Miraial Co.,Ltd. FY2026 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥9.40B
• Operating Income: ¥465M
• Net Income: ¥757M
• EPS: ¥44.04

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment 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

Mirial Co., Ltd. (TSE: 4238) reported FY2026 Q3 consolidated results under JGAAP showing top-line resilience but significant profit compression. Revenue was ¥9.402bn, down 8.5% YoY, while operating income fell 55.1% YoY to ¥465m, indicating pronounced negative operating leverage amid softer demand or mix deterioration. Gross profit of ¥2.334bn implies a gross margin of 24.8%, which, against SG&A of ¥1.297bn, would ordinarily suggest higher operating profit; the gap to the reported ¥465m points to additional unreported operating items (e.g., other operating expenses, impairment, or production-related costs not broken out in the provided data). Ordinary income was ¥519m (−53.0% YoY), reflecting limited non-operating support (non-operating income ¥87m vs expenses ¥20m). Net income declined 47.4% to ¥397m, putting net margin at 4.22%. DuPont decomposition indicates ROE of 1.75%, driven by moderate asset turnover (0.348x) and very low financial leverage (1.19x), with margin compression the key headwind. Liquidity is strong: cash and deposits of ¥6.474bn and a current ratio of 235% provide a substantial buffer, with quick ratio at 219% underscoring low reliance on inventory liquidation. The balance sheet is conservative with no interest-bearing debt disclosed and total liabilities of ¥6.026bn versus equity of ¥22.677bn; computed equity ratio is roughly 84%, despite the XBRL ‘reported’ equity ratio being 0% due to non-disclosure tagging. Working capital is healthy at ¥7.438bn. Cash flow statements are not disclosed (zeros indicate unreported), limiting assessment of earnings-to-cash conversion and capex needs. EPS (basic) was ¥44.04, essentially flat YoY per the tag, but this appears inconsistent with the 47.4% decline in net income; we treat the ‘+0.0% YoY’ EPS change as a disclosure artifact. Dividend fields are also not disclosed; calculated payout ratios embedded in the feed are inconsistent with the stated zero DPS and zero total dividends, so we refrain from drawing conclusions about payout levels this period. Overall, the company remains financially sound with ample liquidity and low leverage, but profitability has weakened materially due to operating deleverage. The outlook hinges on demand normalization in core end-markets and the company’s ability to manage fixed costs and pricing. Key data limitations include missing cash flows, depreciation, accounts receivable details, and certain margin measures, which constrain precision in assessing cash flow quality and capital intensity.

Profitability Analysis

ROE_decomposition: ROE 1.75% = Net margin (4.22%) × Asset turnover (0.348x) × Financial leverage (1.19x). Margin compression is the primary driver of the decline in returns, not leverage. margin_quality: Gross margin at 24.8% suggests basic production economics are intact, but the difference between GP − SG&A (~¥1.037bn) and reported operating income (¥465m) implies other unreported operating costs of roughly ¥0.57bn this period. Operating margin (computed) is ~4.95% (= ¥465m / ¥9,402m). Net margin is 4.22%, supported modestly by non-operating income. operating_leverage: Revenue declined 8.5% YoY while operating income fell 55.1% YoY, evidencing high negative operating leverage. Fixed cost absorption likely deteriorated with volume/mix, and/or there were elevated other operating expenses. Ordinary income declined 53.0% YoY, confirming broad-based profit pressure.

Growth Assessment

revenue_sustainability: Top line contracted 8.5% YoY to ¥9.402bn, consistent with cyclical softness (likely semiconductor-related container demand). No evidence of structural share loss is visible from the limited data; however, the decline indicates end-market weakness or adverse mix. profit_quality: Operating income fell to ¥465m despite moderate gross margin, suggesting cost rigidity and/or additional operating charges. Non-operating items netted a modest positive (~¥67.6m), insufficient to offset core weakness. Net income of ¥397m implies compressed profitability with a 4.22% net margin. outlook: Recovery depends on demand normalization in precision/semiconductor shipping materials and the company’s ability to flex SG&A and other operating costs. A rebound in semiconductor capex and wafer shipments would be supportive; conversely, prolonged inventory digestion would keep margins subdued. Pricing discipline and raw material cost trends (resins) are key swing factors.

