Agent IG Holdings Co., Ltd. FY2025 Q3 Earnings Report

Financial Highlights

• Operating Income: ¥75M
• Net Income: ¥26M
• EPS: ¥11.34

Income Statement

Balance Sheet

Profitability Ratios

Share 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

Agent IG Holdings (377A0) reported FY2025 Q3 consolidated results under JGAAP with limited line-item disclosure. Revenue and gross profit were not disclosed in XBRL, but the company posted operating income of ¥75 million and net income of ¥26 million, implying profitability at the operating and bottom-line levels. Ordinary income equaled operating income at ¥75 million, suggesting non-operating items roughly netted out, despite an interest expense of ¥14.197 million. Based on the balance sheet, total assets were ¥5,059 million and total equity ¥1,350 million, implying an equity ratio of about 26.7% (calculated), even though the reported equity ratio metric shows 0.0% due to non-disclosure. Leverage appears moderately high with total liabilities of ¥3,709 million, resulting in a liabilities-to-equity ratio of 2.75x. Liquidity is adequate but tight with a current ratio of 110.5% and working capital of approximately ¥307 million. Interest coverage is 5.3x (operating income/interest expense), indicating manageable debt service capacity from current operating earnings. EPS is reported at ¥11.34, though shares outstanding were not disclosed, limiting per-share contextual analysis. Income tax expense of ¥46.321 million versus ordinary income of ¥75 million implies a high effective tax rate near 62%, which may reflect interim timing, tax adjustments, or non-recurring items. Cash flow statements were not disclosed, so operating, investing, and financing cash flows cannot be assessed; the zeros shown should be treated as unreported values. As a result, free cash flow quality and dividend coverage cannot be evaluated from this release. DuPont metrics based on revenue are not computable because sales were not disclosed; however, we estimate ROE at roughly 1.9% for the period using reported net income and equity balances. ROA is about 0.5% on the same basis, reflecting modest returns on a relatively leveraged balance sheet. Overall, the company is profitable with moderate leverage and tight liquidity, but the lack of revenue and cash flow disclosure limits insight into margin quality, earnings sustainability, and cash conversion. Monitoring upcoming full-year disclosures will be essential to gauge revenue trajectory, cost efficiency, and capital allocation.

Profitability Analysis

ROE_decomposition: Using available balance sheet and net income figures, estimated ROE ≈ 1.9% (¥26m / ¥1,350m). With revenue unreported, we cannot compute net margin or asset turnover; financial leverage is approximately 3.75x (Assets/Equity = ¥5,059m/¥1,350m). The implied ROA is about 0.5% (¥26m/¥5,059m). Thus, the current ROE is primarily driven by leverage rather than demonstrated operating margin or asset efficiency. margin_quality: Gross margin, operating margin, and net margin cannot be calculated due to undisclosed revenue and COGS. However, positive operating income of ¥75m and net income of ¥26m indicate positive margins. Income tax expense of ¥46.3m against ordinary income of ¥75m suggests a high interim effective tax rate (~62%), which may be distorted by period-specific items. operating_leverage: Insufficient data to quantify fixed vs. variable cost dynamics. The gap between operating income (¥75m) and net income (¥26m) is largely driven by taxes and interest (¥14.2m), implying sensitivity of net profit to financing and tax factors. Without revenue, we cannot infer operating leverage from incremental margins.

Growth Assessment

revenue_sustainability: Revenue is not disclosed; YoY comparisons on top line are not possible. The presence of positive operating income suggests revenue-generating activity continues, but its level and growth rate are unknown. profit_quality: Operating income (¥75m) and ordinary income (¥75m) align, implying non-operating items net to roughly zero aside from interest expense. The elevated tax charge relative to ordinary income may depress net profit quality in the interim; further detail is needed to determine recurrence. outlook: With limited disclosure, the near-term outlook hinges on forthcoming full-year results. Key determinants will be revenue trajectory, contract/order backlog, cost discipline, and interest expense management. Any normalization in the effective tax rate could lift net margins if operating profitability is maintained.

