MINOYA CO.,LTD. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥5.62B
• Operating Income: ¥-67M
• Net Income: ¥-119M
• EPS: ¥-34.57

Income Statement

Balance Sheet

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

Mino-ya Co., Ltd. (386A0) reported FY2026 Q1 single-entity results under JGAAP with revenue of ¥5,623 million, up 9.7% year over year, but remained loss-making at the operating, ordinary, and net levels. Gross profit was ¥2,098.7 million, implying a gross margin of 37.3%, while operating loss narrowed modestly to ¥67 million (+15.9% YoY improvement in loss). Ordinary loss was ¥64 million, close to operating loss, indicating limited non-operating noise aside from modest interest expense and other income. Net loss widened to ¥119 million despite the operating improvement, reflecting the booking of income taxes (¥55.3 million) in a loss quarter, which may be due to non-deductible items, valuation allowance changes, or tax accrual timing. The DuPont decomposition shows a negative net margin of -2.12%, asset turnover of 0.590x, and financial leverage of 2.66x, yielding a calculated ROE of -3.31%. The result highlights that profitability, not leverage or efficiency, is the primary drag on returns. Operating leverage appears unfavorable this quarter: even with revenue growth, SG&A exceeded gross profit, keeping operating income negative. Liquidity is tight with a current ratio of 1.06x and working capital of ¥204 million, leaving limited buffer against short-term shocks. Balance sheet strength is moderate: calculated equity ratio based on disclosed totals is approximately 37.7% (¥3,591m equity / ¥9,536m assets), despite the reported equity ratio field showing 0.0% (which should be treated as undisclosed). Interest expense is modest at ¥4.1 million, but interest coverage is negative (-16.3x) due to operating losses. Cash flow information, depreciation and amortization, inventories, and share data were not disclosed in XBRL (displayed as zeros), limiting assessment of cash earnings quality and capital intensity. Dividend was reported as zero for the period and payout metrics are not meaningful in the absence of positive earnings and cash flow disclosure. Overall, Q1 shows healthy top-line expansion and stable gross margin, but insufficient operating scale and elevated operating costs drove continued losses and weak coverage metrics. The key watchpoints are SG&A discipline, conversion of revenue growth to operating profit, and the restoration of positive operating cash flow once disclosed. Given data gaps in cash flow and working capital components, conclusions about cash generation are necessarily tentative.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: -0.0212
• asset_turnover: 0.59
• financial_leverage: 2.66
• calculated_ROE: -0.0331
• commentary: Negative ROE is driven predominantly by a -2.12% net margin; asset turnover of 0.59x and leverage of 2.66x are insufficient to offset the margin drag. margin_quality:
• gross_margin: 0.373
• operating_margin: -0.0119
• ordinary_margin: -0.0114
• net_margin: -0.0212
• drivers: Gross margin of 37.3% is adequate, but SG&A of roughly ¥2,165.7m (implied) exceeded gross profit, yielding an operating loss. Net loss was amplified by tax expense booked in a loss-making quarter. operating_leverage:
• revenue_growth_yoy: 0.097
• operating_income_change_yoy: Loss narrowed by 15.9% YoY
• assessment: Positive revenue growth did not translate to operating profit; fixed cost absorption remains insufficient. Further SG&A efficiency and scale are needed to achieve breakeven.
• interest_coverage: -16.3

Growth Assessment

revenue_sustainability: Top-line grew 9.7% YoY to ¥5,623m, indicating healthy demand or improved pricing/mix. Sustainability will depend on retention of this pace while maintaining or expanding gross margin. profit_quality: Gross margin held at 37.3%, but operating loss persists due to SG&A intensity. Ordinary results track operating results closely, suggesting limited reliance on non-operating items. outlook: Near-term earnings trajectory hinges on cost control and operating leverage. If revenue momentum continues and SG&A growth moderates, breakeven is plausible; otherwise losses may persist.

