| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥440.4B | ¥364.1B | +21.0% |
| Operating Income | ¥84.0B | ¥68.2B | +23.2% |
| Profit Before Tax | ¥86.2B | ¥68.5B | +25.8% |
| Net Income | ¥60.8B | ¥46.5B | +30.7% |
| ROE | 24.0% | 24.5% | - |
For the fiscal year ended March 2026, Revenue was ¥440.4B (YoY +¥76.3B +21.0%), Operating Income was ¥84.0B (YoY +¥15.8B +23.2%), Ordinary Income was ¥31.1B (YoY -¥7.5B -19.3%), and Net Income was ¥60.8B (YoY +¥14.3B +30.7%). Top-line double-digit growth was outpaced by operating-stage profit increases, while Ordinary Income declined due to changes in the composition of financial results. Operating margin improved to 19.1% (prior year 18.7%), up approximately 0.4pt, and Net margin expanded to 13.8% (prior year 12.8%), up about 1.0pt, indicating notable profitability improvement. ROE of 27.5% edged up from 27.2% the prior year, remaining at a high level. The increase in Net Income was supported not only by higher Operating Income but also by accumulated financial income and increased equity-method gains. By segment, AutoMobility Operating Income surged +91.1%, AutomobileWarranty +18.9%, and Finance +3.6%, with all segments recording profit increases. Portfolio diversification supported profit growth. Meanwhile, Operating Cash Flow (OCF) was a significant negative at -¥212.8B (prior year -¥77.6B), reflecting balance-sheet expansion typical of financial businesses, including accumulation of financial receivables (+¥163.4B) and reduction in financial guarantee contracts (-¥243.3B), which drove funding demand. Free Cash Flow was -¥232.1B, and financing activities provided +¥321.5B (including long-term borrowings +¥534.5B), indicating funding was secured via external financing.
[Revenue] Revenue reached ¥440.4B (YoY +21.0%), achieving double-digit growth. By external revenue by segment, Finance was largest at ¥248.0B (composition 56.3%, YoY +23.1%), driven by expansion of the customer base in credit business and debt collection services. AutomobileWarranty was ¥80.1B (composition 18.2%, YoY +14.7%) with continued accumulation of warranty service contracts. AutoMobility was ¥110.7B (composition 25.1%, YoY +19.6%) with strong growth from a composite of membership networks, auto leasing, wholesale, and software services. External revenue in all segments exceeded the prior year, delivering balanced portfolio growth.
[Profitability] Operating expenses were ¥356.4B (operating expense ratio 80.9%), increasing by ¥206.5B YoY, far exceeding revenue growth of +¥76.3B; nevertheless, operating margin improved from 18.7% to 19.1% (approx. +0.4pt). Operating Income of ¥84.0B (+23.2%) outpaced revenue growth, reflecting scale benefits and improved profitability. Equity-method investment gains were ¥1.1B (prior year ¥0.2B), more than fivefold increase, and other financial income of ¥1.9B (prior year ¥0.6B) also rose. Financial expenses increased to ¥0.9B (prior year ¥0.5B), but financial income growth outstripped this, resulting in a net positive financial result. Consequently, Profit Before Tax was ¥86.2B (YoY +25.8%), exceeding operating-stage growth. Income taxes were ¥25.4B (effective tax rate approx. 29.5%), yielding Net Income of ¥60.8B (+30.7%), the highest growth rate at the net profit level. In conclusion, the company reported revenue and profit increases, maintaining a highly profitable structure with improved operating and net margins.
The Finance business posted Operating Income of ¥47.4B (YoY +3.6%), maintaining stable growth. Although its growth rate is moderate versus other segments, it accounted for 56.4% of consolidated profits, retaining its position as the core business. The AutomobileWarranty business achieved Operating Income of ¥13.3B (YoY +18.9%), a double-digit profit increase, supported by expansion of warranty contracts and management of claim rates. The AutoMobility business realized Operating Income of ¥22.4B (YoY +91.1%), delivering outstanding growth; ancillary services including membership networks, leasing, wholesale, and software contributed to high profitability. Segment profit margins are approximately 20.3% for AutoMobility, 19.1% for Finance, and 16.7% for Warranty, indicating AutoMobility’s relative margin superiority and that portfolio diversification is lifting consolidated margins.
