Riskmonster.com FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥1.89B
• Operating Income: ¥176M
• Net Income: ¥-1.18B
• EPS: ¥17.00

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

Riskmonster Co., Ltd. (TSE: 3768) reported FY2026 Q2 consolidated results under JGAAP with modest top-line growth and strong operating profit expansion. Revenue was ¥1,890 million, up 2.1% year over year, indicating steady demand in core businesses despite a subdued macro backdrop. Gross profit was ¥851.9 million, implying a solid gross margin of 45.1%, consistent with an asset-light, service-oriented model. Operating income rose sharply to ¥176 million (+49.1% YoY), lifting the operating margin to 9.3%, which suggests meaningful SG&A discipline and/or improved operating leverage. Ordinary income reached ¥185 million, marginally above operating income, indicating a positive but small contribution from non-operating items. Net income was ¥127 million, flat year over year (+0.0% YoY), suggesting that below-the-operating-line items (e.g., taxes or other non-operating factors) offset the operating improvement. The net profit margin was 6.72%, supporting a calculated ROE of 2.06% based on the provided DuPont components. Asset turnover stood at 0.263x, reflecting moderate utilization of a relatively large asset base for the scale of revenues. Financial leverage is modest at 1.17x, consistent with a conservative balance sheet posture. The company’s liquidity is ample with a reported current ratio of 298.8% and working capital of approximately ¥1,708 million. Total liabilities were ¥1,157 million against total equity of ¥6,152 million, indicating a low debt-to-equity ratio of 0.19x and a strong solvency position. Interest expense was minimal at ¥0.441 million, yielding an interest coverage ratio of roughly 399x, underscoring limited financing risk. Using ordinary income as a proxy for pre-tax income, the implied effective tax rate is approximately 25–26%, even though the provided “effective tax rate” metric shows 0.0%, likely due to calculation or disclosure limitations. Cash flow statement items (operating, investing, financing) and cash balances were undisclosed in this dataset, so cash conversion and free cash flow (FCF) cannot be assessed. Dividend-related fields (DPS, payout, FCF coverage) were also undisclosed, precluding inference on shareholder returns policy from this period alone. Overall, the quarter demonstrates good cost control and operating leverage on modest revenue growth, a very conservative balance sheet, and limited observable cash flow data—necessitating caution in interpreting earnings quality until cash flow details are available.

Profitability Analysis

ROE decomposition: DuPont indicates ROE of 2.06% = Net margin (6.72%) × Asset turnover (0.263x) × Financial leverage (1.17x). The low ROE is driven primarily by modest asset turnover and conservative leverage, partially offset by a respectable net margin. margin_quality: Gross margin of 45.1% supports the view of a high-value, service-led model. Operating margin at 9.3% benefitted from SG&A efficiency and operating leverage. Net margin at 6.72% trails operating margin due to tax and minor non-operating items; implied effective tax rate around 25–26% aligns with typical domestic norms. operating_leverage: Operating income grew 49.1% on 2.1% revenue growth, evidencing strong incremental margins and operating leverage. This suggests disciplined cost control and favorable mix, though sustainability depends on maintaining revenue momentum and SG&A efficiency.

Growth Assessment

revenue_sustainability: Revenue growth of 2.1% YoY is steady but modest. Given the company’s service-heavy margin profile, small top-line gains can translate into outsized operating profit growth; however, without segment or customer data, the breadth and durability of growth are uncertain. profit_quality: Operating margin expansion is compelling, but the flat net income indicates offsetting factors below operating income (taxes and non-operating). Absent cash flow disclosures, we cannot verify cash conversion or the repeatability of earnings. outlook: If the company sustains even low-single-digit revenue growth while keeping SG&A growth below sales growth, operating leverage should continue to support profit expansion. Monitoring cost discipline, pricing power, and churn in subscription or recurring revenue areas (if applicable) will be key to maintaining momentum.

