Nisso Group Co Ltd

Nisso Group maintains a relatively strong liquidity position, with a current ratio of 2.19, indicating the company can cover its short-term obligations more than twice over. However, the company's liquidity is assessed as medium risk, primarily due to a negative net cash position after subtracting total debt. The company holds JPY 6.73 billion in cash and equivalents, but this is offset by JPY 7.63 billion in long-term debt, resulting in a net cash outflow.

Profitability metrics show a return on equity (ROE) of 2.25% and a return on assets (ROA) of 1.15%, both below the industry median for Iron & Steel firms. This suggests that Nisso Group is underperforming in terms of capital efficiency and asset utilization. The operating margin is 7.47%, which is in line with the industry median, but the net margin of 5.63% is slightly below average, indicating higher-than-typical operating expenses or tax burdens.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic downturns and regulatory shifts. The company's revenue is primarily derived from domestic operations, with no material international revenue streams reported.

Looking ahead, Nisso Group's revenue is expected to grow by 1.2% in the current fiscal year and by 0.8% in the following year, based on analyst estimates and historical performance. This modest growth trajectory is in line with the broader industry trend, which is characterized by stable but slow expansion due to cyclical demand in construction and manufacturing.

The company's risk profile is moderate, with a low dilution risk and a medium liquidity risk. The risk assessment highlights a key flag: the company's net cash position is negative after accounting for total debt, which could limit its ability to fund new projects or weather a downturn. No recent dilutive events have been reported, and the company has not issued new shares in the past 12 months.

Recent filings and transcripts indicate that Nisso Group is focused on cost optimization and operational efficiency. The company has not disclosed any major capital expenditures or strategic acquisitions in the past year. The most recent earnings report showed a net income of JPY 266.5 million, with an operating income of JPY 353.9 million, reflecting stable but unremarkable performance.

Revenue grew 30.2% year-over-year to JPY 23.0 billion, demonstrating strong top-line expansion momentum.

The company achieved a 32.2% revenue CAGR over four years, indicating sustained long-term growth trajectory.

Dilution risk is assessed as low, suggesting minimal threat to existing shareholder equity value.

Free cash flow dropped 12.0% to JPY 810 million, reducing liquidity for reinvestment or dividends.

Liquidity risk is rated medium, indicating potential challenges in meeting short-term financial obligations.

Credit risk is assessed as medium, suggesting moderate vulnerability to borrower defaults or economic downturns.

Revenue ¥5.52B, −1,9% YoY; Operating income −23,7% YoY.

• ▍Revenue ¥5.52B, −1,9% YoY
• ▍Operating income −23,7% YoY
• ▍Net income −41,7% YoY
• ▍Net margin 2.6%

Revenue ¥4.77B, +5,0% YoY; Operating income −201,9% YoY.

• ▍Revenue ¥4.77B, +5,0% YoY
• ▍Operating income −201,9% YoY
• ▍Net income −177,5% YoY
• ▍Net margin -3.7%

Revenue ¥6.08B, +28,4% YoY; Operating income +51,5% YoY.

• ▍Revenue ¥6.08B, +28,4% YoY
• ▍Operating income +51,5% YoY
• ▍Net income +22,3% YoY
• ▍Net margin 5.4%

Revenue ¥6.57B; Operating income ¥662.0M.

• ▍Revenue ¥6.57B
• ▍Operating income ¥662.0M
• ▍Net margin 8.0%

Revenue ¥5.62B; Operating income ¥384.0M.

• ▍Revenue ¥5.62B
• ▍Operating income ¥384.0M
• ▍Net margin 4.3%

Revenue ¥4.54B; Operating income ¥106.9M.

• ▍Revenue ¥4.54B
• ▍Operating income ¥106.9M
• ▍Net margin 5.0%

Revenue ¥4.73B; Operating income ¥353.9M.

• ▍Revenue ¥4.73B
• ▍Operating income ¥353.9M
• ▍Net margin 5.6%

Revenue ¥23.04B, +30,2% YoY; Operating income +14,6% YoY.

• ▍Revenue ¥23.04B, +30,2% YoY
• ▍Operating income +14,6% YoY
• ▍Net income −16,1% YoY
• ▍Free cash flow −12,0% YoY
• ▍Net margin 4.0%

Revenue ¥17.69B, +41,0% YoY; Operating income −30,2% YoY.

• ▍Revenue ¥17.69B, +41,0% YoY
• ▍Operating income −30,2% YoY
• ▍Net income −28,1% YoY
• ▍Free cash flow −38,8% YoY
• ▍Net margin 6.2%

Revenue ¥12.55B, +70,2% YoY; Operating income +458,9% YoY.

• ▍Revenue ¥12.55B, +70,2% YoY
• ▍Operating income +458,9% YoY
• ▍Net income +885,1% YoY
• ▍Free cash flow +265,7% YoY
• ▍Net margin 12.1%

Revenue ¥7.37B, −2,1% YoY; Operating income −24,7% YoY.

• ▍Revenue ¥7.37B, −2,1% YoY
• ▍Operating income −24,7% YoY
• ▍Net income −63,8% YoY
• ▍Free cash flow −602,7% YoY
• ▍Net margin 2.1%