JMDC Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥23.08B
• Operating Income: ¥4.03B
• Net Income: ¥2.34B
• EPS: ¥36.35

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

JMDC (4483) delivered solid FY2026 Q2 consolidated results under IFRS, with revenue of 230.80 (100M JPY), up 24.4% YoY, demonstrating robust topline momentum. Gross profit reached 103.52 (100M JPY), implying a gross margin of 44.9%, which indicates strong value-add in data/analytics and solutions relative to cost of delivery. SG&A expenses were 71.57 (100M JPY), or about 31.0% of revenue, allowing operating income to rise 27.7% YoY to 40.25 (100M JPY) and lifting operating margin to approximately 17.4%. Net income increased 8.5% YoY to 23.76 (100M JPY), translating to a net margin of 10.3%; the smaller increase versus operating income reflects below-the-line factors and a 25.4% effective tax rate. Operating cash flow was exceptionally strong at 107.77 (100M JPY), 4.54x net income, signaling high earnings quality and/or favorable working capital movements. Free cash flow was 62.53 (100M JPY) after 10.74 (100M JPY) of capital expenditures, comfortably covering dividends paid of 9.14 (100M JPY). The balance sheet shows total assets of 1,526.74 (100M JPY), total liabilities of 645.45 (100M JPY), and total equity of 798.99 (100M JPY), equating to an equity ratio of 52.1% and debt-to-equity (liabilities-to-equity) of 0.81x. Loans total 382.78 (100M JPY) (short-term 43.95; long-term 338.83), indicating moderate financial leverage. DuPont metrics show a calculated ROE of 3.0% (net margin 10.3%, asset turnover 0.151x, financial leverage 1.91x); the low asset turnover is a primary constraint on ROE. Given this is a half-year snapshot, simple annualization suggests asset turnover would be roughly twice the reported period figure, which would improve full-year ROE if margins and leverage hold. EBITDA was 53.56 (100M JPY), implying a 23.2% EBITDA margin and ample headroom for interest, though interest expense was unreported. Cash and equivalents stood at 321.76 (100M JPY), providing a solid liquidity buffer despite positive financing cash flows of 67.29 (100M JPY) likely linked to debt activities. Working capital is shown as 558.69 (100M JPY) (equal to reported current assets), but current liabilities were not disclosed, limiting precision on liquidity ratios. Dividend affordability appears strong: a 44.0% payout ratio and 5.98x FCF coverage indicate capacity to maintain or gradually grow distributions, subject to policy. Overall, JMDC combines strong growth, resilient margins, and excellent cash conversion, offset by limited disclosure on non-operating items and current liabilities, and moderate balance-sheet leverage driven by long-term loans.

Profitability Analysis

ROE_decomposition: Reported DuPont ROE is 3.0%, driven by net profit margin of 10.3%, asset turnover of 0.151x, and financial leverage of 1.91x. The primary drag is low asset turnover, consistent with an asset-heavy or acquisition-driven model and the mid-year timing. Annualizing revenue would roughly double turnover, implying scope for higher full-year ROE if profitability is sustained. margin_quality: Gross margin of 44.9% highlights strong pricing power and scalable data/analytics offerings. SG&A ratio of ~31.0% supports operating margin of ~17.4%, up with operating income growing faster than revenue (+27.7% vs +24.4%). Net margin at 10.3% is compressed versus operating margin due to tax and unreported non-operating items. operating_leverage: Revenue grew 24.4% YoY while operating income rose 27.7% YoY, indicating positive operating leverage and improving fixed-cost absorption. EBITDA margin of 23.2% further confirms healthy operating efficiency.

Growth Assessment

revenue_sustainability: 24.4% YoY growth suggests strong demand across JMDC’s healthcare data/analytics/services stack. Given recurring/re-subscription dynamics typical in this sector, a significant portion of revenue is likely recurring, supporting sustainability, though segment mix is not disclosed. profit_quality: Operating income growth outpacing revenue growth and stable-to-strong margins indicate quality growth rather than discount-led expansion. Net income growth of 8.5% is held back by below-the-line items and tax; operating performance remains the core driver. outlook: If current momentum persists and asset turnover improves in the second half, full-year ROE and margins could trend higher. Key variables include client budget cycles (payers, providers, pharma), integration of any past M&A, and cost discipline to maintain operating leverage.

