| Indicator | Current Period | YoY | YoY |
|---|---|---|---|
| Revenue | ¥138.9B | ¥121.8B | +14.0% |
| Operating Income | ¥26.5B | ¥21.3B | +24.3% |
| Ordinary Income | ¥27.9B | ¥21.4B | +30.6% |
| Net Income | ¥20.1B | ¥15.6B | +28.9% |
| ROE | 8.0% | 6.5% | - |
For FY2026 Q3 year-to-date, Nippon Kodoshi Corporation delivered Revenue of ¥138.9B (YoY +¥17.1B, +14.0%), Operating Income of ¥26.5B (YoY +¥5.2B, +24.3%), Ordinary Income of ¥27.9B (YoY +¥6.5B, +30.6%), and Net Income of ¥20.1B (YoY +¥4.5B, +28.9%), achieving double-digit growth in both sales and profits. Operating margin was 19.1%, improving by 1.6pt from 17.5% in the prior-year period, and net margin was 14.4% (up 1.6pt from 12.8% YoY), maintaining a high level of profitability. Progress toward full-year guidance (Revenue ¥181.0B, Operating Income ¥31.0B, Ordinary Income ¥31.0B, Net Income ¥21.0B) stands at 76.7% for revenue and 85.5% for operating income, indicating solid traction.
[Profitability] ROE 8.0% (flat YoY), operating margin 19.1% (up +1.6pt from 17.5% YoY), net margin 14.4% (up +1.6pt from 12.8% YoY), Return on Assets 5.6%. Gross margin is 30.6%, indicating solid profitability at the gross profit level. [Cash Quality] Cash and deposits ¥43.5B, cash coverage to short-term liabilities 2.56x. Interest coverage 66.9x, indicating minimal interest burden (interest expense ¥0.40B). Accounts receivable is ¥60.6B, up +47.5% YoY, reflecting a significant increase in working capital needs. [Investment Efficiency] Total asset turnover 0.387x (improved from 0.345x YoY). Financial leverage 1.42x. [Financial Soundness] Equity Ratio 70.3% (improved from 67.8% YoY), current ratio 281.4%, quick ratio 237.0%, indicating ample liquidity. Interest-bearing debt ¥57.7B, debt-to-equity ratio 0.42x, Debt to Capital Ratio 18.6%, representing a conservative capital structure. Intangible assets increased +52.5% YoY to ¥1.7B, and investment securities increased +41.1% to ¥4.3B, indicating more active investment activities.
Cash and deposits increased by +¥2.4B YoY to ¥43.5B, with higher operating profits contributing to cash accumulation. Accounts receivable increased substantially by +¥19.6B, indicating that receivables growth accompanying higher sales is pressuring working capital. Inventories rose by +¥4.0B to ¥11.4B, reflecting stock build for raw material procurement and higher production. Meanwhile, accounts payable increased by +¥6.9B to ¥12.3B, partially supporting cash through trade payables. Short-term borrowings are ¥17.0B, nearly flat versus ¥16.8B in the prior-year period, and the current portion of long-term borrowings is ¥23.5B with a planned repayment schedule. Cash coverage to short-term liabilities is 2.56x, indicating sufficient liquidity. The increase in investment securities and intangible assets suggests progress in strategic investments and R&D-related spending, with capital allocation emphasizing a balance between growth and shareholder returns.
Ordinary Income is ¥27.9B versus Operating Income of ¥26.5B, implying approximately ¥1.4B net non-operating gains. The primary components are financial income such as interest and dividends received, and equity in earnings of affiliates, while interest burden is minimal with interest expense of ¥0.40B and an interest coverage of 66.9x. Non-operating income represents a small share of revenue, and the majority of profits are generated from operating activities. The operating margin of 19.1% far exceeds the industry average, and the SG&A ratio was relatively restrained versus sales compared to the prior-year period, demonstrating operating leverage. The large increase in accounts receivable suggests potential timing lags in cash conversion of earnings; however, the gross margin of 30.6% and net margin of 14.4% remain high and stable, indicating strong quality of earnings at the operating level. The payout ratio stands at 32.0%, an appropriate level, with ample capacity for dividends.
[Position within Industry] (Reference information; our analysis) Compared with the FY2025 Q3 results of 65 manufacturing companies, the Company’s financial indicators rank in the upper tier within the industry. Profitability: Operating margin of 19.1% far exceeds the industry median of 7.3% (IQR: 4.6%–12.0%) and is above the upper quartile; net margin of 14.4% also significantly exceeds the industry median of 5.4% (IQR: 3.5%–8.9%). ROE 8.0% is slightly above the industry median of 4.9% (IQR: 2.8%–8.2%), surpassing the median. Return on Assets 5.6% exceeds the industry median of 3.3% (IQR: 1.8%–5.1%). Soundness: Equity Ratio of 70.3% exceeds the industry median of 63.9% (IQR: 51.5%–72.3%), within the upper quartile range. Current ratio 281.4% (=2.81x) is roughly in line with the industry median of 2.67x (IQR: 2.00–3.56x). Efficiency: Revenue growth of +14.0% far exceeds the industry median of +2.8% (IQR: -0.9%–+7.9%), placing the Company in the upper group. Over the Company’s past five periods, operating margin of 19.0% and net margin of 14.5% have trended at levels consistent with the latest results, indicating stability. Note: Industry: Manufacturing (65 companies), comparison period: FY2025 Q3, source: our aggregation.
This report is an earnings analysis document automatically generated by AI based on XBRL financial statement data. It does not constitute a recommendation to invest in any particular security. The industry benchmark is reference information compiled by our company based on publicly available financial results. Investment decisions are your own responsibility; consult a professional as needed before making any investment decisions.