IMURA & Co Ltd

IMURA & Co Ltd maintains a strong liquidity position with a current ratio of 2.1 and a cash and equivalents balance of ¥3.23 billion, which supports operational flexibility and short-term obligations. The company's price-to-book ratio of 0.51 and price-to-tangible-book ratio of 0.51 indicate that the market values the company at a discount to its book value, suggesting potential undervaluation or asset-heavy operations. The debt-to-equity ratio of 0.0 highlights a conservative capital structure with no long-term debt, reducing financial leverage risk.

Profitability metrics show a return on equity (ROE) of 1.55% and a return on assets (ROA) of 1.2%, both below the industry median for Paper Products, indicating subpar capital efficiency and asset utilization. The company's operating margin of 6.75% (¥350 million operating income on ¥5.19 billion revenue) is also below the industry median, suggesting cost management or pricing pressures. Gross margin of 26.85% (¥1.39 billion gross profit on ¥5.19 billion revenue) reflects moderate cost control but leaves room for improvement.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification, increasing exposure to regional economic shifts or supply chain disruptions. No material revenue concentration by geography is reported, but the lack of segmental or geographic breakdown limits visibility into risk diversification.

Outlook data indicates a revenue decline of 67.5% year-over-year, from ¥21.83 billion to ¥5.19 billion, with no recovery expected in the next fiscal year. This sharp contraction suggests operational challenges or market headwinds, potentially linked to reduced demand or supply chain disruptions. The company's net income also fell from ¥250 million to ¥250 million, with no improvement in the next fiscal year, indicating persistent earnings pressure.

Risk assessment shows low liquidity and dilution risk, with no immediate filing-based flags detected. The absence of long-term debt and strong cash reserves mitigate financial distress risk. No dilution potential is reported, and no adjustments were applied to valuation metrics, suggesting a stable capital structure.

Recent filings and transcripts do not disclose material events or strategic shifts. The company's last actual EPS of ¥95.54 and revenue of ¥21.83 billion suggest a significant drop in performance, but no specific events are cited as the cause.

Net income grew 20% year-over-year to 925 million JPY in fiscal 2026.

Operating income increased 10.2% year-over-year to 1.296 billion JPY in fiscal 2026.

The company maintains a zero debt-to-equity ratio, well above the 75th percentile of peers.

Long-term debt surged to 4.847 billion JPY in fiscal 2026 from 2.195 billion JPY prior.

Return on equity of 1.55% trails the 2.21% median for the Paper Products cohort.

Net income declined at a 1.8% annualized rate over the four-year period ending fiscal 2026.

Revenue growth slowed to a 1.9% compound annual growth rate over the last four years.

Revenue ¥5.35B, +5,5% YoY; Operating income −143,1% YoY.

• ▍Revenue ¥5.35B, +5,5% YoY
• ▍Operating income −143,1% YoY
• ▍Net income −420,0% YoY
• ▍Net margin -0.6%

Revenue ¥4.76B, −7,3% YoY; Operating income −218,5% YoY.

• ▍Revenue ¥4.76B, −7,3% YoY
• ▍Operating income −218,5% YoY
• ▍Net income −950,0% YoY
• ▍Net margin -1.8%

Revenue ¥6.09B, +10,4% YoY; Operating income +18,1% YoY.

• ▍Revenue ¥6.09B, +10,4% YoY
• ▍Operating income +18,1% YoY
• ▍Net income +17,6% YoY
• ▍Net margin 9.7%

Revenue ¥5.64B, +8,7% YoY; Operating income +79,4% YoY.

• ▍Revenue ¥5.64B, +8,7% YoY
• ▍Operating income +79,4% YoY
• ▍Net income +81,2% YoY
• ▍Net margin 8.0%

Revenue ¥5.07B; Operating income ¥72.0M.

• ▍Revenue ¥5.07B
• ▍Operating income ¥72.0M
• ▍Net margin 0.2%

Revenue ¥5.13B; Operating income ¥81.0M.

• ▍Revenue ¥5.13B
• ▍Operating income ¥81.0M
• ▍Net margin 0.2%

Revenue ¥5.52B; Operating income ¥673.0M.

• ▍Revenue ¥5.52B
• ▍Operating income ¥673.0M
• ▍Net margin 9.1%

Revenue ¥5.19B; Operating income ¥350.0M.

• ▍Revenue ¥5.19B
• ▍Operating income ¥350.0M
• ▍Net margin 4.8%

Revenue ¥21.83B, +4,4% YoY; Operating income +10,2% YoY.

• ▍Revenue ¥21.83B, +4,4% YoY
• ▍Operating income +10,2% YoY
• ▍Net income +20,0% YoY
• ▍Free cash flow −233,1% YoY
• ▍Net margin 4.2%

Revenue ¥20.90B, +0,2% YoY; Operating income +1,1% YoY.

• ▍Revenue ¥20.90B, +0,2% YoY
• ▍Operating income +1,1% YoY
• ▍Net income −18,9% YoY
• ▍Free cash flow −329,1% YoY
• ▍Net margin 3.7%

Revenue ¥20.87B, −4,0% YoY; Operating income −9,8% YoY.

• ▍Revenue ¥20.87B, −4,0% YoY
• ▍Operating income −9,8% YoY
• ▍Net income −6,4% YoY
• ▍Free cash flow −683,3% YoY
• ▍Net margin 4.6%

Revenue ¥21.74B, +7,4% YoY; Operating income +20,1% YoY.

• ▍Revenue ¥21.74B, +7,4% YoY
• ▍Operating income +20,1% YoY
• ▍Net income +2,1% YoY
• ▍Free cash flow −102,2% YoY
• ▍Net margin 4.7%