TABIKOBO Co.Ltd. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥1.64B
• Operating Income: ¥72M
• Net Income: ¥3M
• EPS: ¥4.57

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

Verdict: A solid rebound quarter with strong top-line growth and a return to profitability, though leverage remains elevated and cash-flow disclosure is absent. Revenue rose 58.7% YoY to 16.41, supported by travel demand recovery, translating to operating income of 0.72 and ordinary income of 0.75. Net income reached 0.90 (EPS 4.57 JPY), implying a 5.5% net margin and an ROE of 12.7% on 5.01x leverage, despite a still-thin equity base. Gross profit is reported at 2.47 (15.0% margin), and operating margin stands at about 4.4%; ordinary margin is roughly 4.6%. Basis-point comparisons versus last year are not computable due to missing prior-period margin disclosures; however, the revenue surge and positive operating income indicate operating leverage materialized this quarter. The reported cost of sales (7.88) appears inconsistent with the reported gross profit (2.47); we rely on the gross profit and derived margin (15.0%) for analysis given the internal consistency with revenue. Earnings quality cannot be verified as operating cash flow was not disclosed; OCF/NI is N/A. Liquidity improved with a current ratio of 139%, aided by cash and deposits of 20.76 against current liabilities of 23.08, but solvency remains a concern with D/E at 4.01x and an implied equity ratio near 20%. Interest burden is manageable (interest coverage 63.5x), helped by small interest expense. Retained earnings remain negative (-14.37), indicating constrained capacity to resume dividends absent sustained profitability and positive free cash flow. ROIC is reported at -5.6%, well below the 7–8% target threshold, flagging that economic returns are not yet covering the cost of capital. Net income exceeding ordinary income alongside a very low reported profit before tax (0.04) suggests line-item classification anomalies or unreported extraordinary items; we anchor on operating/ordinary/net income levels provided. Forward-looking, the key to durable performance will be sustaining gross margin recovery, converting profit into cash (OCF), and deleveraging to strengthen the balance sheet while demand normalization continues. The travel business model’s working capital dynamics (customer advances) support liquidity but can reverse quickly with demand shocks, necessitating careful risk management. With non-operating items small this quarter (0.03), the result appears primarily operational. Overall, the quarter marks a constructive step toward normalization, but confirmation via cash flow and capital efficiency improvement is still required.

Profitability Analysis

ROE decomposition (DuPont): Net Profit Margin 5.5% × Asset Turnover 0.462 × Financial Leverage 5.01x = ROE 12.7%. The largest driver of ROE is the high financial leverage (5.01x), magnifying modest margins and asset turnover. Net margin at 5.5% benefited from positive operating income (0.72) and minimal non-operating drag (net non-op +0.02), though reported PBT/NI line items show classification anomalies. Asset turnover at 0.462 indicates moderate efficiency for a travel intermediary model with high cash balances. Business drivers: demand recovery and operating leverage likely reduced unit SG&A intensity (SG&A 2.44 vs revenue 16.41), improving operating margin to ~4.4%. Sustainability: operating leverage benefits are partly sustainable if volume persists, but margins are vulnerable to airfare and FX swings that compress gross margin. Concerning trends: leverage-driven ROE masks weak ROIC (-5.6%), suggesting returns on invested capital remain below cost of capital. Also, we note the inconsistency between reported cost of sales and gross profit; we base margin interpretation on the internally consistent gross profit/revenue figures. Without prior-period SG&A, we cannot confirm if SG&A growth exceeded revenue growth; however, the current SG&A-to-revenue ratio (~14.9%) looks disciplined for the quarter.

Growth Assessment

Revenue grew 58.7% YoY to 16.41, indicating strong demand normalization in the travel segment. Operating income of 0.72 implies operating margin of ~4.4%, suggesting positive operating leverage on higher volumes. Net income of 0.90 (net margin 5.5%) benefited from controlled non-operating costs and low interest expense. Profit quality is unverified due to missing cash flow statements; no conclusion on OCF conversion. The mix appears mainly operational (non-operating income 0.03), with limited contribution from financial gains. Sustainability hinges on continued recovery in outbound/inbound travel, stable airline capacity, and FX/airfare trends that can affect take rates and gross profit. Given the negative retained earnings, sustaining quarterly profitability is important to rebuild equity and support future financial flexibility. Near-term outlook: constructive if demand remains firm; watch for seasonality into Q2 and potential margin pressure from promotional activity.

