Kamakura Shinsho,Ltd. FY2026 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥6.09B
• Operating Income: ¥893M
• Net Income: ¥354M
• EPS: ¥16.47

Income Statement

Balance Sheet

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

Kamakura Shinsho (TSE: 6184) reported FY2026 Q3 consolidated results under JGAAP showing solid topline and strong profit expansion, albeit with some internal statement inconsistencies that limit precision in sub-total analysis. Revenue was 60.87 (hundred million JPY), up 23.2% YoY, indicating healthy demand and likely continued traction in its life-event matching and media services. Operating income rose 58.9% YoY to 8.93, demonstrating meaningful operating leverage as fixed costs scaled against higher volumes. Ordinary income printed at 8.96 (+60.6% YoY), broadly consistent with operating performance and a limited non-operating result. Net income was 6.10 (+73.9% YoY), implying a 10.0% net margin, consistent with the provided DuPont margin. DuPont analysis indicates a calculated ROE of 16.8% (net margin 10.0%, asset turnover 1.168x, financial leverage 1.43x), reflecting an asset-light, high-turn model augmented by moderate leverage. Gross margin is cited at 46.1%, supportive of an intermediary platform business with limited cost of goods sold; however, reported cost of sales and gross profit are arithmetically inconsistent, suggesting classification or data extraction issues. Balance sheet quality is high: equity of 36.39 and total assets of 52.13 imply a strong equity ratio of roughly 69.8% and conservative leverage. Liquidity is robust with a current ratio of 3.02x and quick ratio of 3.02x, supported by cash and deposits of 20.85 and receivables of 12.75. Debt is minimal (long-term loans 0.54), and interest coverage is extremely high at roughly 439x, indicating negligible financial risk. Working capital is healthy at 23.08, supporting ongoing growth investment and stability. EPS (basic) of 16.47 JPY aligns with the reported net income and average shares, confirming internal consistency of per-share metrics. Dividend payout ratio is shown as 128.1%, implying distributions exceeded earnings for the measured period; however, DPS data are unreported, so this figure likely reflects annualized policy against trailing earnings and should be interpreted with caution. Cash flow statements are unreported, limiting assessment of earnings-to-cash conversion and FCF coverage; this is a key data gap. Despite data gaps and some P/L subtotal inconsistencies (gross profit, ordinary income vs. non-operating items, and tax/PBT alignment), the overarching picture is one of accelerating profitability on strong growth, ample liquidity, and low solvency risk. The outlook hinges on sustaining revenue momentum, maintaining take rates, and improving cost efficiency while converting earnings to operating cash flow.

Profitability Analysis

ROE_decomposition: Calculated ROE is 16.8%, derived from net profit margin of 10.0%, asset turnover of 1.168x (Revenue 60.87 / Assets 52.13), and financial leverage of 1.43x (Assets 52.13 / Equity 36.39). This mix reflects a primarily operating-driven ROE uplift rather than balance-sheet leverage. margin_quality: Reported gross margin is 46.1% (28.04/60.87), but cost of sales (21.36) and gross profit (28.04) are not arithmetically consistent, indicating data classification issues; we therefore place more reliance on operating and net margins. Operating income margin approximates 14.7% (8.93/60.87), and net margin is 10.0% (6.10/60.87), showing good cost discipline and monetization. operating_leverage: Revenue grew 23.2% YoY while operating income rose 58.9% YoY, indicating positive operating leverage from scaling SG&A and fixed cost bases. The SG&A ratio appears to have improved versus prior year (exact YoY SG&A not disclosed), contributing to margin expansion.

Growth Assessment

revenue_sustainability: Topline growth of 23.2% YoY suggests healthy underlying demand in life-event matching/media. Sustainability will hinge on user acquisition efficiency, partner supply breadth, and retention of both consumers and service providers. profit_quality: Profit growth outpaced revenue (OP +58.9% YoY, NI +73.9% YoY), implying improving mix and cost control; however, the absence of cash flow data and inconsistencies in gross profit reporting warrant caution in extrapolating profit quality. outlook: With an asset-light model and strong liquidity, the company is positioned to continue investing in product, marketing, and network effects. Near-term outlook is underpinned by scale benefits and a conservative balance sheet, subject to maintaining take rates and conversion amid competitive dynamics.

