- Net Sales: ¥17.93B
- Operating Income: ¥2.23B
- Net Income: ¥1.61B
- EPS: ¥197.49
| Item | Current | Prior | YoY % |
|---|
| Net Sales | ¥17.93B | ¥18.70B | -4.2% |
| Cost of Sales | ¥12.66B | - | - |
| Gross Profit | ¥6.05B | - | - |
| SG&A Expenses | ¥4.51B | - | - |
| Operating Income | ¥2.23B | ¥1.53B | +45.7% |
| Ordinary Income | ¥2.10B | ¥1.22B | +72.8% |
| Profit Before Tax | ¥2.22B | ¥1.51B | +46.9% |
| Income Tax Expense | ¥438M | - | - |
| Net Income | ¥1.61B | ¥1.07B | +49.5% |
| Net Income Attributable to Owners | ¥1.63B | ¥1.01B | +61.1% |
| Total Comprehensive Income | ¥1.61B | ¥1.07B | +49.5% |
| Depreciation & Amortization | ¥525M | - | - |
| Basic EPS | ¥197.49 | ¥121.99 | +61.9% |
| Diluted EPS | ¥197.08 | ¥121.53 | +62.2% |
| Dividend Per Share | ¥99.00 | ¥0.00 | - |
| Total Dividend Paid | ¥517M | ¥517M | +0.0% |
| Item | Current End | Prior End | Change |
|---|
| Current Assets | ¥11.63B | - | - |
| Accounts Receivable | ¥3.17B | - | - |
| Inventories | ¥3.17B | - | - |
| Non-current Assets | ¥2.57B | - | - |
| Property, Plant & Equipment | ¥214M | - | - |
| Item | Current | Prior | Change |
|---|
| Operating Cash Flow | ¥1.23B | ¥1.71B | ¥-485M |
| Investing Cash Flow | ¥-898M | ¥-719M | ¥-179M |
| Financing Cash Flow | ¥-1.13B | ¥63M | ¥-1.19B |
| Cash and Cash Equivalents | ¥4.26B | ¥5.06B | ¥-803M |
| Free Cash Flow | ¥329M | - | - |
| Item | Value |
|---|
| ROE | 27.5% |
| ROA (Ordinary Income) | 15.9% |
| Payout Ratio | 50.8% |
| Dividend on Equity (DOE) | 9.7% |
| Book Value Per Share | ¥757.88 |
| Net Profit Margin | 9.1% |
| Gross Profit Margin | 33.7% |
| Debt-to-Equity Ratio | 1.28x |
| EBITDA Margin | 15.4% |
| Effective Tax Rate |
| Item | YoY Change |
|---|
| Net Sales YoY Change | -4.2% |
| Operating Income YoY Change | +45.6% |
| Ordinary Income YoY Change | +72.8% |
| Profit Before Tax YoY Change | +46.9% |
| Net Income YoY Change | +49.5% |
| Net Income Attributable to Owners YoY Change | +61.0% |
| Total Comprehensive Income YoY Change | +49.5% |
| Item | Value |
|---|
| Shares Outstanding (incl. Treasury) | 8.34M shares |
| Treasury Stock | 85K shares |
| Average Shares Outstanding | 8.26M shares |
| Book Value Per Share | ¥786.69 |
| EBITDA | ¥2.76B |
| Item | Amount |
|---|
| Q2 Dividend | ¥0.00 |
| Year-End Dividend | ¥62.00 |
| Item | Forecast |
|---|
| Net Sales Forecast | ¥19.73B |
| Operating Income Forecast | ¥2.80B |
| Net Income Forecast | ¥1.87B |
| Net Income Attributable to Owners Forecast | ¥1.87B |
| Basic EPS Forecast | ¥226.54 |
| Dividend Per Share Forecast | ¥0.00 |
This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.
