Reskill Corp. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥1.76B
• Operating Income: ¥730M
• Net Income: ¥482M
• EPS: ¥233.27

Income Statement

Balance Sheet

Cash Flow Statement

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

RISKILL Co., Ltd. (291A0) delivered strong FY2026 Q2 single-entity results under JGAAP, with revenue of ¥1,764m growing 23.9% YoY and operating income of ¥730m up 20.6% YoY. Net income was ¥482m (+22.2% YoY), translating to an EPS of ¥233.27, indicating robust profitability and scalability in an asset-light model. Gross margin stood at 48.1% and operating margin at 41.4%, with minimal non-operating impact (ordinary income ¥731m) pointing to high-quality core earnings. DuPont-derived ROE was a high 26.07%, supported by a 27.32% net margin, asset turnover of 0.761x, and modest leverage of 1.25x (assets/equity). On a reconstructed basis, ROA approximates 20.8% (NI/Assets), underscoring efficiency and a strong value creation profile. Operating cash flow of ¥497m slightly exceeded net income (OCF/NI 1.03x), supporting the earnings quality. Liquidity appears very strong (current ratio 453% and quick ratio 453%), while solvency is conservative (debt-to-equity ~0.19x), suggesting ample balance sheet resilience. Working capital was positive at ¥1,234m, leaving headroom to support growth. Several reported items show zeros (e.g., equity ratio, cash & equivalents, investing cash flow), which indicates non-disclosure under the company’s XBRL taxonomy rather than true zero values; analysis focuses on disclosed non-zero figures. The effective tax rate in the calculated metrics is shown as 0.0%, but based on disclosed income taxes of ¥208.6m against pretax earnings proxied from ordinary income, an implied tax rate around ~30% is more realistic. Dividend payments were not disclosed (DPS reported as 0.00), implying reinvestment at this stage; coverage capacity appears strong if a distribution policy were later introduced. With SG&A estimated at ~6.7% of sales, cost discipline appears notable for a services-oriented model. The earnings profile suggests low capital intensity (D&A ~¥1.0m) and limited reliance on financing (interest expense unreported/immaterial). While operating leverage appears slightly negative YoY (OI growth below revenue growth), the margin base remains high. Overall, the company demonstrates high profitability, solid cash conversion, and a conservative balance sheet, though data gaps limit full visibility into cash composition, capex, and dividend policy.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 27.32%
• asset_turnover: 0.761x
• financial_leverage: 1.25x (Assets/Equity ≈ 2,317/1,849)
• calculated_ROE: 26.07%
• commentary: High ROE is driven primarily by an exceptional net margin and healthy asset turnover, with only modest leverage contribution. margin_quality:
• gross_margin: 48.1% (¥849.1m/¥1,764.0m)
• operating_margin: 41.4% (¥730.0m/¥1,764.0m)
• ordinary_margin: 41.4% (¥731.0m/¥1,764.0m)
• net_margin: 27.32% (¥482.0m/¥1,764.0m)
• SG&A_ratio_est: ≈6.7% (GP minus OI implies SG&A of ~¥119.1m)
• quality_assessment: Margins are very strong with minimal non-operating items affecting results, indicating clean core earnings. operating_leverage:
• revenue_growth_YoY: 23.9%
• operating_income_growth_YoY: 20.6%
• assessment: Slight negative operating leverage YoY as OI growth trails revenue growth, but profitability remains elevated.

Growth Assessment

revenue_sustainability: Double-digit revenue growth (+23.9% YoY) suggests robust demand and/or pricing power, likely underpinned by scalable, asset-light services. profit_quality: Ordinary income closely tracks operating income, implying limited reliance on non-operating gains; low D&A indicates minimal distortion from depreciation. outlook: With high margins and ample working capital, near-term growth appears supportable. However, visibility into order backlog, client concentration, and recurring revenue components is not provided, limiting forward precision.