Financial Health

Liquidity: Current ratio 139.3% and cash/deposits of 20.76 vs current liabilities of 23.08 provide a reasonable cushion; quick ratio is the same due to lack of inventories. Solvency: Debt-to-equity is high at 4.01x (warning threshold >2.0), and the implied equity ratio is about 20% (7.09/35.52), reflecting a thin capital buffer. Interest coverage is strong at 63.49x, indicating low immediate interest burden. Maturity mismatch: current assets 32.15 exceed current liabilities 23.08, limiting short-term refinancing risk; however, the business model likely includes sizable customer advances within current liabilities, which can reverse with demand shocks. Long-term loans stand at 5.00, with total noncurrent liabilities 5.35; no detailed schedule provided. No off-balance sheet obligations are disclosed in the data. Explicit warning: D/E > 2.0 is a key risk; current ratio > 1.0 avoids a liquidity red flag.

Cash Flow Quality

Operating cash flow, investing cash flow, and free cash flow are unreported; thus OCF/Net Income and FCF coverage cannot be assessed. Potential working capital dynamics for a travel company include increases in customer advances (boosting cash) during booking upcycles and potential outflows upon travel fulfillment; without the cash flow statement, we cannot confirm period movements. No evidence of working capital manipulation can be inferred from the available data. Sustainability of funding dividends/capex from FCF is indeterminable this quarter due to missing disclosures.

Dividend Sustainability

Dividend data are unreported for the quarter. Retained earnings remain negative at -14.37, signaling limited distributable reserves under JGAAP and suggesting constrained dividend capacity until sustained profits rebuild equity. Payout ratio and FCF coverage are not calculable due to missing cash flow and dividend amounts. Policy outlook: management is likely to prioritize balance sheet repair and deleveraging over distributions until equity strengthens and ROIC moves above the cost of capital.

Risk Assessment

Business Risks:

• Travel demand volatility from macro conditions, pandemics, and geopolitics affecting booking volumes
• FX fluctuations impacting outbound travel affordability and margins (JPY weakness/strength)
• Airline capacity and fare volatility affecting take rates and gross profit
• Supplier/partner concentration risk typical in travel ecosystems
• Seasonality leading to quarter-to-quarter earnings variability

Financial Risks:

• High leverage (D/E 4.01x) with a thin equity buffer (~20% equity ratio)
• ROIC at -5.6%, indicating economic returns below cost of capital
• Working capital reversals from customer advances could pressure liquidity in downturns
• Dependence on continued access to credit given long-term loans (5.00) and overall liabilities (28.44)

Key Concerns:

• Lack of cash flow disclosure prevents assessing earnings quality and FCF sustainability
• Inconsistency between reported cost of sales and gross profit necessitates caution in margin interpretation
• Line-item anomalies around profit before tax vs net income suggest classification effects or unreported extraordinary items
• Negative retained earnings constrain shareholder return flexibility

Investment Implications

Key Takeaways:

• Top-line recovery (+58.7% YoY) translated into positive operating and net profits
• ROE at 12.7% is leverage-driven; underlying ROIC remains weak (-5.6%)
• Liquidity is adequate (current ratio 139%) but solvency risk persists (D/E 4.01x)
• Interest burden is low (coverage 63.5x), supporting short-term resilience
• Data gaps (cash flows, detailed SG&A) and inconsistencies limit precision of margin analysis

Metrics to Watch:

• Operating cash flow and OCF/NI conversion ratio (target >1.0)
• Gross profit margin trend and take-rate stability
• Leverage trajectory (D/E) and equity ratio improvement
• ROIC progression toward >7–8%
• Booking trends and customer advances/deferred revenue movements

Relative Positioning: Among domestic travel operators/OTAs, the company shows a credible volume-led recovery and acceptable short-term liquidity, but stands weaker on capital efficiency and balance sheet strength given high leverage and negative retained earnings; sustained cash generation and deleveraging are needed to improve positioning.

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