Keiwa Inc

Keiwa Inc maintains a strong liquidity position, with cash and equivalents amounting to ¥7.8 billion, representing 27.3% of total assets. The company's liquidity FPT (free cash flow to total debt) is robust, supported by a current ratio of 3.16 and a debt-to-equity ratio of 0.17, indicating a conservative capital structure.

Profitability metrics show a return on equity (ROE) of 4.0% and a return on assets (ROA) of 2.92%, both below the industry median for commodity chemicals. Gross profit of ¥2.1 billion and operating income of ¥903 million suggest moderate efficiency, but the company's net income of ¥833 million reflects a healthy margin after expenses.

Geographically, Keiwa Inc's revenue is concentrated in Japan, with no disclosed international segments. The company's business is heavily dependent on domestic demand and supply chain stability, which could expose it to regional economic fluctuations.

Looking ahead, revenue is projected to grow by 3.5% in the current fiscal year and 2.1% in the next, based on analyst estimates. This growth is driven by stable demand in the industrial chemicals market and the company's focus on cost optimization.

Risk factors include low liquidity and dilution risk, with no immediate filing-based flags detected. The company's low debt-to-equity ratio and strong cash reserves mitigate credit risk, but its exposure to commodity price volatility remains a concern.

Recent events include a 10-K filing that disclosed no material changes in operations or financial condition. Analysts have issued a mean recommendation of 2.00 (Hold), with one strong buy and one hold rating, reflecting cautious optimism about the company's near-term prospects.

Long-term debt decreased to 2.2 billion JPY in FY2026, reflecting a strong deleveraging trend.

The debt-to-equity ratio of 0.17 is well below the 0.31 cohort median.

Analysts maintain a buy recommendation for Keiwa Inc despite recent financial fluctuations.

Revenue contracted 3.1% year-over-year to 20.5 billion JPY in FY2026.

The four-year net income CAGR is negative at -3.1%, indicating long-term earnings erosion.

Return on equity of 4.0% remains modest despite superior profitability margins.

Revenue ¥5.41B, −13,7% YoY; Operating income −48,5% YoY.

• ▍Revenue ¥5.41B, −13,7% YoY
• ▍Operating income −48,5% YoY
• ▍Net income −54,7% YoY
• ▍Net margin 13.6%

Revenue ¥5.15B, −1,2% YoY; Operating income +858,3% YoY.

• ▍Revenue ¥5.15B, −1,2% YoY
• ▍Operating income +858,3% YoY
• ▍Net income +301,8% YoY
• ▍Net margin 16.3%

Revenue ¥4.93B, −2,2% YoY; Operating income −81,3% YoY.

• ▍Revenue ¥4.93B, −2,2% YoY
• ▍Operating income −81,3% YoY
• ▍Net income −114,4% YoY
• ▍Net margin -2.2%

Revenue ¥4.98B, +8,1% YoY; Operating income +39,4% YoY.

• ▍Revenue ¥4.98B, +8,1% YoY
• ▍Operating income +39,4% YoY
• ▍Net income −3,8% YoY
• ▍Net margin 16.1%

Revenue ¥6.27B; Operating income ¥1.64B.

• ▍Revenue ¥6.27B
• ▍Operating income ¥1.64B
• ▍Net margin 26.0%

Revenue ¥5.21B; Operating income ¥106.2M.

• ▍Revenue ¥5.21B
• ▍Operating income ¥106.2M
• ▍Net margin -8.0%

Revenue ¥5.04B; Operating income ¥804.6M.

• ▍Revenue ¥5.04B
• ▍Operating income ¥804.6M
• ▍Net margin 14.8%

Revenue ¥4.61B; Operating income ¥903.2M.

• ▍Revenue ¥4.61B
• ▍Operating income ¥903.2M
• ▍Net margin 18.1%

Revenue ¥20.47B, −3,1% YoY; Operating income −5,2% YoY.

• ▍Revenue ¥20.47B, −3,1% YoY
• ▍Operating income −5,2% YoY
• ▍Net income −18,7% YoY
• ▍Free cash flow −61,7% YoY
• ▍Net margin 11.1%

Revenue ¥21.13B, +20,3% YoY; Operating income +41,3% YoY.

• ▍Revenue ¥21.13B, +20,3% YoY
• ▍Operating income +41,3% YoY
• ▍Net income +40,7% YoY
• ▍Free cash flow +1 681,3% YoY
• ▍Net margin 13.2%

Revenue ¥17.57B, −16,7% YoY; Operating income −55,2% YoY.

• ▍Revenue ¥17.57B, −16,7% YoY
• ▍Operating income −55,2% YoY
• ▍Net income −59,2% YoY
• ▍Free cash flow −107,4% YoY
• ▍Net margin 11.3%

Revenue ¥21.10B, +16,4% YoY; Operating income +91,8% YoY.

• ▍Revenue ¥21.10B, +16,4% YoY
• ▍Operating income +91,8% YoY
• ▍Net income +89,2% YoY
• ▍Free cash flow +34,1% YoY
• ▍Net margin 23.0%