Financial Health

liquidity: Current assets ¥12.930bn vs current liabilities ¥5.492bn yields a current ratio of 235%. Quick ratio 219% reflects strong cash and low inventory dependency. Cash and deposits of ¥6.474bn alone cover 118% of current liabilities. solvency: Total liabilities ¥6.026bn vs equity ¥22.677bn; computed equity ratio ≈ 84%. Interest-bearing debt is undisclosed (reported as zero), indicating minimal financial risk from leverage. The reported debt-to-equity of 0.27x reflects total liabilities/equity rather than interest-bearing debt. capital_structure: Owners’ equity ¥22.677bn with retained earnings ¥21.646bn underscores internal funding capacity. No long-term loans disclosed; noncurrent liabilities are modest at ¥0.534bn.

Cash Flow Quality

earnings_quality: Operating cash flow, investing cash flow, and capex are not disclosed, preventing assessment of cash conversion, working capital intensity, and maintenance vs growth capex. The OCF/Net Income ratio is tagged at 0.00 due to non-disclosure, not actual zero. FCF_analysis: Free cash flow cannot be computed without OCF and capex. Balance sheet strength and cash reserves suggest near-term flexibility, but sustainability of FCF depends on normalization of operating margin and working capital trends. working_capital: Inventories of ¥0.927bn are modest relative to current assets; accounts receivable are undisclosed, limiting turnover analysis. Accounts payable are ¥0.417bn, indicating limited supplier financing; net working capital stands at ¥7.438bn, supporting operations.

Dividend Sustainability

payout_ratio_assessment: Dividend data are not disclosed for the period. The ‘calculated’ payout ratio of 102% conflicts with the zero DPS and zero total dividends fields and is treated as unreliable. Without DPS or total dividend amounts, payout ratio cannot be determined. FCF_coverage: Unable to assess due to missing OCF and capex. Balance sheet liquidity implies capacity to pay, but policy and cash generation visibility are insufficient in this dataset. policy_outlook: With strong equity and cash, the company retains potential to sustain or resume dividends when earnings and cash flows permit; however, absent disclosed DPS or guidance, no inference on policy trend can be made.

Risk Assessment

Business Risks:

• Cyclical demand in semiconductor and precision logistics end-markets affecting volumes and pricing
• Customer concentration risk typical of semiconductor supply chains
• Raw material price volatility (resins) and pass-through lag impacting margins
• Product obsolescence and inventory valuation risks amid rapid node transitions
• Competitive pressure from global packaging/container suppliers

Financial Risks:

• Negative operating leverage in downturns leading to sharp profit swings
• Potential for unexpected operating charges (impairments, write-downs) as implied by GP-to-OI gap
• FX exposure on exports/imported materials if not fully hedged
• Limited visibility on cash generation due to non-disclosed cash flow statements

Key Concerns:

• Operating income down 55.1% YoY versus revenue down 8.5% indicates elevated fixed cost burden
• Unreported operating items likely depressed OI by roughly ¥0.57bn versus GP–SG&A arithmetic
• Cash flow and capex disclosure gaps constrain assessment of earnings quality and investment needs

Investment Implications

Key Takeaways:

• Revenue contraction of 8.5% YoY with severe margin compression; operating margin ~4.95%
• ROE at 1.75% reflects low leverage and pressured margins; asset turnover 0.348x
• Balance sheet is robust with computed equity ratio ~84% and cash ¥6.47bn
• Ordinary income support from non-operating items is modest and not a structural offset
• Data gaps on cash flow and depreciation obscure capital intensity and FCF outlook

Metrics to Watch:

• Quarterly revenue trajectory and order trends in semiconductor-related segments
• Gross margin and operating margin recovery; scale of other operating expenses
• Working capital movements (inventories, payables) and any disclosure of receivables
• Cash flow from operations and capex when disclosed; FCF conversion
• Raw material cost trends and pricing pass-through
• Dividend announcements or policy updates

Relative Positioning: Financially conservative with low leverage and ample liquidity versus many cyclical peers, but currently experiencing pronounced operating deleverage; recovery potential is tied to end-market improvement and cost 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