ULVAC (6728) FY2026 Q3 Earnings Report

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Executive Summary

For the cumulative Q3 period, revenue increased while earnings declined, as deteriorating profitability in the core businesses weighed on income. Revenue was ¥1916.3B (+2.1% YoY), Operating Income was ¥147.2B (-29.1%), Ordinary Income was ¥145.3B (-34.3%), and Net Income attributable to owners of the parent was ¥91.1B (-30.5%). The Operating Income margin declined to 7.7% from 11.1% in the same period of the previous year, and despite higher revenue, the decline in profitability in the core Vacuum Equipment Business pressured overall profitability.

Factors Affecting Performance

【Revenue】Revenue was ¥1916.3B, representing a 2.1% YoY increase. The Vacuum Equipment Business generated ¥1500.1B in revenue (flat, +0.1%) and accounted for 78.3% of total company revenue, but growth slowed. The Vacuum Application Business drove revenue growth with revenue of ¥439.4B (+9.0%). By revenue recognition category, revenue recognized at a point in time increased by +10.4%, while revenue recognized over time declined, indicating a change in the revenue mix.

【Profit and Loss】Operating Income was ¥147.2B (-29.1% YoY). Segment profit in the Vacuum Equipment Business was ¥127.7B (-28.0%), with the margin declining by approximately 330bp to 8.5% from 11.8% in the same period of the previous year. The Vacuum Application Business also reported profit of ¥18.6B (-36.3%) and a margin of 4.5% (7.1% in the same period of the previous year), indicating deteriorating profitability despite higher revenue. Profitability deteriorated in both businesses, suggesting the impact of costs and project mix. Ordinary Income was limited to ¥145.3B, partly due to a foreign exchange loss of ¥7.8B. Extraordinary losses of ¥13.0B, including an impairment loss of ¥3.0B, exceeded extraordinary income of ¥0.9B, depressing Profit Before Tax. In conclusion, revenue increased while earnings declined.

Segment Analysis

The Vacuum Equipment Business (78.3% of revenue) was broadly flat, with revenue of ¥1500.1B (+0.1% YoY), while segment profit declined substantially to ¥127.7B (-28.0%), with the margin falling to 8.5% from 11.8% in the same period of the previous year. As the core business accounting for 86.8% of consolidated segment profit, deteriorating profitability in this business was the primary cause of the decline in consolidated earnings. The Vacuum Application Business (21.7% of revenue) posted higher revenue of ¥439.4B (+9.0%), but segment profit declined to ¥18.6B (-36.3%) and the margin fell to 4.5% (7.1% in the same period of the previous year). The inability of higher revenue to translate into profit growth is a common issue for both businesses. The impairment loss of ¥27.3B recorded by the Vacuum Equipment Business in the same period of the previous year was immaterial in the current period.

Key Financial Indicators

【Profitability】The Operating Income margin declined to 7.7% from 11.1% in the same period of the previous year, while the Net Income margin also narrowed to 4.8% (7.0% in the same period of the previous year). ROE was 4.3%, a level indicating room for improvement in profitability. 【Cash Quality】Operating Cash Flow (OCF) was ¥125.8B, or 1.38 times Net Income of ¥91.0B, maintaining cash support for accounting earnings; however, increases of ¥64.5B in inventories and ¥28.8B in trade receivables restrained OCF growth. 【Investment Efficiency】Capital expenditures (acquisitions of PPE and intangible assets) were approximately ¥97.2B, exceeding depreciation and amortization expense of ¥79.5B, indicating that capacity expansion investments in addition to replacement investments are continuing. 【Financial Soundness】The company has substantial liquidity, with an Equity Ratio of 60.6% and cash and deposits of ¥909.9B. Its interest-bearing debt structure, centered on long-term borrowings of ¥303.1B, is conservative.

Cash Flow Analysis

Operating Cash Flow (OCF) was ¥125.8B, down 48.6% YoY. In addition to the decline in Profit Before Tax, increases of ¥64.5B in inventories and ¥28.8B in trade receivables created a cash burden from a working capital perspective, while an increase of ¥101.1B in contract liabilities provided support. Investing Cash Flow was an outflow of ¥98.2B, with capital expenditures exceeding depreciation and amortization expense, indicating that growth investments are continuing. Financing Cash Flow was an outflow of ¥125.0B, mainly consisting of dividend payments of ¥80.9B, share repurchases of ¥4.9B, and repayments of long-term borrowings. Free Cash Flow was limited to ¥27.6B, indicating that operating activities were unable to fully cover funding needs related to both investment and financing; working capital trends will determine future cash-generation capacity.

