Metaplanet Inc. FY2025 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥4.52B
• Operating Income: ¥2.75B
• Net Income: ¥-321M
• EPS: ¥23.22

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment 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

MetaPlanet Co., Ltd. (TSE: 33500) reported FY2025 Q3 consolidated results under JGAAP that show extremely strong bottom-line growth driven predominantly by non-operating gains, while the core revenue base remains modest. Revenue was ¥4.517bn (+1,702.1% YoY), but gross profit was reported at ¥201m, implying a low apparent gross margin of 4.4%; however, line-item relationships appear inconsistent (gross profit and cost of sales do not reconcile to revenue), so margin readings should be treated cautiously. Operating income was ¥2.748bn (+1,241.3% YoY), yielding an apparent operating margin of about 60.8% on the reported revenue base. Ordinary income surged to ¥23.229bn, far exceeding operating income and indicating that the bulk of profit was driven by non-operating items (e.g., valuation gains or investment-related income). Net income came in at ¥13.528bn with a very low effective tax burden (income tax ¥9m), producing an extraordinary net profit margin of 299.5% on the reported revenue. The company’s DuPont profile shows net margin of 299.5%, asset turnover of 0.008x, and financial leverage of 1.03x, resulting in an ROE of 2.54%; this combination indicates that despite very high margins this period, extremely low asset turnover and low leverage kept ROE modest. The balance sheet is very strong in aggregate with total assets of ¥550.744bn and total liabilities of ¥13.359bn, implying a very low debt-to-equity ratio of roughly 0.03x and an equity-to-asset ratio of about 96.8%. Liquidity, however, looks tight: current assets of ¥2.685bn versus current liabilities of ¥11.393bn result in a current ratio of 23.6% and negative working capital of ¥8.708bn. Cash flow data (operating, investing, financing) and cash balances are not disclosed in the provided dataset, limiting assessment of cash conversion and funding capacity. Dividend per share is zero with a 0% payout, which is consistent with a period dominated by non-operating gains and uncertain cash conversion. EPS was reported at ¥23.22; the implied share count based on net income is roughly 582.6 million shares (indicative only, given share data were not disclosed). Overall, the quarter reflects highly volatile earnings dominated by non-operating factors with limited visibility on recurring operating profitability. The capital structure is conservative at the total balance-sheet level, but short-term liquidity appears stretched based on the low current asset base. Given the lack of cash flow disclosure and inconsistencies in cost/gross profit presentation, conclusions on underlying operating health should be made cautiously. Key monitoring points include the sustainability of non-operating gains, liquidity management, and supplemental disclosures on cash, investments, and the nature of ordinary income drivers.

Profitability Analysis

ROE (DuPont): Net profit margin 299.5% × Asset turnover 0.008 × Financial leverage 1.03 ≈ 2.54%, consistent with the reported ROE. This indicates unusually high margins offset by very low asset intensity and minimal leverage. Margin quality: Net income of ¥13.528bn vs operating income of ¥2.748bn and ordinary income of ¥23.229bn shows profits are dominated by non-operating items rather than core operations. Reported gross profit of ¥201m on ¥4.517bn revenue implies a 4.4% gross margin, which conflicts with the much higher operating income; margin readings are therefore not fully reliable from the provided lines. Operating leverage: With revenue still modest and operating income inflated relative to gross profit, operating leverage in the traditional sense cannot be cleanly inferred; the profit structure suggests that changes in non-operating drivers (e.g., investment valuation) will dominate earnings volatility rather than fixed-cost absorption in the near term.

Growth Assessment

Revenue grew 1,702.1% YoY to ¥4.517bn from a low base, but the sustainability of this growth is unclear given limited detail on business mix. Operating income rose 1,241.3% YoY to ¥2.748bn, though this appears inconsistent with the low reported gross profit, implying significant non-operating or classification effects even within the operating line. Ordinary income of ¥23.229bn and net income of ¥13.528bn signal that profit growth is primarily driven by non-operating factors, which may be episodic or market-driven. Without cash flow data or detailed segment disclosure, we cannot verify recurrence. Near-term outlook will hinge on the continuation of these non-operating drivers; core revenue scale and margin trajectory need more disclosure to assess durability. Watch for guidance on business model, the nature of investment/valuation gains, and any hedging policies to contextualize volatility.

