&Do Holdings Co Ltd

The company's capital structure is characterized by a high debt-to-equity ratio of 3.44, indicating a significant reliance on debt financing. Despite holding 8.45 billion JPY in cash and equivalents, the company's liquidity position is rated as medium due to the large long-term debt of 55.87 billion JPY, which exceeds its cash reserves. The current ratio of 1.94 suggests the company has sufficient short-term assets to cover its short-term liabilities, but the overall leverage remains a concern.

Profitability metrics show a return on equity of 0.56% and a return on assets of 0.12%, both of which are below the typical thresholds for healthy performance in the real estate services industry. The operating income of 266 million JPY and net income of 91 million JPY indicate a narrow profit margin, which is consistent with the industry's competitive and capital-intensive nature.

The company's revenue of 13.88 billion JPY is derived from a single business segment, with no disclosed geographic diversification. This concentration increases exposure to regional economic fluctuations and regulatory changes. The lack of segmental or geographic breakdown in the financial data suggests a need for further transparency to assess risk and growth potential.

Looking ahead, the company's growth trajectory is uncertain. The most recent actual revenue of 64.74 billion JPY, as reported by IR observations, is significantly lower than the 13.88 billion JPY in the latest financial snapshot, suggesting a potential data inconsistency or a shift in reporting periods. The outlook for the current fiscal year does not provide clear direction, and the absence of forward-looking guidance complicates growth assessment.

Risk factors include a medium liquidity risk due to the high debt load and a low dilution risk, as the company has not issued additional shares recently. The risk assessment also notes that net cash is negative after subtracting total debt, which could limit the company's ability to invest in growth opportunities or withstand financial shocks.

Recent events, as reflected in the financial data, include a decline in revenue and profitability. The company's last actual EPS was 118.85 JPY, and the last actual revenue was 64.74 billion JPY, both of which are significantly lower than the figures in the latest financial snapshot. This discrepancy may indicate a change in reporting periods or a need for further clarification on the company's financial performance.

Revenue grew at a 13.5% CAGR over four years, demonstrating strong top-line expansion momentum.

Free cash flow turned positive in FY2024, reaching 1.86 billion JPY after years of negative generation.

Net income increased at a 9.7% CAGR over four years, indicating consistent profitability growth.

Long-term debt decreased to 47.9 billion JPY in FY2025, showing a reduction in leverage.

Operating income reached 3.32 billion JPY in FY2025, maintaining positive operational earnings despite revenue dip.

The debt-to-equity ratio of 3.44 is in the bottom quartile, signaling extreme leverage risk.

Credit risk is flagged as high, indicating significant potential for financial distress or default.

Revenue declined 4.2% year-over-year in FY2025, marking the first annual drop in the period.

Revenue ¥14.03B, −34,4% YoY; Operating income −83,9% YoY.

• ▍Revenue ¥14.03B, −34,4% YoY
• ▍Operating income −83,9% YoY
• ▍Net income −93,9% YoY
• ▍Net margin 0.4%

Revenue ¥11.95B, −17,9% YoY; Operating income −47,2% YoY.

• ▍Revenue ¥11.95B, −17,9% YoY
• ▍Operating income −47,2% YoY
• ▍Net income −86,8% YoY
• ▍Net margin 0.2%

Revenue ¥17.73B, −3,2% YoY; Operating income −16,3% YoY.

• ▍Revenue ¥17.73B, −3,2% YoY
• ▍Operating income −16,3% YoY
• ▍Net income −33,4% YoY
• ▍Net margin 3.7%

Revenue ¥11.07B, −20,2% YoY; Operating income +223,7% YoY.

• ▍Revenue ¥11.07B, −20,2% YoY
• ▍Operating income +223,7% YoY
• ▍Net income +502,2% YoY
• ▍Net margin 4.9%

Revenue ¥21.38B; Operating income ¥1.18B.

• ▍Revenue ¥21.38B
• ▍Operating income ¥1.18B
• ▍Net margin 4.6%

Revenue ¥14.54B; Operating income ¥377.0M.

• ▍Revenue ¥14.54B
• ▍Operating income ¥377.0M
• ▍Net margin 1.0%

Revenue ¥18.33B; Operating income ¥1.07B.

• ▍Revenue ¥18.33B
• ▍Operating income ¥1.07B
• ▍Net margin 5.4%

Revenue ¥13.88B; Operating income ¥266.0M.

• ▍Revenue ¥13.88B
• ▍Operating income ¥266.0M
• ▍Net margin 0.7%

Revenue ¥64.73B, −4,2% YoY; Operating income −5,1% YoY.

• ▍Revenue ¥64.73B, −4,2% YoY
• ▍Operating income −5,1% YoY
• ▍Net income −5,5% YoY
• ▍Free cash flow −28,8% YoY
• ▍Net margin 3.6%

Revenue ¥67.58B, +36,4% YoY; Operating income +11,8% YoY.

• ▍Revenue ¥67.58B, +36,4% YoY
• ▍Operating income +11,8% YoY
• ▍Net income +12,8% YoY
• ▍Free cash flow +154,8% YoY
• ▍Net margin 3.7%

Revenue ¥49.55B, +19,7% YoY; Operating income +10,5% YoY.

• ▍Revenue ¥49.55B, +19,7% YoY
• ▍Operating income +10,5% YoY
• ▍Net income +12,2% YoY
• ▍Free cash flow +81,1% YoY
• ▍Net margin 4.4%

Revenue ¥41.40B, +6,0% YoY; Operating income +11,5% YoY.

• ▍Revenue ¥41.40B, +6,0% YoY
• ▍Operating income +11,5% YoY
• ▍Net income +21,0% YoY
• ▍Free cash flow −39,0% YoY
• ▍Net margin 4.7%