pluszero,Inc. FY2025 Q4 Earnings Report

Financial Highlights

• Net Sales: ¥1.55B
• Operating Income: ¥516M
• Net Income: ¥366M
• EPS: ¥47.25

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

Pluszero (51320) delivered a strong FY2025 Q4 result with revenue of 15.46 (100M JPY), up 26.9% YoY, underscoring robust top-line momentum. Profitability expanded sharply: operating income of 5.16 (100M JPY) grew 106.1% YoY, signaling material operating leverage. The company’s DuPont profile is compelling, with a net profit margin of 23.7%, asset turnover of 0.834x, and financial leverage of 1.22x, yielding an ROE of 24.2%. Liquidity is conservative and ample, with a current ratio and quick ratio both at 410.8% and working capital of 8.86 (100M JPY). Solvency appears healthy: total liabilities are 2.85 (100M JPY) against equity of 15.15 (100M JPY), implying a low debt-to-equity of 0.19x (largely reflecting non-interest-bearing liabilities given interest-bearing debt is unreported). Cash generation quality is solid, with operating cash flow of 4.33 (100M JPY) at 1.18x net income and free cash flow (defined here as OCF plus net investing CF) of 2.72 (100M JPY). EBITDA of 5.18 (100M JPY) and an EBITDA margin of 33.5% highlight healthy unit economics. That said, there are notable data inconsistencies: gross profit of 7.02 (100M JPY) less SG&A of 4.51 (100M JPY) implies operating income of ~2.51 (100M JPY), which conflicts with the reported 5.16 (100M JPY); the EBITDA figure reconciles with the reported operating income, suggesting possible classification differences within SG&A or cost reclassifications. Additionally, profit before tax is 2.02 (100M JPY), yet net income is 3.66 (100M JPY) with income tax of 0.49 (100M JPY), implying material extraordinary gains below ordinary income that are not disclosed in the provided data. Some reported ratios (e.g., operating margin 0.3%, ROA (ordinary) 0.3%) appear miscoded relative to the core statements. Despite these limitations, the direction of travel is clear: high growth, expanding profitability, and strong cash conversion. Balance sheet strength is underpinned by 9.01 (100M JPY) of cash, low leverage, and moderate intangibles (1.50 (100M JPY)). With dividends unreported, capital allocation appears focused on growth and internal investment. The effective tax rate based on PBT is 24.0%, broadly aligned with statutory levels, though bottom-line dynamics are affected by undisclosed non-operating/extraordinary items. Asset-light characteristics and rising margins suggest scalability, albeit with execution and client concentration risks typical of early-stage growth companies. Overall, the quarter portrays a high-growth, high-return profile with good cash discipline but requires caution due to reporting gaps and line-item inconsistencies. Continued monitoring of revenue mix, recurring components, and the reconciliation between operating, ordinary, and pre-tax profit is warranted.

Profitability Analysis

ROE_decomposition: - Net profit margin: 23.7%; Asset turnover: 0.834x; Financial leverage: 1.22x; Calculated ROE: 24.2% (matches reported). This indicates strong margins on a relatively efficient asset base with modest leverage amplification. margin_quality: - Gross margin: 45.4% on revenue of 15.46 (100M JPY), implying solid value-add. EBITDA margin: 33.5%, and reported operating income suggests c.33% operating margin; however, GP - SG&A arithmetic indicates ~16% operating margin, revealing a classification inconsistency. Effective tax rate of 24.0% is normal, but the NI uplift versus PBT implies undisclosed extraordinary gains. operating_leverage: - Revenue grew 26.9% YoY while operating income rose 106.1% YoY, evidencing strong operating leverage. With D&A minimal at 0.02 (100M JPY), incremental margins are largely operational rather than accounting-driven.

Growth Assessment

revenue_sustainability: - Top-line growth of 26.9% appears robust. Without segment/mix disclosure, sustainability hinges on client retention, recurring revenues, and pipeline. The asset-light profile and low working capital intensity support scalable growth. profit_quality: - Ordinary income is 5.19 (100M JPY) and near operating income, indicating limited recurring non-operating impact. However, PBT of 2.02 (100M JPY) vs. NI of 3.66 (100M JPY) suggests significant extraordinary items not disclosed; this clouds the quality of bottom-line growth. outlook: - With high ROE (24.2%) and strong liquidity, the company is positioned to fund growth internally. Key for forward growth will be maintaining gross margins, controlling SG&A as scale increases, and converting orders to cash consistently (OCF/NI at 1.18x is a positive signal).

