TASUKI Holdings Inc. FY2025 Q4 Earnings Report

Financial Highlights

• Net Sales: ¥74.41B
• Operating Income: ¥8.81B
• Net Income: ¥2.67B
• EPS: ¥90.99

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment 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

Tasuki Holdings delivered strong top-line and profit growth in FY2025 Q4, with revenue rising 56.8% YoY to ¥74.4bn and operating income up 116.8% YoY to ¥8.8bn. Net income increased 122.5% YoY to ¥4.93bn, translating to EPS of ¥90.99. Profitability improved meaningfully, with ROE at 14.95% supported by a 6.63% net margin, 0.894x asset turnover, and 2.52x financial leverage. Notably, operating income exceeded reported gross profit by roughly ¥0.84bn, indicating sizable other operating income or cost reversals contributing to earnings quality this period. Gross margin stands at 10.7%, while the EBITDA margin is 11.9%, implying limited D&A and an asset-light operating base. Interest coverage is strong at 23.1x, reflecting healthy operating profits relative to interest expense of ¥382m. Despite robust profits, operating cash flow was negative at -¥5.77bn, likely reflecting a significant working capital build typical for project-based or real estate-related businesses. Free cash flow was -¥7.49bn after ¥1.72bn of investing outflows, indicating growth is currently financed externally rather than organically. Financing inflows of ¥19.26bn more than offset operating and investing outflows, supporting balance sheet funding for expansion. Based on total equity of ¥33.0bn and total assets of ¥83.25bn, the implied equity ratio is approximately 39.7%, even though the reported equity ratio is shown as 0.0% (likely undisclosed). Liquidity appears ample with a current ratio of 329.5% and working capital of ¥37.03bn, but the quick ratio may be overstated because inventories are shown as 0 (undisclosed). The debt-to-equity ratio of 1.14x suggests moderate leverage and room for funding growth if project returns remain attractive. The negative OCF-to-net income ratio (-1.17x) flags earnings-to-cash conversion risk that warrants close monitoring as the business scales. Dividend data are shown as zero/undisclosed; with strong earnings but negative FCF, near-term capital allocation likely prioritizes growth funding and balance sheet flexibility. Overall, the company is exhibiting rapid growth and improving profitability, but cash conversion and the contribution of non-core operating items to earnings are key areas to track for sustainability. Data gaps (e.g., cash, inventories, shares) limit precision in certain ratio analyses, so conclusions are based on available non-zero figures and derived metrics.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 6.63%
• asset_turnover: 0.894x
• financial_leverage: 2.52x
• calculated_ROE: 14.95%
• interpretation: ROE is driven by solid asset efficiency and moderate leverage, with net margin uplift YoY reflecting operating scale and other operating income contributions. margin_quality: Gross margin of 10.7% contrasts with an operating margin implied at ~11.9% (EBITDA margin) and 11.9% for operating income vs revenue (¥8.815bn/¥74.412bn), indicating that other operating income (or cost reversals) lifted operating profit above reported gross profit by ~¥0.84bn. This mix effect suggests part of the profitability improvement is non-core or one-off in nature; recurring gross profitability is thinner. operating_leverage: Operating income grew 116.8% YoY on 56.8% revenue growth, demonstrating strong operating leverage. Given minimal D&A (¥29.8m), most leverage stems from fixed SG&A absorption and other operating gains rather than depreciation benefits.

Growth Assessment

revenue_sustainability: Revenue expanded 56.8% YoY to ¥74.4bn, indicating strong demand/volume execution. Sustainability will hinge on backlog visibility, project pipeline, and market conditions in the company’s end-markets (likely real estate-related). profit_quality: Net income rose 122.5% YoY to ¥4.93bn. However, the gap between gross profit and operating income implies a reliance on other operating income, which could be less predictable. Cash conversion is weak this period (OCF/NI -1.17x), pointing to working capital intensity. outlook: With an implied equity ratio of ~39.7% and access to financing (¥19.26bn inflow), the company appears positioned to continue growth. Monitoring the normalization of other operating income and the trajectory of working capital will be key to assessing the durability of profit growth.

