STrust Co Ltd

STrust Co Ltd maintains a market capitalization of ¥5.55 billion and a price-to-earnings ratio of 28.32, indicating a relatively high valuation relative to earnings. The company's price-to-book ratio of 0.66 suggests that the market values the company at a discount to its book value, which may reflect concerns about asset quality or future earnings potential. The enterprise value to EBITDA ratio of 114.66 is significantly higher than typical industry benchmarks, signaling a premium valuation relative to operating performance.

Profitability metrics show a return on equity of 2.32% and a return on assets of 0.56%, both of which are below the industry median for real estate firms. This suggests that the company is underperforming in terms of capital efficiency and asset utilization. The operating margin of 6.55% (calculated from operating income of ¥218 million on revenue of ¥3.33 billion) is also below the industry average, indicating that the company is not converting revenue into operating profit as effectively as its peers.

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 that could impact property values or rental demand. The company's total assets of ¥34.83 billion are supported by total liabilities of ¥26.38 billion, with long-term debt accounting for ¥23.77 billion, or 68% of total liabilities. This high leverage ratio increases financial risk and limits the company's flexibility to invest in growth opportunities.

Looking ahead, the company is expected to report a revenue decline in the current fiscal year, with analysts recording a last actual revenue of ¥22.31 billion compared to the reported ¥3.33 billion. This suggests a significant drop in revenue, potentially driven by market conditions or asset divestitures. The company's net income of ¥196 million is also below the industry median, and the risk assessment indicates a medium liquidity risk due to negative net cash after subtracting total debt.

Recent filings and transcripts do not indicate any major strategic shifts or capital-raising activities. However, the company's high debt-to-equity ratio of 2.81 and a current ratio of 1.42 suggest that it may face challenges in maintaining liquidity if interest rates rise or if property values decline. The risk assessment also highlights the potential for dilution, although the current level is classified as low.

The company's recent performance and financial structure suggest a need for careful monitoring of its debt levels and liquidity position. The high leverage and low profitability metrics indicate that the company may need to take corrective actions to improve its financial health and align with industry peers.

Revenue grew 16.1% year-over-year to JPY 22.3 billion in FY2026, demonstrating strong top-line expansion momentum.

Net income surged 34.0% CAGR over four years, reaching JPY 1.42 billion in FY2026, highlighting robust profitability growth.

Free cash flow improved significantly by 50.6% to JPY 1.33 billion in FY2026, indicating enhanced cash generation capabilities.

Operating income increased 7.7% year-over-year to JPY 2.15 billion in FY2026, reflecting consistent operational performance improvement.

The company carries a high credit risk flag, signaling significant potential for financial distress or default issues.

Debt-to-equity ratio of 2.81 is in the bottom quartile of its cohort, indicating excessive leverage compared to peers.

Net margin of 5.88% trails the cohort median of 8.65%, indicating lower profitability relative to industry standards.

Medium liquidity risk flags suggest potential challenges in meeting short-term financial obligations or maintaining cash flow stability.

Revenue ¥2.73B, −69,8% YoY; Operating income −101,7% YoY.

• ▍Revenue ¥2.73B, −69,8% YoY
• ▍Operating income −101,7% YoY
• ▍Net income −102,0% YoY
• ▍Net margin -0.7%

Revenue ¥4.89B, −10,2% YoY; Operating income +42,5% YoY.

• ▍Revenue ¥4.89B, −10,2% YoY
• ▍Operating income +42,5% YoY
• ▍Net income +43,8% YoY
• ▍Net margin 8.1%

Revenue ¥5.83B, +311,9% YoY; Operating income +495,7% YoY.

• ▍Revenue ¥5.83B, +311,9% YoY
• ▍Operating income +495,7% YoY
• ▍Net income +254,1% YoY
• ▍Net margin 2.0%

Revenue ¥8.87B, +166,0% YoY; Operating income +524,3% YoY.

• ▍Revenue ¥8.87B, +166,0% YoY
• ▍Operating income +524,3% YoY
• ▍Net income +375,5% YoY
• ▍Net margin 10.5%

Revenue ¥9.03B; Operating income ¥1.39B.

• ▍Revenue ¥9.03B
• ▍Operating income ¥1.39B
• ▍Net margin 10.4%

Revenue ¥5.44B; Operating income ¥440.0M.

• ▍Revenue ¥5.44B
• ▍Operating income ¥440.0M
• ▍Net margin 5.0%

Revenue ¥1.42B; Operating income -¥47.0M.

• ▍Revenue ¥1.42B
• ▍Operating income -¥47.0M
• ▍Net margin -5.2%

Revenue ¥3.33B; Operating income ¥218.0M.

• ▍Revenue ¥3.33B
• ▍Operating income ¥218.0M
• ▍Net margin 5.9%

Revenue ¥22.31B, +16,1% YoY; Operating income +7,7% YoY.

• ▍Revenue ¥22.31B, +16,1% YoY
• ▍Operating income +7,7% YoY
• ▍Net income +6,1% YoY
• ▍Free cash flow +50,6% YoY
• ▍Net margin 6.4%

Revenue ¥19.22B, +6,5% YoY; Operating income +75,3% YoY.

• ▍Revenue ¥19.22B, +6,5% YoY
• ▍Operating income +75,3% YoY
• ▍Net income +83,7% YoY
• ▍Free cash flow +564,2% YoY
• ▍Net margin 7.0%

Revenue ¥18.04B, +15,5% YoY; Operating income −16,1% YoY.

• ▍Revenue ¥18.04B, +15,5% YoY
• ▍Operating income −16,1% YoY
• ▍Net income −13,0% YoY
• ▍Free cash flow −201,6% YoY
• ▍Net margin 4.0%

Revenue ¥15.62B, −2,6% YoY; Operating income +74,8% YoY.

• ▍Revenue ¥15.62B, −2,6% YoY
• ▍Operating income +74,8% YoY
• ▍Net income +90,0% YoY
• ▍Free cash flow −118,8% YoY
• ▍Net margin 5.4%