Information Planning CO.,LTD. FY2025 Q4 Earnings Report

Financial Highlights

• Net Sales: ¥3.84B
• Operating Income: ¥1.54B
• Net Income: ¥1.05B
• EPS: ¥356.21

Income Statement

Balance Sheet

Cash Flow Statement

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

Information Planning (3712) delivered solid FY2025 Q4 results under JGAAP on a consolidated basis, with a combination of steady top-line growth and margin resilience. Revenue grew 6.4% YoY to ¥3,843m, while operating income rose 7.6% to ¥1,536m, signaling modest positive operating leverage. Ordinary income was ¥1,537m and net income increased 6.4% to ¥1,077m, keeping pace with sales growth. Profitability remains a standout: gross margin was 62.7%, operating margin approximately 40.0%, EBITDA margin 42.3%, and net margin 28.0%. DuPont decomposition indicates a calculated ROE of 15.49%, driven by a high net margin, moderate asset turnover of 0.457x, and low financial leverage of 1.21x. Balance sheet strength is notable: total assets are ¥8,416m, equity is ¥6,951m (equity/asset ratio implied at roughly 82.6%), and total liabilities are low at ¥1,314m (D/E about 0.19x). Liquidity is robust, with a current ratio of 315.5% and working capital of ¥2,515m. Cash generation is healthy: operating cash flow was ¥1,145m, with free cash flow at ¥461m despite ¥684m of investing outflows. Earnings quality appears solid, with OCF/Net income at 1.06x, indicating cash earnings broadly aligning with accounting earnings. The effective tax rate based on disclosed amounts approximates 28–29%, consistent with Japan’s statutory range, though a reported “0.0%” effective tax rate metric in the summary appears to be a non-disclosure placeholder. Financing cash outflows of ¥332m suggest shareholder returns or liability management, but dividends per share and payout are not disclosed in XBRL here. The company’s profile—asset-light software/services for financial institutions—aligns with the high margins and low leverage presented. Key data limitations remain: several metrics in the feed are shown as zero (e.g., cash balance, equity ratio, interest expense, share counts), which indicates non-disclosure under the feed rather than true zeros; our analysis relies on the disclosed non-zero items and standard derivations. Overall, the company demonstrates strong profitability, conservative balance sheet, and good cash conversion, with modest growth and slight operating margin expansion YoY. Sustainability of growth will hinge on maintaining project delivery cadence, recurring maintenance revenues, and disciplined cost control. Risks include customer concentration in financial institutions, project timing variability, and talent costs. Absent disclosed DPS, dividend policy assessment is constrained, but the cash flow profile suggests capacity for distributions. Near-term outlook appears stable with incremental margin tailwinds if cost discipline continues.

Profitability Analysis

ROE_decomposition: ROE 15.49% = Net margin 28.02% × Asset turnover 0.457 × Financial leverage 1.21. The ROE is predominantly margin-driven, with modest asset efficiency and low leverage contribution. margin_quality: Gross margin 62.7% and operating margin ~40.0% reflect a high-value, software/license and maintenance-heavy mix. Net margin at 28.0% is strong and consistent with the operating profile. Ordinary margin ~40.0% aligns closely with operating margin, indicating limited non-operating gains/losses. operating_leverage: Revenue +6.4% YoY and operating income +7.6% imply slight operating leverage. Prior-year operating margin estimated at ~39.5% vs current ~40.0%, a ~0.5pp expansion enabled by fixed-cost absorption and controlled SG&A.

Growth Assessment

revenue_sustainability: Top-line growth of 6.4% YoY is steady, likely underpinned by ongoing maintenance/recurring revenue and moderate new project wins. Sustainability depends on renewal rates within financial institutions and conversion of backlog to revenue. profit_quality: Stable high margins and OCF/Net income of 1.06x indicate that reported profits are supported by cash. Ordinary income closely tracks operating income, suggesting limited reliance on non-core items. outlook: Assuming stable demand from financial institutions and steady maintenance revenues, mid-single-digit sales growth with flat-to-slightly expanding margins appears achievable. Upside depends on new solution uptake and pricing power; downside stems from project timing slippage or slower IT spending.

