TACMINA CORPORATION FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥5.57B
• Operating Income: ¥800M
• Net Income: ¥565M
• EPS: ¥83.62

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

TACMINA (63220) delivered steady topline and earnings growth in FY2026 Q2, with revenue up 6.5% YoY to ¥5,567m and operating income up 3.3% to ¥800m. Net income increased 2.0% to ¥576m, implying some margin pressure versus the pace of sales growth. Gross profit of ¥2,480m translates to a robust gross margin of 44.5%, reflecting strong value-add in precision pump and fluid control solutions. Operating margin stands at 14.4%, indicating disciplined cost control but also highlighting modest deleveraging in SG&A relative to sales. Ordinary income of ¥845m outpaced operating income, supported by minimal interest burden (interest expense ¥1.07m), and interest coverage is very strong at ~749x. Based on net income and inferred pre-tax profit, the effective tax rate is approximately 30.6%, consistent with Japan’s statutory range for a profitable domestic industrial. DuPont decomposition indicates ROE of 5.34%, derived from a 10.35% net margin, 0.386x asset turnover, and 1.34x financial leverage, underscoring low leverage and respectable profitability as primary ROE drivers. The balance sheet is conservative, with total assets of ¥14,424m and equity of ¥10,796m, implying an equity ratio of roughly 75% (the reported 0.0% equity ratio appears to be an unreported metric rather than a true value). Liquidity is strong: current ratio 261% and quick ratio 252%, supported by working capital of ¥5,923m and modest inventories of ¥341m. Total liabilities are ¥4,432m, and the liabilities-to-equity ratio is a low ~0.41x, indicating ample solvency headroom. Cash flow statement items are unreported in this dataset (zeros indicate not disclosed), limiting direct assessment of operating cash flow and free cash flow. Depreciation and EBITDA are likewise unreported, so operating cash conversion and capex intensity cannot be validated from this release. Dividend data are not disclosed here; EPS of ¥83.62 implies earnings capacity for distributions, but payout policy cannot be assessed without DPS and cash flow visibility. Overall, the company shows healthy margins, strong liquidity, and low leverage, with modest operating leverage in the period. The outlook hinges on sustaining demand in industrial end markets and maintaining pricing to offset cost inflation. Data gaps (cash flows, depreciation, DPS) constrain the depth of cash-based and dividend sustainability analysis; conclusions below are based solely on reported non-zero items and reasonable derivations.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 10.35%
• asset_turnover: 0.386x
• financial_leverage: 1.34x
• calculated_ROE: 5.34%
• interpretation: ROE is primarily driven by healthy margins and conservative leverage; asset turnover is modest, in line with a specialized equipment manufacturer. margin_quality:
• gross_margin: 44.5% (¥2,479.6m GP on ¥5,567m sales) indicates strong product differentiation and pricing power.
• operating_margin: 14.4% (¥800m OI) shows disciplined cost control but slight pressure vs sales growth.
• ordinary_margin: 15.2% (¥845m ordinary income), aided by negligible interest burden.
• net_margin: 10.35% reflects normalizing tax rate and limited non-operating drag. operating_leverage: Operating income growth (+3.3% YoY) lagged revenue growth (+6.5% YoY), implying modest negative operating leverage this period (likely higher SG&A or mix headwinds). Interest expense is de minimis, so earnings sensitivity is primarily operational rather than financial.

Growth Assessment

revenue_sustainability: Topline grew 6.5% YoY to ¥5,567m, suggesting resilient demand across industrial customers. The small inventory balance versus current assets indicates lean operations, but without OCF data it is unclear if growth is matched by cash conversion. profit_quality: Gross margin at 44.5% supports quality earnings; operating margin at 14.4% and net margin at 10.35% are solid. The effective tax rate (~30.6%, derived from net income ¥576m and income tax ¥253.6m) is consistent with recurring profitability. outlook: With minimal interest burden and strong balance sheet, the company is well positioned to pursue growth. Near-term earnings trajectory depends on pricing discipline and input cost trends; operating leverage will hinge on SG&A scalability and mix. Data limitations (no CF or depreciation) prevent validation of capex needs tied to growth.

