CYND Co.,Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥1.22B
• Operating Income: ¥157M
• Net Income: ¥55M
• EPS: ¥14.28

Income Statement

Balance Sheet

Cash Flow Statement

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

For FY2026 Q2, 株式会社サインド delivered solid topline growth and improved operating profitability, with clear signs of positive operating leverage. Revenue rose 13.1% YoY to ¥1,221m, while operating income grew faster at 15.6% to ¥157m, indicating disciplined cost control relative to sales expansion. Gross profit of ¥846.6m translates to a high gross margin of 69.3%, consistent with a software- or service-like model with scalable unit economics. Ordinary income was ¥153m, slightly below operating income due to net non-operating costs, chiefly interest expense of ¥4.7m. Net income increased 56.3% YoY to ¥86m, much faster than operating income, suggesting favorable below-the-line dynamics versus the prior year and/or the absence of negative one-offs. DuPont analysis shows a calculated ROE of 2.53%, driven by a 7.04% net margin, 0.247x asset turnover, and 1.45x financial leverage. Liquidity appears robust: the current ratio stands at 299% and working capital at ¥1,520m, supported by sizable current assets. Capital structure is conservative with total liabilities of ¥1,548m against equity of ¥3,401m (implied equity ratio about 68.7%), although the reported equity ratio field shows 0% due to non-disclosure in XBRL. Operating cash flow was strong at ¥217.0m, exceeding net income by 2.52x, which implies healthy earnings quality and a favorable working capital contribution in the period. EBITDA of ¥188.1m yields a 15.4% margin and interest coverage of 33.4x (EBIT/interest), signaling low near-term refinancing risk. No dividend was paid (DPS ¥0), consistent with reinvestment priorities and growth focus. Several items, including cash and equivalents, investing cash flows, equity ratio, and share data, appear undisclosed rather than truly zero; this limits precision on free cash flow, cash buffer, and per-share diagnostics. Overall, the company demonstrates improving profitability, ample liquidity, and sound solvency, with the main analytical caveat being partial data disclosure in the quarter.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 7.04%
• asset_turnover: 0.247x
• financial_leverage: 1.45x (Assets/Equity = 4,948/3,401)
• calculated_ROE: 2.53%
• commentary: ROE is modest, constrained by low asset turnover, while margin strength and conservative leverage support stability. Improving operating margin provides potential for ROE uplift if asset efficiency improves. margin_quality:
• gross_margin: 69.3% (¥846.6m/¥1,221.0m)
• operating_margin: 12.9% (¥157.0m/¥1,221.0m)
• ordinary_margin: 12.5% (¥153.0m/¥1,221.0m)
• net_margin: 7.04% (¥86.0m/¥1,221.0m)
• insights: High gross margin indicates scalable delivery with limited variable costs. The gap from gross to operating margin reflects SG&A intensity typical for growth-stage businesses. Non-operating costs modestly reduce ordinary income (~¥4m net), consistent with reported interest expense. operating_leverage:
• revenue_growth_YoY: +13.1%
• operating_income_growth_YoY: +15.6%
• assessment: Positive operating leverage evidenced by operating income growing faster than revenue. If sustained, incremental margins should trend upward as fixed costs are leveraged over a higher revenue base.

Growth Assessment

revenue_sustainability: Double-digit revenue growth (+13.1% YoY) suggests healthy demand. The high gross margin profile implies a value-added offering with potential for continued scaling, though persistence of growth will depend on customer acquisition efficiency and retention rates (not disclosed). profit_quality: Net income grew +56.3% YoY, outpacing operating income, pointing to cleaner below-the-line items versus last year and/or lower drag from non-operating factors. Core profitability (OP margin 12.9%) improved alongside revenue, indicating quality growth. outlook: With strong liquidity and moderate leverage, the company has capacity to invest in growth. Sustaining operating leverage and managing SG&A intensity will be key to margin expansion. Data gaps (investing CF, cash balance) limit visibility into reinvestment tempo and capitalized development trends.

