Nihon Kogyo Co Ltd

Nihon Kogyo's capital structure shows a market price of 1,101 JPY per share and a market cap of 3.21 billion JPY, with a price-to-book ratio of 0.43 and a price-to-tangible-book ratio of 0.43. The company's liquidity position is characterized by 1.32 billion JPY in cash and equivalents, but its long-term debt of 3.47 billion JPY results in a debt-to-equity ratio of 0.46 and a current ratio of 1.22. The enterprise value to revenue ratio of 1.91 suggests a relatively low valuation compared to revenue, but the negative EV/EBITDA of -87.54 indicates poor profitability.

Profitability metrics show a return on equity of -0.64% and a return on assets of -0.32%, both significantly below the industry median for construction materials firms. The company reported a net loss of 48.15 million JPY and an operating loss of 61.19 million JPY, reflecting a challenging operating environment. Gross profit of 536.02 million JPY is insufficient to cover operating expenses, contributing to the negative returns.

Geographically, Nihon Kogyo's revenue is concentrated in Japan, with no disclosed international operations. The company's exposure to domestic construction and infrastructure demand is a key factor in its revenue stability. Segment-wise, the company operates as a single business unit focused on construction materials, with no material diversification across product lines.

The company's growth trajectory is mixed. Revenue of 2.8 billion JPY in the latest period is below the analyst estimate of 16.32 billion JPY, suggesting a potential data discrepancy or a misalignment in expectations. The negative net income and operating income indicate a contraction in profitability, with no clear signs of improvement in the near term. The company's outlook for the current and next fiscal years is uncertain, with no disclosed guidance on revenue or earnings.

Risk factors include a medium liquidity risk due to the company's negative net cash position after subtracting total debt. The dilution risk is assessed as low, with no significant dilution potential in the basic shares outstanding. The company's financial leverage and negative returns increase credit risk, particularly in a capital-intensive industry.

Recent events include the latest financial results showing a net loss and operating loss, which may impact investor sentiment. No recent filings or transcripts have been disclosed that provide additional insight into the company's strategic direction or operational performance.

Revenue grew 10.7% year-over-year to JPY 16.3 billion in FY2026, demonstrating strong top-line expansion momentum.

Net income surged 46.8% to JPY 578 million in FY2026, significantly outpacing revenue growth rates.

Operating income increased 31.2% to JPY 780 million in FY2026, indicating robust core business profitability improvements.

Gross profit expanded to JPY 3.6 billion in FY2026, reflecting sustained margin strength across the fiscal period.

The four-year net income CAGR of 20.6% highlights consistent and accelerating earnings growth trajectory.

The company faces high credit risk and medium liquidity risk according to current risk flag assessments.

Revenue ¥4.96B, +1,5% YoY; Operating income −9,6% YoY.

• ▍Revenue ¥4.96B, +1,5% YoY
• ▍Operating income −9,6% YoY
• ▍Net income +15,3% YoY
• ▍Net margin 5.0%

Revenue ¥4.50B, +7,5% YoY; Operating income +6,2% YoY.

• ▍Revenue ¥4.50B, +7,5% YoY
• ▍Operating income +6,2% YoY
• ▍Net income +5,3% YoY
• ▍Net margin 5.6%

Revenue ¥3.80B, +32,5% YoY; Operating income +347,9% YoY.

• ▍Revenue ¥3.80B, +32,5% YoY
• ▍Operating income +347,9% YoY
• ▍Net income +405,9% YoY
• ▍Net margin 1.2%

Revenue ¥3.06B, +9,2% YoY; Operating income +158,5% YoY.

• ▍Revenue ¥3.06B, +9,2% YoY
• ▍Operating income +158,5% YoY
• ▍Net income +158,2% YoY
• ▍Net margin 0.9%

Revenue ¥4.89B; Operating income ¥336.2M.

• ▍Revenue ¥4.89B
• ▍Operating income ¥336.2M
• ▍Net margin 4.4%

Revenue ¥4.19B; Operating income ¥348.2M.

• ▍Revenue ¥4.19B
• ▍Operating income ¥348.2M
• ▍Net margin 5.7%

Revenue ¥2.87B; Operating income -¥28.5M.

• ▍Revenue ¥2.87B
• ▍Operating income -¥28.5M
• ▍Net margin -0.5%

Revenue ¥2.80B; Operating income -¥61.2M.

• ▍Revenue ¥2.80B
• ▍Operating income -¥61.2M
• ▍Net margin -1.7%

Revenue ¥16.32B, +10,7% YoY; Operating income +31,2% YoY.

• ▍Revenue ¥16.32B, +10,7% YoY
• ▍Operating income +31,2% YoY
• ▍Net income +46,8% YoY
• ▍Free cash flow −34,5% YoY
• ▍Net margin 3.5%

Revenue ¥14.75B, +7,8% YoY; Operating income +43,9% YoY.

• ▍Revenue ¥14.75B, +7,8% YoY
• ▍Operating income +43,9% YoY
• ▍Net income +33,4% YoY
• ▍Free cash flow +107,4% YoY
• ▍Net margin 2.7%

Revenue ¥13.67B, +20,6% YoY; Operating income +48,3% YoY.

• ▍Revenue ¥13.67B, +20,6% YoY
• ▍Operating income +48,3% YoY
• ▍Net income +48,6% YoY
• ▍Free cash flow −3,1% YoY
• ▍Net margin 2.2%

Revenue ¥11.34B, −3,7% YoY; Operating income −17,5% YoY.

• ▍Revenue ¥11.34B, −3,7% YoY
• ▍Operating income −17,5% YoY
• ▍Net income −27,3% YoY
• ▍Free cash flow −22,3% YoY
• ▍Net margin 1.8%