gooddays holdings,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥4.96B
• Operating Income: ¥250M
• Net Income: ¥213M
• EPS: ¥26.25

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

gooddays Holdings (44370) delivered FY2026 Q2 revenue of ¥4,965 million, up 13.9% YoY, but profitability weakened as operating income fell 31.2% to ¥250 million and net income declined 16.0% to ¥179 million. Gross profit margin is indicated at 22.5%, with EBITDA margin at 6.0% and operating margin at roughly 5.0%, signaling compression at both gross and operating levels. DuPont decomposition yields an ROE of 5.61%, driven by a modest net margin of 3.61%, moderate asset turnover of 0.578x, and financial leverage of 2.69x. Liquidity appears sound on reported figures, with a current ratio of 148.1% and working capital of approximately ¥1,144.7 million. Leverage is moderate (liabilities-to-equity of 0.78x) and the interest burden is low (interest expense ¥2.16 million; EBIT/interest ~115.6x). Operating cash flow was negative at ¥-34.7 million, resulting in weak cash conversion versus net income (OCF/NI = -0.19), implying working-capital absorption or timing effects. Ordinary income of ¥242 million was slightly below operating income, indicating a small net non-operating loss; reported income tax of ¥120.1 million implies a tax burden closer to ~40% on pre-tax income, despite an “effective tax rate” metric shown as 0.0% in the summary. EBITDA of ¥296.3 million and D&A of ¥46.3 million suggest limited non-cash charges; margin pressure therefore reflects operating cost dynamics rather than accounting effects. The company reported no dividend (DPS ¥0) and a payout ratio of 0%, consistent with a cautious stance amid weaker cash conversion. Balance sheet stability is supported by equity of ¥3,190 million against total assets of ¥8,585 million, aligning with the 2.69x asset-to-equity leverage used in DuPont. Revenue growth appears healthy, but operating leverage turned negative as costs outpaced sales growth. Cash and equivalents, inventories, and several per-share metrics are unreported in this dataset, which constrains some ratio diagnostics (e.g., quick ratio precision, FCF). Free cash flow cannot be assessed reliably as investing cash flows are unreported. Overall, the profile is one of solid top-line momentum offset by margin compression and weak near-term cash conversion, with adequate liquidity and modest financial risk based on the available (non-zero) data.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 3.61% (NI ¥179m / Revenue ¥4,965m)
• asset_turnover: 0.578x (Revenue ¥4,965m / Assets ¥8,585m)
• financial_leverage: 2.69x (Assets ¥8,585m / Equity ¥3,190m)
• calculated_ROE: 5.61% margin_quality:
• gross_margin: 22.5% (as provided; implies gross profit ~¥1,118m)
• ebitda_margin: 6.0% (EBITDA ¥296.3m)
• operating_margin: ~5.0% (OP ¥250m / Revenue ¥4,965m)
• notes: Margin compression evident YoY: operating income -31.2% despite revenue +13.9%, indicating higher cost of sales and/or SG&A intensity. D&A is modest (~0.9% of revenue), so declines are operational rather than accounting-driven. operating_leverage: Negative in the period: revenue grew +13.9% YoY while operating income declined -31.2% YoY, implying cost growth (COGS and/or SG&A) outpaced sales. Interest burden is immaterial to operating results (EBIT/interest ~115.6x), so leverage effects are not the source of earnings decline.

Growth Assessment

revenue_sustainability: Top-line growth of +13.9% YoY indicates healthy demand momentum. Without segment disclosure, sustainability drivers (pricing, volume, mix, M&A) are unclear. profit_quality: Net margin (3.61%) and operating margin (~5.0%) trail revenue growth, signaling pressure from input costs, staffing, or customer acquisition costs. Ordinary income (¥242m) slightly below operating income (¥250m) suggests a marginally negative non-operating balance. outlook: Near-term earnings trajectory hinges on cost containment and working-capital discipline. Without guidance, backlog, or segment-level data, base-case assumptions rely on stabilization of gross margin and SG&A ratios to translate revenue growth into profit growth.

Financial Health

liquidity:

• current_ratio: 148.1% (CA ¥3,523.4m / CL ¥2,378.8m)
• working_capital: ¥1,144.7m
• quick_ratio_comment: Quick ratio shown as equal to current ratio due to unreported inventories; true quick ratio may differ if inventories exist. solvency:
• debt_to_equity: 0.78x (Total liabilities ¥2,502.2m / Equity ¥3,190m)
• interest_coverage: 115.6x (EBIT ¥250m / Interest ¥2.163m)
• leverage: Assets-to-equity 2.69x; leverage moderate with low cash interest burden. capital_structure: Equity of ¥3,190m supports growth with moderate liabilities. Financing CF of ¥-17.7m suggests some repayment or lease outflow; no dividend outflow evident.

Cash Flow Quality

earnings_quality: OCF of ¥-34.7m versus NI of ¥179m (OCF/NI = -0.19) indicates weak conversion, likely from working-capital absorption (receivables, payables timing) given modest non-cash charges. free_cash_flow: Not determinable; investing cash flow is unreported (shown as 0 = not disclosed). working_capital: Current assets exceeded current liabilities by ~¥1.14bn, but period OCF was negative, implying intra-period build in receivables or other current assets; inventories are unreported, limiting precision.

Dividend Sustainability

payout_ratio_assessment: No dividend declared (DPS ¥0; payout 0%). With NI positive but OCF negative in the period, a conservative payout stance is consistent with preserving liquidity. FCF_coverage: Not meaningful; FCF cannot be computed due to unreported investing CF. policy_outlook: Absent a disclosed policy, sustained dividends would require improved cash conversion and margin stabilization; current stance suggests reinvestment and balance-sheet prudence.

Risk Assessment

Business Risks:

• Margin pressure from rising input and personnel costs outpacing revenue growth
• Execution risk in scaling operations while maintaining cost discipline
• Potential demand cyclicality affecting revenue momentum
• Limited disclosure granularity (segments, backlog) constraining visibility

Financial Risks:

• Negative operating cash flow versus positive net income (OCF/NI -0.19)
• Working-capital volatility impacting cash generation
• Moderate leverage (assets/equity 2.69x), though interest burden currently low
• Data gaps for cash, inventories, and investing flows limit ratio analysis

Key Concerns:

• Operating income decline (-31.2% YoY) despite double-digit revenue growth
• Sustained cash conversion shortfall if working-capital build persists
• Gross and operating margin compression amid modest D&A, indicating underlying cost pressure

Investment Implications

Key Takeaways:

• Healthy top-line growth (+13.9% YoY) contrasted by significant margin compression
• ROE of 5.61% driven by thin net margin (3.61%) and moderate leverage (2.69x)
• Strong reported liquidity (current ratio 148.1%) and low interest burden (EBIT/interest ~116x)
• Weak cash conversion (OCF/NI -0.19) highlights working-capital management as a priority
• Dividend suspension (DPS ¥0) aligns with preserving cash amid operating headwinds

Metrics to Watch:

• Gross margin trajectory and SG&A-to-sales ratio
• Operating cash flow and receivables/payables days
• Operating margin and EBITDA margin recovery
• Asset turnover stability and ROE progression
• Any disclosure on investing cash flows (capex/M&A) to assess FCF

Relative Positioning: Versus typical TSE small/mid-cap service/tech peers, profitability (operating margin ~5%, ROE 5.6%) appears mid-to-low, with moderate leverage and currently weaker cash conversion; liquidity is adequate but improvement in margins and OCF is needed to close the gap with higher-quality peers.

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