Financial Health

liquidity: Current assets ¥2,567 million vs. current liabilities ¥859 million yields a current ratio of 298.8%, indicating robust short-term liquidity. Quick ratio is shown equal to the current ratio in the dataset; given inventories are undisclosed, the true quick ratio may be slightly lower but still appears strong. solvency: Total liabilities of ¥1,157 million and total equity of ¥6,152 million produce a debt-to-equity ratio of 0.19x, signifying low leverage. Interest coverage is ~399x, reflecting immaterial financing burden. capital_structure: Assets of ¥7,187 million against equity of ¥6,152 million imply an equity ratio of roughly 85.6%, despite the dataset’s 0.0% placeholder. The structure is conservative, providing flexibility for investment and resilience against shocks.

Cash Flow Quality

earnings_quality: Core profitability trends are favorable, but earnings quality cannot be corroborated due to undisclosed operating cash flow and depreciation/amortization data. The reported EBITDA of 0 appears to reflect non-disclosure rather than economics. FCF_analysis: Free cash flow cannot be computed without OCF and capex. Consequently, FCF-based valuation or coverage metrics are not inferable this quarter. working_capital: Working capital of ~¥1,708 million supports operations well. Without cash flow details, we cannot assess the direction of receivables, payables, or deferred revenue, which are often critical in service/credit information models.

Dividend Sustainability

payout_ratio_assessment: Dividend per share and payout ratio are undisclosed in this dataset. With net income of ¥127 million and a conservative balance sheet, there is potential capacity, but no conclusion can be drawn without policy context and cash flow visibility. FCF_coverage: Not assessable. OCF and capex are undisclosed, so FCF coverage of any distribution cannot be evaluated. policy_outlook: Absent DPS history for the period, we cannot infer policy changes. Monitoring board communications, medium-term plan targets, and historical payout trends will be essential to assess consistency and sustainability.

Risk Assessment

Business Risks:

• Modest revenue growth rate (2.1% YoY) may limit operating leverage benefits if cost discipline wanes.
• Potential customer concentration or contract renewal risks typical of B2B information/services businesses (not disclosed here).
• Competitive intensity and pricing pressure in credit risk management and data services markets.
• Technology and data quality risks, including cybersecurity and system uptime requirements.
• Regulatory and compliance changes affecting data usage and customer industries.

Financial Risks:

• Limited visibility on cash flows due to non-disclosure, constraining assessment of cash conversion and investment capacity.
• Potential working capital volatility (e.g., timing of billings and collections) not observable in the current dataset.
• Interest rate risk appears minimal given low interest expense and leverage, but cash yield management could affect non-operating income.

Key Concerns:

• Earnings quality cannot be validated without OCF and capex details.
• Flat net income despite strong operating growth highlights sensitivity to taxes and below-the-line items.
• Dependence on continued SG&A discipline to sustain elevated operating leverage.

Investment Implications

Key Takeaways:

• Solid gross margin (45.1%) and strong operating leverage (OI +49.1% on sales +2.1%).
• Conservative balance sheet with D/E ~0.19x and implied equity ratio ~86%.
• Net margin 6.72% and ROE 2.06% remain modest due to low asset turnover and conservative leverage.
• Cash flow and dividend data are undisclosed, limiting assessment of cash conversion and capital returns.
• Interest burden is negligible (coverage ~399x), reducing financing-related risk.

Metrics to Watch:

• Operating cash flow and capex to validate earnings quality and compute FCF.
• SG&A trend versus revenue to gauge sustainability of operating leverage.
• Net retention/churn and new bookings (if disclosed) to assess revenue durability.
• Asset turnover progression as an ROE driver.
• Tax rate normalization and any material non-operating items.

Relative Positioning: Relative to typical TSE small-cap service/data peers, Riskmonster exhibits stronger balance sheet conservatism and solid gross margins, with current ROE held back by modest asset turnover and low leverage; visibility on cash generation is presently weaker due to undisclosed cash flow statements.

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