Isamu Paint Co Ltd

Isamu Paint Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥4.34 billion, representing 20.9% of total assets. The company's liquidity FPT (free cash flow to total debt) is robust, supported by an operating cash flow of ¥798.15 million and a current ratio of 3.58. Despite this, the company reported a net loss of ¥8.75 million and an operating loss of ¥30.16 million in the latest period, indicating a negative return on equity of -0.05% and a return on assets of -0.04%.

The company's profitability metrics are below the industry median for Commodity Chemicals, particularly in terms of return on equity and return on assets. The operating margin is negative, which is a significant deviation from the industry norm. This suggests that the company is currently underperforming in terms of cost control and pricing power relative to its peers.

Geographically, Isamu Paint Co Ltd is heavily concentrated in the Japanese market, with no disclosed international revenue segments. This concentration increases exposure to domestic economic conditions and regulatory changes. The company's revenue is derived from a single business segment focused on paints and coatings, with no diversification into other chemical products or markets.

The company's growth trajectory is mixed. While revenue for the latest period was ¥18.64 billion, the operating and net losses suggest a contraction in profitability. Analyst estimates indicate a revenue of ¥8.16 billion for the most recent quarter, which is significantly lower than the annual total, suggesting potential seasonality or a decline in demand. The company's capital expenditure of -¥194.35 million indicates a reduction in investment, which may signal a strategic shift or financial constraints.

The risk assessment for Isamu Paint Co Ltd indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The company's debt-to-equity ratio is 0.01, reflecting a conservative capital structure with minimal leverage. However, the negative net income and operating income raise concerns about the company's ability to sustain operations without external financing or cost restructuring.

Recent filings and transcripts do not indicate any major events or strategic shifts. The company's financial performance appears to be driven by internal operational challenges rather than external market disruptions. The absence of significant dilution risk and the strong liquidity position provide some buffer against short-term financial stress.

Revenue grew 3.3% annually over four years, reaching 8.16 billion JPY in fiscal 2025.

Net income increased 5.5% year-over-year to 549 million JPY in fiscal 2025.

The company maintains a very low debt-to-equity ratio of 0.01, indicating minimal leverage risk.

Free cash flow remained positive at 421 million JPY in fiscal 2025, supporting financial stability.

Dilution and liquidity risks are assessed as low, suggesting stable capital structure and market access.

Operating margin is negative at -1.6%, placing the company in the bottom quartile of its cohort.

Net margin is negative at -0.5%, significantly underperforming the 4.2% median for commodity chemicals peers.

Return on equity is negative at -0.05%, ranking in the bottom quartile among 603 cohort companies.

Operating income declined 2.8% year-over-year to 628 million JPY in fiscal 2025.

The company faces high credit risk, posing potential challenges for financing and counterparty confidence.

Revenue ¥2.13B, −3,5% YoY; Operating income +20,9% YoY.

• ▍Revenue ¥2.13B, −3,5% YoY
• ▍Operating income +20,9% YoY
• ▍Net income +17,1% YoY
• ▍Net margin 12.5%

Revenue ¥2.10B, +3,5% YoY; Operating income +45,4% YoY.

• ▍Revenue ¥2.10B, +3,5% YoY
• ▍Operating income +45,4% YoY
• ▍Net income +47,3% YoY
• ▍Net margin 7.1%

Revenue ¥1.98B, −1,2% YoY; Operating income +20,7% YoY.

• ▍Revenue ¥1.98B, −1,2% YoY
• ▍Operating income +20,7% YoY
• ▍Net income +17,3% YoY
• ▍Net margin 8.7%

Revenue ¥1.91B, +2,3% YoY; Operating income +291,3% YoY.

• ▍Revenue ¥1.91B, +2,3% YoY
• ▍Operating income +291,3% YoY
• ▍Net income +947,8% YoY
• ▍Net margin 3.9%

Revenue ¥2.21B; Operating income ¥279.1M.

• ▍Revenue ¥2.21B
• ▍Operating income ¥279.1M
• ▍Net margin 10.3%

Revenue ¥2.03B; Operating income ¥115.4M.

• ▍Revenue ¥2.03B
• ▍Operating income ¥115.4M
• ▍Net margin 5.0%

Revenue ¥2.01B; Operating income ¥175.4M.

• ▍Revenue ¥2.01B
• ▍Operating income ¥175.4M
• ▍Net margin 7.3%

Revenue ¥1.86B; Operating income -¥30.2M.

• ▍Revenue ¥1.86B
• ▍Operating income -¥30.2M
• ▍Net margin -0.5%

Revenue ¥8.16B, +2,0% YoY; Operating income −2,8% YoY.

• ▍Revenue ¥8.16B, +2,0% YoY
• ▍Operating income −2,8% YoY
• ▍Net income +5,5% YoY
• ▍Free cash flow −5,0% YoY
• ▍Net margin 6.7%

Revenue ¥8.00B, +5,2% YoY; Operating income +21,0% YoY.

• ▍Revenue ¥8.00B, +5,2% YoY
• ▍Operating income +21,0% YoY
• ▍Net income +19,1% YoY
• ▍Free cash flow +20,4% YoY
• ▍Net margin 6.5%

Revenue ¥7.60B, +7,5% YoY; Operating income +10,5% YoY.

• ▍Revenue ¥7.60B, +7,5% YoY
• ▍Operating income +10,5% YoY
• ▍Net income +8,8% YoY
• ▍Free cash flow +76,2% YoY
• ▍Net margin 5.7%

Revenue ¥7.07B, −1,2% YoY; Operating income −7,4% YoY.

• ▍Revenue ¥7.07B, −1,2% YoY
• ▍Operating income −7,4% YoY
• ▍Net income −21,2% YoY
• ▍Free cash flow −51,5% YoY
• ▍Net margin 5.7%