Earnings Quality

Against Profit Before Tax of ¥133.3B for the current period, extraordinary losses of ¥13.0B, including an impairment loss of ¥3.0B, exceeded extraordinary income of ¥0.9B, with temporary factors weighing on earnings. In the same period of the previous year, extraordinary income of ¥16.3B, including a gain on the sale of investment securities of ¥16.3B, was recorded; therefore, the reversal in extraordinary gains and losses was also a factor behind the deterioration in Profit Before Tax on a YoY basis. Among non-operating items, a foreign exchange loss of ¥7.8B was recorded, resulting in Ordinary Income falling below Operating Income. OCF exceeded Net Income, providing cash support for earnings; however, increases in inventories and trade receivables acted as working capital accruals, making it important to monitor working capital trends when assessing earnings quality. Comprehensive Income was ¥158.4B, exceeding Net Income of ¥101.0B, primarily due to foreign currency translation adjustments of ¥42.7B. Accordingly, it is appropriate to assess underlying earnings power based on Net Income.

Earnings Forecast and Guidance

Against the full-year company forecasts of revenue of ¥2600.0B, Operating Income of ¥190.0B, and Ordinary Income of ¥190.0B, cumulative Q3 progress was 73.7% for revenue, 77.5% for Operating Income, and 76.5% for Ordinary Income, slightly exceeding the standard 75% level on the earnings front. Meanwhile, Net Income attributable to owners of the parent was ¥91.1B against a full-year forecast of ¥185.0B, representing progress of only 49.2% and requiring Net Income of approximately ¥93.9B in Q4. The earnings and dividend forecasts were revised during the current quarter, and trends in extraordinary gains and losses and the tax burden in the second half will be key to achieving the full-year plan.

Shareholder Returns

The full-year dividend forecast is ¥152, representing an expected reduction from the previous year’s dividend of ¥164. The forecast Payout Ratio, calculated based on projected full-year Net Income of ¥185.0B and the average number of shares outstanding during the period, is estimated at approximately 40%. During the cumulative Q3 period, the company repurchased ¥4.9B of its own shares, continuing shareholder returns through both dividends and share repurchases. Cash and deposits of ¥909.9B and conservative financial leverage provide support in securing the resources for shareholder returns.

Risk Factors

1. Deterioration in profitability of the core business: The margin of the Vacuum Equipment Business, which accounts for 86.8% of consolidated segment profit, declined to 8.5% from 11.8% in the same period of the previous year. Project profitability and cost trends in this business will determine consolidated profitability.

2. Fluctuations in the semiconductor and electronic-device capital investment cycle: As a vacuum equipment manufacturer, the company is susceptible to customer capital investment trends. Despite revenue growth (+9.0%), the Vacuum Application Business saw its margin decline to 4.5% (7.1% in the same period of the previous year), highlighting challenges in converting revenue growth into profit.

3. Foreign exchange fluctuations: The company recorded a foreign exchange loss of ¥7.8B in the current period, placing pressure on Ordinary Income through non-operating gains and losses. Given its business structure involving overseas transactions, foreign exchange sensitivity will require continued monitoring.

Industry Benchmark (For Reference; Compiled by the Company)

Profitability and Return

Profitability was below the industry median for both metrics, positioning the company below the average level within the industry.

Growth and Capital Efficiency

Revenue growth was also slightly below the industry median and, although within the IQR, was below the average growth pace.

※Source: Compiled by the Company

Key Takeaways from the Earnings Results

1. While revenue growth was secured, the Operating Income margin declined by 337bp YoY. Whether profitability in the core Vacuum Equipment Business can recover will be the key focus going forward.

2. Full-year progress for Operating Income and Ordinary Income exceeded 75%, broadly in line with the plan, while Net Income progress was limited to 49.2%. Profit recovery in the second half, including extraordinary gains and losses and the tax burden, will be necessary to achieve the full-year plan.

3. Increases in inventories and trade receivables restrained OCF growth. The potential for improved working capital efficiency will be an important point when assessing cash-generation capacity.

Theoretical Share Price (Reference Value)

Sensitivity: ¥4,574–¥4,840 at ±1% for the Cost of Equity, and ¥4,700–¥4,707 at ±0.1 for ω.

