TAKAMISAWA CO.,LTD. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥17.24B
• Operating Income: ¥125M
• Net Income: ¥217M
• EPS: ¥48.50

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment 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

For FY2026 Q1, Takamizawa Co., Ltd. (52830) delivered modest top-line growth but a sharp contraction in profitability. Revenue increased 1.6% year on year to ¥17,242 million, while operating income declined 45.7% to ¥125 million, indicating material margin compression. Gross profit of ¥2,875 million translates to a gross margin of 16.7%, which, absent prior-year comparatives, appears insufficient to cover fixed costs at prior levels given the steep fall in operating income. Ordinary income was ¥152 million, supported modestly by non-operating items relative to operating income. Net income fell 63.4% to ¥80 million, resulting in a slim net margin of 0.46%. DuPont metrics indicate a calculated ROE of 0.54%, driven by low net margin (0.46%), asset turnover of 0.437x, and financial leverage of 2.65x. The operating margin is approximately 0.7%, highlighting pressured operating leverage. Interest expense of ¥19 million yielded an interest coverage ratio of about 6.6x, adequate but vulnerable if earnings weaken further. Liquidity remains acceptable with a current ratio of 127.9% and a quick ratio of 108.0%, reflective of working capital of ¥4,522 million. The company’s reported equity ratio is shown as 0.0%, but this is an unreported placeholder; calculated equity ratio is approximately 37.8% (¥14,893 million equity / ¥39,421 million assets), which is a moderate capital structure for a trading/distribution-oriented business. Cash flow data are unreported this quarter, limiting assessment of earnings quality and free cash flow generation. The absence of disclosed depreciation and EBITDA prevents evaluation of non-cash earnings contributions; EBITDA was shown as zero but should be treated as undisclosed. Dividend data are also undisclosed; EPS of ¥48.50 implies roughly 1.65 million average shares outstanding, but without DPS we cannot evaluate payout behavior in the quarter. Overall, the quarter reflects soft profitability on stable revenue, suggesting either input cost pressure, unfavorable mix, or elevated SG&A. Balance sheet strength appears adequate, but the earnings downdraft warrants monitoring of gross margin resilience and cost discipline. Seasonality may influence Q1 performance; thus, full-year trajectory will depend on margin recovery and working capital management. Data limitations (notably cash flow and several ratios) constrain the depth of analysis; conclusions are based on the disclosed non-zero items.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 0.46% (¥80m / ¥17,242m)
• asset_turnover: 0.437x (¥17,242m / ¥39,421m; period-end denominator used)
• financial_leverage: 2.65x (Assets/Equity = ¥39,421m/¥14,893m)
• calculated_ROE: 0.54%
• interpretation: ROE is constrained primarily by a very thin net margin; asset turnover is moderate and leverage is typical for a mid-cap industrial/distribution profile. margin_quality:
• gross_margin: 16.7% (¥2,875m / ¥17,242m)
• operating_margin: 0.7% (¥125m / ¥17,242m)
• ordinary_margin: 0.88% (¥152m / ¥17,242m)
• net_margin: 0.46% (¥80m / ¥17,242m)
• commentary: The drop in operating income (-45.7% YoY) versus modest revenue growth (+1.6% YoY) implies either higher input costs, unfavorable mix, or higher fixed SG&A. Without D&A disclosure, the role of non-cash costs cannot be assessed. operating_leverage: Negative in the quarter: small revenue growth with a large decline in operating profit suggests fixed cost absorption issues or margin pressure. Interest coverage is 6.6x (¥125m/¥19m), adequate but could tighten if operating profit falls further.

Growth Assessment

revenue_sustainability: Revenue grew 1.6% YoY to ¥17,242m, indicating stable demand; however, the growth rate is modest and may reflect mature end-markets or early-year seasonality. profit_quality: Net income declined 63.4% to ¥80m and operating income fell 45.7% to ¥125m, indicating weak operating leverage and likely cost/mix headwinds. Ordinary income outpaced operating income, suggesting some non-operating support. outlook: Recovery depends on gross margin stabilization and SG&A control. Given the slim operating margin (0.7%), even small cost increases can materially affect profit. Seasonality and potential H2 skew should be considered; fuller visibility requires subsequent quarter trends and backlog/order indicators (not disclosed).

