The company maintains a stable 39.4% gross margin, though its reliance on human capital for service delivery results in $25.6K of COGS against $42.3K in quarterly revenue.
| Sales/Revenue | 11.58M | 10.96M |
| Revenue Growth % | 5.6% | - |
| Cost of Goods Sold | 7.12M | 7.25M |
| COGS % of Revenue | 61.5% | 66.11% |
| Gross Profit | 4.46M | 3.72M |
| Gross Margin % | 38.5% | 33.89% |
| Gross Profit Growth % | 19.99% | - |
| Operating Expenses | 2.6M | 2.41M |
| OpEx % of Revenue | 22.43% | 21.98% |
| Selling, General & Admin | 2.58M | 2.37M |
| SG&A % of Revenue | 22.26% | 21.62% |
| Research & Development | 0 | 0 |
| R&D % of Revenue | - | - |
| Other Operating Expenses | 20.01K | 39.32K |
| Operating Income | 1.86M | 1.31M |
| Operating Margin % | 16.07% | 11.91% |
| Operating Income Growth % | 42.58% | - |
| EBITDA | 2.33M | 1.64M |
| EBITDA Margin % | 20.13% | 14.95% |
| EBITDA Growth % | 42.19% | - |
| D&A (Non-Cash Add-back) | 469.3K | 333.58K |
| EBIT | 2.02M | 1.48M |
| Net Interest Income | -76.95K | -80.17K |
| Interest Income | 322 | 12.76K |
| Interest Expense | 77.27K | 92.93K |
| Other Income/Expense | 82.49K | 81.72K |
| Pretax Income | 1.94M | 1.39M |
| Pretax Margin % | 16.79% | 12.65% |
| Income Tax | 611.02K | 616.35K |
| Effective Tax Rate % | 31.44% | 44.44% |
| Net Income | 1.33M | 770.57K |
| Net Margin % | 11.51% | 7.03% |
| Net Income Growth % | 72.91% | - |
| Net Income (Continuing) | 1.33M | 770.57K |
| Discontinued Operations | 0 | 0 |
| Minority Interest | 0 | 0 |
| EPS (Diluted) | 0.12 | 0.07 |
| EPS Growth % | 72.26% | - |
| EPS (Basic) | 0.12 | 0.07 |
| Diluted Shares Outstanding | 11.25M | 11.25M |
| Basic Shares Outstanding | 11.25M | 11.25M |
| Dividend Payout Ratio | - | - |
High regional geographic concentration
As reported in the most recent quarterly filing, RYOJ achieved a gross margin of 39.4%, reflecting a stable cost structure that appears to balance the labor-intensive nature of its clinical health services with the higher-margin potential inherent in its evolving corporate consulting and compliance business model.
The 39.4% gross margin suggests that the company maintains disciplined control over its direct labor costs, which are primarily tied to specialized medical and consulting personnel. Investors should monitor whether the company can sustain these levels as it attempts to scale its consulting services, as any shift toward more automated digital platforms could potentially provide further margin expansion.
Based on the latest income statement data, RYOJ maintains an operating margin of 19.8%, which indicates that the firm is successfully converting gross profit into operating income while keeping corporate overhead expenses, such as SG&A, at a relatively lean level of $8.3K for the quarter.
This operating leverage suggests that the company's current administrative structure is well-aligned with its regional scale. However, the ability to maintain this efficiency may be tested if the company decides to pursue a more aggressive national expansion strategy that requires increased investment in marketing and corporate infrastructure.
According to the provided financial figures, the company's cost structure is heavily weighted toward direct service delivery, with COGS representing $25.6K of the total revenue, highlighting the firm's reliance on human capital to drive its dual-track model of clinical health and labor compliance consulting.
The absence of R&D expenditure suggests that the company is currently prioritizing service delivery over technological innovation. This approach warrants further investigation, as a lack of investment in proprietary digital tools may limit the company's ability to differentiate itself from larger, more established HR consulting incumbents.
While the company displays solid profitability, the reliance on a localized Fukuoka-based model, as evidenced by the current revenue scale, suggests that the firm may face significant headwinds in achieving national growth without incurring substantial costs that could compress its current 19.8% operating margin.
Short-term investors should be wary of the potential for the company to hit a growth ceiling within its primary geographic market. The current financial profile appears to reflect a mature regional player, and any attempt to pivot toward a broader national footprint may introduce execution risks that are not currently captured in the stable margin performance.
Quick answers to the most common questions about buying RYOJ stock.
For fiscal year 2024, rYojbaba Co., Ltd. Common Shares (RYOJ) reported total revenue of $11.6M. This represents a 5.6% increase compared to $11.0M in 2023.
rYojbaba Co., Ltd. Common Shares (RYOJ) is profitable, generating $1.3M in net income for the fiscal year ending 2024 with a net profit margin of 11.5%.
rYojbaba Co., Ltd. Common Shares (RYOJ) reported an operating income of $1.9M, resulting in an operating profit margin of 16.1%. This margin reflects the operational efficiency of the business before interest and taxes.
rYojbaba Co., Ltd. Common Shares (RYOJ) generated $4.5M in gross profit for the year, representing a gross profit margin of 38.5%. This demonstrates the company's core pricing power and production efficiency.