p-ban.com Corp. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥1.06B
• Operating Income: ¥58M
• Net Income: ¥40M
• EPS: ¥8.66

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

P-Bandai.com (35590) reported FY2026 Q2 (cumulative) revenue of ¥1,060 million, up 5.2% YoY, with operating income of ¥58 million (-1.4% YoY) and net income of ¥40 million (-0.8% YoY). Gross profit of ¥355.98 million implies a gross margin of 33.6%, indicating a still-solid contribution margin despite some pressure at the operating line. The operating margin was 5.5% and the ordinary margin 5.6%, reflecting limited non-operating items (ordinary income ¥59 million). Net margin stood at 3.77%. DuPont shows ROE of 2.90%, decomposed into net margin 3.77%, asset turnover 0.613x, and financial leverage 1.25x. The current ratio is a robust 434% (current assets ¥1,481.8 million vs. current liabilities ¥341.3 million), and total liabilities remain modest at ¥355.3 million against equity of ¥1,377.0 million (implying leverage of ~0.26x liabilities-to-equity). Operating cash flow was ¥59.66 million, exceeding net income (OCF/NI 1.49x), suggesting reasonable earnings-to-cash conversion. EBITDA was ¥68.42 million (6.5% margin), with D&A at ¥10.42 million, indicating a relatively asset-light cost base. Effective tax burden, approximated using ordinary income, is about 31.7% (income tax ¥18.68 million on ¥59 million EBT), in line with statutory levels. Despite top-line growth, the slight decline in operating profit signals mild negative operating leverage due to higher operating costs or mix. Balance sheet quality appears strong with high equity backing and low financial risk, though several disclosures (e.g., cash balance, inventories) are not provided in the dataset. Dividend appears not declared for the period (DPS 0), and financing cash outflow of ¥37.40 million suggests uses such as share repurchases or other financing items rather than debt service. Overall, the company demonstrates stable gross profitability, modest operating margin compression, healthy liquidity, low leverage, and acceptable cash flow quality. Data limitations (e.g., zero-reported items representing non-disclosure) constrain granularity on working capital composition and FCF. The near-term focus should be on sustaining revenue growth while tightening operating expenses to protect margins. Monitoring operating expense trends, unit economics, and pricing power will be key to improving ROE from the current low-3% range.

Profitability Analysis

ROE_decomposition: ROE 2.90% = Net Margin 3.77% × Asset Turnover 0.613× × Financial Leverage 1.25×. The primary constraint on ROE is modest net margin and moderate asset turnover; leverage is low by design, reinforcing balance sheet strength but limiting ROE uplift. margin_quality: Gross margin 33.6% indicates solid unit economics. Operating margin of ~5.5% fell slightly YoY despite revenue growth, implying higher SG&A or adverse mix. Ordinary margin (5.6%) is close to operating margin, showing minimal non-operating drag/boost. Effective tax approximates ~31.7%, consistent with normal taxation and not a driver of volatility. operating_leverage: Revenue grew 5.2% YoY while operating income declined 1.4% YoY, indicating negative operating leverage in the period. This suggests fixed/semi-fixed costs (e.g., personnel, marketing, systems) grew faster than gross profit, or there was promotional/mix pressure. Stabilizing SG&A per revenue and improving scale efficiencies are necessary to restore margin expansion.

Growth Assessment

revenue_sustainability: Top-line growth of 5.2% YoY is steady. With gross margin holding at 33.6%, product/service fundamentals appear intact, implying revenue growth is driven by volume or mix rather than heavy discounting. profit_quality: Net margin at 3.77% and OCF/NI at 1.49x indicate profits are translating into cash. Ordinary income (¥59m) is close to operating income (¥58m), implying core operations are the main earnings driver, with limited reliance on non-operating gains. outlook: If management can curb SG&A growth relative to sales, operating leverage could turn positive. Given low leverage and strong liquidity, the company has capacity to invest in growth initiatives; however, near-term margin recovery will hinge on expense discipline and maintaining pricing/mix.

