| Metrics | Current Period | Prior-year period | YoY |
|---|---|---|---|
| Revenue | ¥95.3B | ¥82.0B | +16.3% |
| Operating Income | ¥40.4B | ¥32.1B | +25.8% |
| Ordinary Income | ¥40.0B | ¥31.7B | +25.9% |
| Net Income | ¥24.9B | ¥20.0B | +24.3% |
| ROE | 16.7% | 15.7% | - |
FY2026 Q3 (non-consolidated) results: Revenue ¥95.3B (YoY +¥13.3B +16.3%), Operating Income ¥40.4B (YoY +¥8.3B +25.8%), Ordinary Income ¥40.0B (YoY +¥8.3B +25.9%), and Quarterly Net Income ¥24.9B (YoY +¥4.9B +24.3%), achieving double-digit profit growth at all levels. Gross Profit Margin remained high at 48.2%, and an efficient SG&A ratio of 5.8% drove profit growth. Progress is steady against full-year guidance (Revenue ¥120.0B, Operating Income ¥46.9B, Net Income ¥29.0B).
[Profitability] ROE 16.7% (above the sector median of 9.7%), Operating Margin 42.4% (further improved YoY and far above the sector median of 8.2%), Net Margin 26.1% (4.6x the sector median of 5.7%), Return on Assets 8.9% (above the sector median of 4.7%). EBIT margin 42.4%, Interest coverage 58.0x indicating a very light interest burden. [Cash Quality] Cash and deposits ¥73.8B, short-term debt coverage 14.2x (cash and deposits/short-term borrowings). [Investment Efficiency] Total asset turnover 0.34x (reflecting the asset-intensive business model). [Financial Soundness] Equity Ratio 53.2% (above the sector median of 49.0%), Current Ratio 190.0% (almost on par with the sector median of 206%), Debt-to-Equity ratio 0.88x, Debt/Capital ratio 28.6% indicating a conservative capital structure. Interest-bearing debt ¥59.8B, Net debt/EBITDA multiple is negative (virtually net cash).
Cash and deposits increased by +¥5.4B YoY to ¥73.8B, advancing cash accumulation from higher operating profits. Retained earnings increased by +¥22.1B (+21.2%), with the majority of the Quarterly Net Income of ¥24.9B retained internally, strengthening the funding base. Working capital of ¥38.6B was secured, with accounts receivable at an appropriate level of ¥6.7B. Against short-term borrowings of ¥5.2B, cash and deposits provide over 14x coverage, resulting in extremely low liquidity risk. A portion of long-term borrowings of ¥54.6B (¥1.6B due for repayment during the period) can be fully covered by cash and deposits. Even after the year-end dividend of ¥20, cash generation remains strong, providing ample capacity to pay the full-year dividend of ¥24. Although the fixed asset ratio is 71% and the business is asset-intensive, the high Operating Margin enables stable cash generation.
Ordinary Income is ¥40.0B versus Operating Income of ¥40.4B, with net non-operating income/expenses a modest negative at -¥0.5B. The main component is interest expense of ¥0.7B; non-operating income is limited at around 0.5% of revenue, indicating profit is concentrated in core operations. With a high Gross Profit Margin of 48.2% and efficient SG&A expenses of ¥5.5B (SG&A ratio 5.8%), the quality of Operating Income is sound. The 42.4% EBIT margin demonstrates the strong profitability of core operations. Retained earnings increased by ¥22.1B against Quarterly Net Income of ¥24.9B, meaning most profits are retained internally and accounting profits align with capital accumulation. Dependence on one-off factors and non-operating income is low; recurring business earnings underpin profits, indicating high earnings quality.
[Positioning within the industry] (Reference information, our research) Profitability: ROE 16.7% (above the sector median 9.7% and IQR 3.9%–15.0%, top-tier in the sector), Operating Margin 42.4% (5.2x the sector median 8.2%, among the highest in the sector), Net Margin 26.1% (4.6x the sector median 5.7%). Efficiency: Return on Assets 8.9% (above the sector median 4.7%), Revenue growth rate 16.3% (above the sector median 9.5%, top-tier growth). Soundness: Equity Ratio 53.2% (slightly above the sector median 49.0%), Current Ratio 190% (almost the same as the sector median 206%), Net debt/EBITDA multiple is negative, effectively net cash (compared to the sector median -1.75, financial flexibility is ample). The company holds a markedly superior position in profitability and growth within the sector, and maintains a level of financial soundness above the sector average. (Industry: healthcare, N=44 companies, comparison period: 2025 Q3, source: our compilation)
This report is an earnings analysis document automatically generated by AI based on XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. The industry benchmarks are reference information compiled by our firm based on publicly available financial data. Investment decisions are your responsibility; consult a professional as needed before making any investment decisions.