[Profitability] ROE of 27.5% edged up from 27.2% last year and is substantially above the industry median of 3.8%. Operating margin improved to 19.1% (prior year 18.7%), up ~0.4pt, and Net margin expanded to 13.8% (prior year 12.8%), up ~1.0pt, demonstrating steady profitability improvement. EBITDA = Operating Income ¥84.0B + Depreciation & Amortization ¥21.5B = ¥105.5B; EBITDA margin is 24.0%, indicating strong cash-generation potential. [Cash Quality] Operating CF/Net Income is -3.51x, and OCF/EBITDA is -2.02x, indicating weak short-term cash conversion of profits. The accrual ratio is 13.8% (estimated on a pre-tax profit basis excluding working capital changes), which is a level of concern, and cash absorption continues with accumulation of financial receivables. [Investment Efficiency] Total asset turnover improved to 0.221x (prior ~0.20x), supported by expansion of AutoMobility and Warranty. Capital expenditure was ¥7.6B, only 0.35x of Depreciation & Amortization ¥21.5B, and even including intangible investments of ¥8.7B, reinvestment remains restrained. [Financial Soundness] Equity Ratio improved to 12.7% (prior year 10.2%), within the expected range for a financial company. D/E ratio is high at 6.87x, reflecting accumulated borrowings of ¥850.1B (prior year ¥511.9B, +66.1%) and financial receivables of ¥911.2B (prior year ¥747.2B, +21.9%). Cash and cash equivalents increased to ¥261.0B (prior year ¥171.5B, +52.2%), enhancing liquidity on hand.
Operating Cash Flow was a substantial negative at -¥212.8B (prior year -¥77.6B), representing weak cash conversion at -3.51x relative to Net Income of ¥60.8B. The main drivers were increases in financial receivables of -¥163.4B (prior year -¥182.3B) and decreases in financial guarantee contracts of -¥243.3B (prior year +¥355.2B); the company shifted from a phase of building guarantee contracts in the prior year to a phase of balance compression and receivable expansion this term, resulting in cash absorption. A partial offset came from decreases in other assets of +¥143.4B (prior year -¥406.3B), but structurally working capital demand associated with financial business growth continues. Operating CF subtotal (before working capital changes) was -¥172.2B, and even adding Profit Before Tax ¥86.2B and Depreciation & Amortization ¥21.5B, working capital swings absorbed significant cash. Investing CF was -¥19.3B (prior year -¥24.6B), reflecting growth investments including CAPEX ¥7.6B, intangible asset investments ¥8.7B, equity-method investment acquisitions ¥3.2B, and subsidiary acquisitions ¥1.7B, but was restrained versus the prior year. Free Cash Flow was -¥232.1B (prior year -¥102.2B), indicating funding needs accompanying business growth. Financing CF was +¥321.5B (prior year +¥62.2B), with long-term borrowings procured of ¥534.5B, net increase in short-term borrowings -¥5.0B, long-term borrowings repayments -¥196.7B, lease repayments -¥10.8B, dividend payments -¥18.2B, share buybacks -¥3.0B, proceeds from sale of treasury stock +¥17.6B, and exercise of stock options +¥2.0B, showing funding was secured externally. Cash and cash equivalents increased by ¥89.3B from the opening balance of ¥171.5B to the closing balance of ¥261.0B, indicating stable liquidity management.
Operating Income of ¥84.0B derives from recurring business activities, with no apparent one-off factors. Financial income of ¥203.4B (of which interest income ¥44.7B) forms core revenue of the financial business model and is structured to grow sustainably with accumulation of financial receivables. Financial expenses of ¥10.5B (interest expense ¥10.5B) rose with increased borrowings, but financial income far exceeded expenses, resulting in a net positive financial position. Other non-operating financial income of ¥1.9B and other financial expenses of ¥0.9B are relatively small and have limited impact on the profit structure. Equity-method gains of ¥1.1B increased materially from ¥0.2B in the prior year, showing expanded contribution from investees. There were no extraordinary gains or losses; Net Income of ¥60.8B after deducting Income Taxes of ¥25.4B from Profit Before Tax ¥86.2B is the result of recurring activities. However, OCF at -¥212.8B significantly lags Net Income, and the accrual ratio at 13.8% is elevated, indicating weak short-term cash backing for accrual-based profits. This results from receivable accumulation and changes in guarantee contract balances during the growth-investment phase; while earnings sustainability is high, monitoring of cash conversion is necessary.
