robot home Inc. FY2025 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥10.93B
• Operating Income: ¥309M
• Net Income: ¥661M
• EPS: ¥3.65

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

robot home (14350) reported FY2025 Q3 consolidated results under JGAAP showing strong top-line momentum but significant margin compression at the operating and net levels. Revenue rose 37.3% YoY to ¥10.9bn, while operating income fell 56.2% YoY to ¥309m, indicating elevated cost intensity and/or adverse mix despite solid gross profit. Gross profit of ¥3.27bn equates to a gross margin of roughly 30%, which is healthy in absolute terms but not translating to operating profitability, with operating margin at only 2.8%. Ordinary income of ¥368m implies some non-operating support (e.g., financial income), and net income of ¥327m yields a net margin of 3.0%. DuPont analysis indicates ROE of 3.44%, driven by modest net margin, middling asset turnover (0.679x), and low financial leverage (1.69x). Balance sheet strength is a clear positive: current ratio is 3.25x, quick ratio 3.25x, and debt-to-equity is 0.41x, underscoring a conservative capital structure. Equity stands at ¥9.49bn versus total assets of ¥16.09bn, implying an equity ratio of roughly 59% (despite a reported 0.0% figure likely reflecting non-disclosure rather than actual zero). Interest coverage is comfortable at 23.3x, suggesting ample capacity to service interest even with compressed operating earnings. The tax burden appears unusually low (income tax of ¥8.8m against ordinary income of ¥368m), likely reflecting loss carryforwards or tax credits; a normalization of effective tax rate could weigh on after-tax profitability. Cash flow statements were not disclosed in this dataset (reported as zeros), limiting assessment of earnings quality and free cash flow. Dividend-related fields are also not disclosed here, so payout policy and cash returns to shareholders cannot be inferred from these data. Overall, the company exhibits strong liquidity and solvency, but profitability quality is the key watchpoint given the divergence between revenue growth and operating income. Sustaining growth while restoring operating leverage will be critical to improving ROE and shareholder value creation. Monitoring the mix of recurring versus transactional revenue, SG&A efficiency, and gross margin resilience will be essential. Data limitations (notably CF, D&A, share count, and dividend details) constrain the depth of conclusions on cash conversion and capital allocation. On balance, the financial profile tilts conservative on balance sheet risk but challenged on near-term earnings leverage.

Profitability Analysis

ROE of 3.44% is decomposed into a 2.99% net margin, 0.679x asset turnover, and 1.69x financial leverage. Operating margin is 2.8% (¥309m/¥10,926m), indicating that most of the 30.0% gross margin is absorbed by SG&A and other operating costs. The decline in operating income (−56.2% YoY) despite +37.3% revenue growth signals unfavorable operating leverage in the period, likely due to upfront investments, higher fixed costs, and/or revenue mix shift. Ordinary margin at 3.37% (¥368m/¥10,926m) modestly exceeds operating margin, suggesting a positive non-operating contribution. Net margin at 2.99% benefited from a very low tax expense this period; a normalized tax rate would reduce net margin. Interest expense of ¥13.3m is modest relative to operating income, with interest coverage at 23.3x, underscoring that financing costs are not the primary drag on margins. Without disclosed D&A, EBITDA and EBITDA margin cannot be reliably assessed; the reported zeros are non-disclosures rather than true zeros. Overall, profitability quality is mixed: decent gross margin but weak operating margin, implying efficiency and scale benefits have not yet been realized or are being deferred by investment.

Growth Assessment

Top-line expanded 37.3% YoY to ¥10.9bn, evidencing strong demand or successful business development. However, operating income fell 56.2% YoY and net income fell 50.5% YoY, indicating growth was not accretive to earnings in the period. The spread between gross margin (30.0%) and operating margin (2.8%) widened, suggesting increased SG&A, higher customer acquisition or development costs, or adverse mix. Ordinary income outperformed operating income, pointing to some cushioning from non-operating items; reliance on such support is unlikely a sustainable driver of profit growth. The very low tax charge boosted net income; if the effective tax rate normalizes, net growth could be further pressured absent margin recovery. Sustainability hinges on the share of recurring revenues versus transactional/project-based revenues; this dataset does not disclose mix, so we cannot quantify durability. Near-term outlook will depend on management’s ability to contain overhead and improve operating efficiency while maintaining gross margin. Key to improving profit quality will be better cost absorption and operating leverage as scale builds. With limited disclosure on order backlog or pipeline, we cannot assess forward visibility; caution on extrapolating the 37% revenue growth is warranted until margins stabilize.

