assets. The company's liquidity FPT (free cash flow to total liabilities) is robust, with free cash flow of ¥826 million and total liabilities of ¥15.3 billion, indicating a liquidity buffer of 5.4%. The current ratio of 1.79 further supports short-term liquidity health. Profitability metrics show a return on equity (ROE) of 6.9% and a return on assets (ROA) of 3.76%, which are below the industry median for Commodity Chemicals. The company's gross margin is 31.5% (¥10.97 billion gross profit on ¥34.8 billion revenue), but operating margin is 5.4% (¥1.89 billion operating income), indicating pressure from operating expenses. Net margin is 3.6% (¥1.26 billion net income), which is in line with the sector's lower end. The company's revenue is distributed across four segments: Gas Related (primary), Appliances and Equipment, Automotive Equipment Related, and Other. The Gas Related segment is the largest contributor, though specific revenue shares are not disclosed. Geographically, the company is concentrated in Japan, with no material international revenue disclosed in the latest financials. Outlook for the current fiscal year shows a revenue growth of 2.1% year-over-year, with a net income growth of 1.8%. Capital expenditure is expected to remain negative, indicating asset optimization rather than expansion. The next fiscal year is projected to see a 1.5% revenue increase and a 2.3% net income increase, suggesting a modest but stable growth trajectory. Risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The debt-to-equity ratio of 0.21 is well below the industry median, and the company has not issued new shares in the past 12 months. No dilution sources were identified in the latest filings, and the dilution potential remains low. Recent events include the publication of the latest annual report, which disclosed no material changes in business strategy or regulatory exposure. The company has not issued any new debt or equity in the past 12 months, and no significant legal or regulatory actions are reported in the latest filings.