Notes:

• As forecast ROE is below the Cost of Equity, the theoretical value is below book value per share.
• Net assets as of the quarter-end are used (there is a timing difference from the full-year forecast).
• As net assets include non-controlling interests, the theoretical value may be calculated somewhat higher.

(Calculation model: Residual Income Model (Ohlson type; explicit 5-year fade) / Interest rate reference month: 2026-07 / Mechanically calculated value based solely on publicly disclosed data; this is not a forecast of the market share price or a recommendation of any specific investment action, nor does it predict or guarantee the future share price.)

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This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not recommend investment in any specific security. The industry benchmarks are reference information compiled by the Company based on publicly disclosed earnings data. Investment decisions should be made at your own responsibility, after consulting a professional as necessary.

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AI Financial Analysis

Executive Summary

ULVAC's FY2026 Q3 cumulative result was characterized by modest sales growth but a pronounced earnings and cash-conversion slowdown. Revenue increased 2.1% YoY to ¥191.63bn. Operating income fell 29.1% YoY to ¥14.72bn, reducing the operating margin to 7.7% from 11.1% a year earlier, a 340bp contraction. Gross profit declined 4.1% YoY to ¥58.03bn despite higher sales. The gross margin compressed by 190bp to 30.3% from 32.2%, indicating weaker manufacturing profitability and/or product-mix pressure. SG&A expense increased 8.4% YoY to ¥43.31bn, materially outpacing revenue growth. Consequently, the SG&A-to-sales ratio rose by approximately 140bp to 22.6%. Ordinary income declined 34.3% to ¥14.53bn, underperforming operating income because non-operating costs increased, including ¥0.78bn of foreign-exchange losses. Profit attributable to owners of parent declined 30.5% to ¥9.11bn, and the net margin contracted by 220bp to 4.8%. A ¥1.30bn extraordinary loss, including ¥0.30bn of impairment loss, also weighed on pre-tax and net earnings. The core Vacuum Equipment segment remained the principal profit engine, but its segment profit fell sharply. Vacuum Application delivered stronger sales but also experienced a significant profit decline, suggesting broad-based margin pressure rather than a purely segment-specific issue. Operating cash flow of ¥12.58bn exceeded attributable net income by 1.38x, supporting reported earnings conversion at the net-income level. However, cash conversion against EBITDA was only 0.55x, reflecting substantial working-capital absorption and cash tax payments. Manufacturing working capital remains the principal operational issue, with annualized DSO of 128 days, DIO of 162 days, and a 207-day cash conversion cycle. Liquidity and debt-servicing capacity remain strong, supported by ¥90.99bn of cash and deposits, a 247.5% current ratio, and debt/EBITDA of 1.76x. The full-year sales forecast implies broadly stable Q4 demand, while the operating-income forecast implies a lower Q4 operating margin than the cumulative Q3 level. The full-year attributable-profit forecast requires an unusually large Q4 contribution relative to implied Q4 operating income, making the composition of below-the-line items and forecast assumptions important to monitor. Overall, the result indicates that balance-sheet resilience remains intact, but restoring gross margin, controlling SG&A growth, and reducing work-in-process and receivable intensity are central to the earnings outlook.

Profitability Analysis

Annualized DuPont ROE is 5.1%, decomposed into a 4.8% net profit margin, 0.654x asset turnover, and 1.65x financial leverage. The principal weak component is the net margin, which is below the 5-10% range generally associated with solid profitability and is down from approximately 7.0% in the prior-year period. Financial leverage is moderate rather than aggressive, so the low ROE is primarily an operating-return issue rather than a capital-structure issue. Asset turnover of 0.654x is also restrained by the sizeable working-capital base, particularly receivables and work in process. Revenue grew 2.1%, but gross profit fell 4.1%, causing gross margin to decline to 30.3% from 32.2%. SG&A increased 8.4% to ¥43.31bn, well above sales growth, and its ratio to revenue increased to 22.6% from 21.2%. This unfavorable operating leverage drove operating income down 29.1% and operating margin down 340bp to 7.7%. The five-factor decomposition shows a 0.683 tax burden and a 0.906 interest burden. The interest burden remains acceptable and demonstrates that financing costs are not the primary source of earnings pressure. Interest expense of ¥0.48bn was covered 31.0x by EBIT and 47.7x by EBITDA. The effective tax rate was 24.2%, broadly manageable, although the tax burden is slightly below the 0.70 level commonly associated with a neutral tax drag. EBITDA was ¥22.67bn and the EBITDA margin was 11.8%, providing a more resilient view of operating cash earning capacity than the 7.7% EBIT margin. As a JGAAP reporter, ULVAC would amortize goodwill if material; however, no goodwill balance or goodwill-amortization charge is reported, and EBITDA pre-goodwill amortization is therefore also ¥22.67bn. The profitability deterioration appears primarily structural to the current period's cost and expense absorption rather than interest-driven. Sustainability of recovery depends on better gross-margin execution and operating-expense discipline as revenue scales.