Financial Health

Liquidity is strong: current assets of ¥9.82bn vs. current liabilities of ¥3.02bn yield a current ratio of 3.25x and a quick ratio of 3.25x (inventories are minimal at ¥13m). Working capital is sizeable at ¥6.80bn, providing operational flexibility. Solvency is sound: total liabilities of ¥3.92bn vs. equity of ¥9.49bn imply a debt-to-equity ratio of roughly 0.41x and an equity ratio near 59% (computed from provided assets and equity). Leverage is conservative with financial leverage at 1.69x, consistent with low balance sheet risk. Interest coverage at 23.3x indicates ample buffer to meet interest obligations even if operating income remains pressured. The composition of current assets (cash vs. receivables vs. other) is not disclosed here; cash and equivalents are listed as zero in this dataset but should be treated as undisclosed rather than absent. Overall, the company exhibits a robust capital structure and liquidity profile.

Cash Flow Quality

Operating, investing, and financing cash flows are reported as zero in this dataset and should be treated as undisclosed. As such, OCF/Net Income and free cash flow cannot be evaluated; the displayed OCF/NI of 0.00 and FCF of 0 reflect non-disclosure. Earnings quality assessment is therefore limited: we cannot verify cash conversion, working capital dynamics, or capital expenditure intensity. Working capital appears ample based on the balance sheet, but without CF detail we cannot judge the period’s working capital inflows/outflows. Depreciation and amortization are also not disclosed, limiting ability to separate cash and non-cash earnings components. Given revenue growth with margin compression, it will be important to monitor whether receivables and contract assets are building and whether OCF tracks earnings.

Dividend Sustainability

Dividend per share and payout ratio are shown as zero in this dataset and should be treated as undisclosed. With net income of ¥327m, theoretical capacity for dividends exists, but without cash flow data, cash coverage cannot be assessed. Free cash flow is undisclosed, so FCF coverage of any dividend cannot be evaluated. Policy outlook is unclear from the data; we lack history of distributions, target payout, or capital allocation guidance. Until CF statements and dividend disclosures are available, sustainability analysis remains indeterminate.

Risk Assessment

Business Risks:

• Operating margin compression despite strong revenue growth, indicating cost inflation or adverse mix.
• Potential reliance on non-operating items to support ordinary income.
• Low effective tax rate that may normalize upward, reducing net margins.
• Limited visibility on revenue quality (recurring vs. transactional) and backlog.
• Execution risk in scaling operations while controlling SG&A.
• Exposure to macro conditions that influence customer spending and project activity.

Financial Risks:

• Thin operating margin (2.8%) leaves limited buffer against revenue volatility.
• Potential working capital build accompanying growth could pressure cash flow (CF not disclosed).
• Tax normalization could reduce after-tax profitability and cash generation.
• Information risk due to undisclosed cash flow and D&A figures in this dataset.

Key Concerns:

• Negative operating leverage in the period despite 37% revenue growth.
• Insufficient disclosure on cash flows limits assessment of earnings quality and dividend capacity.
• Sustainability of gross margin and path to restoring operating margin.
• Dependence on favorable non-operating items and low tax charge to sustain net income.

Investment Implications

Key Takeaways:

• Strong top-line growth (+37.3% YoY) contrasted by significant operating profit decline (−56.2% YoY).
• Gross margin of ~30% did not translate into operating profitability; operating margin only 2.8%.
• ROE is modest at 3.44%, constrained primarily by low net margin and middling asset turnover.
• Balance sheet is conservative with equity ratio ~59% and debt-to-equity ~0.41x; interest coverage 23.3x.
• Cash flow and dividend data are undisclosed in this dataset, limiting visibility on cash conversion and distributions.

Metrics to Watch:

• Operating margin and SG&A-to-sales ratio trend.
• Gross margin stability versus input costs and pricing.
• OCF, FCF, and working capital movements (receivables, contract assets) once disclosed.
• Revenue mix (recurring vs. project-based) and any backlog/order indicators.
• Effective tax rate normalization and its impact on net margin.
• Asset turnover and utilization of the balance sheet to improve ROE.

Relative Positioning: The company appears conservatively financed with strong liquidity but lags on profitability quality, placing it as balance-sheet-strong yet earnings-leverage-constrained relative to peers that convert growth to operating profit more efficiently.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis