TOYOKOH Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥1.63B
• Operating Income: ¥413M
• Net Income: ¥345M
• EPS: ¥25.63

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

For FY2026 Q2 (standalone, JGAAP), 株式会社トヨコー delivered a sharp earnings inflection characterized by strong top-line expansion and substantial operating leverage. Revenue rose 77.5% year over year to ¥1,634 million, translating into operating income of ¥413 million (+208.1% YoY) and net income of ¥345 million (+112.5% YoY). The DuPont-derived ROE is 12.55%, driven by a robust net margin of 21.11%, moderate asset turnover of 0.325x, and prudent financial leverage at 1.83x. EBITDA of ¥425.98 million implies a 26.1% margin, underscoring healthy underlying profitability and tight cost control. The interest coverage ratio is very strong at 71.7x, reflecting low financing burden relative to operating earnings. Liquidity appears ample with a current ratio of 609% and a quick ratio of 607%, supported by low inventories (¥9.47 million) and significant working capital (¥2,359.82 million). The capital structure is conservative, with total liabilities of ¥1,859.24 million against equity of ¥2,749 million (D/E 0.68x). Operating cash flow was negative at -¥118.62 million despite solid profitability, indicating a disconnect between earnings and cash conversion in the period, likely tied to working capital movements; however, detailed drivers are not disclosed. Financing cash inflow of ¥731.20 million suggests reliance on external capital to bridge cash needs during growth or to pre-fund working capital. The reported cost of sales (¥524.84 million) is inconsistent with gross profit (¥396.46 million) given revenue of ¥1,634 million; the gross margin of 24.3% implies cost of sales closer to ~¥1,237.54 million, so we treat gross profit and margin as the reliable anchors for profitability. Income tax was negative (¥-42.74 million), implying a tax benefit and contributing to the high net margin and ROE; this may be non-recurring. Cash and cash equivalents and several ratios (e.g., equity ratio, BVPS, share counts) are undisclosed in XBRL and shown as zero placeholders; conclusions are based only on available non-zero items. Dividend payments remain suspended (DPS ¥0.00), aligning with the company’s apparent growth and cash preservation stance. Overall, the quarter exhibits strong earnings momentum and operating leverage, but cash flow quality is mixed, with negative OCF and dependence on financing inflows. Balance sheet liquidity is strong on reported current assets, yet actual cash levels are not disclosed, limiting precise assessment of near-term funding flexibility. Given the data limitations and the cost-of-sales inconsistency, we emphasize cautious interpretation of margins and cash flows while acknowledging the clear upward trajectory in earnings.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 21.11% (Net income ¥345m / Revenue ¥1,634m)
• asset_turnover: 0.325x (Revenue ¥1,634m / Total assets ¥5,022m)
• financial_leverage: 1.83x (Total assets ¥5,022m / Equity ¥2,749m)
• calculated_ROE: 12.55% (matches reported 12.55%) margin_quality: EBITDA margin is 26.1% (¥425.98m), and operating margin is approximately 25.3% (¥413m / ¥1,634m). The disclosed gross profit margin is 24.3% (¥396.46m), but this is inconsistent with the reported cost of sales (¥524.84m). Using revenue and gross profit, implied cost of sales is ~¥1,237.54m. Net margin benefits from a tax credit (income tax ¥-42.74m), which may not recur. operating_leverage: Operating income grew +208.1% YoY on +77.5% revenue growth, indicating strong operating leverage from fixed-cost absorption and/or mix benefits. D&A is modest (¥12.98m), so margin gains are largely from core operations rather than accounting effects.

Growth Assessment

revenue_sustainability: Revenue expanded 77.5% YoY to ¥1,634m. Sustainability will depend on order backlog, customer concentration, and repeatability of drivers (not disclosed). The low inventory balance suggests a service-heavy mix or efficient throughput. profit_quality: High EBITDA margin (26.1%) and operating margin (~25.3%) point to solid operational efficiency. However, the negative OCF and tax benefit inflate reported net income, tempering quality. The gross margin disclosure inconsistency raises uncertainty about exact cost structure but directionally indicates improved unit economics. outlook: With strong operating leverage and a healthy balance sheet, momentum could continue if demand holds. Near-term focus should be on cash conversion and whether financing inflows normalize as working capital cycles stabilize. Lack of disclosure on order trends and end-market demand is a constraint.

