Powdertech Co Ltd

Powdertech Co Ltd has a low debt-to-equity ratio of 0.0, indicating a conservative capital structure with minimal reliance on debt financing. The company's liquidity position is strong, as evidenced by a current ratio of 4.35, which is well above the industry median. The company's price-to-book ratio of 0.58 suggests that the market values the company at a discount to its book value, which may reflect either undervaluation or concerns about future earnings potential.

The company's profitability metrics are weak compared to industry standards. The return on equity (ROE) of 0.31% and return on assets (ROA) of 0.26% are significantly below the industry median, indicating that the company is not effectively utilizing its equity and assets to generate returns. The operating margin, calculated as operating income divided by revenue, is 3.32%, which is also below the industry median for commodity chemicals. This suggests that the company is facing cost pressures or pricing challenges in its core operations.

Powdertech Co Ltd's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no material geographic diversification reported. The company's revenue is primarily derived from the sale of chemical products, and there is no indication of significant exposure to multiple geographic regions. This concentration increases the company's vulnerability to regional economic downturns or supply chain disruptions.

The company's growth trajectory is uncertain, as there is no clear indication of revenue growth in the current fiscal year. The capital expenditure of -371,512,000 JPY suggests that the company is not investing in new projects or capacity expansion, which could limit its ability to grow in the long term. The lack of investment may also indicate a focus on cost containment rather than growth, which could be a strategic choice or a response to market conditions.

The risk assessment for Powdertech Co Ltd indicates a low level of liquidity and dilution risk. The company has no immediate filing-based liquidity or dilution flags, and the low debt-to-equity ratio suggests that it is not reliant on external financing. The company's capital structure is stable, and there is no indication of near-term dilution pressure from share issuance or convertible debt. The absence of dilution risk is a positive factor for shareholders.

Recent events and filings do not indicate any significant changes in the company's operations or financial position. The company's last actual EPS was 109.76 JPY, and its last actual revenue was 9,136,300,000 JPY, according to analyst estimates. There are no recent transcripts or filings that suggest a material change in the company's business strategy or financial outlook. The company's performance appears to be in line with expectations, but there is no indication of significant improvement or deterioration.

Revenue grew 6.9% year-over-year to JPY 9.1 billion in fiscal 2025, demonstrating consistent top-line expansion.

Net income increased 13.5% year-over-year to JPY 318 million, outpacing revenue growth and indicating margin resilience.

The company generated JPY 340 million in free cash flow in fiscal 2025, supporting strong liquidity and operational efficiency.

Cash conversion of 4.63 ranks as best-in-class within the Commodity Chemicals cohort, highlighting superior cash generation.

Long-term debt remains minimal at JPY 15.2 million in fiscal 2024, reflecting a conservative balance sheet structure.

Return on equity of 0.31% is well below the cohort median of 3.61%, suggesting inefficient use of shareholder capital.

Revenue ¥2.08B, −16,2% YoY; Operating income −14,1% YoY.

• ▍Revenue ¥2.08B, −16,2% YoY
• ▍Operating income −14,1% YoY
• ▍Net income −51,3% YoY
• ▍Net margin 2.1%

Revenue ¥2.16B, +0,2% YoY; Operating income +145,6% YoY.

• ▍Revenue ¥2.16B, +0,2% YoY
• ▍Operating income +145,6% YoY
• ▍Net income +614,5% YoY
• ▍Net margin 2.3%

Revenue ¥2.39B, +2,3% YoY; Operating income −14,1% YoY.

• ▍Revenue ¥2.39B, +2,3% YoY
• ▍Operating income −14,1% YoY
• ▍Net income −17,0% YoY
• ▍Net margin 3.2%

Revenue ¥2.16B, +1,3% YoY; Operating income +46,3% YoY.

• ▍Revenue ¥2.16B, +1,3% YoY
• ▍Operating income +46,3% YoY
• ▍Net income +231,6% YoY
• ▍Net margin 6.0%

Revenue ¥2.48B; Operating income ¥80.9M.

• ▍Revenue ¥2.48B
• ▍Operating income ¥80.9M
• ▍Net margin 3.7%

Revenue ¥2.16B; Operating income ¥35.0M.

• ▍Revenue ¥2.16B
• ▍Operating income ¥35.0M
• ▍Net margin 0.3%

Revenue ¥2.34B; Operating income ¥120.5M.

• ▍Revenue ¥2.34B
• ▍Operating income ¥120.5M
• ▍Net margin 3.9%

Revenue ¥2.14B; Operating income ¥70.9M.

• ▍Revenue ¥2.14B
• ▍Operating income ¥70.9M
• ▍Net margin 1.8%

Revenue ¥9.14B, +6,9% YoY; Operating income −11,6% YoY.

• ▍Revenue ¥9.14B, +6,9% YoY
• ▍Operating income −11,6% YoY
• ▍Net income +13,5% YoY
• ▍Free cash flow −3,9% YoY
• ▍Net margin 3.5%

Revenue ¥8.55B, −3,2% YoY; Operating income −48,4% YoY.

• ▍Revenue ¥8.55B, −3,2% YoY
• ▍Operating income −48,4% YoY
• ▍Net income −48,5% YoY
• ▍Free cash flow +437,6% YoY
• ▍Net margin 3.3%

Revenue ¥8.83B, −0,0% YoY; Operating income −33,2% YoY.

• ▍Revenue ¥8.83B, −0,0% YoY
• ▍Operating income −33,2% YoY
• ▍Net income −33,5% YoY
• ▍Free cash flow −133,0% YoY
• ▍Net margin 6.2%

Revenue ¥8.84B, +14,7% YoY; Operating income +314,4% YoY.

• ▍Revenue ¥8.84B, +14,7% YoY
• ▍Operating income +314,4% YoY
• ▍Net income +373,4% YoY
• ▍Free cash flow +199,4% YoY
• ▍Net margin 9.3%