ART VIVANT CO.,LTD. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥5.55B
• Operating Income: ¥1.46B
• Net Income: ¥835M
• EPS: ¥100.27

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment 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

For FY2026 Q2 (cumulative), アールビバン株式会社 delivered solid topline and strong earnings momentum under JGAAP on a consolidated basis. Revenue rose 2.3% year over year to ¥5,553 million, while operating income grew 22.7% to ¥1,455 million, indicating meaningful operating leverage. Gross profit was ¥3,824 million, translating to a high gross margin of 68.9%, which, coupled with disciplined costs, supported an operating margin of approximately 26.2%. Ordinary income was ¥1,459 million and net income reached ¥913 million, up 9.4% YoY, with a net margin of 16.4%. Interest expense was modest at ¥43.7 million, yielding a strong interest coverage ratio of about 33x. Based on the reported DuPont components, asset turnover was 0.152x and financial leverage was 2.34x, producing a calculated ROE of 5.84% that matches the reported figure. Liquidity remains healthy: current assets of ¥29,681 million versus current liabilities of ¥16,474 million resulted in a current ratio of 180% and a quick ratio of 137%. The balance sheet shows total assets of ¥36,597 million, liabilities of ¥19,458 million, and equity of ¥15,645 million; this implies an equity ratio of about 42.7% despite the stated 0.0% (the latter appears to be an undisclosed placeholder). Inventory totaled ¥7,171 million (about 24% of current assets), an important working-capital lever to monitor. Cash flow statement line items (operating, investing, financing) and cash balance were not disclosed in the provided XBRL fields, limiting assessment of earnings-to-cash conversion. Depreciation and amortization were also undisclosed, so EBITDA is not directly observable, though operating income provides a useful proxy in the interim. The company reported EPS of ¥100.27, but shares outstanding were not provided, constraining per-share context beyond EPS. No dividend was reported for the period (DPS ¥0), implying a 0% payout ratio, and free cash flow coverage cannot be evaluated without cash flow disclosure. Overall, results show resilient margins, improving operating efficiency, and conservative financing costs, but the absence of cash flow and share-count disclosures constrains the depth of cash quality and capital allocation analysis. Key focus areas going forward include sustainability of high gross margins, inventory rotation, and the trajectory of operating leverage amid modest revenue growth.

Profitability Analysis

ROE_decomposition: DuPont shows ROE of 5.84% = Net margin 16.44% × Asset turnover 0.152 × Financial leverage 2.34. Net margin (NI/Revenue) = 913/5,553 ≈ 16.4%. Asset turnover (Revenue/Assets) = 5,553/36,597 ≈ 0.152x. Financial leverage (Assets/Equity) = 36,597/15,645 ≈ 2.34x. margin_quality: Gross margin is high at 68.9% (3,824/5,553), supporting an operating margin of ~26.2% and an ordinary income margin of ~26.3%. Net margin of 16.4% reflects manageable non-operating items and taxes; using NI + income tax (¥913m + ¥420m) implies a pre-tax base near ¥1,333m and an effective tax rate around 31–32% (despite the provided 0.0% placeholder). High gross margins suggest pricing power and/or a favorable sales mix. operating_leverage: Revenue grew 2.3% YoY while operating income rose 22.7% YoY, indicating strong operating leverage from fixed-cost absorption and cost discipline. This leverage expanded operating margin versus revenue growth, a positive sign for incremental profitability if volumes continue to grow.

Growth Assessment

revenue_sustainability: Top-line growth of 2.3% YoY is modest but positive. With high gross margins, even low single-digit growth can translate into outsized operating profit gains if fixed costs remain contained. profit_quality: Operating income growth outpaced revenue, driven by mix and/or cost efficiencies. Interest expense is low, and ordinary income aligns closely with operating income, suggesting limited drag from non-operating items. Lack of D&A disclosure obscures EBITDA, but operating income provides a reasonable interim proxy. outlook: If current margins are maintained, incremental revenue could continue to drop through to profits at an above-proportional rate. Key swing factors are sales mix, inventory turnover, and the ability to sustain pricing power amid potentially normalizing demand.

