b-style holdings,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥6.05B
• Operating Income: ¥124M
• Net Income: ¥81M
• EPS: ¥27.43

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

Beestyle Holdings (302A0) reported FY2026 Q2 consolidated results under JGAAP showing steady topline growth with pressured bottom-line outcomes. Revenue rose 6.9% year over year to ¥6,048 million, supported by robust gross profit of ¥2,444.7 million and a gross margin of 40.4%. Operating income increased 4.6% YoY to ¥124 million, resulting in an operating margin of roughly 2.0%, indicating some cost creep in SG&A relative to gross profit growth. Ordinary income was ¥118 million, reflecting modest non-operating burdens mainly from interest expense of ¥8.8 million. Net income declined 50.6% YoY to ¥39 million, compressing net margin to 0.64%, suggesting adverse non-operating/extraordinary comparisons or a normalization of taxes versus an unusually low base a year ago. EPS came in at ¥27.43. DuPont metrics indicate a calculated ROE of 2.99% (net margin 0.64% × asset turnover 1.496 × financial leverage 3.10), underscoring that low net margin is the primary constraint on equity returns. Operating cash flow was strong at ¥196.6 million, more than 5x net income, signaling solid earnings quality for the period and likely favorable working capital dynamics. Liquidity appears healthy with current assets of ¥3,674.8 million against current liabilities of ¥1,457.6 million, yielding a current ratio of 252.1% and working capital of ¥2,217.1 million. Total assets were ¥4,043 million and total equity ¥1,303 million, implying an equity ratio near 32.2% (derived), even though the reported equity ratio field is not disclosed. Total liabilities stood at ¥2,887.5 million, corresponding to a liabilities-to-equity measure of 2.22x, yet interest coverage remains comfortable at 14.1x. EBITDA was ¥191.5 million with a margin of 3.2%, close to operating cash flow, which supports the quality of earnings. The effective tax rate implied by the period (income tax of ¥37.8 million on ordinary income of ¥118 million) is approximately 32%, indicating a normalized tax burden. Investment and cash balances were not disclosed in the XBRL (shown as 0), limiting visibility on free cash flow and net cash/debt positioning. Dividend information also appears undisclosed for the period (DPS shown as 0.00), so payout policy and cash returns to shareholders cannot be assessed from the provided data. Overall, the company demonstrates healthy gross margins and liquidity, solid cash conversion, but subdued profitability at the operating and net levels, which weighs on ROE.

Profitability Analysis

ROE_decomposition: Calculated ROE is 2.99%, driven by net margin of 0.64%, asset turnover of 1.496, and financial leverage of 3.10. The low net margin is the primary drag; asset utilization is reasonable and leverage is moderate-to-high. margin_quality: Gross margin is strong at 40.4% (¥2,444.7m GP on ¥6,048.0m sales), but operating margin is ~2.0% (¥124m OI), indicating substantial SG&A intensity. Net margin of 0.64% reflects non-operating and tax burdens; implied tax rate ~32% (¥37.8m/¥118m). operating_leverage: Revenue grew 6.9% YoY while operating income grew 4.6% YoY, implying modest negative operating leverage this period as SG&A growth modestly outpaced gross profit growth. EBITDA margin at 3.2% provides limited cushion for shocks.

Growth Assessment

revenue_sustainability: Topline growth of 6.9% YoY to ¥6.05bn suggests continuing demand in core services; asset turnover of 1.496 indicates decent utilization. Sustainability depends on maintaining client demand and pricing in key segments. profit_quality: Operating income growth (+4.6% YoY) lagged sales growth, pointing to cost pressure or mix effects. The sharp YoY decline in net income (-50.6%) likely reflects non-operating/tax normalization rather than core demand deterioration, given stable gross margin. outlook: With robust gross profitability but thin operating margin, future earnings growth hinges on SG&A discipline and mix improvement. Monitoring non-operating items and tax normalization will be key to translating revenue growth into bottom-line expansion.