Financial Health

liquidity: Current assets ¥3,230.1m vs. current liabilities ¥2,923.3m yield a current ratio of 1.105x and working capital of ¥306.8m. This suggests adequate but thin short-term liquidity. Quick ratio equals current ratio given no inventories disclosed. solvency: Total liabilities ¥3,708.6m vs. equity ¥1,350.0m imply debt-to-equity (liabilities/equity) of 2.75x. Estimated equity ratio is ~26.7% (¥1,350m/¥5,059m), indicating a leveraged capital structure but with a meaningful equity buffer. capital_structure: Interest expense is ¥14.197m, and interest coverage is ~5.3x (¥75m/¥14.197m), suggesting manageable serviceability at current earnings levels. However, absent cash flow data, we cannot confirm coverage on a cash basis.

Cash Flow Quality

earnings_quality: OCF was not disclosed; the reported OCF/NI ratio of 0.00 should be treated as unavailable rather than true zero. Consequently, we cannot verify accrual intensity or cash conversion. FCF_analysis: Investing and financing cash flows are undisclosed; free cash flow cannot be derived. Capex and depreciation were not reported, preventing assessment of maintenance vs. growth investment needs. working_capital: With working capital at ~¥306.8m and no component detail, we cannot assess collection cycles or inventory turns. Liquidity appears positive but tight, which could constrain growth if working capital needs rise.

Dividend Sustainability

payout_ratio_assessment: DPS is undisclosed (reported as 0.00). EPS is ¥11.34, but without an announced dividend, payout ratio cannot be evaluated. Historical policy and future guidance are required. FCF_coverage: Free cash flow data are not available; dividend coverage by FCF cannot be assessed. policy_outlook: Given the limited disclosure and modest interim profitability, dividend visibility is low. Policy clarity would depend on full-year earnings, cash generation, and leverage considerations.

Risk Assessment

Business Risks:

• Lack of revenue disclosure limits transparency on demand trends and pricing power.
• Potential volatility in effective tax rate affecting net income.
• Operating leverage and cost structure unknown; margins could be sensitive to revenue changes.
• Customer concentration or project timing risk cannot be evaluated due to absent segment/order data.
• Competitive dynamics and market share trends not disclosed.

Financial Risks:

• Moderate-to-high leverage (liabilities/equity 2.75x) increases sensitivity to earnings downturns.
• Tight liquidity (current ratio ~1.10x) may constrain flexibility during working capital swings.
• Interest expense burden (¥14.2m) exposes earnings to rate and refinancing risk.
• Cash flow opacity due to undisclosed OCF/FCF elevates uncertainty on debt service capacity.
• Equity ratio assessment relies on calculated, not disclosed, metric.

Key Concerns:

• Revenue and cash flow non-disclosure impedes assessment of earnings sustainability.
• High implied interim effective tax rate (~62%) suppresses net profitability.
• Dependence on leverage to drive ROE amid modest absolute earnings.

Investment Implications

Key Takeaways:

• Profitability is positive at both operating (¥75m) and net (¥26m) levels.
• Leverage is material with liabilities/equity at 2.75x; interest coverage around 5.3x is adequate but should be monitored.
• Liquidity is thin but positive (current ratio ~1.10x; working capital ~¥307m).
• ROE estimated at ~1.9% for the period, driven more by leverage than proven margins or asset efficiency.
• Data gaps on revenue and cash flows meaningfully limit margin and cash conversion analysis.

Metrics to Watch:

• Top-line disclosure and YoY growth in upcoming results.
• Operating margin trend and any guidance on cost structure.
• Operating cash flow and free cash flow to validate earnings quality.
• Interest coverage on both EBIT and OCF bases; refinancing timelines.
• Effective tax rate normalization and drivers.

Relative Positioning: Based on limited disclosure, the company exhibits moderate leverage, adequate interest coverage, and thin liquidity relative to typical TSE small/mid-cap peers; transparency on revenue and cash flows lags, constraining comparative assessment of profitability and cash generation.

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