| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥944.0B | ¥836.2B | +12.9% |
| 営業利益 | ¥153.7B | ¥120.7B | +27.3% |
| 経常利益 | ¥161.4B | ¥118.5B | +36.2% |
| 純利益 | ¥106.6B | ¥81.0B | +31.6% |
| ROE | 26.5% | 24.6% | - |
For the fiscal year ended March 2026, revenue was ¥944.0B (YoY +¥107.8B +12.9%), Operating Income was ¥153.7B (YoY +¥33.0B +27.3%), Ordinary Income was ¥161.4B (YoY +¥42.9B +36.2%), and Net Income was ¥106.6B (YoY +¥25.6B +31.6%). The company achieved double-digit growth in both revenue and profit with significant margin expansion. Operating margin improved to 16.3% (up +1.9pt from 14.4% a year earlier) and Net margin improved to 11.3% (up +1.6pt from 9.7%), indicating margin expansion across multiple layers. ROE was a high 26.5%, supported by Net margin upside and improved asset efficiency. Growth in high-margin segments — Next-Generation Mobility (Operating Income margin 42.5%), Digital Integration (23.8%), and Project Management Design (21.8%) — drove mix improvement and contributed to company-wide margin expansion.
[Revenue] Top-line reached ¥944.0B (+12.9%), securing double-digit growth. By segment, Next-Generation Mobility grew to ¥75.7B (+36.6%), the highest growth rate, driven by expanded planning and development support for various product offerings and telecommunications carrier services. Business Solutions reached ¥355.8B (+19.4%), supported by strong corporate demand for IT-related products such as servers and PCs. IT & DX Services grew to ¥223.6B (+7.7%) and Digital Integration to ¥104.1B (+18.0%), both expanding steadily. Project Management Design declined slightly to ¥153.0B (-2.4%) but improved profitability due to higher margins. DX & Subscription underperformed at ¥28.9B (+3.9%), with challenges remaining in monetizing proprietary services. Overall, the share of high-value-added segments increased, driving mix improvement.
[Profitability] Cost of sales was ¥695.9B, yielding Gross Profit of ¥248.1B (Gross margin 26.3%, up +1.2pt from 25.1% a year earlier). SG&A was ¥94.5B (+6.0%), growing below revenue (+12.9%), demonstrating effective operating leverage. Operating Income rose to ¥153.7B (+27.3%), outpacing revenue growth, and Operating margin expanded to 16.3% (+1.9pt). Non-operating items included Interest income ¥0.7B, Equity in earnings of affiliates ¥1.0B, and Gains on sale of securities ¥3.9B, bringing total non-operating income to ¥9.2B (prior year ¥1.7B). Non-operating expenses decreased to ¥1.4B (prior year ¥3.8B), with Interest expense at ¥0.2B. As a result, Ordinary Income increased to ¥161.4B (+36.2%), exceeding operating-level growth. Extraordinary items included Gain on bargain purchase ¥0.6B, while Extraordinary losses were ¥0.3B (related to subsidiary liquidations, etc.), with limited impact on Net Income. Profit before tax was ¥161.7B; after deducting Income taxes and others ¥48.5B (effective tax rate 30.0%), Net Income was ¥106.6B (+31.6%). In conclusion, expansion of high-margin segments, SG&A control yielding operating leverage, and increased non-operating income combined to deliver revenue and profit growth.
Next-Generation Mobility posted Operating Income of ¥32.2B (+63.9%) with a margin of 42.5%, the highest profitability, as planning and development support for various product offerings and telecommunications carrier services expanded rapidly. Project Management Design recorded Operating Income of ¥33.4B (+29.4%) and a margin of 21.8%; despite a slight revenue decline (-2.4%), margin improvement resulted in the largest Operating Income in absolute terms. Digital Integration reported Operating Income of ¥24.8B (+26.7%) and a margin of 23.8%, driven by core system development for financial and public-sector clients and DX solution implementations. IT & DX Services achieved Operating Income of ¥31.5B (+10.5%) with a margin of 14.1%, supported by steady demand for PMO, DX support, and system operations outsourcing. Business Solutions generated Operating Income of ¥29.6B (+30.0%) with a margin of 8.3%; although it is the largest revenue segment (¥355.8B) and relatively low-margin, it steadily secures profits even with a hardware focus. Conversely, DX & Subscription fell to Operating Income ¥2.5B (-45.4%) with a margin of 8.7%, a significant decline, indicating challenges in monetizing proprietary services. Inter-segment, growth in high-margin areas substantially contributed to company-wide margin improvement, while DX & Subscription’s weakening profitability created a polarization trend.
