Movin' Strategic Career CO.,LTD. FY2025 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥2.83B
• Operating Income: ¥1.44B
• Net Income: ¥940M
• EPS: ¥116.79

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

Movin' Strategic Career (FY2025 Q3, JGAAP, consolidated) delivered very strong topline and earnings momentum, with revenue of ¥2,831m (+46.6% YoY) and operating income of ¥1,438m (+82.3% YoY). The operating margin expanded sharply to approximately 50.8%, up roughly 9.9 percentage points from an estimated ~40.9% a year ago, underscoring meaningful operating leverage. Net income reached ¥940m (+74.9% YoY), implying a net margin of 33.2%, consistent with the DuPont-provided net margin. Gross profit was ¥2,700.8m, translating to an exceptionally high gross margin of 95.4%, typical of asset-light, fee-based human capital services. On balance sheet strength, total assets were ¥3,589m and total equity ¥2,826m, implying low financial leverage (assets/equity ~1.27x) and an estimated equity ratio of roughly 78.8% despite the reported equity ratio field showing 0.0% (unreported). Liquidity appears robust with current assets of ¥2,120.6m and current liabilities of ¥591.8m, yielding a current ratio of 358% and working capital of ¥1,528.8m. DuPont decomposition shows ROE of 33.26%, driven by a high net margin (33.2%), moderate asset turnover (0.789x), and modest leverage (1.27x), suggesting quality earnings rather than leverage-driven returns. Tax expense was ¥498.4m, implying an effective tax rate of about 34.7% based on ordinary income, consistent with the reconciliation to net income (note the calculated metric listing 0% is likely a mapping limitation). Ordinary income equaled operating income, indicating minimal non-operating effects in the period. Interest expense is unreported (listed as 0), but the balance sheet indicates low indebtedness and negligible financial risk from interest burden. Cash flow details (OCF/FCF/Cash) are not disclosed in this dataset, limiting direct assessment of earnings-to-cash conversion; however, the balance sheet liquidity and working capital position suggest capacity to support growth. Dividend information shows DPS at 0 and payout ratio at 0%, implying reinvestment or a conservative policy; with strong profitability and low leverage, the company has optionality for future shareholder returns. Revenue growth outpaced expense growth, and the operating leverage observed is consistent with scaling benefits in a consulting/placement model. Asset turnover at 0.789x indicates reasonable balance sheet efficiency for a service business, and the strong ROE appears sustainable if growth and margins hold. Overall, the company enters FY2025 Q4 with a strong financial position, high profitability, and ample liquidity, though visibility on cash flow remains limited due to unreported cash flow statements in this dataset. Key sensitivities remain macro hiring demand, fee rates, and consultant capacity utilization.

Profitability Analysis

ROE_decomposition: ROE 33.26% = Net margin 33.20% × Asset turnover 0.789 × Financial leverage 1.27. Drivers are margin expansion and moderate balance sheet efficiency, with limited leverage contribution. margin_quality: Gross margin 95.4% (¥2,700.8m GP on ¥2,831m revenue) highlights an asset-light service model. Operating margin ~50.8% (¥1,438m OI) benefited from scale; net margin 33.2% reflects a normalized effective tax rate (~34.7%) and minimal non-operating items. operating_leverage: Revenue +46.6% YoY vs operating income +82.3% YoY implies strong operating leverage. Prior-year OI estimated ~¥789m (1,438/1.823), revenue ~¥1,931m (2,831/1.466), so OPM expanded from ~40.9% to ~50.8% (+~9.9pp).

Growth Assessment

revenue_sustainability: Topline growth of +46.6% YoY is robust and likely driven by higher placements/consulting volume and/or fee rate improvements; sustainability hinges on labor market strength and consultant capacity. profit_quality: Earnings growth outpaced revenue due to operating leverage and SG&A efficiency. Ordinary income equaling operating income indicates limited reliance on non-operating gains. outlook: If demand for mid-career hiring remains firm and productivity stays elevated, double-digit revenue growth with elevated margins is plausible near term. Risks include macro slowdown, hiring freezes, and pricing pressure.

Financial Health

liquidity: Current assets ¥2,120.6m vs current liabilities ¥591.8m; current ratio ~358% and quick ratio ~358% (no inventories reported). Working capital ¥1,528.8m provides ample buffer. solvency: Total liabilities ¥591.8m vs equity ¥2,826m yields debt-to-equity ~0.21x. Estimated equity ratio ~78.8% (equity/assets), indicating a conservative balance sheet. capital_structure: Low leverage with negligible reported interest expense. Ordinary income equals operating income, suggesting minimal financial income/expense impact.

Cash Flow Quality

earnings_quality: Cash flow statements are unreported in this dataset (OCF/FCF shown as 0 by placeholder), limiting direct assessment of earnings-to-cash conversion. FCF_analysis: Without OCF and capex data, FCF cannot be determined. Given the service model, capex needs are typically low, implying potential for strong FCF when growth normalizes. working_capital: Strong working capital (¥1,528.8m) and high current ratio suggest liquidity support for growth. Monitoring receivables days and unbilled revenue would be key for cash conversion.

Dividend Sustainability

payout_ratio_assessment: DPS and payout ratio are reported as 0 (unreported), so no current payout is assumed in this dataset. With net income at ¥940m and low leverage, capacity exists, but policy is unknown. FCF_coverage: FCF is not disclosed; thus coverage cannot be evaluated. If OCF is robust (typical for asset-light services), prospective coverage would be favorable. policy_outlook: Given strong growth and profitability, retained earnings may be prioritized for scaling talent and systems. Future dividends could be considered once growth investment stabilizes, but visibility is limited.

Risk Assessment

Business Risks:

• Macroeconomic slowdown reducing hiring demand and placement activity
• Pricing pressure on placement/consulting fees
• Consultant headcount and utilization constraints limiting growth
• Client concentration risk if top accounts drive a large share of revenue
• Competitive intensity from domestic recruiting agencies and digital platforms
• Regulatory changes in labor and employment practices

Financial Risks:

• Cash flow timing risks from receivables and unbilled revenue
• Potential increase in SG&A with aggressive hiring, diluting margins
• Tax rate volatility (effective tax ~34.7% this period) impacting net margins

Key Concerns:

• Sustainability of unusually high operating margin (~50.8%) as scale and competition evolve
• Lack of disclosed cash flow data limits visibility on earnings-to-cash conversion
• Sensitivity to cyclical hiring trends and corporate sentiment

Investment Implications

Key Takeaways:

• Strong growth: revenue +46.6% YoY; operating income +82.3% YoY
• Significant operating leverage with OPM rising ~+9.9pp YoY to ~50.8%
• High ROE 33.26% driven by margin strength and modest asset turnover
• Conservative balance sheet: D/E ~0.21x; estimated equity ratio ~78.8%
• Cash flow disclosure absent; liquidity nonetheless appears ample (current ratio ~358%)
• Dividend currently not indicated in data; reinvestment likely priority

Metrics to Watch:

• Placement volumes, average fee rates, and consultant productivity
• SG&A ratio and operating margin trajectory
• Receivables days and cash conversion cycle
• Headcount growth vs revenue growth (operating leverage sustainability)
• Client concentration and churn
• Effective tax rate stabilization

Relative Positioning: Within Japan’s human capital and career-transition services, the company exhibits superior margins and ROE versus typical peers, supported by an asset-light model and low leverage; durability depends on sustaining demand and operational discipline.

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