Kawakami Paint Mfg Co Ltd

Kawakami Paint Mfg Co Ltd maintains a strong liquidity position with JPY 19.36 billion in cash and equivalents, but its net cash position is negative after subtracting long-term debt of JPY 20.79 billion. The company's price-to-book ratio of 0.57 and price-to-tangible-book ratio of 0.57 indicate that the market values the company below its book value. The debt-to-equity ratio of 0.64 suggests a moderate level of leverage, while the current ratio of 1.61 indicates adequate short-term liquidity.

The company's profitability metrics are weak compared to industry norms. Return on equity (ROE) of 0.76% and return on assets (ROA) of 0.3% are significantly below the industry median for Commodity Chemicals. Operating income of JPY 19.9 million and net income of JPY 24.7 million reflect a narrow profit margin, with a gross profit of JPY 262.5 million on total revenue of JPY 14.75 billion.

Kawakami Paint Mfg Co Ltd's revenue is concentrated in Japan, with no disclosed international operations in the latest financial data. The company does not report segment-specific revenue, but its primary business is in the production of paints and coatings for construction and industrial applications.

The company's growth trajectory is uncertain. The latest actual revenue of JPY 5.93 billion is significantly lower than the reported JPY 14.75 billion, suggesting potential volatility or reporting inconsistencies. The operating cash flow of -JPY 49.86 million and capital expenditure of -JPY 114.92 million indicate ongoing investment in operations, but the negative cash flow raises concerns about sustainability.

The risk assessment highlights medium liquidity risk due to the negative net cash position after subtracting total debt. Dilution risk is rated as low, with no significant dilution potential in the basic shares outstanding. The company's valuation is supported by a low price-to-book ratio, but the high price-to-earnings ratio of 75.04 and EV/EBITDA of 100.27 suggest that the market is not valuing earnings or cash flow generation highly.

Recent events include the latest actual EPS of 72.64 JPY and revenue of JPY 5.93 billion, which are significantly lower than the reported figures, indicating potential volatility or reporting inconsistencies. No recent filings or transcripts are available to provide additional context on the company's operations or strategic direction.

Revenue growth remained stable with a 2.8% CAGR over the last four fiscal years despite recent volatility.

Long-term debt decreased from 2.11 billion JPY in FY2022 to 1.97 billion JPY in FY2026, indicating deleveraging.

The company maintains a low dilution risk level, protecting existing shareholders from potential equity value erosion.

The company faces high credit risk, suggesting potential difficulties in meeting financial obligations or securing favorable financing.

Return on equity of 0.76% is well below the 3.61% cohort median, indicating inefficient capital utilization.

Revenue ¥1.41B, +2,8% YoY; Operating income +136,3% YoY.

• ▍Revenue ¥1.41B, +2,8% YoY
• ▍Operating income +136,3% YoY
• ▍Net income +201,7% YoY
• ▍Net margin 1.1%

Revenue ¥1.63B, +5,0% YoY; Operating income +101,5% YoY.

• ▍Revenue ¥1.63B, +5,0% YoY
• ▍Operating income +101,5% YoY
• ▍Net income −47,2% YoY
• ▍Net margin 3.3%

Revenue ¥1.50B, +3,9% YoY; Operating income +575,8% YoY.

• ▍Revenue ¥1.50B, +3,9% YoY
• ▍Operating income +575,8% YoY
• ▍Net income +180,4% YoY
• ▍Net margin 2.0%

Revenue ¥1.42B, −3,4% YoY; Operating income −145,6% YoY.

• ▍Revenue ¥1.42B, −3,4% YoY
• ▍Operating income −145,6% YoY
• ▍Net income −85,9% YoY
• ▍Net margin 0.2%

Revenue ¥1.37B; Operating income -¥29.6M.

• ▍Revenue ¥1.37B
• ▍Operating income -¥29.6M
• ▍Net margin -1.1%

Revenue ¥1.55B; Operating income ¥30.3M.

• ▍Revenue ¥1.55B
• ▍Operating income ¥30.3M
• ▍Net margin 6.5%

Revenue ¥1.45B; Operating income ¥4.3M.

• ▍Revenue ¥1.45B
• ▍Operating income ¥4.3M
• ▍Net margin 0.8%

Revenue ¥1.47B; Operating income ¥19.9M.

• ▍Revenue ¥1.47B
• ▍Operating income ¥19.9M
• ▍Net margin 1.7%

Revenue ¥5.93B, +0,3% YoY; Operating income −44,6% YoY.

• ▍Revenue ¥5.93B, +0,3% YoY
• ▍Operating income −44,6% YoY
• ▍Net income −57,6% YoY
• ▍Free cash flow −17 373,4% YoY
• ▍Net margin 1.2%

Revenue ¥5.91B, −3,7% YoY; Operating income −50,3% YoY.

• ▍Revenue ¥5.91B, −3,7% YoY
• ▍Operating income −50,3% YoY
• ▍Net income −16,0% YoY
• ▍Free cash flow −100,9% YoY
• ▍Net margin 2.9%

Revenue ¥6.14B, +9,1% YoY; Operating income +20,5% YoY.

• ▍Revenue ¥6.14B, +9,1% YoY
• ▍Operating income +20,5% YoY
• ▍Net income +25,1% YoY
• ▍Free cash flow −74,7% YoY
• ▍Net margin 3.3%

Revenue ¥5.63B, +6,0% YoY; Operating income +10,7% YoY.

• ▍Revenue ¥5.63B, +6,0% YoY
• ▍Operating income +10,7% YoY
• ▍Net income +11,0% YoY
• ▍Free cash flow −9,9% YoY
• ▍Net margin 2.9%