Soda Nikka Co Ltd

Soda Nikka maintains a conservative capital structure with a debt-to-equity ratio of 0.16, significantly below the industry median of 0.45, indicating a low leverage position. The company's liquidity position is robust, with cash and equivalents amounting to ¥8.76 billion, representing 11.3% of total assets, and a current ratio of 1.3, which is in line with the industry median of 1.25. The price-to-book ratio of 0.83 suggests the company is trading at a discount to its book value, potentially indicating undervaluation or asset-heavy operations.

Profitability metrics reveal a modest return on equity (ROE) of 3.24%, which is below the industry median of 5.7%, and a return on assets (ROA) of 1.25%, also below the median of 2.1%. The company's operating margin of 3.7% is slightly below the industry median of 4.2%, suggesting room for operational efficiency improvements. Gross margin of 13.9% is in line with the industry median of 14.1%, indicating competitive cost control.

Geographically, Soda Nikka's revenue is concentrated in Japan, with no disclosed international segments, which may limit growth potential and expose the company to domestic economic fluctuations. The company operates a single business segment focused on commodity chemicals, with no diversification into specialty chemicals or other high-margin products.

Looking ahead, Soda Nikka is projected to experience a 2.3% year-over-year revenue decline in the current fiscal year, followed by a 1.8% growth in the next fiscal year. This trajectory is below the industry median growth rate of 3.5%, suggesting potential challenges in maintaining market share. The company's historical revenue growth has averaged 1.2% annually over the past five years, indicating a stable but slow-growth profile.

Risk factors for Soda Nikka include low liquidity risk and low dilution potential, with no immediate filing-based flags detected. The company's low debt levels and strong cash reserves mitigate financial risk, and the absence of dilutive events in recent filings suggests a stable capital structure. However, the company's reliance on a single domestic market and a narrow product portfolio may increase vulnerability to sector-specific downturns.

Recent events include the filing of the latest annual report, which disclosed stable operating performance and no material changes in business strategy. The company has not issued any new shares in the past 12 months, and there are no indications of upcoming capital-raising activities. Analyst estimates for the most recent fiscal year align closely with actual results, suggesting accurate financial forecasting.

Net income grew at a 15.3% CAGR over four years, significantly outpacing the 4.7% revenue growth rate.

Free cash flow surged 229.8% year-over-year to JPY 1.5 billion, demonstrating strong liquidity generation.

Operating income expanded 20.2% year-over-year, indicating improving operational efficiency and cost management capabilities.

Debt-to-equity ratio of 0.16 is well below the cohort median of 0.31, reflecting a conservative capital structure.

Revenue growth slowed to just 2.4% year-over-year, highlighting limited top-line expansion momentum.

Return on invested capital of 1.7% is modest, potentially failing to generate significant excess value for investors.

Revenue ¥16.55B, +1,9% YoY; Operating income +39,4% YoY.

• ▍Revenue ¥16.55B, +1,9% YoY
• ▍Operating income +39,4% YoY
• ▍Net income +50,7% YoY
• ▍Net margin 3.2%

Revenue ¥17.21B, +0,3% YoY; Operating income +30,3% YoY.

• ▍Revenue ¥17.21B, +0,3% YoY
• ▍Operating income +30,3% YoY
• ▍Net income +23,4% YoY
• ▍Net margin 3.7%

Revenue ¥16.91B, +5,8% YoY; Operating income +38,4% YoY.

• ▍Revenue ¥16.91B, +5,8% YoY
• ▍Operating income +38,4% YoY
• ▍Net income +136,4% YoY
• ▍Net margin 5.0%

Revenue ¥16.02B, +1,6% YoY; Operating income −27,1% YoY.

• ▍Revenue ¥16.02B, +1,6% YoY
• ▍Operating income −27,1% YoY
• ▍Net income −62,6% YoY
• ▍Net margin 2.3%

Revenue ¥16.24B; Operating income ¥401.0M.

• ▍Revenue ¥16.24B
• ▍Operating income ¥401.0M
• ▍Net margin 2.1%

Revenue ¥17.15B; Operating income ¥574.0M.

• ▍Revenue ¥17.15B
• ▍Operating income ¥574.0M
• ▍Net margin 3.0%

Revenue ¥15.98B; Operating income ¥550.0M.

• ▍Revenue ¥15.98B
• ▍Operating income ¥550.0M
• ▍Net margin 2.2%

Revenue ¥15.77B; Operating income ¥584.0M.

• ▍Revenue ¥15.77B
• ▍Operating income ¥584.0M
• ▍Net margin 6.1%

Revenue ¥66.69B, +2,4% YoY; Operating income +20,2% YoY.

• ▍Revenue ¥66.69B, +2,4% YoY
• ▍Operating income +20,2% YoY
• ▍Net income +10,1% YoY
• ▍Free cash flow +229,8% YoY
• ▍Net margin 3.6%

Revenue ¥65.15B, +1,6% YoY; Operating income −4,7% YoY.

• ▍Revenue ¥65.15B, +1,6% YoY
• ▍Operating income −4,7% YoY
• ▍Net income +18,6% YoY
• ▍Free cash flow +17,0% YoY
• ▍Net margin 3.4%

Revenue ¥64.13B, +2,2% YoY; Operating income +34,0% YoY.

• ▍Revenue ¥64.13B, +2,2% YoY
• ▍Operating income +34,0% YoY
• ▍Net income +22,8% YoY
• ▍Free cash flow −608,0% YoY
• ▍Net margin 2.9%

Revenue ¥62.74B, +13,0% YoY; Operating income +27,1% YoY.

• ▍Revenue ¥62.74B, +13,0% YoY
• ▍Operating income +27,1% YoY
• ▍Net income +10,2% YoY
• ▍Free cash flow −74,0% YoY
• ▍Net margin 2.4%