Tsuchiya Holdings Co Ltd

Tsuchiya Holdings Co Ltd exhibits a capital structure with a debt-to-equity ratio of 0.5, indicating a relatively balanced mix of debt and equity financing. The company's liquidity position is characterized by a current ratio of 1.73, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the company's operating cash flow is negative at -1.63 billion JPY, and its net cash position is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics for Tsuchiya Holdings Co Ltd are weak, with a return on equity of -1.93% and a return on assets of -0.86%, both significantly below the industry median for real estate rental, development, and operations. The company reported a net loss of 221.87 million JPY and an operating loss of 271.06 million JPY, reflecting poor operational performance.

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 changes. The company's capital expenditures of 234.13 million JPY suggest ongoing investment in property development, but the negative operating cash flow raises concerns about the sustainability of these investments.

Tsuchiya Holdings Co Ltd's revenue growth is under pressure, with a reported revenue of 7.93 billion JPY, which is below the industry median for real estate rental, development, and operations. Analyst estimates suggest a revenue of 31.46 billion JPY, but the discrepancy indicates potential volatility or uncertainty in the company's financial reporting. The company's earnings per share (EPS) are negative at -3.66 JPY, reflecting the ongoing losses.

The company faces several risk factors, including liquidity constraints and the potential for dilution. The risk assessment indicates a medium liquidity risk and a low dilution risk, with no significant dilution sources identified in the latest filings. The negative operating cash flow and net loss highlight the company's financial instability and the need for improved operational efficiency.

Recent events, including the latest financial filings and transcripts, indicate that the company is underperforming relative to industry peers. The negative operating income and net income suggest that the company is struggling to generate profits from its core operations. The company's financial health is further compromised by its negative operating cash flow, which limits its ability to fund ongoing operations and capital expenditures.

Cash conversion of 7.33 ranks best-in-class among 932 real estate peers, indicating superior cash generation efficiency.

Debt-to-equity ratio of 0.5 is above the cohort median of 0.52, suggesting a relatively conservative leverage position.

Gross profit remained robust at 8.1 billion JPY in FY2025, providing a buffer despite operating losses.

Dilution risk is assessed as low, protecting existing shareholders from immediate equity value erosion.

Revenue CAGR of 0.3% over four years indicates stable top-line performance despite recent volatility.

Credit risk is flagged as high, raising concerns about the company's ability to meet its financial obligations.

Revenue ¥6.51B, +30,1% YoY; Operating income −26,2% YoY.

• ▍Revenue ¥6.51B, +30,1% YoY
• ▍Operating income −26,2% YoY
• ▍Net income −24,1% YoY
• ▍Net margin -8.8%

Revenue ¥13.03B, +6,4% YoY; Operating income −5,5% YoY.

• ▍Revenue ¥13.03B, +6,4% YoY
• ▍Operating income −5,5% YoY
• ▍Net income −41,0% YoY
• ▍Net margin 7.3%

Revenue ¥5.79B, −25,6% YoY; Operating income −392,9% YoY.

• ▍Revenue ¥5.79B, −25,6% YoY
• ▍Operating income −392,9% YoY
• ▍Net income −309,6% YoY
• ▍Net margin -6.0%

Revenue ¥7.64B, −3,7% YoY; Operating income +11,1% YoY.

• ▍Revenue ¥7.64B, −3,7% YoY
• ▍Operating income +11,1% YoY
• ▍Net income −5,4% YoY
• ▍Net margin -3.1%

Revenue ¥5.01B; Operating income -¥600.9M.

• ▍Revenue ¥5.01B
• ▍Operating income -¥600.9M
• ▍Net margin -9.3%

Revenue ¥12.24B; Operating income ¥1.26B.

• ▍Revenue ¥12.24B
• ▍Operating income ¥1.26B
• ▍Net margin 13.2%

Revenue ¥7.78B; Operating income -¥109.4M.

• ▍Revenue ¥7.78B
• ▍Operating income -¥109.4M
• ▍Net margin -1.1%

Revenue ¥7.93B; Operating income -¥271.1M.

• ▍Revenue ¥7.93B
• ▍Operating income -¥271.1M
• ▍Net margin -2.8%

Revenue ¥31.46B, −5,5% YoY; Operating income −274,0% YoY.

• ▍Revenue ¥31.46B, −5,5% YoY
• ▍Operating income −274,0% YoY
• ▍Net income −112,3% YoY
• ▍Free cash flow −183,0% YoY
• ▍Net margin -0.3%

Revenue ¥33.28B, −3,3% YoY; Operating income −70,6% YoY.

• ▍Revenue ¥33.28B, −3,3% YoY
• ▍Operating income −70,6% YoY
• ▍Net income +224,8% YoY
• ▍Free cash flow −556,1% YoY
• ▍Net margin 2.3%

Revenue ¥34.40B, −0,9% YoY; Operating income +324,5% YoY.

• ▍Revenue ¥34.40B, −0,9% YoY
• ▍Operating income +324,5% YoY
• ▍Net income +1,3% YoY
• ▍Free cash flow +501,3% YoY
• ▍Net margin 0.7%

Revenue ¥34.72B, +11,8% YoY; Operating income −84,6% YoY.

• ▍Revenue ¥34.72B, +11,8% YoY
• ▍Operating income −84,6% YoY
• ▍Net income −51,8% YoY
• ▍Free cash flow −107,7% YoY
• ▍Net margin 0.7%