Financial Health

liquidity: Cash & equivalents of 321.76 (100M JPY) offer a strong liquidity cushion. Current assets are 558.69 (100M JPY), but current liabilities were not reported, preventing calculation of current/quick ratios. Working capital is shown as 558.69 (100M JPY), but this equals current assets and likely overstates true working capital due to missing current liabilities. solvency: Total liabilities are 645.45 (100M JPY) versus equity of 798.99 (100M JPY), equity ratio 52.1% and liabilities-to-equity of 0.81x, indicating moderate leverage. Long-term loans total 338.83 (100M JPY) (plus short-term loans 43.95), suggesting a predominantly long-dated debt profile. capital_structure: Interest-bearing loans sum to 382.78 (100M JPY). Cash balances are substantial, implying manageable net debt. Positive financing CF (+67.29) suggests incremental debt or refinancing during the period; absent interest disclosure, coverage cannot be computed, but EBITDA margin (23.2%) implies adequate buffer.

Cash Flow Quality

earnings_quality: OCF/Net income of 4.54x is very strong, reflecting robust non-cash add-backs (depreciation & amortization of 13.31 (100M JPY)) and favorable working capital timing. This supports the view that profits are cash-backed. FCF_analysis: OCF of 107.77 less capex of 10.74 yields FCF of 62.53 (100M JPY) after accounting for other investing flows. FCF margin versus revenue is approximately 27.1%, underscoring strong cash generation. working_capital: Accounts receivable are 200.65 (100M JPY) and payables are 77.44 (100M JPY); inventories are minimal at 3.59 (100M JPY), consistent with a services/data business. The large OCF suggests either efficient collections or prepayments; however, without current liabilities detail, the sustainability of working capital tailwinds requires monitoring.

Dividend Sustainability

payout_ratio_assessment: Calculated payout ratio is 44.0%, a moderate level that aligns with ongoing growth investment needs while returning cash to shareholders. FCF_coverage: FCF coverage is strong at 5.98x, with FCF of 62.53 (100M JPY) versus dividends paid of 9.14 (100M JPY). This indicates ample capacity to sustain dividends under current conditions. policy_outlook: With healthy cash generation and moderate leverage, JMDC appears positioned to maintain a balanced capital allocation policy. Actual DPS is unreported; future payouts will likely align with earnings trajectory and M&A/investment needs.

Risk Assessment

Business Risks:

• Regulatory and privacy changes affecting healthcare data usage in Japan.
• Client budget volatility across insurers, providers, and pharma.
• Competition in healthcare analytics and digital health solutions compressing pricing and margins.
• Execution risk in product development and platform scaling.
• Dependence on data access/partnerships; potential contractual renegotiations.
• Customer concentration risk if large accounts drive a significant share of revenue.

Financial Risks:

• Moderate leverage with long-term loans of 338.83 (100M JPY) and potential refinancing/interest rate exposure.
• Limited visibility on current liabilities and interest expense, creating uncertainty in short-term liquidity and coverage metrics.
• Working capital reversals if collection cycles normalize after a strong OCF period.
• Potential impairment risk if acquisitions are material (goodwill/intangibles unreported).

Key Concerns:

• Low asset turnover (0.151x for the half) constraining ROE to 3.0%.
• Incomplete disclosure of non-operating items and current liabilities limits full profitability and liquidity assessment.
• Reliance on ongoing high growth to sustain operating leverage and margins.

Investment Implications

Key Takeaways:

• Topline growth robust at +24.4% YoY with expanding operating income (+27.7%).
• Margins are healthy: gross margin 44.9%, operating margin ~17.4%, EBITDA margin 23.2%.
• Cash conversion is excellent: OCF/NI 4.54x and FCF 62.53 (100M JPY).
• Balance sheet is sound with equity ratio 52.1% and substantial cash (321.76 (100M JPY)).
• ROE at 3.0% is held back by low asset turnover; potential to improve on a full-year basis.
• Dividend appears well covered with 44.0% payout ratio and 5.98x FCF coverage.
• Disclosure gaps (non-operating items, current liabilities, interest) are key analytical limitations.

Metrics to Watch:

• Segment/recurring revenue growth and retention/churn metrics.
• Operating margin trajectory and SG&A efficiency.
• Accounts receivable days and working capital movements sustaining OCF.
• Capex intensity versus growth (maintaining low capex needs).
• Net debt and refinancing profile; interest cost trends as rates evolve.
• Any M&A activity and resulting goodwill/intangible balances and amortization.
• Full-year asset turnover and ROE progression.

Relative Positioning: Within Japan’s health-tech/data analytics peer set, JMDC exhibits above-average growth and strong cash generation with moderate leverage; profitability metrics are competitive, while ROE trails due to low asset turnover, leaving room for improvement as scale increases.

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