| Metric | Current | Prior | YoY |
|---|---|---|---|
| Revenue | ¥25.7B | ¥24.7B | +4.0% |
| Operating Income | ¥6.5B | ¥6.8B | -3.4% |
| Ordinary Income | ¥6.8B | ¥6.8B | +0.6% |
| Net Income | ¥4.5B | ¥4.5B | +0.4% |
| ROE | 10.7% | 11.7% | - |
FY2025 Q3 cumulative results show Revenue of 2.57B yen (YoY +4.0%), Operating Income of 0.65B yen (YoY -3.4%), Ordinary Income of 0.68B yen (YoY +0.6%), and Net Income of 0.45B yen (YoY +0.4%). The company maintains high profitability with gross profit margin of 57.3% and operating margin of 25.5%, though operating income declined despite revenue growth. Total assets reached 4.92B yen with equity of 4.23B yen, reflecting an equity ratio of 85.9%. Cash and deposits of 2.73B yen represent 55.5% of total assets, providing substantial liquidity with a current ratio of 604.9%. The company operates primarily through its @property platform focused on domestic markets.
Revenue increased 1.0B yen or 4.0% YoY to 2.57B yen, driven by the company's @property platform business in the domestic market. Despite top-line growth, Operating Income decreased 0.03B yen or 3.4% to 0.65B yen, indicating margin compression. Cost of sales rose 5.7% YoY to 1.10B yen, outpacing revenue growth and resulting in gross profit margin compression from 58.3% to 57.3%. Selling, general and administrative expenses totaled 0.82B yen, though the YoY change rate requires examination as the operating profit decline suggests SG&A grew faster than revenue. Non-operating items contributed positively, with Ordinary Income of 0.68B yen showing flat YoY performance at +0.6%, implying non-operating net income of approximately 0.03B yen. The gap between Ordinary Income (0.68B yen) and Net Income (0.45B yen) of 0.23B yen reflects income tax expense, representing an effective tax rate of approximately 34%. No extraordinary items are disclosed in the available data. Working capital dynamics show significant shifts: accounts receivable decreased 53.4% from 0.43B yen to 0.20B yen, while accounts payable increased 84.5% from 0.08B yen to 0.14B yen, indicating improved cash collection efficiency and extended payment terms. This represents a revenue up, profit down pattern, where revenue growth is positive but fails to translate into operating profit growth due to cost pressures.
[Profitability] ROE of 10.7% is maintained at prior year levels, calculated from net profit margin of 17.7%, asset turnover of 0.52 times, and financial leverage of 1.16 times. Operating margin of 25.5% declined from 27.5% YoY, reflecting a 2.0 percentage point compression. Net profit margin of 17.7% remains robust though slightly lower than prior year. Gross profit margin of 57.3% demonstrates strong pricing power despite slight compression from 58.3%. [Cash Quality] Cash and deposits of 2.73B yen provide 4.7 times coverage of current liabilities of 0.58B yen. The company maintains a net cash position with minimal interest-bearing debt disclosed. [Investment Efficiency] Asset turnover of 0.52 times reflects the asset-light business model with significant cash holdings. Accounts receivable turnover improved substantially with receivables declining 53.4% YoY to 0.20B yen, representing approximately 28 days sales outstanding based on quarterly revenue run-rate. [Financial Health] Equity ratio of 85.9% reflects an extremely conservative capital structure with total liabilities of only 0.70B yen against total assets of 4.92B yen. Current ratio of 604.9% indicates exceptional short-term liquidity. Debt-to-equity ratio is minimal at approximately 0.16 times based on total liabilities to equity.
Cash and deposits increased 0.78B yen YoY from 2.52B yen to 2.73B yen, representing 8.4% growth in cash holdings. The increase in cash position occurred alongside operating profit generation of 0.65B yen (cumulative nine months) and net income of 0.45B yen. Working capital efficiency improved materially with accounts receivable declining 0.23B yen or 53.4%, accelerating cash collection from customers. Accounts payable increased 0.07B yen or 84.5%, effectively utilizing supplier credit and contributing to cash preservation. Contract assets decreased from 1.33B yen to 1.16B yen, a reduction of 0.17B yen, while work-in-process inventory remained relatively stable. The combination of improved receivables collection and extended payables contributed positively to operating cash generation. Total equity increased 3.76B yen from 3.85B yen to 4.23B yen, with retained earnings growth supporting the equity base. The company maintains 2.73B yen in highly liquid assets against short-term liabilities of 0.58B yen, providing a coverage ratio of 4.7 times and confirming robust liquidity positioning for operational and strategic needs.
Ordinary Income of 0.68B yen versus Operating Income of 0.65B yen indicates non-operating net contribution of approximately 0.03B yen or 4.6% of operating income. This modest non-operating contribution reflects interest income, dividend income, or other financial income consistent with the substantial cash holdings of 2.73B yen. Non-operating income represents approximately 1.2% of revenue, consisting primarily of financial income from cash management activities. The stability of non-operating contribution at approximately 0.03B yen suggests recurring nature rather than one-time gains. The materiality of work-in-process inventory and construction in progress totaling significant portions of assets (work-in-process accounting practices based on percentage-of-completion or completed contract methods) requires monitoring for revenue recognition timing and potential estimation risks. The substantial improvement in accounts receivable collection (53.4% reduction YoY) alongside revenue growth of 4.0% suggests either contract structure changes favoring advance payments or improved credit management, both positive for cash-backed earnings quality. Absent cash flow statement data for the quarterly period, the balance sheet analysis indicates healthy conversion with cash position growing faster than liabilities, supporting earnings quality assessment.