Financial Health

liquidity:

• current_ratio: 453.3% (CA ¥1,583.6m / CL ¥349.4m)
• quick_ratio: 453.3% (inventories unreported)
• working_capital: ¥1,234.2m
• commentary: Strong near-term liquidity buffer; cash composition is undisclosed due to zero placeholders. solvency:
• debt_to_equity: 0.19x (Liabilities/Equity ≈ 349.4/1,849.0)
• equity_ratio_reconstructed: ≈79.7% (Equity/Assets ≈ 1,849/2,317); reported 0.0% is an undisclosed placeholder.
• interest_coverage: N/A (interest expense unreported/immaterial); balance sheet suggests limited debt service burden. capital_structure: Low leverage with substantial equity cushion provides flexibility for investment and protects against downturn risk.

Cash Flow Quality

earnings_quality:

• OCF: ¥497.4m
• Net_income: ¥482.0m
• OCF_to_NI: 1.03x
• assessment: Cash conversion is slightly above 1x, supportive of earnings quality. FCF_analysis:
• free_cash_flow: Not derivable (Investing CF reported as 0 indicates non-disclosure).
• capex_visibility: Limited; D&A is only ¥1.0m, suggesting low capital intensity.
• implication: Underlying FCF is likely positive given OCF strength and asset-light profile, but precise quantification is not possible from disclosed figures. working_capital:
• observations: Positive working capital of ¥1,234m; detailed components (receivables, payables, cash) are not disclosed. Receivable days and collection efficiency cannot be assessed.

Dividend Sustainability

payout_ratio_assessment: DPS and payout ratio reported as 0.0% (non-disclosed). With NI of ¥482m and low leverage, capacity for dividends appears strong if policy permits. FCF_coverage: Not assessable due to unreported FCF/capex; OCF suggests potential coverage for distributions. policy_outlook: Likely prioritizing reinvestment and balance sheet strength at current stage; explicit policy not disclosed.

Risk Assessment

Business Risks:

• Demand cyclicality tied to corporate training and upskilling budgets.
• Client concentration risk if top accounts represent a large portion of sales (not disclosed).
• Scalability and staffing/utilization constraints in services delivery.
• Competition from larger HR/education platforms and digital learning providers.
• Pricing pressure and mix shifts affecting margins.
• Regulatory or accreditation changes impacting training services.

Financial Risks:

• Limited visibility into cash and equivalents due to disclosure placeholders.
• Capex and investment needs not disclosed, creating uncertainty around future FCF.
• Potential working capital swings affecting OCF timing.
• Tax rate variability (implied ~30%) versus reported placeholder metrics.

Key Concerns:

• Data gaps (equity ratio, cash, investing CF) constrain full assessment.
• Slight negative operating leverage YoY may indicate increased operating costs to support growth.
• Unclear dividend policy and capital allocation priorities.

Investment Implications

Key Takeaways:

• High profitability with operating margin ~41% and net margin ~27%.
• Strong ROE at 26% driven by margins and efficient asset use, not leverage.
• Solid liquidity (current ratio ~4.5x) and low leverage (D/E ~0.19x).
• OCF exceeding net income indicates supportive earnings quality.
• Asset-light model with very low D&A suggests structurally high cash generation potential.
• Non-operating items minimal, enhancing quality of earnings.
• Some margin compression YoY as OI growth lags revenue growth.

Metrics to Watch:

• Order backlog/booking trends and client retention.
• Gross and operating margin trajectory (cost discipline, pricing power).
• OCF/NI ratio and working capital turns (AR and AP days).
• Capex and investing cash flows to gauge FCF.
• Tax rate normalization versus implied ~30%.
• Headcount productivity/utilization and program mix.
• Any disclosure on dividend/capital allocation policy.

Relative Positioning: Versus domestic services/HR training peers on TSE, the company appears to exhibit superior margins, high ROE, and conservative leverage, consistent with an efficient, asset-light operator; disclosure gaps modestly temper comparability.

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