YOKOHAMA GYORUI CO.,LTD. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥9.98B
• Operating Income: ¥122M
• Net Income: ¥96M
• EPS: ¥15.43

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

Yokohama Uogyo Co., Ltd. (7443) reported FY2026 Q2 standalone results under JGAAP showing steady topline expansion and outsized profit growth, indicating meaningful operating leverage. Revenue rose 6.7% year over year to ¥9,977 million, while operating income surged 77.9% to ¥122 million, lifting the operating margin to 1.22%. Gross profit reached ¥854.1 million, implying an 8.6% gross margin and suggesting resilient pricing/spread in a low-margin wholesale/trading model. Ordinary income of ¥142 million exceeded operating income by ¥20 million, indicating net positive non-operating contributions (e.g., financial income or other non-operating items). Net income increased 19.2% to ¥96 million, translating to a 0.96% net margin and EPS of ¥15.43. DuPont metrics point to a modest 3.73% ROE, driven primarily by high asset turnover (1.85x) and moderate leverage (assets/equity of about 2.09x), partially offset by thin net margins typical for the sector. Balance sheet strength appears adequate: total assets stand at ¥5,390 million and total equity at ¥2,574 million, implying an equity ratio of roughly 47.8% (the provided 0.0% equity ratio appears undisclosed rather than zero). Liquidity is solid with a current ratio of 148% and working capital of approximately ¥1,016 million. Interest burden is light, with interest expense of only ¥1.94 million and an interest coverage of roughly 63x based on operating income, underscoring manageable financial risk. The effective tax rate, inferred from reported net income and taxes, is approximately 7.6%, which is below the normal statutory range and may reflect credits, temporary differences, or classification effects. Cash flow statement details were not disclosed in XBRL (operating, investing, and financing cash flows are shown as zero), limiting our ability to assess cash conversion and free cash flow. Depreciation and amortization were also undisclosed, constraining EBITDA analysis and asset intensity assessment. Inventories and cash balances are not reported in the dataset, which prevents a more granular working capital quality review. No dividend was indicated for the period (DPS 0, payout 0%), so capital returns policy remains to be confirmed for the full year. Overall, the company exhibits healthy revenue momentum, clear margin improvement, and prudent leverage, but the absence of cash flow disclosures necessitates caution in judging earnings quality and dividend capacity.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 0.96%
• asset_turnover: 1.85x
• financial_leverage: 2.09x
• calculated_ROE: 3.73%
• interpretation: ROE is primarily driven by high asset turnover and moderate leverage, with margins remaining thin but improving. margin_quality:
• gross_margin: 8.6%
• operating_margin: 1.22%
• ordinary_margin: 1.42%
• net_margin: 0.96%
• commentary: Sequential and YoY improvements in operating profit outpaced sales growth, indicating better mix/pricing or tighter SG&A control in a structurally low-margin wholesale business. operating_leverage:
• revenue_growth_YoY: 6.7%
• operating_income_growth_YoY: 77.9%
• implied_OPM_expansion: Approx. +0.5pp YoY (from ~0.73% to 1.22%)
• takeaway: Strong positive operating leverage suggests improved cost discipline and/or normalization of non-operating drags.

Growth Assessment

revenue_sustainability: Topline grew 6.7% YoY to ¥9.98bn, solid for a mature distribution model; sustainability will depend on volume throughput at the wholesale market, customer retention in foodservice/retail, and commodity price pass-through. profit_quality: Operating income growth far exceeded sales growth, signaling efficiency gains; however, without D&A and cash flow data, durability of margin gains cannot be fully validated. outlook: Assuming stable demand and continued cost control, modest revenue growth with incremental margin expansion is plausible; watch for seasonality and market price volatility in seafood categories.

Financial Health

liquidity:

• current_ratio: 148.4%
• quick_ratio: 148.4% (inventories undisclosed)
• working_capital: ¥1,015,695,000
• notes: Liquidity appears comfortable, but absence of cash and inventory disclosures limits full assessment of short-term coverage. solvency:
• total_assets: ¥5,390,000,000
• total_liabilities: ¥2,892,772,000
• total_equity: ¥2,574,000,000
• equity_ratio_estimate: ≈47.8% (computed from reported assets and equity)
• debt_to_equity: 1.12x (liabilities/equity)
• interest_coverage: ≈63x (operating income/interest expense) capital_structure: Moderately leveraged with a near-50% equity ratio and minimal interest burden; structure supports operations without excessive financial risk.

Cash Flow Quality

earnings_quality: Net income of ¥96m and operating income of ¥122m indicate improving profitability, but lack of disclosed OCF and D&A precludes assessment of accrual intensity or cash conversion. FCF_analysis: Free cash flow cannot be calculated due to undisclosed operating and investing cash flows; capex needs are unknown. working_capital: Current assets and liabilities are disclosed, but inventories and cash balances are undisclosed; changes in receivables/payables and inventory turnover cannot be assessed.

Dividend Sustainability

payout_ratio_assessment: Payout ratio is currently 0% (no DPS reported for the period) against EPS of ¥15.43; policy clarity is lacking at Q2. FCF_coverage: Not assessable due to undisclosed operating and investing cash flows; headline '0.00x' reflects missing data rather than true coverage. policy_outlook: With moderate leverage and improving profitability, capacity for distributions may exist, but confirmation depends on second-half earnings, cash generation, and board policy.

Risk Assessment

Business Risks:

• Seafood price volatility affecting spreads and inventory valuation.
• Demand fluctuations in foodservice and retail channels tied to consumer spending and seasonality.
• Supply chain and procurement risks (catch volumes, import conditions, logistics).
• Customer concentration typical in wholesale channels potentially pressuring margins.
• Regulatory and sustainability considerations in fisheries impacting sourcing.

Financial Risks:

• Limited visibility on cash generation due to undisclosed cash flows.
• Working capital intensity and potential receivables risk in a low-margin distribution model.
• Exposure to interest rate changes is limited currently but could rise with higher borrowings.
• Low effective tax rate variability could normalize upward, compressing net margins.

Key Concerns:

• Absence of OCF/FCF and D&A data constrains earnings quality assessment.
• Inventories and cash balances not disclosed, limiting liquidity granularity.
• Sustainability of recent operating margin expansion requires validation over subsequent quarters.

Investment Implications

Key Takeaways:

• Solid topline growth (+6.7% YoY) with outsized operating income growth (+77.9% YoY).
• Operating margin improved to 1.22%, indicating positive operating leverage.
• ROE at 3.73% is modest, driven by high asset turnover and moderate leverage.
• Balance sheet appears sound with an estimated ~47.8% equity ratio and strong interest coverage.
• Non-operating items were net positive (ordinary income > operating income).
• Data gaps (cash flows, D&A, inventories, cash) limit assessment of cash conversion and capital intensity.

Metrics to Watch:

• Operating cash flow and free cash flow in FY2026 H2 and full year.
• Gross and operating margin trajectory, especially SG&A-to-sales ratio.
• Receivables and payables days, and inventory turnover once disclosed.
• Ordinary vs operating income mix (sustainability of non-operating gains).
• Effective tax rate normalization toward statutory levels.
• Equity ratio and net debt trends.

Relative Positioning: Within Japan’s seafood wholesale/distribution peer set, the company exhibits typical low margins but favorable asset turnover and a conservative balance sheet; recent margin expansion compares positively, though cash flow transparency lags best-in-class peers.

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