Financial Health

liquidity: Current ratio 609.3% and quick ratio 607.3% (Current assets ¥2,823.14m vs. current liabilities ¥463.33m) indicate ample short-term coverage. Cash and equivalents are undisclosed (shown as 0), so liquid asset composition is unclear. Working capital stands at ¥2,359.82m. solvency: Debt-to-equity is 0.68x (Total liabilities ¥1,859.24m / Equity ¥2,749m), indicating moderate leverage. Interest coverage is strong at 71.7x (EBIT ¥413m / Interest expense ¥5.76m). The equity ratio is undisclosed in XBRL (shown as 0.0%). capital_structure: Liabilities are well-covered by equity (assets ¥5,022m vs. equity ¥2,749m). Financing cash inflow of ¥731.20m suggests recent funding activity; absent cash disclosures, the mix (debt vs. equity) is unknown.

Cash Flow Quality

earnings_quality: Net income of ¥345m contrasts with operating cash flow of ¥-118.62m (OCF/NI = -0.34), indicating earnings not yet translating into cash, likely due to working capital build or timing effects. The negative tax expense also boosts accounting earnings. FCF_analysis: Free cash flow is undisclosed (FCF shown as 0 due to missing capex detail). Investing cash flow is not reported. With negative OCF and unknown capex, true FCF appears weak to negative for the period. working_capital: Current assets are high relative to current liabilities, but the OCF shortfall implies cash tied up in receivables or other current accounts (not disclosed). Inventory is minimal (¥9.47m), suggesting WC pressure is not inventory-driven.

Dividend Sustainability

payout_ratio_assessment: No dividend declared (DPS ¥0.00; payout ratio 0.0%). Given strong earnings but negative OCF, a conservative payout stance is consistent with preserving liquidity for growth and working capital. FCF_coverage: FCF coverage cannot be assessed due to missing capex and cash data (reported as 0 placeholders). Based on negative OCF, cash coverage of dividends would be inadequate in this period. policy_outlook: With recent financing inflows and growth investments, dividend resumption may depend on sustained cash conversion and visibility on recurring earnings. Near-term emphasis likely remains on reinvestment and balance sheet strength.

Risk Assessment

Business Risks:

• Revenue concentration or project timing risk affecting quarterly volatility (not disclosed).
• Sustainability of high margins if demand normalizes or mix shifts.
• Dependence on tax credits or non-recurring items boosting net income.
• Potential supply chain or subcontracting constraints amid rapid growth.
• Execution risk from scaling operations quickly.

Financial Risks:

• Negative operating cash flow despite strong earnings, indicating cash conversion risk.
• Reliance on financing inflows (¥731.20m) to support operations or growth.
• Uncertainty around actual cash position due to undisclosed cash and equivalents.
• Margin disclosure inconsistency (COGS vs. gross profit) introduces measurement risk.
• Potential increase in leverage if external funding persists.

Key Concerns:

• OCF/Net income ratio of -0.34 points to weak cash realization in the period.
• Gross profit vs. cost-of-sales inconsistency complicates margin analysis.
• Tax benefit (¥-42.74m) inflates net margin and ROE; may not recur.

Investment Implications

Key Takeaways:

• Strong revenue growth (+77.5% YoY) with outsized operating leverage (+208.1% YoY OI).
• Healthy profitability: EBITDA margin 26.1%, operating margin ~25.3%, net margin 21.1%.
• ROE at 12.55% supported by high margins and moderate leverage (1.83x).
• Excellent reported liquidity (current ratio 609%), but cash balance undisclosed.
• Earnings quality mixed: OCF -¥118.62m vs. NI ¥345m; tax benefit boosts bottom line.
• Recent financing inflow (¥731.20m) suggests external funding during growth phase.
• Data gaps and internal inconsistency (COGS vs. GP) warrant cautious interpretation.

Metrics to Watch:

• Operating cash flow and working capital turns (receivables/payables days).
• Gross margin trend using consistent definitions; reconciliation of COGS.
• Order backlog and book-to-bill (if disclosed) to gauge sustainability.
• Capex and investing cash flows to assess true FCF.
• Leverage and interest coverage post-financing; composition of funding.
• Tax rate normalization and impact on net margin.

Relative Positioning: Within its likely peer set, the company appears to be in a high-growth, high-margin phase with moderate leverage and strong reported liquidity, but with weaker cash conversion than best-in-class operators and with disclosure gaps that limit 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