Full Year guidance targets Revenue ¥510.0B (YoY +15.8%), Net Income ¥69.0B (YoY +13.7%), projected EPS ¥178.74, and projected dividend ¥32.00. Versus current-year results of Revenue ¥440.4B and Net Income ¥60.8B, the company expects continued revenue and profit growth. Revenue growth guidance of +15.8% represents a slight deceleration from this year’s +21.0% but maintains double-digit growth. Net Income growth guidance of +13.7% also assumes continuation of double-digit profit increases, contingent on sustained high growth in AutoMobility, credit acquisition and NIM maintenance in Finance, and claim-rate management in Warranty. Projected dividend ¥32.00 is lower than this year’s actual ¥54.00 (interim ¥27, year-end ¥27), suggesting a priority on growth investment and capital soundness. Achievement of the plan assumes stable interest rate and credit environments; upside credit costs or deterioration in refinancing conditions are risk factors.
Annual dividend was ¥54.00 (interim ¥27, year-end ¥27), a significant increase from ¥20.00 last year. Payout Ratio is 32.6% (dividends total ¥18.2B against Net Income ¥60.8B), which is within a sustainable range. Share buybacks of ¥3.0B were executed, and total shareholder returns (dividends ¥18.2B + buybacks ¥3.0B) amounted to ¥21.2B, corresponding to a Total Return Ratio of 34.9%. However, Free Cash Flow was -¥232.1B and FCF coverage is -10.56x, indicating that returns are not fully covered by internally generated cash. In practice, return capacity is maintained via borrowings to finance growth investments and working capital, so the stability of funding markets and credit collection will determine sustainability of returns. Next fiscal year dividend guidance of ¥32.00 represents a cut from this year’s level, interpreted as capital allocation adjustment during a growth-investment phase. BPS of ¥649.87 (prior year ¥497.57) improved materially, reflecting accumulation of retained earnings and effects of capital increases, enhancing shareholder value.
Risk of credit cost increases during a credit expansion phase: Financial receivables stood at ¥911.2B (YoY +21.9%) and continue to accumulate. In the event of an economic downturn or declines in used-car prices, delinquencies and defaults may rise, increasing credit costs. Along with persistent negative OCF, ongoing monitoring of credit quality is necessary.
Refinancing and interest-rate risk due to high leverage: With a D/E ratio of 6.87x and accumulated borrowings of ¥850.1B (YoY +66.1%), rising interest rates could increase funding costs. Given long-term borrowings procured of ¥534.5B and repayments of ¥196.7B, refinancing activity is continuous, and deterioration in funding conditions could impact liquidity and profitability.
Future payment risk and earnings volatility from financial guarantee contracts: Financial guarantee contract liabilities have been compressed to ¥569.1B (prior year ¥812.5B, -27.6%), but if underwriting levels for guarantee services fluctuate, the revenue base may be affected. Increases in claim rates (e.g., repair-cost inflation, quality issues) could raise payments and compress margins.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Return on Equity | 27.5% | 3.8% (1.1%–16.8%) | +23.7pt |
| Operating Margin | 19.1% | 8.8% (4.0%–20.0%) | +10.2pt |
| Net Margin | 13.8% | 4.3% (0.6%–11.3%) | +9.5pt |
Profitability and returns rank in the upper tier within the industry, with ROE, Operating Margin, and Net Margin all well above median levels.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 21.0% | 2.1% (-4.5%–6.9%) | +18.9pt |
Growth substantially exceeds industry medians, highlighting a high-growth model.
※Source: Company aggregation
Balance of high profitability, high growth, and high leverage: ROE 27.5%, Operating Margin 19.1%, Revenue growth +21.0% demonstrate standout profitability and growth within the industry, while D/E ratio of 6.87x and Operating CF -¥212.8B indicate ongoing funding demand. Key monitoring points are credit-quality maintenance and stability of refinancing conditions, as interest rates, credit costs, and funding spreads will determine sustainability of performance and shareholder returns.
Progress in portfolio diversification: AutoMobility Operating Income +91.1% shows rapid growth, and the three-pillar structure of Finance, Warranty, and AutoMobility contributes to profit stabilization. AutoMobility’s margin of ~20.3% exceeds other segments, and further portfolio mix improvement could raise consolidated margins. Segment growth trends and margin trajectories will be key for medium- to long-term valuation.
This report is an earnings analysis document automatically generated by AI based on XBRL financial statement data. It is not a recommendation to invest in any specific securities. Industry benchmarks are reference information compiled by the Company based on publicly available financial statements. Investment decisions are your responsibility; please consult professionals as necessary before making investment decisions.