Financial Health

liquidity: Current assets of ¥53.17bn vs current liabilities of ¥16.14bn yield a current ratio of 329.5% and working capital of ¥37.03bn. Quick ratio is also shown as 329.5% because inventories are undisclosed (0 reported), so actual quick liquidity may be lower if inventories are material. solvency: Total liabilities of ¥37.49bn against equity of ¥33.01bn result in a debt-to-equity ratio of 1.14x. Using total equity and assets, the implied equity ratio is ~39.7% (¥33.01bn/¥83.25bn), indicating a balanced capital structure for a growth phase. capital_structure: Financial leverage at 2.52x supports a 14.95% ROE. Interest coverage is robust at 23.1x, suggesting headroom to service debt even with potential rate increases, provided operating income remains resilient.

Cash Flow Quality

earnings_quality: Net income of ¥4.93bn contrasts with OCF of -¥5.77bn (OCF/NI -1.17x), implying earnings were not converted into cash due to working capital build or timing differences typical of project-driven businesses. FCF_analysis: Free cash flow was -¥7.49bn after -¥1.72bn investing CF, necessitating external funding. The sizable financing inflow (¥19.26bn) covered the deficit and likely funded expansion and inventory/project acquisition. working_capital: Inventories are undisclosed (0 reported), yet the negative OCF suggests increases in inventories/receivables or land bank, common in development cycles. Monitoring turnover metrics and collections is critical for cash generation.

Dividend Sustainability

payout_ratio_assessment: Payout ratio is shown as 0.0% and DPS at 0.00, which may indicate non-disclosure rather than an actual zero dividend. With EPS at ¥90.99 and negative FCF, internal cash generation is currently insufficient to support material distributions without relying on financing. FCF_coverage: FCF coverage is shown as 0.00x. Given -¥7.49bn FCF, any dividend would not be covered by free cash flow this period. policy_outlook: Given growth funding needs and reliance on external financing, capital allocation likely prioritizes reinvestment and balance sheet flexibility over cash dividends in the near term. Formal dividend policy details are not disclosed in the provided data.

Risk Assessment

Business Risks:

• Revenue cyclicality tied to real estate/project cycles and macro conditions.
• Execution risk on development timelines, pre-sales, and cost control.
• Margin volatility due to reliance on other operating income and mix.
• Supply chain and construction cost inflation impacting gross margins.
• Regulatory and zoning changes affecting project approvals and profitability.

Financial Risks:

• Weak cash conversion (OCF/NI -1.17x) and negative FCF necessitating external financing.
• Interest rate and refinancing risk given growth funded by financing inflows.
• Working capital intensity (likely inventory/receivables build) raising liquidity management demands.
• Potential covenant constraints if leverage increases during expansion.

Key Concerns:

• Sustainability of operating profit above gross profit (non-core income dependence).
• Negative OCF despite strong earnings.
• Undisclosed inventories and cash limiting visibility on true liquidity.
• Sensitivity of demand and pricing to macro slowdown.

Investment Implications

Key Takeaways:

• Strong YoY growth with operating leverage, ROE at 14.95%.
• Operating income boosted by other operating items; core gross margin is thin at 10.7%.
• Cash conversion is weak; FCF negative at -¥7.49bn.
• Balance sheet appears balanced with implied ~39.7% equity ratio; interest coverage 23.1x.
• Expansion financed externally (¥19.26bn inflow), suggesting dependence on capital markets/banks.

Metrics to Watch:

• Backlog/pre-sales and project pipeline to gauge revenue sustainability.
• OCF/NI and working capital turnover (receivables, inventories, land bank).
• Gross margin vs operating margin gap (recurring vs non-recurring items).
• Interest-bearing debt levels, average funding costs, and coverage ratios.
• Equity ratio and debt-to-equity as growth continues.
• Dividend policy disclosures and capital allocation framework.

Relative Positioning: Relative to domestic real estate and project-based peers, the company shows faster revenue and profit growth with solid ROE, but exhibits weaker cash conversion and a greater contribution from non-core operating income, implying higher execution and earnings quality risk alongside robust expansion.

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
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