Meiwa Estate Co Ltd

Meiwa Estate Co Ltd maintains a liquidity position with a current ratio of 2.18, indicating the company can cover its short-term liabilities with its short-term assets. However, the operating cash flow is negative at -1.83 billion JPY, which may signal potential liquidity challenges if not offset by other sources of cash. The company's net cash position is negative after subtracting total debt, raising concerns about its ability to meet long-term obligations without additional financing.

In terms of profitability, the company's return on equity (ROE) is 8.04%, which is a measure of how effectively it is using shareholders' equity to generate profits. The return on assets (ROA) is 2.07%, suggesting that the company is generating a relatively modest return on its total assets compared to industry benchmarks. The debt-to-equity ratio of 1.85 indicates a significant reliance on debt financing, which could increase financial risk if interest rates rise or if the company's earnings are insufficient to service its debt.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no material geographic diversification reported. This concentration may expose the company to higher risk if market conditions in its primary operating region deteriorate.

Looking at the growth trajectory, the company's revenue has shown a stable trend, but there is no indication of significant growth in the near term. The mean analyst EPS estimate of 133.90 JPY suggests a slight improvement from the last actual EPS of 123.57 JPY, but the overall analyst sentiment is neutral with one "buy" recommendation and no "strong buy" or "sell" ratings.

The risk assessment highlights medium liquidity risk and low dilution risk. The company's capital structure is heavily leveraged, with long-term debt amounting to 59.29 billion JPY, which could pose a challenge if the company needs to refinance or if interest rates increase. The risk of dilution is considered low, with no significant dilution sources identified in the recent filings.

Recent events include the publication of the latest financial results, which show a net income of 2.57 billion JPY. The company's operating income of 3.85 billion JPY and gross profit of 6.81 billion JPY indicate that it is maintaining profitability despite the negative operating cash flow. The company's capital expenditure of -619 million JPY suggests that it is investing in its operations, which could support future growth.

Revenue grew 12.1% year-over-year to JPY 79.9 billion in fiscal 2025, demonstrating strong top-line expansion.

Operating income increased 13.5% year-over-year to JPY 5.36 billion, reflecting improved operational profitability.

The company maintains a buy recommendation from one analyst, suggesting positive market sentiment despite limited coverage.

Gross profit reached JPY 16.6 billion in fiscal 2025, supporting the company's ability to generate core earnings.

Debt-to-equity ratio of 1.85 is in the bottom quartile of peers, signaling significantly higher financial leverage risk.

The company faces a high credit risk flag, indicating potential difficulties in meeting financial obligations.

Long-term debt surged to JPY 87.1 billion in fiscal 2025, raising concerns about debt servicing capacity.

Revenue ¥20.62B, −12,0% YoY; Operating income −63,0% YoY.

• ▍Revenue ¥20.62B, −12,0% YoY
• ▍Operating income −63,0% YoY
• ▍Net income −137,3% YoY
• ▍Net margin -1.0%

Revenue ¥20.95B, +54,3% YoY; Operating income +225,0% YoY.

• ▍Revenue ¥20.95B, +54,3% YoY
• ▍Operating income +225,0% YoY
• ▍Net income +1 574,3% YoY
• ▍Net margin 5.6%

Revenue ¥38.04B, +79,0% YoY; Operating income +164,4% YoY.

• ▍Revenue ¥38.04B, +79,0% YoY
• ▍Operating income +164,4% YoY
• ▍Net income +132,4% YoY
• ▍Net margin 9.6%

Revenue ¥21.64B, −35,9% YoY; Operating income −68,3% YoY.

• ▍Revenue ¥21.64B, −35,9% YoY
• ▍Operating income −68,3% YoY
• ▍Net income −72,9% YoY
• ▍Net margin 3.2%

Revenue ¥23.43B; Operating income ¥1.36B.

• ▍Revenue ¥23.43B
• ▍Operating income ¥1.36B
• ▍Net margin 2.4%

Revenue ¥13.57B; Operating income ¥584.0M.

• ▍Revenue ¥13.57B
• ▍Operating income ¥584.0M
• ▍Net margin 0.5%

Revenue ¥21.25B; Operating income ¥2.20B.

• ▍Revenue ¥21.25B
• ▍Operating income ¥2.20B
• ▍Net margin 7.4%

Revenue ¥33.76B; Operating income ¥3.85B.

• ▍Revenue ¥33.76B
• ▍Operating income ¥3.85B
• ▍Net margin 7.6%

Revenue ¥79.90B, +12,1% YoY; Operating income +13,5% YoY.

• ▍Revenue ¥79.90B, +12,1% YoY
• ▍Operating income +13,5% YoY
• ▍Net income +4,2% YoY
• ▍Free cash flow +13,5% YoY
• ▍Net margin 3.6%

Revenue ¥71.25B, +14,3% YoY; Operating income −18,8% YoY.

• ▍Revenue ¥71.25B, +14,3% YoY
• ▍Operating income −18,8% YoY
• ▍Net income −37,0% YoY
• ▍Free cash flow −60,3% YoY
• ▍Net margin 3.9%

Revenue ¥62.32B, +8,9% YoY; Operating income +40,4% YoY.

• ▍Revenue ¥62.32B, +8,9% YoY
• ▍Operating income +40,4% YoY
• ▍Net income +70,0% YoY
• ▍Free cash flow +99,9% YoY
• ▍Net margin 7.1%

Revenue ¥57.21B, +14,2% YoY; Operating income +14,3% YoY.

• ▍Revenue ¥57.21B, +14,2% YoY
• ▍Operating income +14,3% YoY
• ▍Net income −4,6% YoY
• ▍Free cash flow −26,7% YoY
• ▍Net margin 4.5%