Kose RE Co Ltd

Kose RE Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥4.32 billion, representing 29.5% of total assets. The company's liquidity ratio of 6.72 indicates a robust ability to cover short-term liabilities, which is significantly higher than the industry median. However, the price-to-earnings ratio of 11,228.62 is extremely elevated, suggesting a high valuation relative to earnings, which may reflect market expectations of future performance or a lack of current profitability.

Profitability metrics for Kose RE Co Ltd are weak, with a net income of ¥5.78 million and an operating loss of ¥33.59 million in the latest reporting period. The return on equity (ROE) is nearly zero at 0.0001, and the return on assets (ROA) is also 0.0, both of which are below the industry median for real estate firms. These figures indicate that the company is not effectively utilizing its equity or assets to generate returns, which is a concern for investors.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no material geographic diversification reported. This lack of diversification increases exposure to regional economic downturns or regulatory changes that could impact its primary market. The absence of disclosed international operations suggests that Kose RE Co Ltd is primarily focused on the domestic Japanese market.

Looking ahead, the company's revenue is expected to grow, with the latest actual revenue reported at ¥10.05 billion, compared to the ¥12.72 billion in the most recent financial snapshot. This suggests a potential decline in revenue, which could be due to market conditions or operational challenges. The outlook for the next fiscal year remains uncertain, with no clear direction provided in the available data.

Risk factors for Kose RE Co Ltd include the potential for dilution, although the current risk is assessed as low. The company has not issued additional shares recently, and there are no immediate filing-based liquidity or dilution flags. However, the high price-to-earnings ratio and low profitability metrics suggest that the company may face challenges in maintaining its valuation if earnings do not improve.

Recent events, including the latest financial filings and transcripts, do not indicate any significant changes in the company's strategic direction or operational performance. The company continues to report losses, and there are no disclosed plans for major capital expenditures or research and development initiatives that could drive future growth.

Operating income surged 157.5% year-over-year to JPY 829 million, signaling a strong operational recovery in FY2026.

Net income more than doubled with a 104.0% year-over-year increase to JPY 696 million in the latest fiscal year.

Revenue grew 31.3% year-over-year to JPY 10.0 billion, demonstrating significant top-line expansion in the most recent period.

The debt-to-equity ratio of 0.41 is below the cohort median of 0.52, indicating a relatively conservative leverage position.

Dilution and liquidity risks are assessed as low, suggesting stable capital structure and adequate short-term financial flexibility.

Free cash flow remains negative at JPY -528 million in FY2026, indicating ongoing cash burn despite revenue growth.

Long-term debt increased to JPY 7.3 billion in FY2026, reversing the deleveraging trend seen in previous fiscal years.

The company faces high credit risk, which may constrain future borrowing capacity and increase financing costs.

Revenue ¥6.19B, +93,6% YoY; Operating income +190,1% YoY.

• ▍Revenue ¥6.19B, +93,6% YoY
• ▍Operating income +190,1% YoY
• ▍Net income +182,2% YoY
• ▍Net margin 11.8%

Revenue ¥927.4M, −1,4% YoY; Operating income +42,3% YoY.

• ▍Revenue ¥927.4M, −1,4% YoY
• ▍Operating income +42,3% YoY
• ▍Net income +51,2% YoY
• ▍Net margin -4.8%

Revenue ¥1.96B, −12,3% YoY; Operating income −35,6% YoY.

• ▍Revenue ¥1.96B, −12,3% YoY
• ▍Operating income −35,6% YoY
• ▍Net income −35,6% YoY
• ▍Net margin 5.7%

Revenue ¥966.0M, −24,1% YoY; Operating income −434,0% YoY.

• ▍Revenue ¥966.0M, −24,1% YoY
• ▍Operating income −434,0% YoY
• ▍Net income −17 408,1% YoY
• ▍Net margin -10.4%

Revenue ¥3.20B; Operating income ¥339.9M.

• ▍Revenue ¥3.20B
• ▍Operating income ¥339.9M
• ▍Net margin 8.1%

Revenue ¥940.1M; Operating income -¥181.7M.

• ▍Revenue ¥940.1M
• ▍Operating income -¥181.7M
• ▍Net margin -9.7%

Revenue ¥2.24B; Operating income ¥197.2M.

• ▍Revenue ¥2.24B
• ▍Operating income ¥197.2M
• ▍Net margin 7.8%

Revenue ¥1.27B; Operating income -¥33.6M.

• ▍Revenue ¥1.27B
• ▍Operating income -¥33.6M
• ▍Net margin 0.0%

Revenue ¥10.05B, +31,3% YoY; Operating income +157,5% YoY.

• ▍Revenue ¥10.05B, +31,3% YoY
• ▍Operating income +157,5% YoY
• ▍Net income +104,0% YoY
• ▍Free cash flow +37,8% YoY
• ▍Net margin 6.9%

Revenue ¥7.65B, −24,7% YoY; Operating income −80,1% YoY.

• ▍Revenue ¥7.65B, −24,7% YoY
• ▍Operating income −80,1% YoY
• ▍Net income −73,0% YoY
• ▍Free cash flow −202,6% YoY
• ▍Net margin 4.5%

Revenue ¥10.16B, −7,6% YoY; Operating income −0,8% YoY.

• ▍Revenue ¥10.16B, −7,6% YoY
• ▍Operating income −0,8% YoY
• ▍Net income +0,2% YoY
• ▍Free cash flow −18,9% YoY
• ▍Net margin 12.4%

Revenue ¥11.00B, −2,6% YoY; Operating income +42,8% YoY.

• ▍Revenue ¥11.00B, −2,6% YoY
• ▍Operating income +42,8% YoY
• ▍Net income +43,2% YoY
• ▍Free cash flow +35,7% YoY
• ▍Net margin 11.5%