Amvis Holdings,Inc. FY2025 Q4 Earnings Report

Financial Highlights

• Net Sales: ¥49.17B
• Operating Income: ¥6.16B
• Net Income: ¥2.14B
• EPS: ¥37.52

Income Statement

Balance Sheet

Cash Flow Statement

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

Amvis Holdings (7071) delivered FY2025 Q4 consolidated results under JGAAP with solid top-line growth but pronounced profit compression, characteristic of a company in an active expansion phase. Revenue rose 15.8% YoY to ¥49.17bn, supported by continued capacity additions in its medical-home/hospice model. Gross profit of ¥17.06bn implies a gross margin of 34.7%, indicating resilient unit economics at the service level despite cost inflation. However, operating income declined 41.9% YoY to ¥6.16bn, compressing the operating margin to 12.5%, reflecting heavier SG&A, pre-opening costs, and personnel cost pressures. Ordinary income was ¥6.34bn, while net income fell 50.8% YoY to ¥3.66bn, placing the net margin at 7.44%. DuPont analysis shows ROE at 10.13%, decomposed into a 7.44% net margin, 0.586x asset turnover, and 2.32x financial leverage, indicating that leverage and asset utilization are supporting equity returns amidst margin pressure. Operating cash flow was robust at ¥6.03bn, 1.65x net income, underscoring good earnings-to-cash conversion. Free cash flow was negative at -¥4.40bn due to sizable investing cash outflows of -¥10.43bn, consistent with growth capex for facility expansion. Financing inflows of ¥6.37bn partially funded this investment, lifting leverage but keeping interest servicing comfortable. The balance sheet shows total assets of ¥83.95bn and equity of ¥36.13bn; this implies an equity ratio around 43% by calculation, despite the reported equity ratio field showing 0.0% (unreported). Liquidity appears adequate with a current ratio of 133.7% and minimal inventory exposure. Debt-to-equity of 1.07x and EBIT-based interest coverage of 17.2x suggest manageable solvency risk at current earnings levels. The effective tax rate shown as 0.0% in the summary metrics is clearly a placeholder; using the disclosed tax expense of ¥3.11bn and net income of ¥3.66bn implies a pre-tax income near ¥6.77bn and an effective tax rate of roughly 46%. No dividend was declared (DPS ¥0), consistent with a reinvestment-first policy while FCF is negative. Overall, the quarter reflects a deliberate trade-off: maintaining rapid revenue growth and capacity build-out at the expense of near-term margins, with cash generation from operations remaining healthy enough to support investment when supplemented by external financing. Data limitations include several items reported as zero due to disclosure conventions, not actual zero balances; the analysis relies on the non-zero data points and calculated metrics.

Profitability Analysis

ROE_decomposition: ROE 10.13% = Net profit margin 7.44% × Asset turnover 0.586 × Financial leverage 2.32. Asset turnover and leverage are doing more of the heavy lifting as margins compressed significantly YoY. margin_quality: Gross margin at 34.7% indicates stable service-level profitability; operating margin fell to ~12.5% (¥6.16bn/¥49.17bn), and net margin to 7.44%, reflecting higher SG&A, labor, and pre-opening costs. Ordinary margin at ~12.9% aligns with operating profitability, suggesting limited non-operating gains. operating_leverage: Revenue grew 15.8% YoY while operating income fell 41.9% YoY, evidencing negative operating leverage in the period. Fixed-cost ramp and expansion costs outweighed revenue growth, pressuring incremental margins.

Growth Assessment

revenue_sustainability: Top-line growth of +15.8% YoY is consistent with continued facility openings and capacity additions in the medical-home/hospice model. Low inventory needs (inventories ¥23m) and service-led revenue support scalability. profit_quality: Despite compressed margins, profit quality is supported by cash conversion: OCF ¥6.03bn vs. net income ¥3.66bn (OCF/NI 1.65x). EBITDA of ¥8.01bn (16.3% margin) provides an operating cash earnings buffer. outlook: Near-term growth appears contingent on the pace of new openings and occupancy ramp, with labor cost normalization and operating efficiency key to restoring operating leverage. Investment intensity suggests growth visibility but keeps near-term FCF negative.

