Achilles Corp

Achilles Corp's capital structure is characterized by a debt-to-equity ratio of 0.37, indicating a relatively conservative leverage position. The company's liquidity position is reflected in a current ratio of 1.88, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the company's price-to-book ratio of 0.42 and price-to-tangible-book ratio of 0.42 indicate that the market values the company's equity at a significant discount to its book value.

Profitability metrics for Achilles Corp show a challenging performance, with a negative return on equity of -1.45% and a negative return on assets of -0.69%. These figures are below the typical expectations for the Commodity Chemicals industry, which generally seeks higher returns due to the capital-intensive nature of the business. The company's operating income of -542 million JPY and net income of -573 million JPY further underscore its current unprofitability.

Achilles Corp's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no significant geographic diversification mentioned. This concentration increases the company's exposure to market fluctuations in its primary business area. The lack of geographic diversification could pose a risk if demand in its primary market declines.

The company's growth trajectory is currently negative, with a net loss in the most recent fiscal year. The operating cash flow of 1.88 billion JPY is a positive sign, but it is not sufficient to offset the negative net income. The capital expenditure of -4.25 billion JPY indicates significant investment in the business, which may be aimed at improving future profitability. However, the outlook for the next fiscal year remains uncertain without additional data on expected revenue growth.

Risk factors for Achilles Corp include its negative net income and the potential for further dilution if the company needs to raise additional capital. The risk assessment indicates a medium liquidity risk, primarily due to the company's negative net cash position after subtracting total debt. The dilution risk is currently low, but the company's financial performance may necessitate further equity issuance in the future.

Recent events and filings for Achilles Corp include the disclosure of its latest financial results, which show a decline in profitability. The company's management has not provided detailed guidance on how it plans to address its current financial challenges. The absence of recent positive developments or strategic initiatives in the public domain suggests that the company is facing significant operational and financial hurdles.

Net income surged 105.2% year-over-year to JPY 427 million, marking a significant turnaround from the previous fiscal year's loss.

Free cash flow improved by 92.2% year-over-year, narrowing the deficit to JPY 754 million and indicating better cash management.

Operating income recovered 67.5% year-over-year to a loss of JPY 1.96 billion, showing progress in core operational efficiency.

Revenue remained stable with a 0.6% year-over-year increase to JPY 79.1 billion, demonstrating resilience in top-line performance.

The debt-to-equity ratio of 0.37 sits below the cohort median of 0.31, suggesting a relatively conservative leverage position.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or servicing existing debt levels.

Operating margin of -2.8% ranks in the bottom quartile of the Commodity Chemicals cohort, indicating severe profitability challenges.

Return on equity of -1.45% falls in the bottom quartile of peers, reflecting poor capital efficiency and value destruction.

Long-term debt increased to JPY 14.65 billion in FY2025, up from JPY 5.2 billion in FY2021, raising solvency concerns.

Cash conversion of -3.28 is in the bottom quartile of the cohort, highlighting significant inefficiencies in generating cash from operations.

Revenue ¥21.54B, +9,8% YoY; Operating income −53,9% YoY.

• ▍Revenue ¥21.54B, +9,8% YoY
• ▍Operating income −53,9% YoY
• ▍Net income −69,8% YoY
• ▍Net margin 1.5%

Revenue ¥20.54B, +2,4% YoY; Operating income +616,8% YoY.

• ▍Revenue ¥20.54B, +2,4% YoY
• ▍Operating income +616,8% YoY
• ▍Net income −32,4% YoY
• ▍Net margin 5.4%

Revenue ¥18.38B, −2,1% YoY; Operating income +234,2% YoY.

• ▍Revenue ¥18.38B, −2,1% YoY
• ▍Operating income +234,2% YoY
• ▍Net income +717,5% YoY
• ▍Net margin 1.3%

Revenue ¥20.64B, +6,8% YoY; Operating income −263,8% YoY.

• ▍Revenue ¥20.64B, +6,8% YoY
• ▍Operating income −263,8% YoY
• ▍Net income −284,8% YoY
• ▍Net margin -10.7%

Revenue ¥19.61B; Operating income ¥490.0M.

• ▍Revenue ¥19.61B
• ▍Operating income ¥490.0M
• ▍Net margin 5.3%

Revenue ¥20.06B; Operating income -¥155.0M.

• ▍Revenue ¥20.06B
• ▍Operating income -¥155.0M
• ▍Net margin 8.1%

Revenue ¥18.78B; Operating income -¥322.0M.

• ▍Revenue ¥18.78B
• ▍Operating income -¥322.0M
• ▍Net margin -0.2%

Revenue ¥19.33B; Operating income -¥542.0M.

• ▍Revenue ¥19.33B
• ▍Operating income -¥542.0M
• ▍Net margin -3.0%

Revenue ¥79.09B, +0,6% YoY; Operating income +67,5% YoY.

• ▍Revenue ¥79.09B, +0,6% YoY
• ▍Operating income +67,5% YoY
• ▍Net income +105,2% YoY
• ▍Free cash flow +92,2% YoY
• ▍Net margin 0.5%

Revenue ¥78.61B, −5,2% YoY; Operating income −190,2% YoY.

• ▍Revenue ¥78.61B, −5,2% YoY
• ▍Operating income −190,2% YoY
• ▍Net income −581,3% YoY
• ▍Free cash flow −188,6% YoY
• ▍Net margin -10.4%

Revenue ¥82.92B, +9,2% YoY; Operating income −406,9% YoY.

• ▍Revenue ¥82.92B, +9,2% YoY
• ▍Operating income −406,9% YoY
• ▍Net income −179,0% YoY
• ▍Free cash flow −50,9% YoY
• ▍Net margin -1.5%

Revenue ¥75.95B, +3,2% YoY; Operating income −53,0% YoY.

• ▍Revenue ¥75.95B, +3,2% YoY
• ▍Operating income −53,0% YoY
• ▍Net income −52,6% YoY
• ▍Free cash flow −588,5% YoY
• ▍Net margin 2.0%