JUST PLANNING INC. FY2026 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥1.90B
• Operating Income: ¥474M
• Net Income: ¥254M
• EPS: ¥27.94

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

For FY2026 Q3 (cumulative), JustPlanning delivered solid top-line growth and stronger operating leverage on a very conservative balance sheet. Revenue was 18.99 (100M JPY), up 18.8% YoY, with operating income of 4.74 (100M JPY), up 35.8% YoY, indicating margin expansion and scale benefits. Net income was 3.30 (100M JPY), up 30.1% YoY, translating to a healthy net margin of 17.4%. Reported gross profit was 8.26 (100M JPY), implying a gross margin of 43.5%; this margin is consistent with the provided gross margin metric. Ordinary income of 4.80 (100M JPY) modestly exceeded operating income, supported by small net non-operating gains. The DuPont framework shows ROE of 8.8% driven primarily by margin strength and modest asset turnover (0.457x), with low financial leverage (1.11x) limiting ROE amplification—consistent with the company’s debt-light capital structure. The balance sheet is notably liquid: cash and deposits of 28.71 (100M JPY) account for roughly 69% of total assets, and the current ratio stands at about 1030%. Total liabilities are only 3.43 (100M JPY), placing equity at 90.2% of total assets and resulting in a very low debt-to-equity ratio of 0.09x. EPS (basic) was 27.94 JPY, and calculated BVPS was 319.8 JPY. The effective tax rate derived from the tax expense and pretax figure is about 31–32%; however, the bridge from ordinary income to pretax and net income suggests the presence of extraordinary items or classification effects. Cash flow statements were unreported, limiting assessment of earnings-to-cash conversion and free cash flow coverage. Dividend details were unreported, but a calculated payout ratio of 37.1% suggests a moderate return of earnings to shareholders, likely supported by ample cash. Overall, profitability momentum, margin resilience, and a fortress-like balance sheet underpin near-term stability; however, the absence of cash flow disclosure and limited breakdowns (SG&A, D&A, R&D) constrain the depth of analysis and forward visibility. The company appears to be benefiting from operating leverage, but sustainability will depend on revenue mix, recurring components, and cost discipline. Key watchpoints include the quality of growth (recurring vs. project-based), any extraordinary items affecting comparability, and capital allocation given the sizeable cash balance.

Profitability Analysis

ROE_decomposition: - Net Profit Margin: 17.4% (Net income 3.30 / Revenue 18.99)

• Asset Turnover: 0.457x (Revenue 18.99 / Assets 41.56)
• Financial Leverage: 1.11x (Assets 41.56 / Equity 37.49)
• Calculated ROE: 8.8% (matches reported 8.8%) margin_quality: - Gross margin: 43.5%, consistent with the reported gross profit (8.26). This implies cost of sales of roughly 10.73 (100M JPY), indicating a product/service mix supporting healthy value-add.
• Operating margin: ~24.9% (4.74 / 18.99), reflecting disciplined SG&A relative to gross profit and scale benefits.
• Ordinary margin: ~25.3% (4.80 / 18.99), aided by minor net non-operating income.
• Net margin: 17.4%, indicating good flow-through after non-operating and tax effects. operating_leverage: Revenue rose 18.8% YoY while operating income rose 35.8% YoY, evidencing positive operating leverage and cost efficiency gains. The step-up from gross to operating profit suggests SG&A leverage; however, without D&A detail, the split between fixed-cost absorption and mix effects is unclear.

Growth Assessment

revenue_sustainability: Double-digit YoY growth suggests robust demand, likely driven by product adoption and/or stronger project flow. Sustainability will hinge on the proportion of recurring revenue (e.g., software/maintenance) versus one-off implementation or hardware-related components, which are not disclosed. profit_quality: Margin expansion indicates improved cost absorption and/or favorable mix. The bridge from ordinary to pretax income implies extraordinary items (losses) this period, though net non-operating effects were small; clarity on extraordinary items would improve comparability. outlook: Near-term outlook appears constructive given operating leverage and ample cash to support growth initiatives. Key dependencies include continued client demand in core verticals, retention/upsell dynamics, and execution on potential cloud/subscription transitions. Lack of order backlog and ARR disclosure limits forward visibility.