Financial Health

liquidity:

• current_ratio: 127.9% (¥20,748m / ¥16,226m)
• quick_ratio: 108.0% ((¥20,748m - ¥3,217m) / ¥16,226m)
• working_capital: ¥4,522m
• assessment: Short-term liquidity appears adequate, with quick assets covering current liabilities by ~1.08x. solvency:
• equity_ratio_calculated: 37.8% (¥14,893m / ¥39,421m) [reported 0.0% is an undisclosed placeholder]
• debt_to_equity: 1.62x (Total liabilities/Equity = ¥24,102m/¥14,893m)
• interest_coverage: 6.6x (¥125m / ¥19m)
• assessment: Moderate leverage with sufficient interest cover for now; solvency acceptable but sensitive to profit volatility. capital_structure: Liabilities constitute ~61% of assets; equity ~38%. Composition of interest-bearing debt vs. trade payables not disclosed this quarter.

Cash Flow Quality

earnings_quality: Unable to assess OCF conversion due to undisclosed cash flow statement (OCF reported as 0 indicates not disclosed). Net income quality relative to cash is therefore indeterminate. FCF_analysis: Free cash flow not computable (both OCF and capex components unreported). working_capital: Inventories of ¥3,217m (~15.5% of quarterly sales) and working capital of ¥4,522m indicate meaningful capital tied up; turnover metrics and changes are not available for trend analysis.

Dividend Sustainability

payout_ratio_assessment: Annual DPS and payout ratio are undisclosed for the period; EPS is ¥48.50 for Q1. Without DPS, payout behavior cannot be evaluated. FCF_coverage: Not assessable; FCF not disclosed. policy_outlook: Given a weak profit quarter, dividend sustainability would depend on full-year earnings recovery and cash generation; no policy information provided in the dataset.

Risk Assessment

Business Risks:

• Gross margin pressure from input cost inflation and/or unfavorable product mix.
• Negative operating leverage due to fixed cost base amid modest sales growth.
• Potential seasonality in Q1 that may skew year-on-year comparisons.
• Exposure to end-market demand cycles (construction/materials/industrial distribution typical for the sector).
• Supply chain and procurement volatility affecting costs and delivery.

Financial Risks:

• Thin operating margin (0.7%) leaving limited buffer against shocks.
• Interest coverage at ~6.6x could compress if operating profit declines further.
• Working capital intensity (inventories and receivables not fully disclosed) could strain cash if sales slow.
• Moderate leverage (liabilities/equity 1.62x) heightens sensitivity to earnings volatility.

Key Concerns:

• Sharp YoY decline in operating and net income despite revenue growth.
• Lack of disclosed cash flow data impedes assessment of earnings-to-cash conversion.
• Undisclosed depreciation/EBITDA prevents evaluation of underlying cash earnings and asset intensity.

Investment Implications

Key Takeaways:

• Top-line grew 1.6% YoY but profitability deteriorated sharply; operating margin compressed to 0.7%.
• ROE of 0.54% is primarily constrained by a very low net margin (0.46%).
• Liquidity is adequate (current ratio 127.9%, quick ratio 108.0%); calculated equity ratio ~37.8% indicates a moderate capital base.
• Interest coverage is 6.6x, but cushion could narrow if margins remain pressured.
• Cash flow and dividend data are undisclosed; further quarters are needed to gauge sustainability.

Metrics to Watch:

• Gross margin trend and SG&A-to-sales ratio in subsequent quarters.
• Operating income trajectory versus revenue to assess operating leverage.
• OCF and FCF once disclosed, including working capital movements and capex.
• Inventory turnover and receivables collection period.
• Interest coverage and leverage metrics (net debt, if disclosed).
• Order backlog or book-to-bill (if the company reports these).

Relative Positioning: Within a typical mid-cap industrial/materials distribution peer set, revenue growth is subdued and profitability is currently below average given sub-1% operating margin; balance sheet strength is adequate but not a differentiator. Visibility is hampered by undisclosed cash flow metrics.

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