B&P Co.,Ltd. FY2025 Q4 Earnings Report

Financial Highlights

• Net Sales: ¥4.50B
• Operating Income: ¥701M
• Net Income: ¥500M
• EPS: ¥213.53

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

B&P Co., Ltd. (78040) delivered a solid FY2025 Q4 (cumulative) performance with revenue of 44.95 and operating income of 7.01, representing YoY growth of 11.2% and 28.1%, respectively. Profit growth outpaced sales, indicating healthy operating leverage and cost control. Gross profit margin was a robust 42.7%, and operating margin was 15.6%, reflecting a disciplined SG&A structure and likely favorable mix or pricing. Ordinary income rose 29.6% to 7.09, with minimal non-operating items, suggesting earnings are primarily driven by core operations. Despite strong operating momentum, net income growth was modest at +2.7% to 4.91, implying higher tax burden (effective tax rate 30.2%) and limited non-operating support. Cash generation was strong, with operating cash flow (OCF) of 7.43 (OCF/Net income 1.51x) and positive free cash flow of 4.78, supporting both reinvestment and shareholder returns. The balance sheet is conservative: cash and deposits of 33.46 account for 71% of total assets (46.95), and liabilities are low at 8.85, yielding an estimated equity ratio near 81%. Liquidity is ample with a current ratio of 622.6% and working capital of 35.55, while inventories are negligible, underpinning a short cash conversion cycle typical of an asset-light print/visual solutions model. DuPont ROE is 12.9%, driven by a solid 10.9% net margin, asset turnover of 0.957, and modest financial leverage of 1.23x; this is healthy for the sector and largely quality-driven rather than leverage-fueled. EBITDA was 7.83 (margin 17.4%), and depreciation remains modest (0.82), implying limited capital intensity and manageable maintenance capex. Capex totaled 0.89 (about 2.0% of sales), consistent with an asset-light profile and leaving ample discretionary cash. Dividend metrics indicate a calculated payout ratio of 28.4% and FCF coverage of 3.42x, implying capacity to sustain or cautiously enhance distributions, though detailed DPS data were not disclosed. Reported XBRL ratios for operating margin (0.2%) and ROA (ordinary income 0.2%) appear inconsistent with the financial statements, so analysis relies on calculated figures. Several sub-line items (interest expense, debt details, DPS by quarter, and SG&A breakdown) were unreported; zeros denote missing disclosure rather than true zero, and conclusions are drawn only from available data. Overall, the company enters the new fiscal year with strong profitability, cash-rich finances, and high earnings quality, albeit with sensitivity to demand in marketing/advertising and potential wage/material cost pressures.

Profitability Analysis

ROE_decomposition_DuPont:

• net_profit_margin: 10.9% (Net income 4.91 / Revenue 44.95)
• asset_turnover: 0.957
• financial_leverage: 1.23x (Assets 46.95 / Equity 38.10)
• calculated_ROE: 12.9% (matches reported) margin_quality:
• gross_margin: 42.7% (Gross profit 19.18 / Revenue 44.95) – indicates strong pricing/mix and cost control
• operating_margin: 15.6% (Operating income 7.01 / Revenue 44.95) – materially higher YoY given +28.1% OI vs +11.2% sales
• EBITDA_margin: 17.4% (EBITDA 7.83 / Revenue 44.95)
• net_margin: 10.9% – solid after a 30.2% effective tax rate and minimal non-operating items operating_leverage: Positive: Operating income growth (+28.1% YoY) exceeded revenue growth (+11.2% YoY). SG&A intensity is ~27.1% of sales (12.17 / 44.95), translating to ~63% of gross profit, evidencing scale benefits. notes_on_reported_ratios: Reported operating margin (0.2%) and ROA (ordinary income 0.2%) appear mis-tagged or not representative; analysis uses calculated margins from disclosed P/L.