Financial Health

liquidity: Current ratio 301.5% and quick ratio 301.5% (Current assets 34.53 vs. Current liabilities 11.45) denote strong short-term coverage. Cash and deposits of 20.85 provide ample buffer. solvency: Total liabilities of 16.16 vs. equity of 36.39 yield a liabilities-to-equity of ~0.44x and an equity ratio near 69.8% (calculated), both conservative. capital_structure: Long-term loans are 0.54 with effectively net cash balance, and interest burden is de minimis (interest expense 0.02). Interest coverage ratio is 439x, indicating negligible refinancing or rate sensitivity risk at present.

Cash Flow Quality

earnings_quality: OCF and FCF are unreported, preventing direct validation of earnings-to-cash conversion. Given the platform nature, working capital swings (notably receivables) can affect timing of cash conversion. FCF_analysis: Free cash flow cannot be assessed due to missing OCF and capex data. Cash balance appears sufficient to fund operations without external financing near term. working_capital: Working capital is 23.08 (CA 34.53 - CL 11.45). Receivables at 12.75 are material relative to revenue scale; monitoring DSO and collection discipline is important as growth accelerates.

Dividend Sustainability

payout_ratio_assessment: Calculated payout ratio is 128.1%, implying dividends exceed earnings for the measured period; however, DPS and total dividends are unreported, and the ratio may reflect annual policy vs. partial-period earnings. FCF_coverage: Not assessable due to unreported OCF/FCF; coverage should be validated once cash flow data are available. policy_outlook: With high cash and low leverage, the balance sheet could support dividends in the short term, but sustainability should align with normalized earnings and cash generation; management guidance and policy cadence (interim/final) will be key.

Risk Assessment

Business Risks:

• Competitive pressure in life-event matching/media reducing take rates or increasing customer acquisition costs
• Slower user or partner growth affecting network effects and conversion
• Regulatory or consumer protection changes impacting advertising and lead-generation practices
• Macroeconomic softness reducing discretionary spend on life-event services
• Platform dependency on search/social algorithms affecting traffic and lead volume

Financial Risks:

• Potential mismatch between reported profits and cash generation due to receivables timing
• Dividend outflow exceeding earnings if payout policy remains aggressive
• Data inconsistencies in P/L subtotals (gross profit, PBT/tax alignment) complicating analysis and external perception
• Concentration risk if a few channels drive the majority of traffic acquisition costs

Key Concerns:

• Inconsistent gross profit versus cost of sales and operating income arithmetic
• Lack of cash flow disclosure (OCF/FCF) limits earnings quality assessment
• Payout ratio above 100% suggests potential strain if earnings or cash flow soften

Investment Implications

Key Takeaways:

• Strong growth with clear operating leverage: revenue +23.2% YoY, operating income +58.9% YoY
• Healthy profitability profile: net margin 10.0%, calculated ROE 16.8%
• Robust balance sheet and liquidity: equity ratio ~69.8%, current ratio ~3.0x, net cash position
• Cash flow opacity and P/L inconsistencies warrant cautious interpretation of margin structure
• Reported payout ratio of 128.1% raises questions on dividend sustainability absent FCF data

Metrics to Watch:

• Operating cash flow and free cash flow once disclosed
• SG&A ratio and marketing efficiency (CAC/LTV, conversion, take rate)
• Receivables quality and DSO trends
• Operating margin progression amid growth investments
• ARPU and cohort retention on both demand and supply sides
• Dividend guidance vs. earnings trajectory and cash generation

Relative Positioning: Within Japan’s internet media and matching platforms, Kamakura Shinsho exhibits a capital-light, net-cash profile with improving operating leverage and mid-teens ROE; balance sheet strength is above peers, while disclosure gaps on cash flows and some P/L inconsistencies temper comparability on margin quality.

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