Logizard Co.,Ltd. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥561M
• Operating Income: ¥71M
• Net Income: ¥51M
• EPS: ¥16.07

Income Statement

Balance Sheet

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

Logizard Co., Ltd. (TSE: 43910) reported FY2026 Q1 standalone results under JGAAP with modest topline expansion but significant margin compression. Revenue was JPY 561 million, up 2.7% YoY, while operating income declined 37.7% YoY to JPY 71 million, indicating negative operating leverage in the quarter. Gross profit was JPY 298 million, implying a robust gross margin of 53.2%, but higher SG&A likely drove the drop in operating profit given the gross margin remains healthy. Ordinary income was JPY 73 million and net income JPY 51 million, down 39.4% YoY, for a net margin of 9.09%. Using the provided DuPont components, ROE calculates to 2.35% for the period (net margin 9.09%, asset turnover 0.230, financial leverage 1.12), consistent with the reported calculated ROE. The balance sheet is very strong: total assets JPY 2,439 million and equity JPY 2,171 million imply an equity ratio of roughly 89% (the disclosed 0.0% equity ratio appears unreported), with total liabilities of JPY 400 million entirely current. Liquidity is ample with current assets of JPY 2,048 million versus current liabilities of JPY 400 million, producing a current ratio of 512% and working capital of JPY 1,649 million. The debt-to-equity ratio stands at approximately 0.18x, reflecting a conservative capital structure and low financial risk. The effective tax rate cannot be precisely determined from standard labels, but net income of JPY 51 million and income taxes of JPY 29.98 million imply a tax expense magnitude roughly consistent with mid-30% effective rates; the reported 0.0% effective rate is clearly unreported. Cash flow figures (OCF/FCF/financing) and non-cash charges (depreciation/amortization) are not disclosed in this dataset; hence cash conversion and FCF coverage cannot be evaluated this quarter. EPS was JPY 16.07; share count and BVPS are unreported in this extract, limiting per-share and valuation diagnostics. The company did not disclose dividends in this dataset (annual DPS 0.00 appears unreported), consistent with a reinvestment-oriented stance typical of software/service firms, but policy confirmation is needed. Overall, the quarter shows resilient gross profitability but a sharp year-on-year decrease in operating profit due to cost growth, against a backdrop of a very strong balance sheet and low leverage. The key near-term focus is whether cost investments (personnel, sales, R&D, cloud infrastructure) can re-accelerate growth and restore operating leverage. Given the single-quarter nature and incomplete cash flow disclosures, conclusions on full-year trajectory and cash generation should be considered provisional.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 9.09% (Net Income JPY 51m / Revenue JPY 561m)
• asset_turnover: 0.230 (as provided; likely based on trailing revenue vs average assets)
• financial_leverage: 1.12 (Assets/Equity; Assets JPY 2,439m, Equity JPY 2,171m implies Equity Ratio ~89%)
• calculated_ROE: 2.35% (consistent with provided DuPont output) margin_quality: Gross margin is strong at 53.2%, consistent with a software/service model. Operating margin compressed to ~12.7% (Operating Income JPY 71m / Revenue JPY 561m) amid SG&A growth outpacing revenue. Ordinary margin ~13.0%, net margin 9.09%. Tax expense magnitude suggests normalizing tax rate; extraordinary items are not disclosed. operating_leverage: Revenue grew 2.7% YoY while operating income fell 37.7% YoY, indicating negative operating leverage in the quarter. This likely reflects upfront cost growth (headcount, sales & marketing, product development, cloud infrastructure or one-off expenses) against modest revenue growth. Restoration of positive operating leverage will require either faster revenue growth or moderation of fixed cost increases.

Growth Assessment

revenue_sustainability: Topline growth of 2.7% YoY is modest for a software-oriented business and below typical sector growth rates. Without disclosure of backlog/ARR or segment detail, sustainability cannot be firmly assessed. profit_quality: Gross margin remains high at 53.2%, supporting the underlying unit economics. However, the sharp decline in operating profit indicates increased spending or mix effects. Ordinary income tracks operating profit closely, suggesting limited non-operating distortion. outlook: Key to near-term trajectory is whether recent spend is growth-investive (hiring, product, channel) that can lift revenue growth in subsequent quarters. If so, operating leverage can recover; if not, margins may remain pressured. Given the strong balance sheet, the company has capacity to invest, but visibility is limited due to absent cash flow and segment disclosures.

