| Metrics | Current Period | Same Period Last Year | YoY |
|---|---|---|---|
| Revenue | ¥393.9B | ¥387.3B | +1.7% |
| Operating Income | ¥36.4B | ¥30.3B | +20.1% |
| Ordinary Income | ¥38.3B | ¥30.8B | +24.5% |
| Net Income | ¥27.1B | ¥21.5B | +26.1% |
| ROE | 5.8% | 4.9% | - |
FY2025 Q3 results came in with revenue of ¥393.9B (YoY +¥6.6B, +1.7%), operating income of ¥36.4B (YoY +¥6.1B, +20.1%), ordinary income of ¥38.3B (YoY +¥7.5B, +24.5%), and net income of ¥27.1B (YoY +¥5.6B, +26.1%), delivering higher revenue and profits. Gross margin was 40.9%, up +290bp YoY, showing a significant improvement, and operating margin improved to 9.2% (from 7.8% in the prior-year period, +142bp), indicating higher profit efficiency. Against full-year guidance (revenue ¥557.0B, operating income ¥53.0B, net income ¥41.0B), the company is tracking well as of Q3.
[Profitability] ROE 5.8% (improved from 4.6% in the previous year, above the company’s 3-year average), operating margin 9.2% (+1.4pt from 7.8% in the previous year), net margin 6.9% (+1.4pt from 5.5% in the previous year). A DuPont breakdown shows net margin 6.9%, total asset turnover 0.531, and financial leverage 1.59x, with net margin improvement the largest contributor. [Cash Quality] Cash and deposits ¥231.7B (+¥74.8B from ¥156.9B a year ago), short-term liability coverage 35.6x. With working capital of ¥355.0B, day-to-day operating liquidity is ample. [Investment Efficiency] Total asset turnover 0.531x (slightly down from 0.572x a year ago), ROA 3.7% (improved from 3.2% a year ago). [Financial Soundness] Equity ratio 63.1% (previous year 65.1%), current ratio 358.8%, debt-to-equity ratio 0.59x, interest-bearing debt ¥69.5B, and interest coverage 46.1x, indicating extremely strong interest payment capacity.
Cash and deposits increased by ¥74.8B YoY to ¥231.7B, while short-term borrowings decreased by ¥8.5B, from ¥15.0B to ¥6.5B, down 56.7%. This combination of significant short-term debt reduction and higher cash is considered a result of profit growth contributing to cash generation and improved financial soundness through the reduction of interest-bearing debt. Total assets increased by ¥65.5B to ¥742.2B, while net assets also increased by ¥27.6B to ¥468.1B, with capital increases and retained earnings supporting asset expansion. In working capital, inventory of ¥117.9B and accounts receivable of ¥104.2B remain at appropriate levels, with no signs of major inventory build or deterioration in receivables. Cash coverage of short-term liabilities is 35.6x, indicating extremely high liquidity and ample immediate payment capacity.
Against ordinary income of ¥38.3B, operating income was ¥36.4B, with net non-operating gains of approximately ¥1.9B being limited. While the detailed breakdown of non-operating income is not included in the available data, the high dependence on operating income suggests a profit structure primarily driven by core business earnings. Gross margin was 40.9%, showing a significant YoY improvement of +290bp, with product mix enhancement and cost control contributing. SG&A was ¥124.7B, at 31.7% of revenue, slightly up from the prior-year SG&A ratio (about 30.2%), but kept below the revenue growth rate, indicating operating leverage at work. The simultaneous increase in cash and deposits and profit growth suggests strong cash backing of earnings, supporting a high quality of earnings.
[Position within Industry] (Reference information; in-house research) Compared with the manufacturing industry median for 2025 Q3, net margin of 6.9% exceeds the industry median of 5.4%, and operating margin of 9.2% also exceeds the industry median of 7.3%, placing profitability efficiency above the industry average. ROE of 5.8% exceeds the industry median of 4.9%, indicating a favorable position within the industry. ROA of 3.7% also exceeds the industry median of 3.3%. In financial soundness, the equity ratio of 63.1% is close to the industry median of 63.9%, and the current ratio of 358.8% significantly exceeds the industry median of 267.0%, indicating extremely high short-term liquidity within the industry. Revenue growth of +1.7% is slightly below the industry median of +2.8%, suggesting growth pace is around the industry average or slightly modest. The Net Debt/EBITDA multiple is approximately -3.5x (interest-bearing debt ¥69.5B minus cash ¥231.7B, estimated EBITDA around ¥50B), indicating an almost net cash position and showing financial soundness far above the industry median of -1.11. (Industry: Manufacturing, N=65 companies, Comparison: 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 statements. Investment decisions are your own responsibility; please consult a professional as needed before making any such decisions.