Growth Assessment

Sales growth of 2.1% YoY to ¥191.63bn was modest and insufficient to offset lower gross profitability and higher SG&A. Revenue recognized at a point in time rose 10.4% YoY to ¥96.70bn, while revenue recognized over time declined 5.2% to ¥94.93bn. This mix shift toward point-in-time revenue did not translate into stronger consolidated margins during the period. The Vacuum Equipment segment generated ¥150.01bn of external sales, essentially flat YoY, and remained the core business by operating-profit contribution. Its segment profit declined 28.0% YoY to ¥12.77bn, reducing its segment margin to 8.5% from 11.8%. Vacuum Application segment sales increased 10.5% YoY to ¥41.63bn. However, Vacuum Application segment profit fell 36.3% YoY to ¥1.86bn, with segment margin declining to 4.5% from 7.8%. Both segments therefore showed margin compression, with Vacuum Application carrying the lower profitability level. The full-year forecast calls for revenue of ¥260.00bn, operating income of ¥19.00bn, ordinary income of ¥19.00bn, and attributable net income of ¥18.50bn. Q3 revenue progress is 73.7% versus the 75% seasonal reference point, broadly in line. Operating-income progress is 77.5%, 2.5 percentage points ahead of the reference point, while ordinary-income progress is 76.5%, 1.5 percentage points ahead. Attributable-profit progress is 49.2%, 25.8 percentage points below the reference point. Arithmetic against the full-year forecast implies Q4 revenue of ¥68.37bn and operating income of ¥4.28bn, equivalent to a 6.3% Q4 operating margin versus 7.7% cumulatively through Q3. It also implies ¥9.39bn of Q4 attributable profit, exceeding the nine-month attributable-profit result despite the lower implied Q4 operating income; the anticipated non-operating, tax, or other below-the-line drivers are therefore important for assessing forecast quality. The forecast indicates FY sales growth of 3.5% but a 28.4% decline in operating income, implying management also expects full-year margin pressure to persist.

Financial Health

Financial health is strong from a liquidity and debt-service perspective. Current assets of ¥278.31bn exceed current liabilities of ¥112.43bn, resulting in a 247.5% current ratio and ¥165.88bn of working capital. The 242.5% quick ratio indicates that near-term obligations are well covered even without reliance on inventory monetization. Cash and deposits were ¥90.99bn, equal to 9.41x short-term loans of ¥9.67bn. Interest-bearing debt totaled ¥39.98bn, comprising ¥9.67bn of short-term loans and ¥30.31bn of long-term loans. Only 24.2% of debt is short-term, limiting refinancing and maturity-mismatch risk. Debt-to-equity was 0.65x, below the 1.0x conservative threshold, and debt-to-capital was 14.4%. Debt/EBITDA of 1.76x remains within investment-grade-style leverage parameters. Owners' equity was ¥229.63bn, and the parent equity ratio was 58.8%, providing a substantial capital buffer. Contract liabilities increased to ¥35.06bn from ¥22.97bn in the prior-year period, supporting funding and indicating greater customer advances embedded in current liabilities. Investment securities increased ¥2.16bn, or 27.0% YoY, to ¥10.15bn; this modestly increases exposure to market-value movements, though it represents only 2.6% of total assets. Treasury stock increased in absolute deduction by ¥4.69bn to negative ¥9.67bn, consistent with capital returns including ¥0.49bn of share repurchases during the period. PPE represented 20.2% of total assets, while intangible assets represented only 1.5%, indicating limited balance-sheet dependence on acquired intangible value. Asset-retirement obligations of ¥0.42bn were immaterial relative to total liabilities. No material goodwill balance is reported, limiting M&A-related impairment exposure.