[Profitability] Operating margin was 16.3% (up +1.9pt from 14.4% a year earlier) and Net margin was 11.3% (up +1.6pt from 9.7%), reflecting margin expansion across multiple layers. Gross margin was 26.3% (up +1.2pt), supported by an increased share of high-value-added segments driving mix improvement. SG&A ratio was 10.0% (down -0.7pt from 10.7%), with SG&A growth contained below revenue growth, enabling effective operating leverage. ROE was a high 26.5%, driven by Net margin outperformance (11.3%), Total asset turnover of 1.55x, and Financial leverage of 1.52x.
[Cash Quality] Operating Cash Flow/Net Income ratio was 1.25x (Operating Cash Flow ¥132.8B / Net Income ¥106.6B), indicating generally good cash realization of profits. Cash conversion ratio (Operating CF/EBITDA) was 0.84x, partially affected by a lengthening of Days Sales Outstanding (DSO) to 66 days. Free Cash Flow was ¥123.9B (Operating CF ¥132.8B + Investing CF -¥9.0B), providing ample capacity to cover dividends and capital expenditures.
[Investment Efficiency] Total asset turnover was 1.55x (Revenue ¥944.0B / Total assets ¥610.8B), helped by inventory reduction (-41.8%) and decline in investment securities (-41.9%), improving asset efficiency. Inventory decreased to ¥11.9B (prior year ¥20.5B), and Inventory turnover days shortened significantly to 5 days (prior year 9 days).
[Financial Soundness] Equity Ratio was 65.9% (prior year 62.7%), strengthened by increases in retained earnings (¥468.2B, up ¥70.0B from ¥398.2B). Current ratio was 262.8% (Current assets ¥541.2B / Current liabilities ¥205.9B) and Quick ratio was 257.0%, indicating very strong liquidity. Interest-bearing debt was limited to ¥15.8B (Short-term borrowings ¥15.5B + Long-term borrowings ¥0.3B), with Debt/EBITDA at 0.10x and Interest Coverage about 960x (EBITDA ¥158.2B / Interest expense ¥0.2B), effectively near net cash and demonstrating robust financial resilience.
Operating CF increased significantly to ¥132.8B (YoY +66.5%), with subtotal Operating CF of ¥168.4B against Profit before tax ¥161.7B. In working capital, inventory reduction contributed ¥8.6B positively, while increases in accounts receivable -¥3.3B and decreases in accounts payable -¥3.4B partially offset this. Payments of Income taxes and others -¥37.0B and interest and dividends received ¥1.3B were reflected, resulting in Operating CF of ¥132.8B. Operating CF/Net Income ratio was 1.25x, indicating generally good cash realization. Investing CF was -¥9.0B, including acquisitions of tangible and intangible fixed assets -¥4.9B, purchases of short-term investment securities -¥109.8B, proceeds from sales of short-term investment securities ¥19.3B, proceeds from sales of investment securities ¥19.3B, acquisitions of subsidiary and affiliate shares -¥0.7B, and net deposits/guarantee money -¥4.7B. Financing CF was -¥43.2B, mainly due to dividend payments -¥43.1B. Free Cash Flow was ¥123.9B (Operating CF ¥132.8B + Investing CF -¥9.0B), providing solid coverage for dividends and capital expenditures with FCF coverage of 2.08x (FCF ¥123.9B / Dividends ¥43.1B), indicating high sustainability. Cash and cash equivalents at period-end were ¥298.2B (up ¥83.6B from ¥214.6B), significantly increasing the liquidity cushion. Cash conversion ratio (Operating CF/EBITDA) was 0.84x (Operating CF ¥132.8B / EBITDA ¥158.2B); elongation of DSO to 66 days partly affected this, but overall cash generation remains solid.
Core earnings are Operating Income ¥153.7B, generated from recurring business activities. Among non-operating income of ¥9.2B (1.0% of revenue), Gains on sale of securities ¥3.9B is the largest component but is viewed as a temporary factor with limited repeatability into the next fiscal year. Equity in earnings of affiliates ¥1.0B, Interest income ¥0.7B, and Dividend income ¥0.5B were also recorded, raising total non-operating income substantially from ¥1.7B in the prior year. Non-operating expenses decreased to ¥1.4B (prior year ¥3.8B), with Interest expense at ¥0.2B. Extraordinary items included Gain on bargain purchase ¥0.6B and Extraordinary losses ¥0.3B including subsidiary liquidation loss ¥0.1B, with minimal impact on Net Income. The accrual ratio (Net Income - Operating CF) / Total assets was -4.3%, indicating Operating CF exceeded Net Income and suggesting good quality of earnings. Operating CF/Net Income ratio of 1.25x is consistent, showing accounting profits are backed by cash. However, cash conversion ratio (Operating CF/EBITDA) of 0.84x is somewhat modest, with DSO of 66 days being a contributing factor. The gap between Ordinary Income ¥161.4B and Net Income ¥106.6B is explainable by Income taxes and others ¥48.5B (effective tax rate 30.0%) and Non-controlling interests ¥0.1B, with no abnormal tax rate observed. Overall, recurring earnings are primary, and the influence of non-operating and extraordinary items is limited, indicating high earnings quality.