Financial Health

liquidity: Current assets JPY 2,048.4m vs current liabilities JPY 399.8m yield a current ratio of ~512% and quick ratio of ~512% (inventories not disclosed). Working capital is JPY 1,648.6m, indicating ample liquidity buffer. solvency: Total liabilities JPY 399.8m vs equity JPY 2,171m result in a debt-to-equity ratio of ~0.18x. Implied equity ratio is ~89% (calculated), reflecting very low financial risk. capital_structure: Balance sheet is equity-heavy with limited liabilities, all current. No interest expense was disclosed in this dataset, consistent with minimal debt usage.

Cash Flow Quality

earnings_quality: Non-cash charges (depreciation/amortization) were not disclosed; EBITDA was shown as 0 (unreported). Thus, we cannot reconcile operating profit to operating cash flow. The net-to-cash conversion metric OCF/NI appears as 0.00 in the dataset but should be treated as unreported. FCF_analysis: Operating CF and investing CF are unreported; therefore, FCF cannot be assessed for the quarter. Given the large working capital surplus and cash-like current assets, structural cash generation is likely positive over time, but evidence for this quarter is unavailable. working_capital: Working capital stands at JPY 1,648.6m. Without detail on receivables, payables, or deferred revenue, intra-quarter movements and cash conversion cycles cannot be evaluated.

Dividend Sustainability

payout_ratio_assessment: Annual DPS is shown as 0.00 and payout ratio 0.0%, which likely reflects non-disclosure rather than a confirmed policy. With quarterly EPS of JPY 16.07, the company has earnings capacity, but an explicit payout framework is not provided here. FCF_coverage: FCF is unreported; coverage of dividends cannot be quantified. Given minimal financial leverage and strong liquidity, capacity exists, but policy intent is unclear. policy_outlook: Given the company’s profile (software/services) and current investment needs implied by rising costs, a reinvestment bias is plausible. Await formal guidance on dividends or capital allocation.

Risk Assessment

Business Risks:

• Slower-than-expected revenue growth (Q1 +2.7% YoY) relative to sector norms for software and logistics IT.
• Negative operating leverage if cost base grows ahead of revenue for multiple quarters.
• Customer concentration and churn risk typical for B2B software (not disclosed here).
• Competitive intensity in warehouse/logistics SaaS and WMS markets potentially pressuring pricing and margins.
• Execution risk in product development and sales expansion intended to re-accelerate growth.

Financial Risks:

• Limited visibility on cash generation due to unreported OCF/FCF.
• Potential working capital swings (receivables/deferred revenue timing) affecting quarterly cash.
• Tax rate variability; implied tax expense magnitude vs ordinary income introduces some estimation noise.
• Dependence on a largely equity-funded balance sheet makes returns sensitive to margin trajectory rather than leverage.

Key Concerns:

• Sharp YoY operating income decline (-37.7%) despite positive revenue growth.
• Insufficient disclosure of cash flow and non-cash items, limiting earnings quality assessment.
• Need for clearer evidence that elevated costs are growth-investive and will restore operating leverage.

Investment Implications

Key Takeaways:

• Revenue growth was modest at +2.7% YoY; margin pressure led to operating income -37.7% YoY.
• Gross margin remains solid at 53.2%, suggesting core unit economics intact.
• Balance sheet strength is notable with an implied ~89% equity ratio and current ratio ~512%.
• ROE for the period is low at 2.35% due to subdued asset turnover and margin compression.
• Cash flow data are not disclosed, constraining assessment of cash conversion and FCF.

Metrics to Watch:

• Quarterly revenue growth re-acceleration (including new bookings/ARR if disclosed).
• Operating margin trajectory and SG&A growth rate vs revenue.
• Gross margin stability (hosting costs and mix).
• Deferred revenue and receivables turnover (cash conversion), once disclosed.
• Headcount and opex intensity (personnel costs as % of revenue).
• Tax rate normalization and any extraordinary items.

Relative Positioning: Within Japanese small-cap software/logistics IT peers, Logizard shows superior balance sheet conservatism and healthy gross margins, but currently lags on growth momentum and exhibits negative operating leverage; near-term positioning depends on demonstrating that elevated costs translate into improved topline velocity.

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