Toyo Asano Foundation Co Ltd

Toyo Asano Foundation Co Ltd maintains a market capitalization of ¥2.99 billion and a price-to-earnings ratio of 19.31, indicating a moderate valuation relative to earnings. The company's price-to-book ratio of 0.74 suggests that the market values the company at a discount to its book value. The liquidity position is characterized by a current ratio of 1.0, indicating that the company's current assets are equal to its current liabilities, and it holds ¥1.37 billion in cash and equivalents.

Profitability metrics show a return on equity of 3.84% and a return on assets of 0.99%, both of which are below the industry median for construction materials firms. The company's operating income of ¥279.31 million and net income of ¥154.87 million reflect a gross margin of 16.2%, which is in line with the industry average. However, the company's debt-to-equity ratio of 1.54 indicates a relatively high level of leverage, which could impact its financial flexibility.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases the company's exposure to regional economic fluctuations and regulatory changes. The absence of segment-specific revenue data limits the ability to assess the performance of different product lines or geographic regions.

Looking ahead, the company's revenue is projected to decline, as the most recent actual revenue of ¥11.69 billion is significantly lower than the ¥4.43 billion reported in the latest financial snapshot. This suggests a potential contraction in the company's core operations. The company's earnings per share (EPS) also turned negative at -170.67 JPY, signaling a deterioration in profitability.

The company faces several risk factors, including a high debt-to-equity ratio and a negative net cash position after accounting for total debt. These factors could limit the company's ability to invest in growth opportunities or withstand economic downturns. The risk assessment indicates a medium liquidity risk and a low dilution risk, suggesting that while the company may face challenges in meeting short-term obligations, it is unlikely to issue additional shares in the near term.

Recent events, including the latest financial filings and transcripts, indicate a challenging operating environment for the company. The negative EPS and declining revenue suggest that the company may be facing operational or market-specific challenges. The company's management has not disclosed specific strategies to address these issues, which could affect investor confidence.

Net margin of 3.5% slightly exceeds the 3.5% cohort median, suggesting competitive profitability within the sector.

Dilution risk is assessed as low, providing reassurance to existing shareholders regarding equity value preservation.

Free cash flow improved by 26.9% year-over-year in FY2026, showing recent operational cash generation recovery.

Debt-to-equity ratio of 1.54 sits in the bottom quartile, indicating excessive leverage compared to peers.

Credit risk is flagged as high, suggesting potential difficulties in meeting financial obligations or servicing debt.

Liquidity risk is assessed as medium, raising concerns about the company's ability to meet short-term obligations.

Revenue ¥2.12B, −32,1% YoY; Operating income −159,0% YoY.

• ▍Revenue ¥2.12B, −32,1% YoY
• ▍Operating income −159,0% YoY
• ▍Net income −163,8% YoY
• ▍Net margin -6.0%

Revenue ¥2.32B, −46,1% YoY; Operating income −1 245,0% YoY.

• ▍Revenue ¥2.32B, −46,1% YoY
• ▍Operating income −1 245,0% YoY
• ▍Net income −753,2% YoY
• ▍Net margin -6.6%

Revenue ¥3.73B, +46,1% YoY; Operating income +228,0% YoY.

• ▍Revenue ¥3.73B, +46,1% YoY
• ▍Operating income +228,0% YoY
• ▍Net income +75,6% YoY
• ▍Net margin 1.2%

Revenue ¥3.53B, −20,4% YoY; Operating income −62,0% YoY.

• ▍Revenue ¥3.53B, −20,4% YoY
• ▍Operating income −62,0% YoY
• ▍Net income −71,0% YoY
• ▍Net margin 1.3%

Revenue ¥3.12B; Operating income ¥308.0M.

• ▍Revenue ¥3.12B
• ▍Operating income ¥308.0M
• ▍Net margin 6.4%

Revenue ¥4.30B; Operating income -¥16.0M.

• ▍Revenue ¥4.30B
• ▍Operating income -¥16.0M
• ▍Net margin -0.4%

Revenue ¥2.55B; Operating income ¥30.4M.

• ▍Revenue ¥2.55B
• ▍Operating income ¥30.4M
• ▍Net margin 1.0%

Revenue ¥4.43B; Operating income ¥279.3M.

• ▍Revenue ¥4.43B
• ▍Operating income ¥279.3M
• ▍Net margin 3.5%

Revenue ¥11.69B, −18,8% YoY; Operating income −136,7% YoY.

• ▍Revenue ¥11.69B, −18,8% YoY
• ▍Operating income −136,7% YoY
• ▍Net income −160,8% YoY
• ▍Free cash flow +26,9% YoY
• ▍Net margin -1.9%

Revenue ¥14.40B, −4,4% YoY; Operating income −34,8% YoY.

• ▍Revenue ¥14.40B, −4,4% YoY
• ▍Operating income −34,8% YoY
• ▍Net income −39,8% YoY
• ▍Free cash flow −161,1% YoY
• ▍Net margin 2.5%

Revenue ¥15.07B, −17,5% YoY; Operating income +1 981,8% YoY.

• ▍Revenue ¥15.07B, −17,5% YoY
• ▍Operating income +1 981,8% YoY
• ▍Net income +415,6% YoY
• ▍Free cash flow +1 243,2% YoY
• ▍Net margin 4.0%

Revenue ¥18.26B, +2,8% YoY; Operating income −144,3% YoY.

• ▍Revenue ¥18.26B, +2,8% YoY
• ▍Operating income −144,3% YoY
• ▍Net income −266,7% YoY
• ▍Free cash flow +118,1% YoY
• ▍Net margin -1.0%