These are mechanically computed values based on a residual income model. They are not a forecast of market prices or a recommendation of any investment action, and do not predict or guarantee future share prices. Historical values are computed retrospectively using current guidance-achievement statistics.
| Metric | Current Period | Same Period Prior Year | YoY |
|---|---|---|---|
| Revenue | ¥671.0B | ¥655.7B | +2.3% |
| Operating Income | ¥57.5B | ¥42.4B | +35.6% |
| Ordinary Income | ¥57.5B | ¥41.3B | +39.3% |
| Net Income | ¥17.0B | ¥35.0B | -92.9% |
| ROE | 5.0% | 10.5% | - |
Although profitability at the operating level continued to improve during the period, net income declined significantly due to the recognition of extraordinary losses. Revenue was ¥671.0B (up +2.3% year on year), Operating Income was ¥57.5B (up +35.6%), and Ordinary Income was ¥57.5B (up +39.3%), demonstrating a clear expansion in core earnings power. The Operating Margin improved to 8.6% from 6.5% in the prior year, an increase of +2.1pt, while the gross margin also rose to 40.0% (37.4% in the prior year). Meanwhile, Net Income attributable to owners of the parent was limited to ¥17.0B (down -51.5% year on year), as extraordinary losses of ¥24.6B—primarily consisting of ¥17.8B in impairment losses on fixed assets and ¥6.1B in valuation losses on investment securities—and an increase in the effective tax rate to 48.8% weighed on bottom-line earnings.
【Revenue】Revenue increased to ¥671.0B, up +2.3% year on year. By segment, Marketing Support (Consumer Goods and Services), the largest segment accounting for 70.3% of the revenue mix, led overall performance with revenue of ¥471.5B (YoY +4.0%). Marketing Support (Healthcare) remained stable at ¥125.9B (18.8% of the mix, YoY +1.3%). Business Intelligence was the only segment to post a revenue decline, with revenue of ¥73.6B (11.0% of the mix, YoY -5.6%).
【Profit and Loss】Operating Income increased significantly to ¥57.5B (up +35.6% year on year), and the Operating Margin improved to 8.6% from 6.5% in the prior year, an increase of +2.1pt. The gross margin also rose to 40.0% (37.4% in the prior year). Ordinary Income was ¥57.5B (+39.3%), broadly in line with Operating Income, while non-operating income and expenses were approximately neutral, with income of ¥2.0B and expenses of ¥2.0B. However, Profit Before Tax declined to ¥33.2B (down -36.9% year on year), primarily due to the recognition of extraordinary losses of ¥24.6B (temporary factors), mainly consisting of ¥17.8B in impairment losses on fixed assets and ¥6.1B in valuation losses on investment securities. In addition, the effective tax rate remained elevated at 48.8% (income taxes of ¥16.2B), resulting in a significant decline in Net Income attributable to owners of the parent to ¥17.0B (down -51.5% year on year). The results therefore show increased revenue and earnings at the operating level, but a decline in bottom-line earnings due to temporary factors, with improved operating profitability coexisting with deterioration in final earnings caused by extraordinary losses.
Marketing Support (Consumer Goods and Services) generated revenue of ¥471.5B (YoY +4.0%), Operating Income of ¥24.3B (YoY +69.6%), and a margin of 5.2% (improved from approximately 3.2% in the prior year). Despite being the largest segment by scale, its margin remained the lowest among the three segments. Marketing Support (Healthcare) generated revenue of ¥125.9B (YoY +1.3%), Operating Income of ¥26.8B (YoY +25.8%), and a margin of 21.3%, making it the most profitable segment and the largest contributor in terms of Operating Income. Business Intelligence generated revenue of ¥73.6B (YoY -5.6%), Operating Income of ¥6.4B (YoY -5.4%), and a margin of 8.6%, making it the only segment to report both revenue and earnings declines. Impairment losses on fixed assets amounted to ¥14.5B in Consumer Goods and Services and ¥3.3B in Business Intelligence. While asset valuation reviews progressed in both segments, the high-margin structure of Healthcare contributed to improving the Group-wide margin.
