| Metric | Current | Prior | YoY |
|---|---|---|---|
| Revenue | ¥11.4B | ¥9.8B | +15.5% |
| Operating Income | ¥5.2B | ¥4.3B | +19.0% |
| Ordinary Income | ¥5.2B | ¥4.3B | +19.1% |
| Net Income | ¥3.8B | ¥3.0B | +27.4% |
| ROE | 5.4% | 4.3% | - |
Information Planning Co., Ltd. reported FY2026 Q1 consolidated results showing Revenue of 1.14B yen (YoY +15.5%), Operating Income of 520M yen (YoY +19.0%), Ordinary Income of 520M yen (YoY +19.1%), and Net Income of 380M yen (YoY +27.4%). The company achieved double-digit revenue growth with operating margin reaching 45.3%, reflecting strong profitability in its core System Development segment which generated 1.07B yen in sales with 504M yen operating income. The Real Estate segment contributed 65M yen in sales with 12M yen operating income. Total assets decreased to 82.0B yen from 84.2B yen while total equity increased to 71.5B yen from 69.5B yen, strengthening the equity position.
[Profitability] Operating margin reached 45.3% in Q1 FY2026, representing a significant improvement and demonstrating exceptional operational efficiency. Net profit margin stood at 33.7%, indicating strong bottom-line profitability after tax obligations. Gross profit margin was maintained at 68.8%, reflecting the company's pricing power and cost management in its System Development business. ROE calculated at 5.4% shows room for improvement despite strong margins, constrained primarily by low asset turnover of 0.139 times. The profitability metrics indicate a highly efficient business model with limited asset utilization. [Cash Quality] Cash and deposits totaled 2.52B yen, providing robust coverage of short-term liabilities at 2.71 times. Working capital stood at 2.34B yen, demonstrating ample liquidity cushion. However, days sales outstanding reached 220 days and cash conversion cycle extended to 177 days, indicating delayed cash realization from operations. Accounts receivable decreased substantially by 37.8% YoY from 1.10B yen to 687M yen, suggesting improved collection efforts or seasonal variations in billing cycles. [Investment Efficiency] Asset turnover of 0.139 times reflects capital-intensive asset composition with tangible fixed assets of 4.44B yen representing significant land and building holdings. The low turnover constrains ROE expansion despite superior profit margins. Financial leverage remained conservative at 1.15 times, indicating predominantly equity-financed operations. [Financial Health] Equity ratio stood at 87.2%, up from 82.5% in the prior period, reflecting a fortress balance sheet. Current ratio of 351.1% indicates exceptional short-term debt coverage capability. Debt-to-equity ratio of 0.15 times demonstrates minimal leverage utilization. Total liabilities decreased to 1.05B yen with no significant interest-bearing debt disclosed.
Cash and deposits increased from 1.63B yen in the prior period to 2.52B yen, representing a 890M yen increase that reflects strong operating profit generation of 520M yen and improved working capital management. The substantial reduction in accounts receivable of 417M yen YoY contributed significantly to cash accumulation, indicating accelerated collection cycles or timing of large project billings. Accounts payable decreased by 630M yen or 49.4%, suggesting expedited payments to suppliers or changes in procurement patterns that consumed cash but may strengthen supplier relationships. Inventory levels remained relatively stable, with work-in-process representing a significant component that warrants monitoring for project execution efficiency. The current ratio of 351.1% and cash coverage of short-term liabilities at 2.71 times confirm robust liquidity position. The company's cash generation appears supported by both operational performance and balance sheet optimization, though the extended cash conversion cycle of 177 days indicates that further working capital efficiency improvements could unlock additional cash flow.
Ordinary income of 520M yen closely aligned with operating income of 520M yen, indicating minimal non-operating items and core business-driven profitability. Non-operating income included a fixed asset sale gain of 45M yen, representing a one-time item that contributed approximately 12% to net income of 380M yen. Excluding this non-recurring gain, normalized net income would approximate 335M yen, suggesting that sustainable earnings power is slightly lower than reported figures. The effective tax rate of 31.5% falls within standard corporate tax ranges. Non-operating income represented approximately 4% of revenue, primarily comprising the asset sale gain with limited contributions from interest or dividend income. The company's earnings quality benefits from high gross margins and operating efficiency, though the presence of the 45M yen fixed asset sale gain warrants adjustment for assessing recurring profitability. The substantial reduction in accounts receivable combined with strong operating income growth suggests improved cash-backed earnings, though the extended days sales outstanding of 220 days and cash conversion cycle of 177 days indicate potential delays in converting accrual-based earnings to cash.
Working capital management risk stems from extended days sales outstanding of 220 days and cash conversion cycle of 177 days, which could strain liquidity if project billings or collections experience further delays. The high concentration in work-in-process inventory suggests dependency on smooth project execution cycles, where any delays in System Development projects could impact cash realization and profitability timing. Asset utilization risk is evident from the low total asset turnover of 0.139 times, driven by substantial fixed asset holdings of 4.44B yen in land and buildings, requiring either significant revenue growth or asset optimization to improve return on invested capital and ROE beyond the current 5.4% level.
[Industry Position] (Reference - Proprietary Analysis) The company demonstrates exceptional profitability metrics relative to typical software and information services sector standards. Operating margin of 45.3% substantially exceeds industry median levels which typically range from 10-20% for IT services firms, positioning the company in the top tier for operational efficiency. Net profit margin of 33.7% similarly outperforms industry norms of 5-15%, reflecting either specialized service offerings or highly scalable business model. However, ROE of 5.4% falls below industry median ranges of 8-12% for software services companies, attributable to conservative capital structure with 87.2% equity ratio compared to industry median of 50-60%, and low asset turnover of 0.139 times versus industry median of 0.8-1.2 times. Revenue growth of 15.5% YoY compares favorably to industry median single-digit growth rates, indicating market share gains or expansion in served markets. The company's financial health metrics including current ratio of 351.1% and minimal leverage significantly exceed industry standards, reflecting exceptionally conservative financial management. (Industry: Information Technology Services, Comparison: Company historical trend and sector benchmarks, Source: Proprietary analysis)
The earnings data reveals a highly profitable business model with operating margins of 45.3% and net margins of 33.7% that significantly exceed typical IT services sector benchmarks, driven primarily by the System Development segment generating 94% of total sales. This segment produced 504M yen operating income on 1.07B yen sales, demonstrating scalability and pricing power. The company's fortress balance sheet with 87.2% equity ratio and 2.52B yen cash provides substantial financial flexibility for growth investments or shareholder returns. However, ROE of 5.4% indicates substantial room for capital efficiency improvement, constrained by low asset turnover of 0.139 times due to large fixed asset holdings. The company's full-year guidance of 4.10B yen revenue (6.7% growth) and 1.54B yen operating income appears conservative given Q1 progress represents 27.8% of annual revenue target with 33.7% of operating income target already achieved. The working capital metrics showing 220-day collection cycles and 177-day cash conversion cycles represent areas requiring operational focus to unlock cash flow potential. The planned annual dividend of 60 yen per share against forecasted EPS of 72.73 yen implies an 82.5% payout ratio based on full-year projections, though Q1 actual results suggest dividend sustainability requires monitoring as interim dividend of 55 yen plus year-end 60 yen would exceed current run-rate earnings capacity without further profit acceleration.
This report was automatically generated by AI analyzing XBRL earnings data as an earnings analysis tool. This is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled from publicly available earnings data. Please make investment decisions at your own responsibility and consult professionals as needed.