Azuma House Co Ltd

Azuma House maintains a capital structure with a debt-to-equity ratio of 0.82, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 2.44, suggesting it has sufficient short-term assets to cover its liabilities. However, the liquidity risk is rated as medium, and the company's net cash position is negative after subtracting total debt, signaling potential short-term liquidity constraints.

Profitability metrics for Azuma House show a return on equity (ROE) of 1.95% and a return on assets (ROA) of 1.00%, both of which are below the typical thresholds for high-performing real estate firms. The company's operating margin is 5.33% (calculated from operating income of ¥196.38 million on revenue of ¥3.68 billion), and its net profit margin is 0.88% (¥323.85 million net income on ¥3.68 billion revenue). These figures suggest that the company is generating modest returns relative to its asset base and revenue.

Geographically and segment-wise, Azuma House's revenue concentration is not explicitly disclosed in the available data. However, the company's operations are primarily focused on the Japanese real estate market, with no material international exposure reported. The lack of detailed segment reporting limits the ability to assess the performance of individual business lines or geographic regions.

The company's growth trajectory appears to be modest, with no significant revenue growth reported in the most recent financial period. The outlook for the current fiscal year does not indicate a material change in revenue direction, and the company's capital expenditures are negative, suggesting a focus on asset divestitures or cost management rather than expansion.

Risk factors for Azuma House include a medium liquidity risk and a low dilution risk. The company's capital structure is relatively stable, with no immediate signs of equity dilution. However, the negative net cash position and reliance on long-term debt may pose challenges in maintaining liquidity under stress scenarios.

Recent events and disclosures for Azuma House include the latest financial results, which show a revenue of ¥3.68 billion and a net income of ¥323.85 million. The company's operating cash flow is positive at ¥793.95 million, but capital expenditures are negative, indicating a net cash inflow from operations. No recent filings or transcripts have been provided that indicate significant strategic shifts or new initiatives.

Return on equity of 1.95% slightly outperforms the 1.94% median benchmark for the sector.

Cash conversion ratio of 2.45 places the company in the top quartile of its peer group.

Long-term debt decreased from 13.5 billion JPY in FY2021 to 12.7 billion JPY in FY2023.

Free cash flow plummeted 808.3% year-over-year to negative 816 million JPY in FY2024.

The company carries a high credit risk flag, indicating significant potential financial distress.

Revenue declined at a 2.9% compound annual growth rate over the last three fiscal years.

Revenue ¥2.82B, −16,2% YoY; Operating income −26,0% YoY.

• ▍Revenue ¥2.82B, −16,2% YoY
• ▍Operating income −26,0% YoY
• ▍Net income −31,2% YoY
• ▍Net margin 4.7%

Revenue ¥2.46B, −37,3% YoY; Operating income −56,0% YoY.

• ▍Revenue ¥2.46B, −37,3% YoY
• ▍Operating income −56,0% YoY
• ▍Net income −59,2% YoY
• ▍Net margin 4.2%

Revenue ¥2.61B, −5,3% YoY; Operating income −18,6% YoY.

• ▍Revenue ¥2.61B, −5,3% YoY
• ▍Operating income −18,6% YoY
• ▍Net income −29,9% YoY
• ▍Net margin 5.1%

Revenue ¥3.22B, −12,4% YoY; Operating income +9,0% YoY.

• ▍Revenue ¥3.22B, −12,4% YoY
• ▍Operating income +9,0% YoY
• ▍Net income −61,4% YoY
• ▍Net margin 3.9%

Revenue ¥3.37B; Operating income ¥306.5M.

• ▍Revenue ¥3.37B
• ▍Operating income ¥306.5M
• ▍Net margin 5.8%

Revenue ¥3.92B; Operating income ¥388.7M.

• ▍Revenue ¥3.92B
• ▍Operating income ¥388.7M
• ▍Net margin 6.5%

Revenue ¥2.76B; Operating income ¥298.2M.

• ▍Revenue ¥2.76B
• ▍Operating income ¥298.2M
• ▍Net margin 6.9%

Revenue ¥3.68B; Operating income ¥196.4M.

• ▍Revenue ¥3.68B
• ▍Operating income ¥196.4M
• ▍Net margin 8.8%

Revenue ¥13.09B, −7,6% YoY; Operating income −22,5% YoY.

• ▍Revenue ¥13.09B, −7,6% YoY
• ▍Operating income −22,5% YoY
• ▍Net income +10,1% YoY
• ▍Free cash flow −808,3% YoY
• ▍Net margin 6.1%

Revenue ¥14.16B, +1,8% YoY; Operating income +0,5% YoY.

• ▍Revenue ¥14.16B, +1,8% YoY
• ▍Operating income +0,5% YoY
• ▍Net income −4,2% YoY
• ▍Free cash flow −37,3% YoY
• ▍Net margin 5.1%

Revenue ¥13.91B, −2,6% YoY; Operating income +7,8% YoY.

• ▍Revenue ¥13.91B, −2,6% YoY
• ▍Operating income +7,8% YoY
• ▍Net income −0,6% YoY
• ▍Free cash flow +214,8% YoY
• ▍Net margin 5.4%

Revenue ¥14.29B; Operating income ¥1.10B.

• ▍Revenue ¥14.29B
• ▍Operating income ¥1.10B
• ▍Net margin 5.3%