KeePer Technical Laboratory Co.,Ltd. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥5.77B
• Operating Income: ¥1.38B
• Net Income: ¥910M
• EPS: ¥33.35

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

KeePer技研株式会社 (FY2026 Q1, JGAAP, standalone) delivered revenue of ¥5.774bn, up 6.7% YoY, indicating continued top-line growth momentum despite a tougher profit backdrop. Gross profit was ¥2.702bn, implying a robust gross margin of 46.8%, which suggests healthy pricing and service mix discipline. Operating income declined 7.8% YoY to ¥1.38bn, compressing the operating margin to 23.9% and signaling negative operating leverage in the quarter. Ordinary income was ¥1.352bn, broadly tracking operating trends given minimal interest expense of ¥0.065m. Net income fell 10.7% YoY to ¥0.91bn, with net margin at 15.76%, reflecting pressure below the operating line and/or a normalized tax burden versus the prior year. DuPont analysis yields an ROE of 4.38% for the quarter (net margin 15.76%, asset turnover 0.203x, financial leverage 1.37x), indicating profit-driven returns with modest leverage but relatively low quarterly asset turnover. The asset turnover figure likely reflects quarter-end assets against a single-quarter revenue base and should not be annualized without caution. Liquidity appears comfortable with a current ratio of 179.7% and working capital of ¥3.432bn, supporting ongoing operations and seasonal needs. The company’s reported debt burden is modest, with a debt-to-equity ratio of 0.33x and negligible interest costs, pointing to low financial risk in the period. Equity stood at ¥20.769bn against total assets of ¥28.387bn, implying an equity ratio of roughly 73% based on the provided totals (the reported equity ratio item was not disclosed). Cash flow statements were not disclosed for the quarter, limiting assessment of earnings-to-cash conversion and free cash flow coverage. Depreciation and EBITDA were not disclosed; therefore, EBITDA-based metrics are not meaningful for this period. Dividend data (DPS, payout, FCF coverage) were not disclosed; hence, dividend sustainability cannot be directly evaluated from this dataset. Overall, the quarter shows resilient revenue growth and strong gross profitability but softer operating and net profits, suggesting higher SG&A or cost inflation and some negative operating leverage. With low leverage and ample liquidity, balance sheet risk appears contained, but confirmation via cash flow data would be valuable. Looking ahead, sustainability of revenue growth, normalization of cost structure, and the trajectory of margins will be pivotal to restoring profit growth.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 15.76%
• asset_turnover: 0.203
• financial_leverage: 1.37
• calculated_ROE: 4.38%
• commentary: ROE is primarily driven by healthy net margins, with modest leverage and a low quarterly asset turnover (not annualized). Return dynamics are more margin-led than efficiency-led this quarter. margin_quality:
• gross_margin: 46.8% (Gross profit ¥2.702bn on revenue ¥5.774bn)
• operating_margin: 23.9% (Operating income ¥1.38bn)
• ordinary_margin: 23.4% (Ordinary income ¥1.352bn)
• net_margin: 15.76% (Net income ¥0.91bn)
• assessment: Gross margin remains strong, indicating effective pricing and mix. The decline in operating income YoY despite revenue growth points to higher SG&A or other operating costs, compressing operating margin. operating_leverage:
• YoY_revenue_growth: 6.7%
• YoY_operating_income_growth: -7.8%
• interpretation: Negative operating leverage: costs increased faster than revenue. Focus areas likely include labor, store-related expenses, marketing, or other SG&A linked to network expansion and seasonal demand support.
• interest_burden: Minimal (interest expense ¥0.065m), limited impact on profitability.

Growth Assessment

revenue_sustainability: Top-line grew 6.7% YoY, suggesting steady demand for services/products. Sustainability will hinge on service center throughput, pricing discipline, and seasonality management. profit_quality: Despite solid gross margin, operating and net profits contracted YoY. This points to cost pressures in SG&A or higher non-operating/tax burden. Margin resilience at the gross level is a positive underpinning for recovery if costs normalize. outlook: Key for near-term growth reacceleration is cost control and operating efficiency to convert revenue growth into profit growth. Monitoring seasonal trends, network capacity utilization, and price/mix will be crucial for subsequent quarters.