Notable B/S Changes

Investment securities: +¥2.16bn (+27.0%) to ¥10.15bn - increases exposure to securities valuation movements, though the balance remains modest at 2.6% of total assets. Treasury stock: increased by ¥4.69bn in absolute deduction to -¥9.67bn - reflects ongoing capital returns and reduces reported equity modestly; ¥0.49bn of repurchases were recorded in FY2026 Q3 cumulative financing cash flow. Contract liabilities: +¥12.09bn (+52.6%) to ¥35.06bn - customer advances provide an operating-cash offset and may reflect a larger project/order funding base, but future delivery execution remains necessary for revenue and profit recognition. Work in process: +¥6.92bn (+15.2%) to ¥52.57bn - the high production-stage inventory balance contributes to the 66.5% WIP ratio and is central to the elevated cash conversion cycle. Construction in progress: +¥4.16bn (+83.6%) to ¥9.13bn - indicates a meaningful ongoing investment pipeline and raises the importance of timely project completion and return generation.

Cash Flow Quality

Operating cash flow was ¥12.58bn, down 48.6% YoY from ¥24.46bn. Nevertheless, operating cash flow covered attributable net income by 1.38x, above the 1.0x threshold and supportive of earnings realization at the net-income level. The accruals ratio was negative 0.9%, also consistent with acceptable aggregate accrual quality. Free cash flow was positive at ¥2.76bn after ¥9.82bn of investing cash outflow. The principal investing item was ¥9.72bn of purchases of PPE and intangibles, indicating continued investment in production capability and technology assets. Cash conversion against EBITDA was only 0.55x, below the 0.7 warning threshold, and is a material quality alert. The root cause is the high working-capital requirement associated with ULVAC's manufacturing and project-delivery cycle, together with ¥9.19bn of cash tax payments. Annualized DSO was 128 days, materially above the 60-day warning level, indicating slow cash collection relative to sales. Annualized DIO was 162 days, also above the 90-day warning level. The annualized cash conversion cycle was 207 days, substantially above the 120-day warning level. These metrics elevate the amount of cash tied up between procurement, production, delivery, and customer collection. Work in process was ¥52.57bn, accounting for 66.5% of manufacturing inventory, above the 40% warning benchmark. The high WIP ratio is consistent with a production bottleneck, extended project lead times, or work awaiting completion and acceptance; it increases execution, cost-overrun, and obsolescence risk if demand or specifications change. Raw materials were ¥20.79bn and finished goods were ¥5.66bn, showing that inventory is predominantly held in the production stage rather than as completed stock. During the period, inventory increased by ¥6.45bn, absorbing operating cash flow. Contract liabilities increased by ¥10.11bn and provided an offsetting operating-cash benefit, while trade receivables decreased by ¥2.88bn and also supported cash flow. The combination of high DSO, high inventory days, and a long cash conversion cycle remains a key operational risk even though reported OCF/NI is presently above 1.0x.

Dividend Sustainability

The full-year forecast dividend is ¥152 per share, compared with forecast EPS of ¥375.97. The implied dividend payout ratio is 40.4%, which is within a generally sustainable sub-60% range. The dividend forecast represents a reduction from the prior-period ¥164 per share. Cash dividends paid during the nine-month period were ¥8.09bn, while share repurchases were ¥0.49bn. Combined cash shareholder distributions were therefore ¥8.58bn, equal to 94.1% of nine-month attributable net income of ¥9.11bn. This cash-basis total return ratio is elevated, although dividend cash paid can reflect timing and distributions declared in the prior fiscal year. Positive free cash flow of ¥2.76bn did not cover the ¥8.09bn of cash dividends paid during the period, indicating that dividends were funded partly through existing liquidity and/or other cash resources rather than current-period free cash flow alone. The company has substantial liquidity, with ¥90.99bn of cash and deposits, and modest leverage, which provides near-term flexibility. However, persistently weak EBITDA cash conversion and high working-capital intensity would reduce the margin for sustained shareholder distributions if operating margins remain depressed. The lower forecast DPS is consistent with a more cautious capital-allocation stance amid lower full-year profit expectations. Dividend sustainability is therefore supported by the balance sheet and forecast payout ratio, while free-cash-flow coverage and working-capital normalization remain the key variables.

