Yossix Holdings Co.,Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥12.44B
• Operating Income: ¥1.42B
• Net Income: ¥1.04B
• EPS: ¥101.16

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

Verdict: FY2026 Q2 was a clean beat operationally with solid top-line growth, modest margin expansion, and strong cash conversion. Revenue rose 10.6% YoY to 124.41, driven by continued store recovery and likely price/mix effects. Operating income increased 12.3% YoY to 14.17, outpacing revenue and indicating positive operating leverage. Ordinary income grew 14.6% to 16.11, aided by modest non-operating gains (non-operating income of 2.00 versus minimal non-operating expense of 0.06). Net income advanced 11.2% to 10.35, translating to an EPS of 101.16 JPY. Gross margin printed at 67.4%, while the operating margin stood at 11.4%. Based on disclosed YoY growth, we estimate operating margin expanded ~17 bps YoY (from ~11.22% to 11.39%). Net margin improved about ~5 bps to 8.3%, reflecting largely neutral tax/other effects. SG&A ratio sits at approximately 56.0% of revenue; full breakdown is unreported, but opex discipline appears intact given operating leverage. Cash generation was strong: operating cash flow of 14.85 exceeded net income (10.35), yielding a 1.43x OCF/NI—indicative of high earnings quality. The balance sheet is liquid and conservative: cash and deposits of 104.55 (≈65% of assets), current ratio of 4.12x, and modest leverage (D/E 0.29x). ROE is 8.3% with low financial leverage (assets/equity ≈1.29x), implying returns are primarily operational rather than leverage-driven. The effective tax rate at 35.8% is on the higher side, slightly capping net margin expansion. Dividend payout is estimated at a conservative 28%, with ample capacity to sustain or modestly raise in line with earnings and cash flow. Non-operating income contributed meaningfully (non-operating income ratio ≈19.3% of operating income), but core operating profit remains the primary earnings driver. Forward-looking, continued same-store sales, cost control (labor and food), and efficient cash deployment will be key to improving ROE above the current ~8%. Absent capex visibility, near-term FCF outlook is not fully observable, but current liquidity suggests flexibility for store investment and shareholder returns.

Profitability Analysis

ROE decomposition (DuPont): ROE = Net Profit Margin × Asset Turnover × Financial Leverage = 8.3% × 0.777 × 1.29 ≈ 8.3%. The most notable movement this quarter is a slight improvement in operating profitability, evidenced by operating margin expansion of ~17 bps (11.22% → 11.39%) and net margin +~5 bps to 8.3%. Business drivers likely included revenue growth from recovery/price-mix and disciplined SG&A, while gross margin held high at 67.4%. Financial leverage remains low (A/E 1.29x), so ROE changes are predominantly from margin and turnover, not balance sheet leverage. Sustainability: modest margin gains appear repeatable if pricing and traffic hold and if cost inflation is contained; however, the tax rate at 35.8% and potential wage/food cost pressures could cap further net margin expansion. Watch for any adverse trend where SG&A grows faster than revenue; current quarter shows positive operating leverage, but lack of SG&A detail warrants monitoring.

Growth Assessment

Top-line growth of +10.6% YoY (124.41) indicates healthy demand, likely supported by store network contribution and price/mix. Operating income growth of +12.3% outpaced revenue, suggesting improving efficiency and fixed-cost absorption. Ordinary income +14.6% benefitted from non-operating income (2.00), but core profitability is still the key driver. Net income +11.2% aligns with operating momentum despite a relatively high tax rate. Given the high gross margin and controlled SG&A ratio, growth quality appears solid. Outlook: continuation of mid-single to low double-digit growth is plausible if same-store sales, pricing power, and store productivity trends persist; key swing factors are labor cost inflation and food input volatility. With a large cash buffer, the company can fund growth capex and selective returns, which could support sustained earnings expansion.

Financial Health

Liquidity is very strong: current ratio 4.12x and quick ratio 4.12x (cash-heavy), with cash and deposits of 104.55 versus current liabilities of 28.20. Solvency is conservative: total liabilities 35.80, equity 124.38, implying D/E of 0.29x; financial leverage (A/E) 1.29x. No warning flags: Current Ratio >> 1.0; D/E well below 2.0. Maturity mismatch risk appears low given cash dominance and relatively small current liabilities. Interest-bearing debt detail is unreported, but financing CF (-1.53) suggests modest outflows (likely dividends/debt service); interest burden appears immaterial (interest expense unreported). No explicit off-balance sheet obligations disclosed in the data set.

Cash Flow Quality

OCF/Net Income is 1.43x (14.85/10.35), which indicates high-quality earnings with cash conversion above the 1.0x benchmark. Free cash flow is unreported (capex not disclosed), so FCF sustainability cannot be quantified, but ample cash and positive OCF imply capacity to fund both investment and dividends. Working capital movements are not fully detailed; receivables are small at 5.27 and inventory is unreported, limiting assessment of potential quarter-end working capital optimization. No signs of aggressive earnings management are evident from the provided figures.

Dividend Sustainability

The payout ratio is calculated at 28.0%, comfortably below the 60% benchmark for sustainability. With OCF exceeding net income and significant cash on hand, coverage for dividends appears robust even without explicit FCF disclosure. Financing CF outflow of -1.53 likely includes dividend payments and/or minor debt service, which are manageable against OCF of 14.85. Policy outlook: room exists for steady DPS increases in line with earnings growth, but visibility is constrained by the lack of capex and official dividend disclosures in this period’s data.

Risk Assessment

Business Risks:

• Food cost inflation and commodity price volatility impacting gross margin.
• Domestic labor shortages and wage inflation raising SG&A pressure.
• Consumer demand sensitivity to macro slowdown affecting traffic and ticket size.
• Execution risk in store openings/closures and format optimization.
• Health and safety/regulatory compliance risk inherent in food service.

Financial Risks:

• High effective tax rate (35.8%) dampening net margin and ROE.
• Potential underutilization of large cash balance lowering capital efficiency.
• Limited visibility on capex and lease/interest obligations due to unreported items.
• Possible currency exposure on imported ingredients (if applicable) affecting COGS.

Key Concerns:

• Reliance on sustained same-store sales growth to maintain operating leverage.
• Non-operating income contribution (≈19.3% of operating income) may not be recurring.
• Data gaps on inventories, capex, and interest-bearing debt constrain full risk evaluation.

Investment Implications

Key Takeaways:

• Solid quarter with revenue +10.6% and operating income +12.3%, indicating healthy operating leverage.
• Margins edged higher: operating margin up ~17 bps and net margin ~+5 bps YoY.
• Cash conversion strong (OCF/NI 1.43x) and balance sheet highly liquid (cash 104.55).
• ROE at 8.3% with low leverage suggests room to enhance returns via margin improvement or capital deployment.
• Conservative payout (28%) leaves capacity for reinvestment and shareholder returns.

Metrics to Watch:

• Same-store sales growth and pricing/mix trends.
• Gross margin trajectory versus food input costs.
• Labor cost ratio within SG&A and overall SG&A/revenue.
• Operating margin sustainability around 11–12%.
• Capex and new store pipeline; lease obligations (if disclosed).
• OCF/NI and working capital movements.
• Tax rate normalization and any non-operating income volatility.
• Capital allocation: dividend policy and potential cash deployment.

Relative Positioning: Within Japan’s casual dining/izakaya peer set, the company exhibits above-average liquidity, disciplined cost control yielding modest margin gains, and a conservative capital structure; while ROE is respectable at ~8%, further improvement hinges on sustained same-store growth, cost management, and more efficient deployment of its sizeable cash balance.

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