| Metric | Current Period | Prior-year Period | YoY |
|---|---|---|---|
| Revenue | ¥66.0B | ¥63.6B | +3.8% |
| Operating Income | ¥7.3B | ¥6.3B | +16.6% |
| Ordinary Income | ¥8.5B | ¥7.3B | +16.4% |
| Net Income | ¥6.1B | ¥5.0B | +20.0% |
| ROE | 4.5% | 3.9% | - |
FY2026 Q3 consolidated results showed steady growth in both revenue and earnings: Revenue ¥66.0B (YoY +¥2.4B +3.8%), Operating Income ¥7.3B (YoY +¥1.0B +16.6%), Ordinary Income ¥8.5B (YoY +¥1.2B +16.4%), and Net Income ¥6.1B (YoY +¥1.1B +20.0%). The operating margin was approximately 11.1%, supported by selling, general and administrative expense control, and the net margin improved to 9.2%. Meanwhile, with total asset turnover at 0.278x and ROE at 4.5%, there remains room to improve capital efficiency. By segment, Operating Income was led by Real Estate at ¥4.5B and General-purpose Equipment at ¥4.0B, while Industrial Machinery and Automotive Equipment remained in the red. Short-term borrowings of ¥46.9B account for 60% of short-term liabilities, and accounts receivable increased +30.9% YoY, highlighting expanded working capital needs.
[Profitability] ROE 4.5% (slight increase from the estimated prior-year period), operating margin equivalent to 11.1% (improved by +1.2pt from 9.9% in the prior year), net margin 9.2% (improved by +1.3pt from 7.9% in the prior year), EBIT margin 11.1%, Return on Assets (annualized ROA) 3.8%, ROIC 3.0%. [Cash Quality] Cash and deposits ¥40.99B, short-term liability coverage 0.87x, working capital expanded with accounts receivable ¥14.41B (+30.9% YoY), increasing funding needs. [Investment Efficiency] Total asset turnover 0.278x, estimated accounts receivable days 78 days, investment securities ¥22.78B including unrealized valuation differences of ¥12.61B. [Financial Soundness] Equity Ratio 57.0%, current ratio 162.5%, quick ratio 144.5%, interest-bearing debt ¥78.42B (short-term borrowings ¥46.85B; long-term borrowings ¥31.57B), debt-to-capital ratio 0.76x, Debt/Equity 0.58x, interest coverage 8.68x, short-term liability ratio 59.7%, indicating maturity concentration risk.
Cash and deposits increased by +¥5.5B YoY to ¥40.99B, and the increase in Net Income of ¥6.1B is estimated to have contributed to the cash build. In working capital efficiency, accounts receivable increased significantly by +¥3.40B (+30.9%) YoY, indicating growth in receivables far outpacing the +3.8% increase in revenue. Accounts payable also increased by +¥1.23B (+44.1%), but net working capital expanded, resulting in cash absorption from working capital needs. Cash coverage of short-term borrowings of ¥46.85B is 0.87x, indicating somewhat constrained liquidity. Investment securities were ¥22.78B, up +¥0.20B YoY, including unrealized valuation differences of ¥12.61B, which underpin equity through unrealized gains. Of the total interest-bearing debt of ¥78.42B, approximately 60% is short-term borrowings, and this short-term-skewed funding structure elevates refinancing risk.
Against Ordinary Income of ¥8.5B and Operating Income of ¥7.3B, non-operating net increase was approximately ¥1.2B. Non-operating income of ¥1.95B less non-operating expenses of ¥0.81B resulted in a positive net non-operating contribution of ¥1.1B, primarily estimated to be financial income such as dividend income and interest income. Non-operating income accounts for 3.0% of revenue, indicating a structure where a certain portion of non-operating income underpins profits. Extraordinary income of ¥0.24B was recorded, bringing income before income taxes to ¥8.7B, with an effective tax rate of 30.4%, resulting in Net Income of ¥6.1B. As Operating Cash Flow is not disclosed, the cash conversion quality of earnings is unverified; however, the significant increase in accounts receivable indicates expanding accruals, which warrants attention. While the net margin of 9.2% is favorable, the increase in accounts receivable suggests a risk of delayed cash conversion.
[Position within Industry] (Reference information; in-house research) Profitability: Net margin 9.2% (exceeding the industry median of 5.4% by +3.8pt) and operating margin 11.1% (exceeding the industry median of 7.3% by +3.8pt) place profitability in the upper tier within the industry. ROE 4.5% slightly trails the industry median of 4.9%, with low total asset turnover suppressing ROE despite the company’s high net margin. Soundness: Equity Ratio 57.0% (below the industry median of 63.9% by -6.9pt) is somewhat low within the industry. The current ratio of 162.5% (1.63x) is well below the industry median of 2.67x, with reliance on short-term borrowings pressuring liquidity. Efficiency: Return on Assets 3.8% (exceeding the industry median of 3.3% by +0.5pt) is roughly mid-tier for efficiency. Revenue growth rate of +3.8% exceeds the industry median of +2.8%, indicating growth above the industry average. ※Industry: Manufacturing (N=65 companies), Comparison: 2025 Q3, Source: Our aggregation
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not constitute a recommendation to invest in any specific security. The industry benchmarks are reference information compiled by our company based on publicly available financial statements. Investment decisions are your own responsibility; please consult a professional as needed.