Financial Health

liquidity:

• current_ratio: 299.4% (2,282.4m / 762.3m)
• quick_ratio: ≈299% (inventories negligible at ¥0.17m)
• working_capital: ¥1,520.1m
• commentary: Very strong near-term liquidity. Cash and equivalents are undisclosed (reported as 0), so absolute cash buffer cannot be verified despite robust current asset coverage. solvency:
• debt_to_equity: 0.46x (Total liabilities/equity)
• interest_coverage: 33.4x (Operating income/interest expense)
• equity_ratio: Implied ~68.7% (Equity/Assets = 3,401/4,948); reported 0% reflects non-disclosure
• commentary: Low leverage and high coverage imply low refinancing risk and ample balance sheet resilience. capital_structure: Balance sheet is equity-heavy with moderate liabilities. Non-operating burden is small (ordinary income slightly below operating income), implying limited financial drag.

Cash Flow Quality

earnings_quality:

• OCF_to_Net_Income: 2.52x (¥217.0m / ¥86.0m)
• DandA: ¥31.1m, providing non-cash support to OCF
• assessment: Strong conversion indicates healthy accruals and likely favorable working capital movements in the period. FCF_analysis:
• reported_FCF: 0 (placeholder due to undisclosed investing cash flows/capex)
• assessment: True FCF cannot be determined without capex/capitalized development outflows. OCF strength suggests capacity to fund investments, but cash burn or heavy capex cannot be ruled out based on current disclosure. working_capital: Large positive working capital base (¥1,520m) supports operations. OCF strength relative to NI suggests efficient collections or payables management this quarter; need trend data (receivables/payables days not disclosed) to confirm durability.

Dividend Sustainability

payout_ratio_assessment: Payout ratio 0% and DPS ¥0 indicate a reinvestment-oriented policy. With modest ROE and growth investments likely, retaining earnings appears internally consistent. FCF_coverage: Not assessable as FCF is undisclosed; cannot confirm dividend affordability based on free cash flow. policy_outlook: Given early-stage profitability scaling and strong liquidity, continuation of a no or low dividend policy seems plausible until margins and ROE improve further. Any future payout would hinge on clearer visibility of durable FCF and capex needs.

Risk Assessment

Business Risks:

• Growth deceleration risk if new customer acquisition slows or churn rises (customer metrics not disclosed).
• Margin compression risk from increased sales and marketing or R&D required to sustain growth.
• Competitive intensity in digital/IT services potentially pressuring pricing and retention.
• Execution risk around scaling operations and maintaining service quality as volumes increase.

Financial Risks:

• Data gaps on cash, capex, and investing flows limit visibility into true FCF and liquidity buffers.
• Potential working capital volatility as growth accelerates, which could dilute OCF conversion.
• Interest rate risk is limited currently given strong coverage, but any leverage increase would raise sensitivity.
• Tax rate variability; implied tax expense is material, and reported effective tax rate field appears unreliable.

Key Concerns:

• Undisclosed cash and investing cash flows obscure free cash flow assessment.
• Modest ROE (2.53%) despite high gross margins, reflecting low asset turnover and still-developing operating scale.
• Dependence on maintaining operating leverage to support margin expansion.

Investment Implications

Key Takeaways:

• Solid topline growth (+13.1% YoY) with positive operating leverage (+15.6% OI).
• High gross margin (69.3%) supports scalability; operating margin at 12.9% with room to expand.
• Healthy balance sheet with implied equity ratio ~68.7% and low leverage (D/E 0.46x).
• Strong earnings quality (OCF/NI 2.52x) indicates robust cash conversion this period.
• Interest coverage is ample at 33.4x, implying low near-term financial risk.
• Data limitations on cash, capex, and investing CF constrain FCF visibility and capital intensity assessment.

Metrics to Watch:

• Operating margin trajectory and incremental margins as revenue scales.
• OCF to net income ratio trend and working capital days (DSO/DPO) when disclosed.
• Capex and capitalized development costs to gauge true FCF and reinvestment needs.
• Equity ratio and net cash/debt once cash balances are disclosed.
• Revenue growth sustainability and any disclosures on customer concentration or churn.
• Effective tax rate normalization versus implied tax expense.

Relative Positioning: Within growth-oriented, high-gross-margin peers, the company exhibits strong liquidity and cash conversion but lags on ROE due to low asset turnover and developing operating scale; improved operating leverage and clearer FCF disclosure would strengthen its standing.

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