【Profitability】The Operating Margin improved to 8.6% from 6.5% in the prior year, an increase of +2.1pt, while the gross margin also rose to 40.0% (37.4% in the prior year). In contrast, the Net Profit Margin deteriorated to 2.5% from 5.3% in the prior year, a decline of -2.8pt, highlighting the contrast between operating improvement and deterioration in bottom-line earnings. 【Cash Quality】Operating Cash Flow (OCF) was ¥40.8B, equivalent to 2.4 times Net Income of ¥17.0B, confirming cash support for reported earnings. However, OCF/EBITDA (Operating Cash Flow of ¥40.8B ÷ EBITDA of ¥68.6B) remained at approximately 59%, indicating room to improve the speed of cash conversion. 【Investment Efficiency】ROE declined significantly to 5.0% from 10.7% in the prior year, while ROA based on Ordinary Income improved to 12.1% from 9.0%. Thus, asset efficiency at the operating level improved, while the decline in final earnings weighed on ROE. 【Financial Soundness】The Equity Ratio remained almost flat at a high level of 70.9% (70.6% in the prior year). Current assets of ¥324.7B versus current liabilities of ¥126.8B resulted in a Current Ratio of 256%, indicating strong short-term payment capacity.
Operating Cash Flow was ¥40.8B, down -36.6% from ¥64.3B in the prior year. Although it remained 2.4 times Net Income of ¥17.0B, an increase in trade receivables (-¥6.3B) and accumulated inventories and work in progress placed pressure on working capital. Investing Cash Flow was -¥14.1B, resulting in net cash outflows primarily due to investments in intangible assets. Capital expenditures remained controlled at ¥2.6B, below depreciation and amortization expense of ¥11.1B. Financing Cash Flow was -¥20.3B, with dividend payments (¥17.9B) accounting for the primary cash outflow, while share repurchases were ¥0.0B and were therefore virtually nonexistent. As a result, Free Cash Flow was ¥26.7B, exceeding the combined amount of dividend payments and capital expenditures, indicating that investments and shareholder returns were funded by operating activities.
Operating Income, which reflects recurring earnings power, was ¥57.5B. Non-operating income and expenses were broadly balanced, with income of ¥2.0B—including interest and dividend income and foreign exchange gains—and expenses of ¥2.0B, indicating no significant distortion in the recurring earnings structure. However, the Company recognized extraordinary losses of ¥24.6B (temporary factors), primarily consisting of ¥17.8B in impairment losses on fixed assets, ¥6.1B in valuation losses on investment securities, and ¥1.0B in losses on disposal of fixed assets. After offsetting extraordinary income of ¥0.3B, these losses significantly reduced Profit Before Tax. The gap between Ordinary Income of ¥57.5B and Net Income of ¥17.0B reached approximately -70%, mainly due to extraordinary losses and the high effective tax burden of 48.8%. From an accruals perspective, Operating Cash Flow was 2.4 times Net Income, providing cash support for accounting earnings. However, OCF/EBITDA remained at approximately 59%, while increases in trade receivables and inventories somewhat slowed cash conversion. Comprehensive Income was ¥26.6B, exceeding Net Income of ¥17.0B, supported by positive valuation differences, including ¥6.3B in adjustments related to retirement benefits. A certain divergence therefore exists between Net Income and Comprehensive Income.
For the next fiscal year (the fiscal year ending June 2027), the Company’s plan calls for Revenue of ¥710.0B (YoY +5.8%), Operating Income of ¥62.0B (YoY +7.8%), Ordinary Income of ¥62.5B (YoY +8.6%), and forecast EPS of ¥104.68. The Company also expects Net Income of approximately ¥40B, representing a plan that incorporates a significant recovery from ¥17.0B in the current period. Achievement of this plan will depend on the normalization of the extraordinary losses incurred during the current period—including impairment losses and valuation losses on investment securities—the normalization of the effective tax rate from 48.8%, and trends in the Business Intelligence segment, where revenue has continued to decline.