Financial Health

liquidity: Current ratio 261.3% and quick ratio 252.0% reflect ample near-term coverage. Working capital stands at ¥5,923m, providing operational flexibility. solvency: Equity of ¥10,796m vs assets of ¥14,424m implies an equity ratio of ~74.9% and liabilities-to-equity of ~0.41x. Interest coverage ~749x indicates very low financial risk. capital_structure: Leverage is conservative; interest-bearing debt is not disclosed, but overall liabilities are modest. The company appears positioned to absorb shocks without balance sheet stress.

Cash Flow Quality

earnings_quality: Accruals and cash conversion cannot be assessed due to unreported cash flow statements and depreciation. Reported margins and tax expense suggest earnings are economically grounded, but validation via OCF is unavailable. FCF_analysis: Operating CF, investing CF, and resulting FCF are not disclosed in this dataset (zeros indicate unreported). Capex intensity and maintenance versus growth split are therefore unknown. working_capital: Inventory is ¥341m (small relative to current assets), hinting at manageable inventory risk. However, receivables/payables dynamics and cash collections cannot be evaluated without CF and detailed working capital disclosures.

Dividend Sustainability

payout_ratio_assessment: Annual DPS and payout ratio are not disclosed here. EPS is ¥83.62 in the period, indicating capacity for payouts, but without DPS we cannot compute the actual payout. FCF_coverage: Unassessable in this dataset due to unreported OCF and capex; any FCF coverage ratio shown as 0.00x reflects missing data, not cash flow weakness. policy_outlook: Given strong balance sheet and low leverage, the company has potential flexibility for shareholder returns, but explicit policy and recent dividend track record are not available in this snapshot.

Risk Assessment

Business Risks:

• Demand cyclicality in industrial end-markets (chemicals, water treatment, electronics/semiconductor exposure).
• Input cost inflation and supply chain volatility impacting gross margin.
• Product mix shifts affecting operating leverage and pricing power.
• Customer concentration risk if large projects dominate period results.
• FX exposure on exports and imported components (if applicable).

Financial Risks:

• Limited visibility on cash generation due to unreported OCF and capex.
• Potential working capital swings not observable in this dataset.
• Unclear dividend/capital allocation policy without DPS and CF disclosure.
• Exposure to contingent liabilities or lease obligations not detailed here.

Key Concerns:

• Operating income growth lagging sales growth suggests near-term margin pressure.
• Absence of cash flow and depreciation data constrains assessment of earnings quality and capex needs.
• Inability to verify dividend sustainability without DPS and FCF data.

Investment Implications

Key Takeaways:

• Solid revenue growth (+6.5% YoY) and resilient margins (gross 44.5%, operating 14.4%).
• ROE of 5.34% driven by healthy profitability and low leverage; asset turnover is moderate.
• Very strong liquidity (current ratio 261%) and conservative balance sheet (~75% equity ratio).
• Minimal interest burden (coverage ~749x) reduces financial risk.
• Some margin compression as operating income growth trails sales.
• Material data gaps (cash flows, depreciation, DPS) limit cash-based analysis.

Metrics to Watch:

• Order backlog and book-to-bill to gauge demand sustainability.
• Gross and operating margin trends versus input costs.
• Operating cash flow and capex (when disclosed) to assess FCF conversion.
• Working capital turns (receivables, inventory) for cash conversion.
• Dividend announcements/payout policy clarity.
• FX sensitivity and pricing in export markets.

Relative Positioning: Within Japanese industrial equipment peers, TACMINA appears financially conservative with above-average gross margins and low leverage, though ROE is mid-pack due to modest asset turnover and prudent gearing; visibility on cash generation is currently below peers given unreported CF data in this period.

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