Lib Work Co Ltd

Lib Work Co Ltd's capital structure is characterized by a debt-to-equity ratio of 1.1, indicating a moderate reliance on debt financing. The company holds JPY 3,138,133,000 in cash and equivalents, but this is offset by JPY 4,666,244,000 in long-term debt, resulting in a net cash position that is negative after subtracting total debt. The current ratio of 1.74 suggests the company has sufficient short-term assets to cover its short-term liabilities, but the liquidity risk remains medium due to the high leverage and negative net cash position.

Profitability metrics for Lib Work Co Ltd are weak, with a return on equity (ROE) of -4.85% and a return on assets (ROA) of -1.71%. These figures are below the industry median for real estate rental, development, and operations, which typically sees ROE and ROA in the positive range. The company reported a net loss of JPY 206,705,000 and an operating loss of JPY 291,575,000, indicating a significant decline in profitability compared to industry peers.

The company's revenue is concentrated in a single business segment focused on real estate rental, development, and operations, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic downturns and regulatory changes affecting the real estate sector.

Looking ahead, Lib Work Co Ltd is expected to face continued challenges in the near term. The company's revenue is projected to decline, with a negative outlook for the current fiscal year. The operating and net losses are expected to persist, driven by high debt servicing costs and weak demand in the real estate market.

The risk assessment for Lib Work Co Ltd highlights a medium liquidity risk and a low dilution risk. The company's net cash position is negative after subtracting total debt, which could constrain its ability to fund operations or pursue new opportunities without additional financing. However, the dilution risk is low, as there is no indication of imminent share issuance or dilutive events.

Recent events, including the latest financial filings, show a continued decline in profitability and a worsening net cash position. The company's last actual revenue was JPY 16,004,730,000, and the last actual EPS was 21.19 JPY, both of which are below the revenue and earnings levels seen in prior periods.

Operating income surged 58.9% year-over-year to JPY 812 million, demonstrating significant operational leverage and profitability improvement.

Net income grew 27.6% to JPY 495 million, reflecting strong bottom-line expansion driven by improved operating margins.

Revenue expanded 14.2% annually over four years, indicating consistent top-line growth momentum in the real estate sector.

Free cash flow turned positive at JPY 203 million, up 27.1% year-over-year, signaling improved cash generation capabilities.

Gross profit increased to JPY 4.39 billion, supporting higher operating income and contributing to overall margin expansion.

High credit risk flags suggest potential vulnerabilities in the company's financial stability or debt servicing capacity.

Debt-to-equity ratio of 1.1 is more than double the cohort median of 0.52, indicating elevated financial leverage.

Medium liquidity risk flags raise concerns about the company's ability to meet short-term financial obligations.

Revenue ¥4.82B, −3,2% YoY; Operating income −25,4% YoY.

• ▍Revenue ¥4.82B, −3,2% YoY
• ▍Operating income −25,4% YoY
• ▍Net income −26,8% YoY
• ▍Net margin 5.3%

Revenue ¥2.08B, −32,7% YoY; Operating income −169,2% YoY.

• ▍Revenue ¥2.08B, −32,7% YoY
• ▍Operating income −169,2% YoY
• ▍Net income −137,4% YoY
• ▍Net margin -14.4%

Revenue ¥4.61B, −12,9% YoY; Operating income −9,7% YoY.

• ▍Revenue ¥4.61B, −12,9% YoY
• ▍Operating income −9,7% YoY
• ▍Net income −38,0% YoY
• ▍Net margin 4.7%

Revenue ¥3.32B, +47,4% YoY; Operating income +117,7% YoY.

• ▍Revenue ¥3.32B, +47,4% YoY
• ▍Operating income +117,7% YoY
• ▍Net income +125,8% YoY
• ▍Net margin 1.6%

Revenue ¥4.98B; Operating income ¥526.8M.

• ▍Revenue ¥4.98B
• ▍Operating income ¥526.8M
• ▍Net margin 7.0%

Revenue ¥3.09B; Operating income -¥149.9M.

• ▍Revenue ¥3.09B
• ▍Operating income -¥149.9M
• ▍Net margin -4.1%

Revenue ¥5.30B; Operating income ¥425.0M.

• ▍Revenue ¥5.30B
• ▍Operating income ¥425.0M
• ▍Net margin 6.6%

Revenue ¥2.25B; Operating income -¥291.6M.

• ▍Revenue ¥2.25B
• ▍Operating income -¥291.6M
• ▍Net margin -9.2%

Revenue ¥16.00B, +3,7% YoY; Operating income +58,9% YoY.

• ▍Revenue ¥16.00B, +3,7% YoY
• ▍Operating income +58,9% YoY
• ▍Net income +27,6% YoY
• ▍Free cash flow +27,1% YoY
• ▍Net margin 3.1%

Revenue ¥15.44B, +8,8% YoY; Operating income +70,8% YoY.

• ▍Revenue ¥15.44B, +8,8% YoY
• ▍Operating income +70,8% YoY
• ▍Net income +123,3% YoY
• ▍Free cash flow +221,0% YoY
• ▍Net margin 2.5%

Revenue ¥14.18B, +3,1% YoY; Operating income −53,6% YoY.

• ▍Revenue ¥14.18B, +3,1% YoY
• ▍Operating income −53,6% YoY
• ▍Net income −61,0% YoY
• ▍Free cash flow −172,4% YoY
• ▍Net margin 1.2%

Revenue ¥13.76B, +46,3% YoY; Operating income +34,9% YoY.

• ▍Revenue ¥13.76B, +46,3% YoY
• ▍Operating income +34,9% YoY
• ▍Net income +31,9% YoY
• ▍Free cash flow +42,4% YoY
• ▍Net margin 3.2%