GMO Financial Gate (IFRS, consolidated) delivered a mixed FY2025 Q4: revenue declined 4.2% YoY to 179.27, yet profitability improved materially with operating income up 45.6% YoY to 22.30 and net income up 61.0% YoY to 16.32. Gross profit was 60.46, implying a gross margin of 33.7%, while SG&A was 45.14; the gap to operating income suggests positive other operating income of roughly 7.0 within operating activities under IFRS classification. Operating margin expanded to approximately 12.4%, and EBITDA was 27.55 (15.4% margin), evidencing higher operating leverage despite top-line softness. Net profit margin reached 9.1%, aided by a moderate effective tax rate of 19.7% and limited net non-operating losses (ordinary income 21.05 vs operating income 22.30). DuPont decomposition indicates a robust calculated ROE of 25.1% (NPM 9.1% × asset turnover 1.296 × financial leverage 2.13x), supported more by margin expansion than leverage. Balance sheet resilience remains adequate with an equity ratio of 45.2% (owners’ equity basis) and total equity of 64.94; assets totaled 138.32. Leverage measured as total liabilities to equity is 1.28x, while interest-bearing debt is modest at 20.00, implying a net cash position of about 22.57 when compared with reported cash and equivalents of 42.57. Working capital dynamics show meaningful receivables (31.66) and inventories (31.70), which are notable relative to sales and cost of sales and bear monitoring for cash conversion. Operating cash flow was 12.27, below net income (OCF/NI 0.75x), and free cash flow was positive at 3.29 despite investing outflows of -8.98, with capex itself small at -0.15, suggesting investment cash outlays largely reflect non-capex items (e.g., deposits or intangibles). Financing cash flow of -11.31 reflects dividend payments (-3.82) and likely debt repayments; combined with investing outflows, this pressured cash despite positive OCF. Dividend affordability looks fair on an earnings basis (calculated payout ratio 31.7%) but tighter on cash flow metrics (reported FCF coverage 0.64x), indicating dependence on operating cash consistency. Reported ratio fields (e.g., ROE 0.3%, ROA(ordinary) 0.2%) appear not comparable to calculated metrics, likely due to definitional or data-tagging differences; analysis is based on the disclosed financial statement values. Liquidity ratios such as current and quick cannot be calculated due to unreported current liabilities; similarly, interest coverage is not computable as interest expense is unreported. Overall, the quarter reflects strong margin discipline and operating leverage offsetting a softer revenue base, with a conservative capital structure and adequate liquidity. The key watchpoints are cash conversion (OCF/NI), working capital intensity in receivables and inventories, and the sustainability of other operating income contributions. Dividend policy appears prudently aligned with earnings, but sustained free cash flow generation will be important if investing outflows remain elevated. Given certain unreported line items (e.g., current liabilities, non-operating details, DPS), conclusions are drawn from available non-zero disclosures and may omit nuances.
ROE decomposition (DuPont): Net profit margin 9.1% × asset turnover 1.296 × financial leverage 2.13x yields a calculated ROE of 25.1%. Margin quality: gross margin at 33.7% supports operating margin of about 12.4% (22.30/179.27); EBITDA margin is 15.4%. The uplift from gross profit to operating income suggests other operating income of roughly 6.98, indicating ancillary revenue streams or IFRS-recognized gains supporting EBIT. Operating leverage was high: despite a 4.2% YoY revenue decline, operating income rose 45.6% YoY, evidencing strong cost control/mix benefits and scalability. Below operating line, ordinary income (21.05) is slightly below operating income, implying modest net non-operating expense (~1.25) with limited drag on profitability. Effective tax rate is 19.7%, supportive of net margins. Asset efficiency (1.296x turnover) is solid for the business model and contributes meaningfully to ROE alongside modest balance-sheet leverage (2.13x assets/equity).
Revenue declined 4.2% YoY to 179.27, indicating near-term headwinds in top-line drivers (potentially device shipments, merchant onboarding, or project timing). Despite this, profit growth was strong: operating income +45.6% YoY and net income +61.0% YoY, reflecting favorable mix, cost savings, and other operating income contributions. EBITDA growth to 27.55 further supports improved underlying earnings power. Sustainability hinges on whether margin gains stem from structural efficiencies or one-off items; the presence of a roughly 7.0 other operating income component warrants monitoring for recurrence. With inventories at 31.70 and receivables at 31.66, revenue normalization could release or absorb working capital; current levels suggest potential volatility in shipment and collection cycles. Outlook qualitatively depends on merchant demand and terminal/project cycles; if revenue stabilizes, current operating leverage could sustain double-digit operating margins. Absent explicit guidance, base expectations are for modest revenue recovery and mid-teens EBITDA margin if cost discipline persists. Key watch will be order pipeline, churn/additions of merchants, and any regulatory or fee changes affecting take rates.
Liquidity: Current ratio and quick ratio are not calculable due to unreported current liabilities and cash breakdown; however, cash and equivalents stand at 42.57 and receivables/inventories are sizable. Solvency: Equity ratio is 45.2% (owners’ equity/total assets), indicating a balanced capital structure. Liabilities-to-equity is 1.28x (83.16/64.94), while interest-bearing debt is 20.00; net cash approximates 22.57 when offset against cash and equivalents. Long-term loans of 20.00 indicate limited financial risk from refinancing in the near term, assuming a laddered maturity profile (not disclosed). Accounts payable is 36.72, which alongside receivables/inventories suggests a meaningful working-capital loop; supplier terms provide some funding. Overall solvency is sound with moderate leverage and substantial equity buffer.
