YAMAU HOLDINGS CO.,LTD. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥8.72B
• Operating Income: ¥909M
• Net Income: ¥674M
• EPS: ¥101.01

Income Statement

Balance Sheet

Cash Flow Statement

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

Yamau Holdings (5284) reported FY2026 Q2 consolidated results under JGAAP with modest topline softness and a sharper decline at the operating line, while cash generation remained robust. Revenue was ¥8.718bn, down 1.7% YoY, reflecting a mild demand slowdown or pricing/mix effects. Gross profit was ¥3.451bn, implying a solid gross margin of 39.6%. Operating income fell 7.9% YoY to ¥909m, bringing operating margin to about 10.4%, indicating negative operating leverage as costs did not flex down in line with revenue. Ordinary income of ¥996m benefitted from positive non-operating balance (e.g., financial income or subsidies) given the gap over operating income. Net income was ¥617m, down 6.5% YoY, with a reported net margin of 7.08%. EBITDA was ¥1.239bn with a 14.2% margin, supported by ¥330m of D&A, underscoring decent earnings before non-cash charges. Interest expense was modest at ¥18.7m and interest coverage of roughly 48.5x indicates a comfortable buffer. The company’s balance sheet shows total assets of ¥20.639bn and total equity of ¥12.158bn, implying an equity-to-asset ratio of about 58.9% despite the equity ratio metric being unreported. Liquidity appears healthy with a current ratio of 160.6% and quick ratio of 144.6%, and working capital of ¥6.35bn. Operating cash flow was strong at ¥1.874bn, more than 3x net income, suggesting high cash conversion this period. Investing cash flow was not disclosed, and free cash flow is not available, limiting capex and reinvestment assessment. Financing cash flow was a net outflow of ¥849m, pointing to debt reduction or distributions, though dividend data are not disclosed in a usable form. The DuPont framework indicates ROE of 5.07%, derived from a 7.08% net margin, 0.422x asset turnover, and 1.70x financial leverage, reflecting moderate profitability and conservative leverage. Overall, fundamentals show resilient margins and strong cash generation offset by slight revenue contraction and margin compression at the operating level. Data gaps (cash balance, investing cash flow, dividends, share count) constrain deeper attribution and capital allocation analysis.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 7.08%
• asset_turnover: 0.422
• financial_leverage: 1.7
• calculated_ROE: 5.07%
• commentary: ROE of 5.07% is driven primarily by a healthy net margin and moderate leverage; asset intensity remains typical for building materials/manufacturing, capping turnover. margin_quality: Gross margin at 39.6% is strong for a materials-oriented business, signaling pricing discipline and/or product mix. Operating margin of ~10.4% declined more than revenue, implying higher fixed-cost absorption and some cost inflation. Non-operating income helped lift ordinary income above operating income, cushioning the bottom line. Net margin of 7.08% remains solid but compressed YoY alongside operating income. operating_leverage: Revenue fell 1.7% while operating income declined 7.9%, indicating negative operating leverage this half. The gap suggests fixed-cost stickiness and/or higher input and logistics costs that were not fully passed through.

Growth Assessment

revenue_sustainability: Topline contraction of 1.7% YoY indicates modest end-demand softness or mix effects. Sustainability hinges on public works/housing demand and pricing power against input volatility. profit_quality: EBITDA margin at 14.2% and OCF/NI of 3.04 suggest underlying earnings are cash-rich this period. D&A of ¥330m indicates ongoing asset base; non-operating tailwinds contributed to ordinary income. outlook: Short-term outlook appears stable but sensitive to construction cycle, cement/aggregate and energy prices, and project timing. Maintaining pricing and cost control will be key to stabilizing operating margin amid flat-to-soft demand.

Financial Health

liquidity: Current ratio 160.6% and quick ratio 144.6% indicate ample near-term liquidity. Working capital stands at ¥6,349m, supported by sizeable current assets (¥16,823m). solvency: Interest coverage at ~48.5x is very strong, indicating low interest burden. Debt-to-equity of 0.94x reflects moderate leverage relative to equity. capital_structure: Total assets ¥20,639m and equity ¥12,158m imply an equity ratio of ~58.9% (despite an unreported 0.0% field), suggesting a balanced capital structure with reasonable cushion.

Cash Flow Quality

earnings_quality: OCF of ¥1,873.9m versus net income of ¥617.0m yields OCF/NI of 3.04, indicating strong cash conversion aided by non-cash charges and/or working capital release. FCF_analysis: Investing CF and capex are not disclosed; thus, free cash flow cannot be determined from provided data. EBITDA provides capacity for reinvestment, but capex intensity is unknown this period. working_capital: Current assets are high relative to current liabilities (¥16,823m vs ¥10,474m). Inventory at ¥1,680m appears manageable; the OCF strength suggests favorable receivables/Payables movements in the period.

Dividend Sustainability

payout_ratio_assessment: Dividend per share and payout ratio are shown as 0.0%, which likely indicates non-disclosure rather than actual zero. Without confirmed dividends, payout analysis cannot be completed. FCF_coverage: Free cash flow not available due to missing investing cash data; coverage cannot be assessed. policy_outlook: Given moderate leverage and strong OCF, the company appears to have capacity for distributions, but absence of disclosed dividend policy or cash balance data prevents a view on sustainability or policy stance.

Risk Assessment

Business Risks:

• Demand cyclicality tied to construction, housing, and public works spending
• Raw material (cement, aggregates) and energy price volatility impacting margins
• Logistics and labor cost inflation affecting cost base and project profitability
• Project timing and mix risks leading to revenue and margin variability
• Competitive pricing pressure in building materials and regional markets
• Weather and disaster-related disruptions impacting construction activity

Financial Risks:

• Operating leverage leading to profit volatility on small revenue changes
• Working capital swings that can affect cash generation period-to-period
• Moderate leverage (D/E ~0.94x), though interest burden currently low
• Limited visibility on cash and capex due to undisclosed investing CF and cash balance
• Potential refinancing risk if credit conditions tighten despite strong coverage

Key Concerns:

• Negative operating leverage observed with revenue down modestly but operating income down more
• Missing data on investing cash flows and cash balance impedes FCF and liquidity runway assessment
• Margin sensitivity to input costs and pricing pass-through

Investment Implications

Key Takeaways:

• Revenue down 1.7% YoY with operating income down 7.9% indicates negative operating leverage
• Margins remain resilient: gross 39.6%, operating ~10.4%, EBITDA 14.2%
• Strong cash conversion with OCF/NI of 3.04 and OCF margin ~21.5%
• Balance sheet appears solid with implied equity ratio ~58.9% and interest coverage ~48.5x
• Data gaps on investing CF, cash, and dividends constrain FCF and capital allocation analysis

Metrics to Watch:

• Revenue growth trajectory and order backlog (if disclosed)
• Operating margin progression and input cost pass-through
• Working capital movements and OCF sustainability
• Capex and investing CF disclosure to ascertain true FCF
• Leverage and interest coverage trends
• Any updates on dividend policy and share count

Relative Positioning: Within Japanese building materials/manufacturing peers, Yamau exhibits healthy margins and strong cash conversion with moderate leverage, though modest top-line softness and elevated operating leverage warrant monitoring.

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