Jimoty,Inc. FY2025 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥1.42B
• Operating Income: ¥395M
• Net Income: ¥317M
• EPS: ¥32.04

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

JMTY reported FY2025 Q3 single-entity JGAAP results with revenue of ¥1,420m (+5.4% YoY), indicating steady top-line momentum. Gross profit was ¥1,212m, implying a very high gross margin of 85.4%, consistent with an asset-light, marketplace/advertising-driven model. Operating income declined 8.0% YoY to ¥395m, pointing to margin compression at the operating level despite the revenue growth. Net income increased 5.2% YoY to ¥317m, suggesting non-operating items and/or tax effects offset operating weakness. Net margin stood at 22.32%, with operating margin at 27.8% (¥395m/¥1,420m), highlighting robust profitability even with SG&A pressure. DuPont analysis indicates ROE of 19.13% driven by a 22.32% net margin, 0.599x asset turnover, and 1.43x financial leverage—healthy returns with modest leverage. The balance sheet is conservative: total assets ¥2,370m and total liabilities ¥380m produce a debt-to-equity of 0.23x; equity of ¥1,657m implies an inferred equity ratio near 69.9% despite the reported 0.0% placeholder. Liquidity appears strong with a current ratio of 4.33x and working capital of ¥1,187m. Interest expense is minimal at ¥0.573m, yielding a very high interest coverage of about 689x. Cash flow data (OCF/FCF/Financing) are unreported in this dataset, so cash conversion cannot be evaluated from these figures. Depreciation and EBITDA are also shown as zero, which should be treated as undisclosed rather than true zero; operating profit is therefore the appropriate profitability anchor. Income tax expense is disclosed at ¥131m; using ordinary income as a proxy for pre-tax suggests an effective tax rate around 32–33%, not 0%, indicating the 0% in the summary metrics reflects missing inputs. EPS was ¥32.04; back-solving implies roughly 9.9 million weighted-average shares, given net income of ¥317m. Overall, JMTY combines high margins, low financial leverage, and ample liquidity, but exhibits near-term operating margin pressure as costs outpace revenue growth. The lack of cash flow disclosure is the main limitation in assessing earnings quality and dividend capacity. We therefore anchor on profitability, balance sheet strength, and working capital to infer sustainability while noting data gaps.

Profitability Analysis

ROE_decomposition: ROE 19.13% = Net margin 22.32% × Asset turnover 0.599 × Leverage 1.43. This shows value creation primarily from high margins rather than balance-sheet leverage or exceptionally high asset turns. margin_quality: Gross margin 85.4% (¥1,212m/¥1,420m) is structurally high. Operating margin is 27.8% (¥395m/¥1,420m), down YoY as operating income fell 8.0% despite revenue growth, implying elevated SG&A/investments. Net margin at 22.32% remains strong, supported by low interest burden and likely normalized taxes. operating_leverage: SG&A/Revenue approximates 57.5% (¥817m/¥1,420m, where ¥817m = gross profit − operating income), suggesting cost growth outpaced revenue. This indicates negative operating leverage in the period. As revenue scales, there is potential to recapture operating margin if fixed cost growth moderates.

Growth Assessment

revenue_sustainability: Revenue grew 5.4% YoY to ¥1,420m—moderate growth consistent with a maturing platform. The high gross margin suggests monetization remains healthy. profit_quality: Operating income declined 8.0% YoY to ¥395m, signaling higher spending (likely in user acquisition, product, or personnel). Net income grew 5.2% to ¥317m, implying supportive non-operating balance or tax normalization. outlook: With strong unit economics (85%+ gross margin) and low financial leverage, the business can absorb near-term investment. Growth durability will depend on user/MAU trends, ARPU/monetization per listing, and cost discipline. Recovery in operating margin hinges on SG&A efficiency.

Financial Health

liquidity: Current assets ¥1,543m vs current liabilities ¥357m; current ratio 4.33x and quick ratio similar (inventories not reported). Working capital is ¥1,187m, indicating ample short-term liquidity. solvency: Total liabilities ¥380m vs equity ¥1,657m; debt-to-equity 0.23x. Interest expense is only ¥0.573m, and interest coverage ~689x, underscoring very low financial risk. capital_structure: Total assets ¥2,370m and equity ¥1,657m imply an inferred equity ratio ~69.9% (using reported balance sheet figures). Leverage of 1.43x (assets/equity) is modest.

Cash Flow Quality

earnings_quality: Operating CF is unreported (shown as 0), so OCF/Net Income cannot be assessed from this dataset. Accrual-based quality checks are limited without cash flow and working capital granularity. FCF_analysis: Investing and financing cash flows are also unreported. Free cash flow cannot be calculated here. Given low interest expense and high margins, underlying cash generation is likely positive, but this cannot be confirmed. working_capital: Positive working capital of ¥1,187m supports liquidity. Without receivables/payables detail, we cannot assess collection cycles or one-off working capital swings.

Dividend Sustainability

payout_ratio_assessment: Annual DPS is reported as ¥0 with a 0.0% payout, consistent with reinvestment. Given net income of ¥317m and strong balance sheet, capacity exists, but policy is likely growth-focused. FCF_coverage: FCF coverage cannot be evaluated due to unreported OCF/Capex. No dividend currently requires coverage. policy_outlook: With high ROE (19.1%) and modest leverage, retaining earnings to fund growth appears rational. Any future policy shift would depend on demonstrated stable FCF and growth opportunities.

Risk Assessment

Business Risks:

• Slower revenue growth (+5.4% YoY) indicating potential maturation or competition pressure
• Operating margin compression due to rising SG&A and potential marketing investments
• Dependence on user engagement and listing volumes typical of marketplace models
• Regulatory or compliance changes affecting local classifieds/transactions
• Monetization sensitivity to advertising demand and macro conditions

Financial Risks:

• Limited visibility on cash conversion and capex due to unreported cash flow statements
• Potential working capital volatility (receivables/payables) not disclosed
• Concentration risk if revenue streams are narrow (e.g., ads/premiums) without diversification

Key Concerns:

• Negative operating leverage in the quarter (OI -8.0% YoY vs revenue +5.4%)
• Insufficient cash flow disclosure to validate earnings quality and FCF
• Equity ratio shown as 0.0% in summary metrics (likely undisclosed) despite balance-sheet strength, highlighting data reporting limitations

Investment Implications

Key Takeaways:

• Top line grew 5.4% YoY to ¥1,420m; gross margin remained very high at 85.4%
• Operating income declined 8.0% YoY to ¥395m; operating margin 27.8%
• Net income rose 5.2% to ¥317m; net margin 22.32%
• ROE strong at 19.13% with modest leverage (1.43x) and asset turnover of 0.599x
• Balance sheet conservative: debt-to-equity 0.23x; current ratio 4.33x; working capital ¥1,187m
• Interest burden negligible (¥0.573m); coverage ~689x
• Cash flow data unreported; FCF and OCF/NI not assessable from this dataset

Metrics to Watch:

• User/MAU and listings growth versus advertising/monetization per user
• SG&A efficiency and operating margin trajectory
• Disclosed operating cash flow and capex to validate cash conversion
• ARPU, take rate, and cohort retention to assess revenue quality
• Tax rate normalization (implied ~32–33%) vs reported placeholders

Relative Positioning: Within Japanese small-cap, asset-light platforms, JMTY exhibits above-average margins and ROE with below-average leverage, but recent operating margin compression and limited cash flow disclosure temper visibility on near-term operating leverage and cash generation.

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