Financial Health

liquidity: Current assets ¥3,682m vs current liabilities ¥1,167m yield a current ratio of 315.5% and working capital of ¥2,515m, indicating ample near-term liquidity. Quick ratio mirrors current ratio given no disclosed inventories. solvency: Total liabilities ¥1,314m against equity ¥6,951m imply D/E of ~0.19x and an implied equity ratio of ~82.6% (computed from disclosed totals). Leverage is conservative. capital_structure: Low reliance on debt and strong equity base reduce refinancing risk. Interest expense is not disclosed in the feed; however, the low liabilities base suggests limited interest burden.

Cash Flow Quality

earnings_quality: OCF ¥1,145m vs net income ¥1,077m gives OCF/NI of 1.06x, indicating earnings are backed by cash conversion with limited accrual risk evident from the data. FCF_analysis: Free cash flow of ¥461m (OCF ¥1,145m minus investing outflows ¥684m) remains positive despite investment spending, supporting ongoing reinvestment and potential returns to shareholders. working_capital: Strong working capital position (¥2,515m). Specific components (receivables, payables, deferred revenue) are not disclosed here, limiting a granular analysis of cash cycle dynamics.

Dividend Sustainability

payout_ratio_assessment: EPS is ¥356.21, but DPS and payout ratio are not disclosed in the data feed (zeros indicate non-disclosure). Based on profitability and low leverage, capacity for dividends exists; however, the actual payout cannot be assessed from the provided data. FCF_coverage: With FCF at ¥461m, coverage of any potential dividend would likely be comfortable, but precise coverage cannot be computed without disclosed DPS. policy_outlook: Given consistent profitability and strong balance sheet, a stable or gradually rising shareholder return profile would be consistent with fundamentals, but explicit policy signals are not available in this dataset.

Risk Assessment

Business Risks:

• Customer concentration in financial institutions and potential budget cyclicality
• Project timing and acceptance risk affecting quarterly revenue recognition
• Competition from larger software vendors and fintech entrants
• Talent retention and wage inflation impacting margins
• Technology obsolescence and need for continuous product updates
• Cybersecurity and data protection risks in financial systems
• Regulatory and compliance changes affecting customer IT spending priorities

Financial Risks:

• Working capital fluctuations due to billing and collection timing
• Revenue mix shifts that could pressure gross margin
• Potential increase in development capitalization and future amortization burden
• Limited disclosure of interest expense and cash balances in the feed constraining coverage analysis

Key Concerns:

• Sustaining mid-single-digit growth while preserving ~40% operating margin
• Visibility on backlog/recurring revenue composition
• Clarity on dividend policy and capital allocation priorities given financing cash outflows

Investment Implications

Key Takeaways:

• Solid YoY growth (+6.4% revenue) with slight margin expansion and positive operating leverage
• High profitability profile: GP 62.7%, OP ~40.0%, EBITDA margin 42.3%, NP 28.0%
• Healthy ROE of 15.49% predominantly driven by margins, not leverage
• Robust balance sheet with low D/E (~0.19x) and implied equity ratio ~82.6%
• Strong cash conversion (OCF/NI 1.06x) and positive FCF (¥461m)
• Data limitations on dividends and certain line items constrain payout analysis

Metrics to Watch:

• Order backlog and renewal rates with financial institutions
• Recurring revenue ratio and maintenance growth
• Headcount and personnel cost trends vs revenue
• R&D and capitalized development costs vs amortization
• Accounts receivable days and deferred revenue movements
• Effective tax rate normalization and any one-off items
• Capital allocation: dividends, buybacks, or M&A outlays

Relative Positioning: Within Japanese software/service peers, the company appears to occupy a high-margin, asset-light niche with conservative leverage and solid cash generation; growth is steady rather than rapid, with competitive standing supported by entrenched financial-institution relationships.

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