Financial Health

Liquidity: Current assets ¥2.685bn vs current liabilities ¥11.393bn imply a current ratio of 23.6% and negative working capital of ¥8.708bn, pointing to near-term funding pressure absent access to undrawn facilities or asset monetization. Solvency: Total liabilities ¥13.359bn vs equity ¥532.907bn yield a very low debt-to-equity of ~0.03x; equity-to-asset ratio is approximately 96.8%, indicating strong overall solvency. Capital structure: Low leverage with ample equity cushion at the consolidated level, but the asset base appears largely non-current, which constrains liquidity despite strong solvency. Interest expense is not disclosed (reported as 0), and interest coverage cannot be assessed from available data.

Cash Flow Quality

Earnings quality: The gap between ordinary income (¥23.229bn) and operating income (¥2.748bn) suggests profit reliance on non-operating items, which are often non-cash or market-driven. Cash flow statements are not disclosed in the provided dataset (OCF/ICF/FCF shown as 0 indicates unreported), so we cannot quantify cash conversion. Free cash flow: Not assessable; FCF shown as 0 is a placeholder due to missing OCF and capex data. Working capital: On balance-sheet, working capital is negative (¥-8.708bn), which may pressure operating cash needs unless offset by rapid receivable turnover, supplier financing, or liquidation of non-current assets. Overall, earnings quality leans low until the composition of ordinary income and cash realization is clarified.

Dividend Sustainability

The company paid no dividend (DPS ¥0, payout 0%). Given profits are dominated by non-operating items and cash flow data are undisclosed, maintaining a dividend would require clear evidence of cash generation or distributable reserves policy. Short-term liquidity metrics (current ratio 23.6%) argue for conservatism. FCF coverage cannot be assessed. Policy outlook likely remains opportunistic and contingent on visibility into cash flows and the stability of non-operating gains.

Risk Assessment

Business Risks:

• Earnings concentration in non-operating items leading to high profit volatility.
• Limited visibility on the core revenue model and margin structure.
• Potential exposure to market valuation swings (e.g., investment securities, digital assets) driving ordinary income.
• Operational execution risk if scaling the underlying business to match reported growth.

Financial Risks:

• Tight liquidity: current ratio 23.6% and negative working capital of ¥8.708bn.
• Cash flow disclosure gaps hinder assessment of funding capacity and cash conversion.
• Low apparent tax burden (¥9m) may normalize, reducing net income.
• Potential refinancing or working capital needs if current liabilities persist without matching liquid assets.

Key Concerns:

• Disconnect between revenue/cost/gross profit and operating profit figures in the provided dataset.
• Dependence on non-operating gains (ordinary income ¥23.229bn vs operating income ¥2.748bn).
• Absence of cash and cash flow disclosure limiting FCF evaluation.

Investment Implications

Key Takeaways:

• Headline profitability is extraordinarily strong but primarily non-operating in nature.
• Core operating scale remains modest relative to the balance sheet; asset turnover is just 0.008x.
• Balance sheet solvency is robust (D/E ~0.03x; equity-to-asset ~96.8%), but short-term liquidity is weak.
• Cash flow data are missing; dividend capacity and reinvestment flexibility cannot be confirmed.
• Earnings may be highly sensitive to market-driven valuation effects.

Metrics to Watch:

• Composition of ordinary income and any disclosed drivers (e.g., investment valuation gains/losses).
• Liquidity metrics: cash balance, undrawn credit lines, and current ratio improvements.
• Operating KPIs: revenue mix, gross margin reconciliation, and recurring operating income.
• Cash conversion: OCF, capex, and FCF once disclosed.
• Leverage and capital deployment: changes in liabilities and equity, potential asset sales/purchases.

Relative Positioning: Versus typical TSE peers, the company shows unusually low leverage and very high reported profits driven by non-operating items, paired with weak near-term liquidity and very low asset turnover; this positions it as a high-volatility, market-sensitive earner rather than a stable, operations-driven compounder at this stage.

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