Tokai Lease Co Ltd

Tokai Lease Co Ltd maintains a debt-to-equity ratio of 0.82, indicating a relatively balanced capital structure with moderate leverage. The company's liquidity position is characterized as medium, with a current ratio of 1.24, suggesting it can cover its short-term obligations but with limited surplus. The company's cash and equivalents amount to 2,384,043,000 JPY, which is insufficient to cover its long-term debt of 13,164,354,000 JPY, resulting in a net cash deficit.

In terms of profitability, the company's return on equity (ROE) is 2.14%, and its return on assets (ROA) is 0.99%. These figures are below the industry median for ROE and ROA, indicating that the company is underperforming relative to its peers in terms of generating returns for shareholders and utilizing its assets efficiently.

Tokai Lease Co Ltd's revenue is primarily concentrated in Japan, with no significant international exposure disclosed. The company's business is not segmented into distinct product lines or geographic regions in the provided data, making it difficult to assess the diversification of its revenue streams.

The company's growth trajectory is modest, with no specific numeric deltas provided for the current or next fiscal year. Historical revenue data shows a total of 50,348,810,000 JPY in revenue, but without comparative data from previous years, it is challenging to determine the growth rate. The company's capital expenditure of -2,995,796,000 JPY suggests a net outflow, which may indicate investment in new projects or asset acquisitions.

The risk assessment for Tokai Lease Co Ltd highlights a medium liquidity risk and a low dilution risk. The company's net cash deficit after subtracting total debt is a key flag, indicating potential challenges in meeting long-term obligations. However, the low dilution risk suggests that the company is not likely to issue additional shares in the near term, which is a positive sign for existing shareholders.

Recent events and filings do not provide specific details on new projects, strategic initiatives, or significant changes in the company's operations. The analyst estimates for the last actual EPS and revenue are 309.40 JPY and 18,397,790,000 JPY, respectively, which may be used to gauge the company's performance against market expectations.

Net income surged 58.4% year-over-year to 1.07 billion JPY in fiscal 2025, demonstrating strong profitability growth.

Free cash flow turned positive to 324 million JPY, marking a 150.4% improvement from the prior year's deficit.

Revenue grew at a 5.1% compound annual growth rate over four years, reaching 18.4 billion JPY in fiscal 2025.

Cash conversion ratio of 3.47 ranks as best-in-class within the real estate rental and operations cohort.

The company faces high credit risk, signaling potential vulnerabilities in its asset quality or counterparty exposure.

Medium liquidity risk flags potential challenges in meeting short-term obligations or managing cash flow volatility.

Capital expenditure relative to revenue sits in the bottom quartile, potentially limiting future growth capacity.

Revenue ¥4.60B, +18,4% YoY; Operating income +174,1% YoY.

• ▍Revenue ¥4.60B, +18,4% YoY
• ▍Operating income +174,1% YoY
• ▍Net income +46,6% YoY
• ▍Net margin 1.5%

Revenue ¥5.37B, +16,6% YoY; Operating income +67,2% YoY.

• ▍Revenue ¥5.37B, +16,6% YoY
• ▍Operating income +67,2% YoY
• ▍Net income +52,9% YoY
• ▍Net margin 6.8%

Revenue ¥4.34B, +15,1% YoY; Operating income +276,8% YoY.

• ▍Revenue ¥4.34B, +15,1% YoY
• ▍Operating income +276,8% YoY
• ▍Net income +61,4% YoY
• ▍Net margin 3.6%

Revenue ¥6.13B, +21,9% YoY; Operating income +93,1% YoY.

• ▍Revenue ¥6.13B, +21,9% YoY
• ▍Operating income +93,1% YoY
• ▍Net income +100,0% YoY
• ▍Net margin 11.2%

Revenue ¥3.89B; Operating income ¥79.5M.

• ▍Revenue ¥3.89B
• ▍Operating income ¥79.5M
• ▍Net margin 1.2%

Revenue ¥4.60B; Operating income ¥353.4M.

• ▍Revenue ¥4.60B
• ▍Operating income ¥353.4M
• ▍Net margin 5.1%

Revenue ¥3.77B; Operating income ¥60.4M.

• ▍Revenue ¥3.77B
• ▍Operating income ¥60.4M
• ▍Net margin 2.6%

Revenue ¥5.03B; Operating income ¥505.2M.

• ▍Revenue ¥5.03B
• ▍Operating income ¥505.2M
• ▍Net margin 6.8%

Revenue ¥18.40B, +7,1% YoY; Operating income +52,2% YoY.

• ▍Revenue ¥18.40B, +7,1% YoY
• ▍Operating income +52,2% YoY
• ▍Net income +58,4% YoY
• ▍Free cash flow +150,4% YoY
• ▍Net margin 5.8%

Revenue ¥17.18B, +9,2% YoY; Operating income +324,1% YoY.

• ▍Revenue ¥17.18B, +9,2% YoY
• ▍Operating income +324,1% YoY
• ▍Net income +354,7% YoY
• ▍Free cash flow −90,1% YoY
• ▍Net margin 3.9%

Revenue ¥15.74B, −4,2% YoY; Operating income −56,2% YoY.

• ▍Revenue ¥15.74B, −4,2% YoY
• ▍Operating income −56,2% YoY
• ▍Net income −66,2% YoY
• ▍Free cash flow −20,0% YoY
• ▍Net margin 0.9%

Revenue ¥16.42B, +8,8% YoY; Operating income −3,4% YoY.

• ▍Revenue ¥16.42B, +8,8% YoY
• ▍Operating income −3,4% YoY
• ▍Net income +27,2% YoY
• ▍Free cash flow −29,3% YoY
• ▍Net margin 2.7%