Financial Health

liquidity: - Current assets: 11.71 vs. current liabilities: 2.85 (100M JPY) -> current ratio 410.8%; quick ratio the same given minimal inventories reported. Cash and deposits of 9.01 (100M JPY) provide ample buffer. solvency: - Total liabilities of 2.85 (100M JPY) vs. equity of 15.15 (100M JPY) -> debt-to-equity 0.19x. Interest-bearing debt is unreported; the low ratio likely reflects trade payables/other accruals rather than borrowings. capital_structure: - Equity base of 15.15 (100M JPY) with capital surplus 7.85 and retained earnings 3.17 supports growth. Intangibles at 1.50 (100M JPY) are moderate relative to equity, containing balance sheet risk.

Cash Flow Quality

earnings_quality: - OCF/Net income of 1.18x indicates earnings are cash-backed. Minimal D&A (0.02) suggests limited non-cash padding of EBITDA; cash conversion is driven by operations/working capital. FCF_analysis: - Operating CF: 4.33 (100M JPY); Investing CF: -1.61 (100M JPY); reported Free Cash Flow: 2.72 (100M JPY), effectively OCF plus net investing outflow. Capex reported as approximately zero; investing outflows likely reflect intangibles or small investments (exact breakdown unreported). working_capital: - Working capital of 8.86 (100M JPY) and high cash balance underpin resilience. Accounts receivable/payables are unreported, limiting granularity on DSO/DPO trends and underlying cash conversion drivers.

Dividend Sustainability

payout_ratio_assessment: - Dividends are unreported; payout ratio not calculable. With EPS (basic) at 47.25 JPY and BVPS at ~194.6 JPY, the company appears to prioritize reinvestment over distribution. FCF_coverage: - Without dividend disclosure, FCF coverage cannot be assessed. However, positive FCF of 2.72 (100M JPY) suggests capacity for future distributions if policy shifts. policy_outlook: - Given growth stage indicators (high ROE, operating leverage, low capex), a conservative payout or retention policy is likely appropriate to fund expansion, pending explicit guidance.

Risk Assessment

Business Risks:

• Revenue concentration risk (client/contract details unreported).
• Execution risk in scaling delivery while preserving gross margin.
• Talent acquisition and retention pressures elevating SG&A.
• Product/technology cycle risk given intangible-heavy capabilities.
• Competitive intensity from larger IT/AI/service peers.

Financial Risks:

• Data inconsistencies between GP/SG&A/OP could mask cost structure.
• Dependence on extraordinary items to reconcile PBT vs. NI introduces volatility.
• Unreported interest-bearing debt details limit visibility on true leverage.
• Limited disclosure on working capital components (AR/AP) may hide cash timing risks.

Key Concerns:

• Operating income vs. (Gross profit - SG&A) mismatch suggests classification or disclosure gaps.
• PBT below operating income with NI above PBT implies significant extraordinary gains not detailed.
• Reported ratios (operating margin, ROA (ordinary)) appear miscoded, reducing reliance on those figures.

Investment Implications

Key Takeaways:

• High-growth quarter (+26.9% revenue) with outsized operating income growth (+106.1%).
• Strong profitability metrics: EBITDA margin 33.5%, ROE 24.2%, net margin 23.7%.
• Robust liquidity (current ratio ~4.1x) and low leverage (D/E ~0.19x).
• Solid cash conversion (OCF/NI 1.18x) and positive FCF of 2.72 (100M JPY).
• Disclosure inconsistencies (OP vs. GP-SG&A; PBT vs. NI) warrant cautious interpretation.

Metrics to Watch:

• Reconciliation of operating income to gross profit and SG&A (cost classification).
• Nature and recurrence of extraordinary items driving NI above PBT.
• OCF sustainability and working capital turns (AR/AP, DSO/DPO once disclosed).
• Gross margin stability and SG&A operating leverage as revenue scales.
• Any changes in interest-bearing debt and capital allocation (M&A, intangibles investment, dividends).

Relative Positioning: Within Japan small-cap tech/AI/services peers, pluszero exhibits above-average growth and return metrics with a conservative balance sheet; the main differentiator is strong cash conversion, while the main drawback is disclosure depth and line-item consistency.

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