Dividends totaled ¥48 per share for the full year, comprising ¥24 in interim dividends and ¥24 in year-end dividends, up from ¥22.5 per share for the full year in the prior period. The Payout Ratio was 107.7% based on total dividends relative to Net Income attributable to owners of the parent of ¥17.0B, rising significantly from 49.0% in the prior period. Meanwhile, Free Cash Flow of ¥26.7B exceeded dividend payments of ¥17.9B, indicating sufficient cash flow capacity to fund dividends. Share repurchases were virtually nonexistent (¥0.0B), and shareholder returns during the period were centered on dividends. For the next fiscal year, a dividend forecast of ¥50 per share is planned, representing a further increase, and the Payout Ratio is expected to decline assuming normalization of extraordinary losses.
Risk of recurrence of extraordinary losses: The Company recognized extraordinary losses of ¥24.6B during the period, including ¥17.8B in impairment losses on fixed assets and ¥6.1B in valuation losses on investment securities. If similar asset valuation reviews occur in the future, they could become a source of volatility in Net Income.
Segment concentration and demand volatility risk: The Marketing Support (Consumer Goods and Services) segment accounts for 70.3% of Revenue, and fluctuations in demand in this area could have a significant impact on overall performance. Business Intelligence continues to report both revenue and earnings declines, with revenue down -5.6% and Operating Income down -5.4%.
Monitoring of earnings quality and tax burden: The effective tax rate was elevated at 48.8%, contributing to the decline from Profit Before Tax of ¥33.2B to Net Income of ¥17.0B. In addition, OCF/EBITDA remained at approximately 59%, indicating slower cash conversion due to increases in trade receivables and inventories.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 8.6% | 8.1% (3.7%–16.1%) | +0.5pt |
| Net Profit Margin | 2.5% | 5.9% (2.2%–11.8%) | -3.4pt |
| The Operating Margin is slightly above the industry median, while the Net Profit Margin is below the industry median due to the impact of extraordinary losses. |
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (Year on Year) | 2.3% | 10.1% (1.8%–20.2%) | -7.8pt |
| The Revenue Growth Rate is below both the industry median and the lower quartile, indicating a more moderate pace of revenue growth than that of peer companies. |
※Source: Compiled by the Company
The Operating Margin improved to 8.6% (6.5% in the prior year), while the gross margin improved to 40.0% (37.4% in the prior year). Both metrics improved, suggesting that structural profitability improvements—possibly accompanied by improved pricing and project mix and higher utilization—are progressing.
The significant decline in Net Income (-51.5%) was primarily caused by extraordinary losses of ¥24.6B due to impairment losses on fixed assets and valuation losses on investment securities, together with the increase in the effective tax rate to 48.8%. The decline was therefore driven mainly by temporary factors distinct from the improvement at the operating level.
Marketing Support (Healthcare) was the Company’s most profitable segment, with a margin of 21.3%, and was also the largest contributor in terms of Operating Income. In contrast, Business Intelligence reported revenue and earnings below the prior year, indicating a widening profitability gap between segments.
This is a mechanically calculated reference range based solely on publicly disclosed data using a residual income model (Ohlson-type model with an explicit 5-year fade). It is not a forecast of the market share price or a recommendation to take any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear | ¥957 |
| base | ¥979 |
| bull | ¥1,007 |
| Calculation Assumption | Value |
|---|---|
| Book Value per Share (BPS) | ¥890 |
| Adjusted Forecast EPS | ¥118.4 |
| Cost of Equity r | 9.77% (10-year Japanese government bond 2.77% + equity risk premium 6.00% + size premium 1.00%) |
| Residual Income Persistence Factor ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 47.8% |
| Forecast EPS Confidence Adjustment | ×1.049 (based on the track record of guidance achievement among companies in the same industry) |
| Implied PBR / PER |
Sensitivity: ¥953–¥1,007 at ±1% for the Cost of Equity, and ¥977–¥983 at ±0.1 for ω.
Notes:
(Calculation model: Residual Income Model / Interest rate reference month: 2026-07 / This value does not predict or guarantee future share prices)
This report is an earnings analysis document automatically generated by AI based on XBRL earnings summary data. It does not recommend investment in any specific security. The industry benchmarks are reference information compiled by the Company based on publicly disclosed earnings data. Investment decisions should be made at your own discretion and responsibility, after consulting with a professional where necessary.
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| 1.10x / 8.3x |