Financial Health

liquidity:

• current_assets: 7735326000
• current_liabilities: 4303815000
• current_ratio: 179.7%
• quick_ratio: 179.7% (inventories not disclosed)
• working_capital: 3431511000
• assessment: Comfortable liquidity with a sizable buffer to meet short-term obligations. solvency:
• total_assets: 28387000000
• total_liabilities: 6784658000
• total_equity: 20769000000
• debt_to_equity: 0.33x
• interest_coverage: Very high, given negligible interest expense and solid operating income.
• equity_ratio_implied: Approximately 73% (based on total equity / total assets; reported equity ratio item not disclosed).
• assessment: Low leverage and strong capitalization reduce balance sheet risk. capital_structure: Primarily equity-funded with limited financial debt burden implied; ample capacity to absorb operating volatility.

Cash Flow Quality

earnings_quality: Cash flow statements were not disclosed for the quarter; therefore, conversion of earnings to cash cannot be assessed. The quality of earnings assessment is constrained by the absence of OCF and working capital flow data. FCF_analysis: Free cash flow not disclosed. Capex and depreciation were also not disclosed, limiting visibility on reinvestment needs and maintenance versus growth spending. working_capital: Inventories not disclosed; changes in receivables/payables unknown. Working capital at period-end appears positive given current ratio, but intra-quarter dynamics are not assessable.

Dividend Sustainability

payout_ratio_assessment: Dividend and payout data were not disclosed for the period; the displayed zeros should be treated as non-disclosure rather than actual values. FCF_coverage: Not assessable due to lack of OCF/FCF disclosure. policy_outlook: Without DPS or cash flow data, dividend capacity cannot be evaluated. Future commentary should be monitored for policy updates and earnings-to-cash conversion to gauge sustainability.

Risk Assessment

Business Risks:

• Negative operating leverage if SG&A and labor costs remain elevated versus revenue growth.
• Seasonality in service demand potentially impacting quarterly utilization and margins.
• Pricing and mix sensitivity in a competitive car-care/services market.
• Execution risk in network expansion, staffing, and quality control.
• Exposure to macro factors affecting consumer auto usage and spending.

Financial Risks:

• Limited transparency this quarter due to non-disclosure of cash flows and depreciation.
• Potential working capital swings not visible without OCF data.
• Tax rate variability influencing net income, with limited detail on tax reconciliation.

Key Concerns:

• Operating income decline (-7.8% YoY) despite revenue growth, indicating cost pressure.
• Net income decline (-10.7% YoY), highlighting sensitivity to below-OP line items.
• Absence of cash flow disclosure, constraining assessment of earnings quality and dividend capacity.

Investment Implications

Key Takeaways:

• Revenue growth of 6.7% YoY demonstrates demand resilience.
• Margins: strong gross margin (46.8%) but operating margin compression to 23.9%.
• ROE of 4.38% is margin-led with modest leverage and low quarterly asset turnover.
• Balance sheet appears strong with implied ~73% equity ratio and low interest burden.
• Cash flow and dividend information were not disclosed, limiting visibility on capital returns.

Metrics to Watch:

• Operating margin trajectory and SG&A-to-sales ratio.
• Same-store/service center throughput and pricing/mix indicators.
• OCF and FCF disclosure in subsequent quarters to confirm earnings quality.
• Capex and depreciation to assess reinvestment needs and capacity expansion.
• Tax rate normalization and impacts on net margin.
• Asset turnover trends as more periods accumulate (to mitigate single-quarter denominator effects).

Relative Positioning: Within service-oriented consumer sectors on the TSE, the company exhibits above-average gross profitability and low leverage, but near-term operating leverage is unfavorable; visibility on cash generation is currently limited due to non-disclosure.

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