Financial Health

liquidity: Current ratio 133.7% and quick ratio 133.5% indicate adequate short-term coverage; working capital totals ¥4.65bn. Cash balance was unreported (displayed as 0), so liquidity assessment relies on OCF and undrawn financing capacity. solvency: Total assets ¥83.95bn, liabilities ¥38.59bn, equity ¥36.13bn imply an equity ratio around 43% by calculation (despite a reported 0.0% placeholder) and assets/equity leverage of ~2.32x. Debt-to-equity 1.07x and EBIT interest coverage ~17.2x (¥6.16bn/¥0.359bn) suggest manageable solvency at current earnings. capital_structure: Financing CF of ¥6.37bn indicates net borrowing or equivalent financing to fund negative FCF. Leverage is moderate for a growth phase; interest burden remains low relative to EBIT and EBITDA.

Cash Flow Quality

earnings_quality: OCF/Net Income at 1.65x suggests solid earnings quality, aided by non-cash D&A of ¥1.85bn and likely favorable working capital timing. FCF_analysis: Free cash flow is negative at -¥4.40bn, driven by investing CF of -¥10.43bn tied to capacity expansion. This is consistent with a growth model where OCF is reinvested alongside debt funding. working_capital: Working capital is ¥4.65bn with minimal inventories (¥23m). OCF strength despite lower margins indicates effective receivables collection and/or controlled payables; continued monitoring of DSO and payor mix is warranted.

Dividend Sustainability

payout_ratio_assessment: DPS is ¥0.00 and payout ratio is 0.0%, aligning with a reinvestment-first stance given margin compression and expansion capex. FCF_coverage: With FCF at -¥4.40bn, dividends would not be covered by free cash flow in the current period. policy_outlook: Given the growth capex and reliance on financing inflows, capital allocation likely prioritizes expansion and balance sheet flexibility over near-term cash returns.

Risk Assessment

Business Risks:

• Regulatory changes to medical/long-term care reimbursement frameworks affecting pricing and occupancy.
• Labor availability and wage inflation for qualified care and nursing staff.
• Execution risk in opening new facilities and achieving targeted occupancy ramp.
• Quality-of-care and compliance risk in a highly sensitive healthcare environment.
• Geographic concentration and local competitive dynamics in key catchment areas.

Financial Risks:

• Sustained negative FCF requiring ongoing external financing.
• Interest rate and refinancing risk as leverage supports capex.
• Margin compression risk reducing interest coverage if costs rise faster than revenue.
• Working capital timing or receivables collection delays given public and insurer payors.
• Tax rate volatility; calculated ETR ~46% vs. placeholder metric indicates variability.

Key Concerns:

• Negative operating leverage despite double-digit revenue growth.
• Continuation of heavy investment outlays driving negative FCF.
• Dependence on maintaining strong OCF and financing access to fund expansion.

Investment Implications

Key Takeaways:

• Revenue grew 15.8% YoY to ¥49.17bn, but operating income fell 41.9% YoY, compressing margins.
• ROE at 10.13% is maintained by asset turnover and leverage despite lower net margin.
• OCF was strong at ¥6.03bn (1.65x net income), but FCF was -¥4.40bn due to growth capex.
• Leverage is moderate (D/E 1.07x) with solid interest coverage (~17.2x EBIT/interest).
• Liquidity is adequate (current ratio 133.7%); several zero-reported fields are undisclosed, not actual zeros.

Metrics to Watch:

• Same-facility revenue growth and occupancy rates per facility.
• Personnel expenses ratio and SG&A as a percentage of sales.
• Pre-opening costs and time-to-occupancy ramp for new sites.
• Capex per facility and net new openings versus plan.
• OCF/EBITDA, FCF trajectory, and net debt/EBITDA.
• Interest coverage and effective tax rate normalization.
• Receivables days and payor mix shifts.

Relative Positioning: Within domestic medical-home/hospice operators, Amvis demonstrates strong scale-driven revenue growth with moderate leverage and solid cash conversion, but near-term margins are under pressure due to the expansion ramp.

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