Financial Health

liquidity: Current assets ¥3,674.8m vs. current liabilities ¥1,457.6m yields a current ratio of 252.1% and working capital of ¥2,217.1m, indicating strong short-term liquidity. Quick ratio mirrors current ratio as inventories are not disclosed. solvency: Total liabilities ¥2,887.5m vs. equity ¥1,303.0m implies liabilities-to-equity of 2.22x. Interest expense is modest at ¥8.8m with interest coverage of 14.1x, suggesting manageable debt service. capital_structure: Total assets of ¥4,043.0m and equity of ¥1,303.0m imply an equity ratio around 32.2% (derived from disclosed balances). Financial leverage (DuPont) at 3.10 supports ROE but increases sensitivity to earnings volatility.

Cash Flow Quality

earnings_quality: OCF of ¥196.6m vs. net income of ¥39.0m (OCF/NI = 5.04x) indicates high cash realization and limited accrual risk this period. EBITDA of ¥191.5m is close to OCF, supporting quality. FCF_analysis: Investing cash flows are not disclosed (listed as 0), so free cash flow cannot be reliably calculated from the provided data. As such, FCF trends and coverage metrics cannot be assessed. working_capital: While detailed components are not provided, the strong OCF alongside stable EBITDA suggests favorable working capital movements or disciplined collections/payables management in the period.

Dividend Sustainability

payout_ratio_assessment: Annual DPS and payout ratio are shown as 0.00, which indicates non-disclosure in this dataset; therefore, we cannot assess actual payout behavior or ratio. FCF_coverage: FCF coverage is shown as 0.00x due to missing investing cash flow; we cannot evaluate coverage of dividends by free cash flow. policy_outlook: With limited disclosure on dividends, any assessment of policy stability or future distributions would be speculative. The company’s liquidity and OCF are supportive in principle, but actual policy remains unclear from available data.

Risk Assessment

Business Risks:

• Thin operating margin (~2.0%) leaves limited buffer against demand shocks or cost inflation.
• Dependence on SG&A efficiency and mix to convert gross profit into operating profit.
• Potential pricing pressure or client concentration risk typical for HR/services sectors.
• Execution risk in maintaining revenue growth while controlling costs.

Financial Risks:

• Leverage of 2.22x liabilities-to-equity raises sensitivity to earnings volatility, despite strong interest coverage.
• Normalization of tax burden (~32% implied) reduces net income leverage to operating results.
• Visibility on investing cash flows and net cash/debt is limited due to non-disclosure, constraining full solvency analysis.

Key Concerns:

• Net income fell 50.6% YoY despite revenue growth, indicating non-operating/tax headwinds.
• Operating leverage was negative in the period as opex outpaced gross profit growth.
• Incomplete disclosure on investing cash flows, cash balances, and dividends limits assessment of FCF and shareholder returns.

Investment Implications

Key Takeaways:

• Topline grew 6.9% YoY to ¥6.05bn with solid gross margin of 40.4%.
• Operating profit increased 4.6% YoY, but operating margin remains low at ~2.0%.
• Net margin of 0.64% and ROE of 2.99% are constrained by non-operating and tax burdens.
• OCF of ¥196.6m exceeds net income by 5.0x, indicating strong cash conversion.
• Liquidity is strong (current ratio 252.1%, working capital ¥2.22bn), and interest coverage is comfortable at 14.1x.
• Leverage is moderate-to-high (liabilities-to-equity 2.22x), amplifying earnings sensitivity.
• Dividend and investing cash flow disclosure is insufficient to assess capital return and FCF trends.

Metrics to Watch:

• SG&A-to-sales ratio and trajectory of operating margin from ~2.0%.
• Non-operating income/expenses and realized effective tax rate (~32% implied).
• Working capital turns (receivables/payables days) and OCF consistency.
• Asset turnover (1.496) and utilization improvements.
• Net debt/EBITDA and cash balance once disclosed.
• Client concentration and pricing metrics in the core business.

Relative Positioning: Within Japan’s HR/services peers, Beestyle’s gross margin is strong but operating margin (~2%) appears below peer mid-single-digit norms; liquidity is robust, interest coverage is comfortable, and ROE (2.99%) is modest due to compressed net margin.

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