Meiho Enterprise Co Ltd

Meiho Enterprise Co Ltd maintains a capital structure with a debt-to-equity ratio of 1.76, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 2.17, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the company's net cash position is negative after subtracting total debt, signaling potential liquidity constraints.

In terms of profitability, Meiho Enterprise Co Ltd reports a return on equity (ROE) of 7.4% and a return on assets (ROA) of 2.38%. These figures are below the industry median for ROE and ROA in the Real Estate Rental, Development & Operations sector, indicating that the company is underperforming relative to its peers in terms of capital efficiency and asset utilization.

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 fluctuations and regulatory changes. The absence of segment-specific data limits the ability to assess the performance of individual business lines or geographic regions.

Looking ahead, the company's growth trajectory is constrained by its current financial position. The most recent actual revenue of 29.796 billion JPY represents a decline from the prior year's revenue of 6.008 billion JPY. This suggests a significant drop in revenue, which could be attributed to market conditions or operational challenges. The outlook for the next fiscal year remains uncertain without additional guidance from the company.

The risk assessment highlights a medium liquidity risk and a low dilution risk. The company's reliance on long-term debt, which accounts for a significant portion of its liabilities, exposes it to interest rate volatility and refinancing risks. The low dilution risk is supported by the absence of recent share issuance or dilutive events, as well as the alignment of basic and diluted shares outstanding.

Recent events, including analyst estimates and financial disclosures, indicate a mixed performance. The last actual EPS of 64.21 JPY and revenue of 29.796 billion JPY suggest a contraction in earnings and revenue. The company has not disclosed any material events in its recent filings or transcripts that would significantly alter its strategic direction or financial outlook.

Revenue surged 44.9% year-over-year to JPY 29.8 billion in fiscal 2025, demonstrating strong top-line growth momentum.

Free cash flow increased 60.2% year-over-year to JPY 1.56 billion, highlighting significant improvement in cash generation.

Net income grew 37.7% year-over-year to JPY 1.89 billion, reflecting robust profitability expansion in fiscal 2025.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or servicing debt.

Debt-to-equity ratio of 1.76 places the company in the bottom quartile of its real estate cohort, indicating high leverage.

Long-term debt increased to JPY 15.9 billion in fiscal 2025, up from JPY 5.6 billion in fiscal 2021.

Medium liquidity risk suggests potential challenges in meeting short-term financial obligations or operational cash needs.

Return on assets of 2.38% remains relatively low, suggesting modest efficiency in utilizing total assets for profit generation.

Revenue ¥9.94B, +118,0% YoY; Operating income +227,6% YoY.

• ▍Revenue ¥9.94B, +118,0% YoY
• ▍Operating income +227,6% YoY
• ▍Net income +883,2% YoY
• ▍Net margin 7.5%

Revenue ¥4.92B, −31,6% YoY; Operating income −44,2% YoY.

• ▍Revenue ¥4.92B, −31,6% YoY
• ▍Operating income −44,2% YoY
• ▍Net income −70,1% YoY
• ▍Net margin 2.3%

Revenue ¥9.95B, +170,0% YoY; Operating income +5 819,7% YoY.

• ▍Revenue ¥9.95B, +170,0% YoY
• ▍Operating income +5 819,7% YoY
• ▍Net income +1 624,1% YoY
• ▍Net margin 8.5%

Revenue ¥8.09B, +34,7% YoY; Operating income +9,3% YoY.

• ▍Revenue ¥8.09B, +34,7% YoY
• ▍Operating income +9,3% YoY
• ▍Net income −1,0% YoY
• ▍Net margin 7.3%

Revenue ¥4.56B; Operating income ¥313.9M.

• ▍Revenue ¥4.56B
• ▍Operating income ¥313.9M
• ▍Net margin 1.7%

Revenue ¥7.19B; Operating income ¥736.8M.

• ▍Revenue ¥7.19B
• ▍Operating income ¥736.8M
• ▍Net margin 5.3%

Revenue ¥3.69B; Operating income ¥21.8M.

• ▍Revenue ¥3.69B
• ▍Operating income ¥21.8M
• ▍Net margin -1.5%

Revenue ¥6.01B; Operating income ¥945.0M.

• ▍Revenue ¥6.01B
• ▍Operating income ¥945.0M
• ▍Net margin 9.9%

Revenue ¥29.80B, +44,9% YoY; Operating income +44,0% YoY.

• ▍Revenue ¥29.80B, +44,9% YoY
• ▍Operating income +44,0% YoY
• ▍Net income +37,7% YoY
• ▍Free cash flow +60,2% YoY
• ▍Net margin 6.4%

Revenue ¥20.56B, +34,9% YoY; Operating income +77,2% YoY.

• ▍Revenue ¥20.56B, +34,9% YoY
• ▍Operating income +77,2% YoY
• ▍Net income +115,6% YoY
• ▍Free cash flow +111,3% YoY
• ▍Net margin 6.7%

Revenue ¥15.25B, +36,6% YoY; Operating income +18,7% YoY.

• ▍Revenue ¥15.25B, +36,6% YoY
• ▍Operating income +18,7% YoY
• ▍Net income −0,4% YoY
• ▍Free cash flow +14,8% YoY
• ▍Net margin 4.2%

Revenue ¥11.16B, +9,6% YoY; Operating income +13,2% YoY.

• ▍Revenue ¥11.16B, +9,6% YoY
• ▍Operating income +13,2% YoY
• ▍Net income −22,4% YoY
• ▍Free cash flow −44,6% YoY
• ▍Net margin 5.7%