Financial Health

liquidity: Current assets ¥29,681m vs current liabilities ¥16,474m yields a current ratio of 180% and a quick ratio of 137%, indicating solid short-term liquidity. Working capital is ¥13,207m, and inventories represent ~24% of current assets. solvency: Total liabilities ¥19,458m and equity ¥15,645m imply a debt-to-equity of ~1.24x (using total liabilities as a proxy for debt) and an equity ratio near 42.7% (recalculated). Interest coverage is strong at ~33x (operating income / interest expense), suggesting ample capacity to service debt. capital_structure: Financial leverage at 2.34x (assets/equity) is moderate. Ordinary income closely tracks operating income, indicating limited reliance on financial income and a manageable financing burden.

Cash Flow Quality

earnings_quality: Cash flow data (OCF, capex, FCF) were not disclosed in the provided fields; therefore, the OCF/NI ratio shown as 0.00 should be treated as undisclosed rather than a true zero. Consequently, we cannot directly assess earnings-to-cash conversion. FCF_analysis: Free cash flow cannot be computed without operating cash flow and capex. Given meaningful inventory (¥7,171m), working-capital swings could materially influence FCF intra-year. working_capital: Inventories are sizeable relative to revenue and current assets, making turnover and sell-through key to cash realization. Payables and receivables data were not provided, limiting detailed cash conversion cycle analysis.

Dividend Sustainability

payout_ratio_assessment: DPS is ¥0 and payout ratio is 0% for the period; thus, no current distribution burden on earnings. FCF_coverage: FCF coverage is indeterminable due to undisclosed cash flows; the displayed 0.00x should not be interpreted as actual coverage. policy_outlook: With solid profitability and moderate leverage, the balance sheet appears capable of supporting dividends in principle, but any policy assessment requires visibility into cash generation, reinvestment needs, and management’s capital allocation stance.

Risk Assessment

Business Risks:

• Margin sensitivity to sales mix and pricing given very high gross margins.
• Demand variability that could reduce operating leverage benefits if revenue growth slows.
• Inventory concentration risk and potential markdowns if sell-through weakens.
• Dependence on limited product categories or channels (implied by high margins and low asset turnover).
• Competitive dynamics that could pressure pricing or require higher selling expenses.

Financial Risks:

• Limited visibility on cash flows and cash balances due to undisclosed CF statement items.
• Working capital swings tied to inventory levels that could suppress free cash flow.
• Refinancing or interest-rate risk is currently low but present, despite strong coverage.
• Potential tax variability; estimated effective tax rate ~31–32% vs placeholder 0.0%.

Key Concerns:

• Absence of operating, investing, and financing cash flow disclosure in the provided data.
• Undisclosed depreciation/amortization obscures EBITDA and capital intensity analysis.
• Shares outstanding not disclosed, limiting per-share balance sheet metrics and valuation context.
• Sustainability of operating leverage if top-line growth remains modest.

Investment Implications

Key Takeaways:

• Strong operating leverage: +2.3% revenue drove +22.7% operating income.
• High gross margin (68.9%) underpins robust operating margin (~26.2%).
• Net margin solid at 16.4%, producing a recalculated ROE of ~5.8%.
• Healthy liquidity with current ratio 180% and quick ratio 137%.
• Interest coverage ~33x indicates low financing risk.
• Inventory is a key swing factor for cash generation.
• Cash flow data not disclosed; earnings-to-cash conversion cannot be assessed.
• Equity ratio recalculates to ~42.7% despite reported 0.0% placeholder.

Metrics to Watch:

• Revenue growth trajectory and sales mix to validate sustained operating leverage.
• Gross margin and operating margin stability.
• Inventory turnover and working-capital movements.
• Disclosure of operating cash flow, capex, and free cash flow.
• Effective tax rate and any extraordinary items affecting NI.
• Interest expense trend and coverage ratio.

Relative Positioning: Within high-margin, lower-asset-turnover business models, the company exhibits attractive profitability and adequate balance sheet strength; however, its relative standing is constrained by limited cash flow disclosure and modest top-line growth.

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