Financial Health

liquidity: Current ratio 434% (¥1,481.8m CA / ¥341.3m CL) and working capital ¥1,140.6m indicate ample short-term coverage. Quick ratio equals current ratio due to inventory not disclosed; qualitative takeaway remains strong liquidity. solvency: Total liabilities ¥355.3m versus equity ¥1,377.0m implies conservative capital structure (liabilities-to-equity ~0.26x; assets-to-equity ~1.25x). Interest expense is unreported/zero, suggesting minimal financial debt and low refinancing risk. capital_structure: High implied equity ratio (~79.6% = ¥1,377.0m / ¥1,728.0m) based on provided totals, despite the equity ratio metric being undisclosed in the feed. The balance sheet is equity-heavy, supporting resilience and strategic flexibility.

Cash Flow Quality

earnings_quality: OCF ¥59.66m vs. NI ¥40.00m yields OCF/NI 1.49x, indicating good cash conversion and limited accrual risk in the period. FCF_analysis: Investing CF is undisclosed (reported as 0); therefore, Free Cash Flow cannot be precisely derived. Using OCF as a proxy, pre-capex cash generation is positive. The absence of capex data limits assessment of maintenance vs. growth investment needs. working_capital: Current assets materially exceed current liabilities, but line-item details (cash, receivables, payables, inventory) are not disclosed in the dataset. Given positive OCF, working capital movements were not a major drag overall.

Dividend Sustainability

payout_ratio_assessment: DPS and payout ratio are not disclosed for the period (both shown as 0). With NI at ¥40m for 1H and strong liquidity, capacity exists, but policy/timing is unclear from the data. FCF_coverage: FCF is not derivable due to missing capex; hence coverage cannot be assessed. OCF is positive and could support dividends if capex needs are modest. policy_outlook: Given low leverage and high equity buffer, the company could prioritize reinvestment to enhance ROE before increasing distributions. Financing CF outflow of ¥37.40m may reflect shareholder returns (e.g., buybacks) or other items; detailed disclosure would clarify policy direction.

Risk Assessment

Business Risks:

• Operating margin compression despite revenue growth, indicating cost inflation or mix pressure
• Potential sensitivity to demand cycles in core end-markets
• Execution risk in scaling operations to achieve positive operating leverage
• Pricing power and competitive intensity potentially affecting gross margin
• Customer concentration or project timing risk (not disclosed but common in niche B2B models)

Financial Risks:

• Limited transparency on cash balance and capex due to undisclosed items
• Potential working capital swings not visible without receivables/payables data
• Dividend/buyback commitments unclear given financing CF outflow without detail

Key Concerns:

• Negative operating leverage in the period (-1.4% YoY OP vs. +5.2% YoY sales)
• Low ROE (2.90%), constrained by modest margins and moderate asset turnover
• Data gaps (cash, inventories, capex) limiting precision of cash and FCF analysis

Investment Implications

Key Takeaways:

• Top-line growth of 5.2% YoY with stable gross margin (33.6%) shows resilient demand and unit economics
• Operating margin dipped to ~5.5%, signaling expense discipline is needed to restore leverage
• ROE at 2.90% reflects low leverage and moderate profitability; upside hinges on margin and turnover improvement
• Liquidity is very strong (current ratio 4.34x; working capital ¥1.14bn) with low solvency risk (liabilities/equity ~0.26x)
• Cash conversion healthy (OCF/NI 1.49x), supporting strategic flexibility

Metrics to Watch:

• SG&A as a percentage of sales and YoY growth vs. revenue
• Gross margin trajectory and pricing/mix indicators
• Asset turnover (sales/assets) to gauge utilization efficiency
• Capex and investing cash flows to assess FCF and reinvestment needs
• Policy disclosures on dividends/buybacks and any changes in financing cash flows

Relative Positioning: The company appears financially conservative with strong liquidity and low leverage compared to typical small-cap JGAAP peers, but it exhibits lower ROE due to modest margins and asset turnover; improving operating leverage would enhance competitiveness on profitability metrics.

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