Full-year guidance projects Revenue of 4.00B yen (YoY +20.5%), Operating Income of 1.04B yen (YoY +11.0%), Ordinary Income of 1.04B yen (YoY +10.8%), and Net Income of 0.75B yen. Q3 cumulative progress rates stand at Revenue 64.2% (2.57B of 4.00B), Operating Income 62.8% (0.65B of 1.04B), Ordinary Income 65.6% (0.68B of 1.04B), and Net Income 60.5% (0.45B of 0.75B). Against a standard Q3 benchmark of 75%, all metrics show progress rates lagging by 10-15 percentage points, indicating fourth quarter requires substantial acceleration. Specifically, Q4 alone must deliver 1.43B yen in revenue (35.8% of full-year), 0.39B yen in operating income (37.2% of full-year), and 0.30B yen in net income (39.5% of full-year). The implied Q4 revenue of 1.43B yen represents 55.6% growth versus Q4 prior year if the guidance is achieved, suggesting pronounced seasonality or large project completions expected in the final quarter. The company's @property platform business concentration in domestic markets may exhibit project-based lumpiness explaining the backend-loaded forecast profile.
Annual dividend per share is announced at 24.00 yen for the fiscal year-end, though full-year guidance indicates 12.00 yen, suggesting potential interim versus year-end dividend terminology differences requiring clarification. Based on the 24.00 yen dividend and Q3 cumulative EPS of 38.53 yen (annualized to approximately 51.4 yen), the calculated payout ratio reaches 62.7% if 24.00 yen represents total annual distribution, moderately above conservative benchmarks. Based on full-year net income guidance of 0.75B yen and estimated share count of approximately 11.8 million shares (derived from EPS data), total dividend payments would approximate 0.28B yen at 24.00 yen per share, representing 37.7% payout ratio against guided earnings. The discrepancy between guidance dividend of 12.00 yen and reported 24.00 yen requires verification whether the 24.00 yen represents combined interim and year-end or year-end only. No share buyback activities are disclosed in the available data. With cash and deposits of 2.73B yen and strong operating cash generation capability, dividend sustainability appears secure even at the higher payout scenarios.
Business concentration risk remains elevated as the company operates primarily through the @property platform with limited segment diversification. Revenue growth of 4.0% against full-year guidance of 20.5% implies significant fourth quarter execution risk, requiring approximately 1.43B yen or 35.8% of annual revenue in the final quarter alone. Contract asset concentration alongside high work-in-process and construction-in-progress balances creates revenue recognition timing risks under percentage-of-completion accounting, with potential for estimation adjustments affecting quarterly profit volatility.
[Industry Position] (Reference - Proprietary Analysis) Property Data Bank operates in the IT and telecommunications sector, demonstrating differentiated financial characteristics versus industry norms. Profitability metrics show ROE of 10.7% exceeding the industry median of 8.2% (Q3 2025, n=103 companies), placing the company in the upper performance quartile. Operating margin of 25.5% substantially exceeds the industry median of 8.0% (IQR: 3.6%-17.4%), ranking among sector leaders and reflecting the high-value platform business model. Net profit margin of 17.7% significantly outperforms the industry median of 5.8% (IQR: 2.2%-12.0%), confirming strong earnings conversion. Financial health indicators show equity ratio of 85.9% well above the industry median of 59.0% (IQR: 42.0%-71.7%), reflecting extremely conservative leverage. Current ratio of 604.9% far exceeds the industry median of 2.13 times (IQR: 1.56-3.56 times), indicating exceptional liquidity positioning. Asset turnover of 0.52 times trails the industry median of 0.68 times, attributable to substantial cash holdings rather than operational inefficiency. Revenue growth of 4.0% YoY lags the industry median of 10.4% (IQR: -1.3%-19.7%), though full-year guidance of 20.5% growth would position favorably if achieved. The company's receivables turnover of approximately 28 days substantially outperforms the industry median of 62 days, while payables turnover extending to support working capital optimization. Overall, the company exhibits superior profitability and financial strength versus sector peers, with growth momentum requiring fourth quarter execution to align with industry standards.
Property Data Bank demonstrates a high-quality earnings profile characterized by operating margins exceeding 25% and net profit margins of 17.7%, both substantially above IT and telecommunications sector medians. The company maintains exceptional financial flexibility with cash holdings of 2.73B yen representing 55.5% of total assets and negligible leverage, positioning for strategic investments or shareholder returns without financial constraints. However, the significant gap between year-to-date progress rates (60-65% of full-year guidance at Q3) versus standard seasonality expectations (75%) creates fourth quarter execution dependency, requiring 1.43B yen revenue or 35.8% of annual sales in the final quarter alone to meet 20.5% growth guidance. Working capital optimization trends, evidenced by 53.4% reduction in receivables and 84.5% increase in payables, signal improved cash conversion efficiency though the sustainability and underlying drivers of these shifts warrant monitoring to distinguish structural improvements from timing effects.
This report was automatically generated by AI analyzing XBRL earnings data as an earnings analysis tool. This is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled from publicly available earnings data. Please make investment decisions at your own responsibility and consult professionals as needed.