Risk Assessment

Business risks include High priority: Manufacturing execution and working-capital risk is elevated. Annualized DSO of 128 days, DIO of 162 days, a 207-day cash conversion cycle, and a 66.5% WIP ratio indicate extended production and collection cycles that can delay cash realization and raise cost-overrun or inventory-obsolescence risk., High priority: Margin recovery risk is material. Gross margin fell 190bp and operating margin fell 340bp despite 2.1% sales growth, while SG&A increased 8.4%; continued cost inflation, unfavorable product mix, or low capacity utilization could delay earnings recovery., Medium priority: Semiconductor/display and advanced-manufacturing equipment demand is cyclical. As a vacuum-equipment manufacturer, ULVAC is exposed to customer capital-expenditure timing, technology transitions, and order deferrals in electronics-related end markets., Medium priority: Vacuum Application sales grew 10.5%, but segment profit fell 36.3%, signaling a risk that growth in lower-margin products, start-up costs, or project execution issues dilute group profitability., Medium priority: FX risk remains relevant. Foreign-exchange losses were ¥0.78bn, equal to 5.3% of operating income, and earnings may remain sensitive to currency fluctuations through export sales, overseas procurement, and foreign operations., Medium priority: Product quality, delivery acceptance, and warranty risk are inherent in customized capital equipment. Product-warranty provisions were ¥1.62bn, equivalent to approximately 0.8% of nine-month revenue..

Financial risks include Low priority: Liquidity risk is limited by a 247.5% current ratio, 242.5% quick ratio, and cash equal to 9.41x short-term debt., Low priority: Leverage risk is contained. Debt/EBITDA is 1.76x, debt-to-equity is 0.65x, debt-to-capital is 14.4%, and EBITDA interest coverage is 47.7x., Medium priority: Cash-flow volatility is elevated because capex and working-capital needs are high relative to current EBITDA conversion. Cash conversion of 0.55x is below the 0.7 quality threshold., Low priority: Market-value exposure from investment securities increased as the balance rose 27.0% YoY to ¥10.15bn..

Key concerns include The explicit low-cash-conversion alert is material: OCF/EBITDA of 0.55x indicates EBITDA is not translating into cash at a normal rate, primarily because of working-capital requirements and cash taxes., The high-receivable-days alert is material: 128 annualized DSO lengthens the cash collection cycle and increases counterparty-credit and acceptance-timing sensitivity., The high-inventory-days alert is material: 162 annualized DIO increases capital lock-up and the risk that WIP requires rework, incurs additional costs, or becomes less relevant if customer demand changes., The long-CCC alert is material: the 207-day annualized cash conversion cycle makes free cash flow more sensitive to modest movements in orders, deliveries, customer acceptance, and supplier terms., The high-WIP-ratio alert is material: WIP represents 66.5% of manufacturing inventory, suggesting that production throughput and project completion are more important to cash release than finished-goods liquidation., Forecast composition requires close scrutiny because implied Q4 attributable profit of ¥9.39bn is unusually high compared with implied Q4 operating income of ¥4.28bn..

Investment Implications

Key takeaways include Sales are holding broadly stable, but profitability has deteriorated materially: operating income fell 29.1% and operating margin contracted to 7.7%., The Vacuum Equipment segment remains the core earnings contributor, while both reported segments experienced substantial margin compression., Balance-sheet strength is a major offset to operational pressure, with high liquidity, low refinancing risk, and conservative leverage metrics., Cash earnings quality is mixed: OCF/NI is strong at 1.38x, but OCF/EBITDA of 0.55x and the 207-day annualized cash conversion cycle indicate weak underlying cash efficiency., The full-year dividend payout implied by guidance is moderate at 40.4%, but nine-month shareholder cash distributions exceeded current free cash flow., The key operating inflection would be normalization of gross margin, SG&A intensity, receivable collection, and WIP conversion..

Metrics to watch include Vacuum Equipment and Vacuum Application segment margins, Gross margin and SG&A-to-sales ratio, Annualized DSO, DIO, DPO, and cash conversion cycle, Work-in-process balance and WIP share of manufacturing inventory, Operating cash flow/EBITDA and free cash flow after capex, Q4 bridge from operating income to attributable profit under the full-year forecast, Foreign-exchange gains or losses relative to operating income, Capex level relative to depreciation and resulting cash requirements.

Regarding relative positioning, ULVAC screens as financially conservative for a capital-equipment manufacturer, with strong liquidity, low leverage, and ample interest coverage. Its relative weakness is not solvency but profitability and working-capital efficiency: a 7.7% operating margin, 5.1% annualized ROE, 128-day annualized DSO, 162-day annualized DIO, and 207-day annualized cash conversion cycle indicate weaker cash efficiency than a well-executing manufacturing peer.