Financial Health

liquidity:

• current_assets: 3620767000
• current_liabilities: 3416427000
• current_ratio: 1.06
• quick_ratio: 1.06
• working_capital: 204340000
• commentary: Liquidity buffer is thin at 1.06x; with limited headroom, cash conversion and payable terms management are critical. Inventories not disclosed, so quick ratio may be overstated if inventories are material. solvency_capital_structure:
• total_assets: 9536000000
• total_liabilities: 5576498000
• total_equity: 3591000000
• debt_to_equity: 1.55
• calculated_equity_ratio: 0.377
• interest_expense: 4115000
• assessment: Balance sheet leverage is moderate with assets-to-equity of ~2.66x and a calculated equity ratio near 38%. Interest burden is small in yen terms, but negative operating income results in weak coverage.

Cash Flow Quality

earnings_quality: Cash flow statements were not disclosed (zeros indicate missing data), preventing OCF-to-net income analysis beyond a mechanical 0.00 ratio. Earnings quality cannot be confirmed. free_cash_flow:

• ocf: None
• capex_proxy: None
• fcf: None
• commentary: Without OCF and investing cash flows, FCF cannot be assessed. Depreciation and amortization were not disclosed, so non-cash expense levels and capital intensity remain unclear. working_capital: Working capital is ¥204m; however, with inventories and receivables/payables undisclosed, we cannot evaluate cash conversion cycles or the sustainability of the current ratio.

Dividend Sustainability

payout_ratio_assessment: Annual DPS reported as ¥0 with a payout ratio of 0%. Given net losses in the quarter and absent cash flow disclosure, distributions are not supported by current earnings. fcf_coverage: Not assessable; FCF not disclosed. policy_outlook: No guidance on dividend policy provided. Near-term capacity to resume dividends would depend on restoring operating profitability and positive OCF.

Risk Assessment

Business Risks:

• Execution risk in reducing SG&A and achieving operating scale to reach breakeven
• Margin pressure risk if input costs rise or pricing power weakens
• Dependence on revenue growth to offset fixed costs, exposing earnings to demand volatility
• Potential tax expense volatility despite losses, affecting net income visibility

Financial Risks:

• Tight liquidity with current ratio near 1.0x and limited working capital buffer
• Negative interest coverage driven by operating losses
• Uncertain cash flow generation due to missing OCF and capex data
• Moderate leverage (Debt-to-Equity ~1.55x) could constrain flexibility if losses persist

Key Concerns:

• Persistent operating losses despite 9.7% revenue growth
• SG&A exceeding gross profit, implying inadequate cost structure for current scale
• Insufficient disclosure on cash flows and working capital components
• Tax expense recorded in a loss quarter, reducing net income and complicating comparability

Investment Implications

Key Takeaways:

• Revenue growth of 9.7% YoY with a solid gross margin of 37.3%, but operating loss of ¥67m persists
• Ordinary and net losses (-¥64m and -¥119m) indicate limited non-operating offsets and tax expense headwinds
• Liquidity is tight (current ratio 1.06x; working capital ¥204m), necessitating close monitoring of cash conversion
• Calculated equity ratio ~37.7% suggests moderate balance sheet strength despite weak coverage
• Data gaps (OCF, capex, D&A, inventories) limit assessment of cash earnings quality and capital intensity

Metrics to Watch:

• SG&A-to-sales ratio and trajectory needed to achieve operating breakeven
• Gross margin stability amid input cost and pricing dynamics
• Interest coverage improvement as operating losses narrow
• Operating cash flow disclosure and FCF once available
• Working capital days (receivables, payables, inventories) when disclosed
• Equity ratio and net debt trends as losses accumulate

Relative Positioning: Within a general context, the company exhibits healthy revenue momentum but weaker operating efficiency versus a typical profitable peer, with tighter liquidity and negative coverage offset by moderate leverage.

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