Earnings quality: OCF of 12.27 is 0.75x net income (16.32), indicating moderate cash conversion and likely working capital absorption or timing differences. Free cash flow is positive at 3.29 despite investing CF of -8.98; capex itself is minimal (-0.15), implying investing outflows are largely non-capex (e.g., deposits, intangibles, or investments). Working capital: Receivables of 31.66 equate to roughly 64 days of sales (31.66/179.27 × 365), while inventories of 31.70 equate to roughly 91 days of cost of sales (31.70/126.59 × 365); both are material and central to cash conversion. The gap between operating profit and OCF suggests cash realization lagging accounting earnings, which should be monitored for normalization. Interest expense is unreported, so interest coverage cannot be assessed, but net cash reduces near-term cash interest risk. Overall, cash flow quality is acceptable but not robust; sustaining positive FCF will depend on stabilizing working capital and managing non-capex investing outflows.
On earnings, the dividend appears affordable: the calculated payout ratio is 31.7%, consistent with a conservative distribution posture. On cash flow, the reported FCF coverage ratio of 0.64x indicates dividends exceeded free cash flow in the period by this measure; using FCF of 3.29 and disclosed dividends paid of 3.82 suggests coverage below 1x, highlighting some reliance on balance sheet or future OCF. Financing CF was -11.31, implying additional cash uses (likely debt repayment) alongside dividends. With net cash and modest interest-bearing debt, near-term dividend capacity is not acutely constrained, but sustained distributions will require improved OCF/NI and steadier FCF. DPS details are unreported, limiting assessment of policy cadence or target payout levels; reported DOE of 0.1% appears not directly comparable to calculated figures. Policy outlook likely remains earnings-linked, with room to maintain payouts if operating margins persist and working capital normalizes.
Business Risks:
- Revenue cyclicality tied to payment terminal shipments, merchant onboarding, and project timing
- Margin sensitivity to mix, pricing, and the recurrence of other operating income
- Working capital intensity and potential build-up in receivables and inventories affecting cash conversion
- Regulatory and scheme rule changes in the cashless/payment ecosystem impacting fees and costs
- Supply chain and component availability risks for hardware devices and peripherals
Financial Risks:
- OCF/NI below 1.0x indicating moderate cash conversion risk
- FCF coverage of dividends below 1x, increasing reliance on balance sheet if sustained
- Concentration in accounts payable and trade funding dynamics that could tighten if sales slow
- Potential refinancing timing on long-term loans (20.00) if cash generation weakens (maturity profile not disclosed)
Key Concerns:
- Sustainability of margin gains given revenue decline
- Persistence and nature of roughly 7.0 other operating income underpinning EBIT
- Normalization of working capital to support OCF and FCF
- Inconsistencies between reported ratio fields and calculated metrics complicate peer comparisons
Key Takeaways:
- Strong profit growth (+46% EBIT, +61% net) despite a 4% revenue decline highlights operating leverage and cost discipline
- Calculated ROE of 25.1% is driven by healthy margins and solid asset turnover rather than balance-sheet leverage
- Positive but thin FCF (3.29) alongside investing outflows and dividends suggests closer monitoring of cash conversion
- Balance sheet is conservative with net cash (~22.6) and an equity ratio of 45.2%
- Working capital is material (AR 31.66, inventories 31.70) and central to cash generation
- Dividend looks affordable on earnings (31.7% payout) but tighter on cash metrics (FCF coverage <1x)
Metrics to Watch:
- OCF/Net income ratio (target >1.0x for sustained cash earnings quality)
- Receivables and inventory turnover (days sales outstanding and days inventory on hand)
- Operating margin sustainability and mix of other operating income
- Free cash flow after all investing outflows, not just capex
- Liabilities-to-equity and net cash to ensure continued balance sheet resilience
- Ordinary income vs operating income gap as a proxy for non-operating impacts
Relative Positioning:
Relative to domestic payments/fintech hardware-integrated peers, GMO Financial Gate exhibits higher calculated ROE and solid asset efficiency with moderate leverage and a net cash position, but faces tighter cash conversion and working capital intensity that temper its otherwise strong profitability profile.
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