Arr Planner Co.,Ltd. FY2026 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥34.83B
• Operating Income: ¥2.58B
• Net Income: ¥929M
• EPS: ¥309.59

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

Arplanner Co., Ltd. (2983) delivered strong FY2026 Q3 (cumulative) results under JGAAP on a consolidated basis, highlighted by double-digit revenue growth and outsized operating profit expansion. Revenue rose 18.7% year over year to 348.34 billion yen-equivalent units (i.e., 348.34 in 100M JPY), with operating income up 68.1% to 25.76, demonstrating substantial operating leverage. Gross profit reached 49.34 with a gross margin of 14.2%, while SG&A was held to 34.01, implying an SG&A-to-sales ratio of about 9.8% and underpinning margin expansion. Operating margin improved to approximately 7.4% (calculated), and ordinary income was 24.29 (+71.4% YoY), indicating limited non-operating drag despite interest expense of 1.37. Net income was reported at 16.48 (+77.4% YoY), translating to a net margin of 4.7% and EPS (basic) of 309.59 yen on average shares of 5.325 million. DuPont analysis implies ROE of 23.5%, driven by modest asset turnover (1.03x), thin but improving margins, and relatively high financial leverage (assets/equity ~4.83x). The balance sheet shows total assets of 338.11 and equity of 70.07, suggesting an equity ratio of roughly 20.7% (calculated), while liabilities totaled 231.92 with short-term and long-term loans of 55.39 and 40.49, respectively. Liquidity appears reasonable with a current ratio of 142%, working capital of 79.82, and cash of 53.57; cash nearly covers short-term loans (0.97x). Interest coverage is strong at 18.8x, indicating healthy debt service capacity. Dividend payout ratio is indicated at 14.7%, implying a conservative distribution stance in the absence of disclosed DPS. Cash flow statements were not disclosed, limiting assessment of operating cash conversion and free cash flow sustainability. Some internal line items (e.g., inventories, receivables, depreciation) are unreported, constraining deeper analysis of cost structure, fixed-cost absorption, and working capital intensity. There is a data inconsistency between profit before tax (14.17) and net income (16.48) alongside income tax expense (4.88); we rely on the provided calculated margins and ROE for interpretation while flagging the discrepancy. Overall, the company exhibits robust earnings momentum, disciplined SG&A control, and solid interest coverage, balanced against relatively high leverage for the sector and limited visibility on cash flow and inventory dynamics typical of homebuilding.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 4.7% (calculated; net income 16.48 / revenue 348.34)
• asset_turnover: 1.03x (revenue 348.34 / assets 338.11)
• financial_leverage: 4.83x (assets 338.11 / equity 70.07)
• calculated_ROE: 23.5% (matches provided DuPont)
• commentary: High ROE is primarily leverage-assisted, with improving profitability and reasonable asset turnover for a homebuilder. Sustaining ROE will require continued margin discipline and inventory turns without increasing leverage. margin_quality:
• gross_margin: 14.2% (49.34 / 348.34) — typical low-teens for homebuilding with signs of improvement
• operating_margin: 7.4% (25.76 / 348.34; reported operating margin not disclosed but calculable)
• ordinary_margin: 7.0% (24.29 / 348.34)
• net_margin: 4.7% (calculated)
• drivers: YoY revenue growth of 18.7% combined with strong SG&A efficiency (SG&A-to-sales ~9.8%) expanded operating margin. Non-operating expenses (net -1.16) modestly offset gains. operating_leverage: Operating income +68.1% vs revenue +18.7% indicates high operating leverage, suggesting fixed-cost absorption improvements, product/pricing mix benefits, or construction efficiency gains. Sustainability depends on order intake, backlog, and cost inflation control.

Growth Assessment

revenue_sustainability: Top-line growth of 18.7% is robust for a housing-related business; without order/backlog disclosure, sustainability hinges on land pipeline, sales centers, and regional demand. Sector dynamics (mortgage rates, consumer sentiment, housing policy) will influence momentum. profit_quality: Margin uplift stems from SG&A efficiency and potentially mix/pricing. Non-operating drag is contained (interest expense 1.37; coverage 18.8x). However, lack of depreciation detail limits assessment of EBITDA quality and capital intensity. outlook: With improved operating margin (~7.4%) and strong ROE, near-term earnings trajectory is favorable if demand holds and cost inflation remains manageable. Absence of CF data and inventory metrics tempers visibility into growth funding and cycle risk.

