AMG Holdings Co Ltd

AMG Holdings Co Ltd maintains a capital structure with a debt-to-equity ratio of 1.69, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 1.71, suggesting it can cover its short-term obligations, although its operating cash flow is negative at -3,040,048,000 JPY, signaling potential cash flow constraints. The negative net cash position after subtracting total debt raises concerns about its ability to meet long-term obligations without additional financing.

In terms of profitability, the company's return on equity (ROE) is 4.83%, and its return on assets (ROA) is 1.5%, both of which are below the industry median for real estate firms, indicating subpar performance relative to its peers. The operating margin is 8.35% (calculated as operating income of 774,642,000 JPY divided by revenue of 9,276,789,000 JPY), which is also below the industry average, suggesting inefficiencies in cost management or pricing power.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification, making it vulnerable to regional economic downturns or regulatory changes. There is no indication of multiple revenue streams or geographic expansion in the latest financial reports, which could limit its growth potential in a volatile market.

Looking at the growth trajectory, the company's revenue in the latest period was 9,276,789,000 JPY, but there is no disclosed growth rate or forward-looking guidance. Analysts reported a last actual revenue of 30,417,650,000 JPY, which may suggest a discrepancy or a reporting period mismatch. The absence of clear growth metrics or forward-looking statements makes it difficult to assess the company's future performance.

The risk assessment indicates a medium liquidity risk and a low dilution risk. The company's negative operating cash flow and high debt-to-equity ratio contribute to its liquidity concerns. However, the low dilution risk suggests that the company is not currently issuing new shares at a rate that would significantly dilute existing shareholders. No recent events such as major filings or earnings transcripts have been disclosed in the available data, limiting the ability to assess any recent strategic shifts or operational changes.

Revenue grew at a 23.4% CAGR over four years, demonstrating strong top-line expansion for AMG Holdings.

Return on equity of 4.83% exceeds the 1.94% median for the real estate rental cohort.

Capital expenditure relative to revenue is above the cohort median, indicating efficient capital deployment.

Debt-to-equity ratio of 1.69 places the company in the bottom quartile of its peer cohort.

High credit risk flags suggest potential solvency concerns given the elevated leverage and declining earnings.

Cash conversion is in the bottom quartile of the cohort, indicating poor cash generation efficiency.

Revenue ¥9.73B, +31,1% YoY; Operating income +194,5% YoY.

• ▍Revenue ¥9.73B, +31,1% YoY
• ▍Operating income +194,5% YoY
• ▍Net income +219,2% YoY
• ▍Net margin 5.3%

Revenue ¥7.11B, +0,5% YoY; Operating income +33,4% YoY.

• ▍Revenue ¥7.11B, +0,5% YoY
• ▍Operating income +33,4% YoY
• ▍Net income +15,1% YoY
• ▍Net margin 3.0%

Revenue ¥6.88B, −6,0% YoY; Operating income +11,6% YoY.

• ▍Revenue ¥6.88B, −6,0% YoY
• ▍Operating income +11,6% YoY
• ▍Net income +8,7% YoY
• ▍Net margin 3.5%

Revenue ¥8.61B, −7,2% YoY; Operating income −21,0% YoY.

• ▍Revenue ¥8.61B, −7,2% YoY
• ▍Operating income −21,0% YoY
• ▍Net income −18,9% YoY
• ▍Net margin 4.7%

Revenue ¥7.42B; Operating income ¥274.3M.

• ▍Revenue ¥7.42B
• ▍Operating income ¥274.3M
• ▍Net margin 2.2%

Revenue ¥7.07B; Operating income ¥308.3M.

• ▍Revenue ¥7.07B
• ▍Operating income ¥308.3M
• ▍Net margin 2.6%

Revenue ¥7.32B; Operating income ¥356.6M.

• ▍Revenue ¥7.32B
• ▍Operating income ¥356.6M
• ▍Net margin 3.1%

Revenue ¥9.28B; Operating income ¥774.6M.

• ▍Revenue ¥9.28B
• ▍Operating income ¥774.6M
• ▍Net margin 5.4%

Revenue ¥30.42B, +4,6% YoY; Operating income −13,7% YoY.

• ▍Revenue ¥30.42B, +4,6% YoY
• ▍Operating income −13,7% YoY
• ▍Net income −10,6% YoY
• ▍Free cash flow −8,7% YoY
• ▍Net margin 3.2%

Revenue ¥29.09B, +27,6% YoY; Operating income −44,6% YoY.

• ▍Revenue ¥29.09B, +27,6% YoY
• ▍Operating income −44,6% YoY
• ▍Net income −63,0% YoY
• ▍Free cash flow −66,1% YoY
• ▍Net margin 3.7%

Revenue ¥22.81B, +39,4% YoY; Operating income +132,6% YoY.

• ▍Revenue ¥22.81B, +39,4% YoY
• ▍Operating income +132,6% YoY
• ▍Net income +234,1% YoY
• ▍Free cash flow +222,2% YoY
• ▍Net margin 12.9%

Revenue ¥16.36B, +24,8% YoY; Operating income −34,2% YoY.

• ▍Revenue ¥16.36B, +24,8% YoY
• ▍Operating income −34,2% YoY
• ▍Net income −51,6% YoY
• ▍Free cash flow −51,3% YoY
• ▍Net margin 5.4%