The company’s full-year plan calls for Revenue ¥980.0B (YoY +3.8%), Operating Income ¥159.6B (YoY +3.9%), Ordinary Income ¥159.6B (YoY -1.1%), Net Income attributable to owners of the parent ¥106.3B, EPS ¥29.74, and Dividend ¥9.0. Management appears to assume non-repeatability of recent non-operating income (Gains on sale of securities ¥3.9B, Gain on bargain purchase ¥0.6B, etc.) and incorporates costs for higher personnel expenses and strengthened hiring. Revenue growth of +3.8% represents a marked slowdown from the most recent +12.9%, but this is a cautious view assuming continued growth in high-margin segments and ongoing mix improvement. The progress toward Operating Income is 96.3% at this point (Actual ¥153.7B / Plan ¥159.6B), making full-year attainment highly likely. Ordinary Income is projected to decline -1.1%, primarily due to the loss of non-operating income. Recovery in DX & Subscription profitability (improvements in LTV/CAC, reduced churn) and normalization of accounts receivable collections would improve the likelihood of meeting guidance.
Annual dividend is ¥14.0 (Interim ¥6.0, Year-end ¥8.0), with Payout Ratio of 51.8% (Dividend ¥14.0 / EPS ¥27.04), within a policyually sustainable range. DOE (Total dividends / Equity) is 12.7%, a moderate level from the perspective of shareholder capital efficiency. With Free Cash Flow ¥123.9B and dividend payments ¥43.1B, FCF coverage is 2.87x (FCF ¥123.9B / Dividends ¥43.1B), indicating ample room to support additional growth investments and increased personnel costs. No share buybacks were executed; shareholder returns are by dividends only. The company’s planned dividend of ¥9.0 for the next fiscal year is a conservative assumption, but given profit levels and FCF, there is upside potential. Payout Ratio of 51.8% is moderate within the industry, balancing internal reserves and shareholder returns.
Risk of rising IT personnel hiring and retention costs: Salaries and allowances of ¥30.4B and retirement benefit expenses ¥2.3B are included in SG&A. Continued wage pressure could cause personnel costs to rise faster than revenue. High-margin segments may absorb this via price adjustments, but labor-intensive areas such as IT & DX Services could see margin compression. Balancing utilization rates and pricing adjustments is critical.
Accounts receivable collection risk: Accounts receivable ¥169.5B (prior year ¥170.3B) and DSO of 66 days show a trend toward lengthening, contributing to cash conversion ratio 0.84x. Period-end revenue composition and acceptance timing may affect this; from a cash efficiency perspective, correction of collection terms and stronger credit management are required.
High short-term liabilities ratio: Short-term liabilities ratio is 98.2% (Current liabilities ¥205.9B / Total liabilities ¥208.6B), indicating maturity concentration. Cash / short-term liabilities is 17.66x, so refinancing risk is practically low, but in a rising interest rate environment attention is needed to potential refinancing cost increases for short-term borrowings of ¥15.5B.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 営業利益率 | 16.3% | 8.1% (3.6%–16.0%) | +8.2pt |
| 純利益率 | 11.3% | 5.8% (1.2%–11.6%) | +5.5pt |
The company’s Operating margin exceeds the industry median by +8.2pt, establishing an advantage through higher shares of high-margin segments and cost discipline.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | 12.9% | 10.1% (1.7%–20.2%) | +2.8pt |
The company’s revenue growth rate exceeds the industry median by +2.8pt, driven by expansion in high-value-added areas.
※Source: Company aggregation
Mix improvement toward high-margin segments is structurally lifting profitability, making the advantage of Operating margin 16.3% (industry median +8.2pt) and Net margin 11.3% (industry median +5.5pt) sustainable. Continued growth in Next-Generation Mobility (margin 42.5%), Digital Integration (23.8%), and Project Management Design (21.8%) is key.
Cash generation is solid, with Operating CF/Net Income ratio 1.25x and Free Cash Flow ¥123.9B. Financial strength is very robust, with Debt/EBITDA 0.10x, Interest Coverage approximately 960x, and Equity Ratio 65.9%, effectively near net cash. However, extended DSO of 66 days is affecting cash conversion ratio 0.84x, making correction of collection terms a key management priority for the next period.
Next fiscal year guidance (Revenue +3.8%, Operating Income +3.9%) is conservative but incorporates the non-repeatability of recent non-operating income (Gains on sale of securities, Gain on bargain purchase) and higher personnel costs. Recovery in DX & Subscription profitability (from 8.7%) and continued growth in high-margin segments would increase the probability of achieving guidance.
This report is an earnings analysis document automatically generated by AI analyzing XBRL financial statement data. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information aggregated by the company based on public financial statements. Investment decisions are your own responsibility; consult a professional advisor as needed.