Financial Health

liquidity: Current assets 268.29 vs current liabilities 188.48 yields a current ratio of 142.3% and working capital of 79.82. Cash 53.57 covers ~97% of short-term loans (55.39), supporting near-term liquidity. Quick ratio equals current ratio only because receivables/inventories are unreported; true quick liquidity is likely lower given the inventory-heavy model. solvency: Total liabilities/equity is 3.31x (231.92 / 70.07). Calculated equity ratio about 20.7% (equity/assets). Interest coverage is strong at 18.8x (operating income/interest expense), indicating comfortable debt service capacity. capital_structure: Loans total ~95.9 (short 55.39, long 40.49). Net debt approximates 42.3 if only loans are interest-bearing (assumption), implying net debt/equity ~0.60x. Leverage is meaningful for a homebuilder but appears manageable given coverage and cash.

Cash Flow Quality

earnings_quality: Without OCF and depreciation, we cannot triangulate accrual intensity or EBITDA conversion. The sector’s intrinsic working-capital needs (land and housing inventory) mean earnings can diverge from cash generation. FCF_analysis: Operating CF and CapEx are undisclosed; thus FCF cannot be estimated. Growth likely consumes cash via land acquisition and construction WIP. working_capital: Current assets are large (268.29), but inventory and receivables are unreported. Accounts payable stands at 26.30, suggesting supplier financing is present but modest relative to current assets. Monitoring inventory turnover and build cycles is essential.

Dividend Sustainability

payout_ratio_assessment: Calculated payout ratio is 14.7%, indicating a conservative distribution relative to earnings and leaving headroom for reinvestment and balance sheet reinforcement. FCF_coverage: Not assessable due to missing OCF/FCF. In homebuilding, sustainable dividends generally require positive OCF through cycles; lack of CF data is a key gap. policy_outlook: Given growth and leverage needs, a low-to-moderate payout appears consistent with reinvestment priorities. Confirmation awaits disclosure of DPS policy and medium-term capital allocation.

Risk Assessment

Business Risks:

• Housing demand cyclicality and sensitivity to mortgage availability and household income
• Construction cost inflation (materials and labor) compressing gross margins
• Land procurement risk and potential write-downs if market turns
• Project execution risk including delays and quality issues
• Regional concentration risk if sales are skewed to specific prefectures/metro areas
• Regulatory and tax policy changes impacting housing demand or costs
• Natural disaster exposure impacting supply chain and deliveries

Financial Risks:

• Leverage reliance (assets/equity ~4.83x; liabilities/equity 3.31x) amplifies earnings volatility
• Interest rate risk on floating-rate debt affecting interest expense and affordability for buyers
• Working capital intensity and potential negative OCF during growth phases
• Refinancing risk related to substantial short-term borrowings (55.39)
• Liquidity risk if inventory turns slow or cancellations rise

Key Concerns:

• Lack of cash flow disclosures obscures earnings-to-cash conversion and dividend safety
• Inconsistency between profit before tax, income tax, and net income figures
• Unreported inventory and receivables hinder assessment of operating cycle and risk
• High operating leverage implies greater downside sensitivity if sales slow

Investment Implications

Key Takeaways:

• Strong earnings momentum: revenue +18.7% and operating income +68.1% with operating margin ~7.4%
• High ROE of 23.5% driven by margin recovery and leverage; sustainability depends on cash conversion
• Healthy interest coverage (18.8x) and adequate liquidity (current ratio 142%) despite meaningful debt
• Conservative capital return with a 14.7% payout ratio; DPS not disclosed
• Visibility gaps in cash flow, inventory, and depreciation limit conviction on durability

Metrics to Watch:

• Order intake, backlog, and cancellation rates
• Gross margin per unit and SG&A-to-sales ratio
• Inventory levels and turnover days; land bank and acquisition cadence
• Operating cash flow and free cash flow; working capital movements
• Net debt to equity and interest coverage; mix of short vs. long-term debt and rate structure
• Average selling price and build cycle times

Relative Positioning: Within Japanese homebuilders, Arplanner exhibits above-peer growth and ROE with manageable—though non-trivial—leverage. Margin execution and SG&A discipline are strengths; however, limited disclosure on cash flows and inventories constrains comparability versus larger peers with fuller reporting.

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