Financial Health

liquidity: - Current assets: 33.43 vs. current liabilities: 3.25 (current ratio ~10.3x), with cash/deposits at 28.71 providing substantial liquidity buffer. Quick ratio approximates the current ratio given limited inventory disclosure. solvency: - Total liabilities: 3.43 against equity: 37.49; equity ratio ~90.2%. Debt-to-equity of 0.09x indicates minimal leverage and low financial risk. Interest-bearing debt is unreported; given low liabilities and high cash, net debt is likely negative. capital_structure: Conservative, cash-heavy balance sheet with limited reliance on debt financing. This provides resilience and optionality for investment, M&A, or shareholder returns, subject to capital allocation priorities.

Cash Flow Quality

earnings_quality: Without operating cash flow disclosure, we cannot directly assess cash conversion (OCF/NI) or working capital drag. The high share of cash on the balance sheet suggests historical cash generation or capital raises; current-period cash conversion remains unknown. FCF_analysis: Investing and financing cash flows are unreported; capex is also unreported. As such, free cash flow cannot be estimated for the period. working_capital: Accounts receivable of 2.66 vs. revenue of 18.99 appears manageable; however, DSO cannot be calculated without turnover periods. Current liabilities are modest at 3.25, supporting low short-term funding risk.

Dividend Sustainability

payout_ratio_assessment: Calculated payout ratio is 37.1% based on reported EPS, implying a DPS on the order of ~10.4 JPY if applied linearly. This is a moderate payout level consistent with reinvestment capacity and balance sheet strength. FCF_coverage: Not assessable due to missing cash flow and capex data. However, substantial cash reserves provide a cushion for near-term distributions. policy_outlook: With net-cash positioning and improving profitability, maintaining or modestly increasing dividends appears feasible from a balance-sheet perspective. Formal policy signals (target payout, DOE, stability focus) were not disclosed.

Risk Assessment

Business Risks:

• Customer concentration or sector exposure (likely food-service/retail systems) could amplify cyclical demand swings.
• Project-based revenue volatility if a significant share of sales are one-off implementations or hardware-linked.
• Execution risk in transitioning to or scaling subscription/cloud models (if applicable), affecting ARR growth and margins.
• Product obsolescence and competitive intensity in POS/order management and adjacent software niches.
• Cybersecurity and data protection risks in cloud/connected solutions.
• Talent retention and wage pressure affecting SG&A and delivery capacity.

Financial Risks:

• Limited disclosure on cash flows, capex, and lease/interest commitments obscures cash conversion and fixed obligations.
• Potential extraordinary items affecting earnings comparability between periods.
• Interest income/expense and debt status not fully disclosed, though overall leverage appears minimal.

Key Concerns:

• Absence of OCF/FCF data prevents verification of earnings quality and dividend coverage.
• Inconsistencies between ordinary income, pretax income, and tax/net figures suggest extraordinary or classification effects that complicate margin analysis.
• Lack of SG&A and D&A breakdowns constrains assessment of cost structure rigidity and underlying operating leverage.

Investment Implications

Key Takeaways:

• Strong revenue growth (+18.8% YoY) with amplified operating income growth (+35.8% YoY) indicates improving operating leverage.
• Healthy profitability profile: gross margin 43.5%, operating margin ~24.9%, net margin 17.4%.
• ROE of 8.8% is driven by margins and restrained by deliberately low leverage (1.11x).
• Balance sheet is exceptionally liquid (cash 28.71; equity ratio ~90%), reducing financial risk and enabling strategic optionality.
• Disclosure gaps (cash flows, SG&A detail, D&A, capex) limit assessment of cash conversion and reinvestment needs.
• Dividend payout ratio around 37% appears reasonable relative to earnings; cash levels support sustainability, pending FCF confirmation.

Metrics to Watch:

• Operating cash flow and free cash flow (OCF/NI, FCF margin).
• Revenue mix (recurring vs. project/hardware), ARR growth, and churn/retention metrics.
• SG&A and D&A trends to gauge structural operating leverage and investment pace.
• Extraordinary items and reconciliation from ordinary income to pretax and net.
• Accounts receivable days and contract liabilities (if disclosed) to assess working capital dynamics.
• Capital allocation: use of excess cash (capex, R&D, M&A, dividends/buybacks).

Relative Positioning: The company exhibits above-average balance sheet strength and improving margins relative to small-cap Japanese IT/service peers, but provides below-average disclosure on cash flow and cost structure, which tempers the clarity of its relative quality assessment.

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