Growth Assessment

revenue_sustainability: Revenue grew 11.2% YoY to 44.95, suggesting firm demand in core segments. The negligible inventories (0.01) and strong receivables balance (6.30) imply a project/service-heavy mix rather than stock-driven sales, supporting lower working capital risk. profit_quality: Ordinary income rose 29.6% to 7.09 with minimal non-operating contribution (non-op income 0.08), confirming core-operational drivers. Net income growth (+2.7%) lagged due to tax effects; no material one-offs reported. outlook_drivers: Ability to sustain high gross margin via pricing, mix, and efficient procurement, Capacity utilization and order intake/visibility for visual communication/printing projects, Cost discipline in SG&A to preserve operating leverage, Talent costs and availability in a tight labor market, Selective capex to maintain technology relevance (digital/large-format equipment) without eroding FCF

Financial Health

liquidity:

• current_ratio: 622.6% (CA 42.35 / CL 6.80)
• quick_ratio: 622.5% (inventories negligible at 0.01)
• cash_and_deposits: 33.46 (≈71% of total assets), providing a substantial liquidity buffer
• working_capital: 35.55 solvency_and_capital_structure:
• equity: 38.10
• total_assets: 46.95
• estimated_equity_ratio: ≈81.2% (Equity / Assets), reflecting a conservative balance sheet
• total_liabilities: 8.85
• interest_bearing_debt: Unreported; cannot quantify net cash formally. However, cash exceeds total liabilities by 24.61.
• debt_to_equity_ratio: 0.23x (reported; likely total liabilities/equity proxy)
• interest_coverage: Not reliable due to unreported interest expense (0.00 indicates missing disclosure).

Cash Flow Quality

earnings_quality: OCF/Net income is 1.51x (7.43 / 4.91), indicating high cash conversion and limited accrual risk. free_cash_flow: 4.78 (based on OCF + Investing CF as provided). Capex of 0.89 implies maintenance/reinvestment needs are modest (~2.0% of sales). working_capital_dynamics: Large cash position and minimal inventories suggest a short cash conversion cycle. Receivables (6.30) vs payables (2.51) indicate a net funding position of working capital, but overall liquidity remains strong. other: No evidence of material non-operating cash inflows; investing outflows primarily capex.

Dividend Sustainability

payout_ratio_assessment: Calculated payout ratio of 28.4% indicates comfortable headroom relative to earnings. Reported DOE 0.0% and DPS details are unreported, so assessment depends on the calculated ratio provided. FCF_coverage: FCF coverage of dividends is 3.42x (based on provided metric), suggesting strong sustainability under current earnings and capex levels. policy_outlook: With a high equity ratio, strong cash balance, and solid FCF, the company appears positioned to maintain a conservative yet shareholder-friendly policy. However, absent explicit DPS guidance and full dividend disclosures, visibility is limited.

Risk Assessment

Business Risks:

• Demand cyclicality tied to marketing/advertising and exhibition/event activity
• Customer concentration risk typical for project-based B2B services (not disclosed but common in the segment)
• Input cost inflation (materials, substrates, energy) potentially pressuring gross margins
• Wage inflation and talent retention for specialized production and installation roles
• Technology obsolescence risk in printing/visual solutions requiring periodic capex
• Execution risk on custom projects (quality, timelines) affecting profitability

Financial Risks:

• Limited disclosure on interest-bearing debt and interest expense; true financial leverage unknown
• Potential working capital swings due to timing of receivables/payables in project cycles
• Small-cap liquidity risk in equity markets (share liquidity) impacting capital access if needed

Key Concerns:

• Inconsistencies in some reported ratios (e.g., reported operating margin 0.2%) necessitate reliance on recalculated metrics
• Unreported dividend detail and debt structure constrain precision in payout and solvency analysis
• Sustainability of elevated operating margin if input costs or pricing dynamics shift

Investment Implications

Key Takeaways:

• Solid top-line growth (+11.2% YoY) with outsized operating income growth (+28.1%) evidences operating leverage
• High-quality earnings with OCF/Net income at 1.51x and positive FCF of 4.78
• Very strong balance sheet: estimated equity ratio ~81% and cash 33.46 far exceeding liabilities
• ROE of 12.9% is driven by margins and efficiency rather than leverage, a quality signal
• Capex needs remain modest (~2% of sales), supporting ongoing FCF generation
• Dividend capacity appears ample with a ~28% payout and 3.42x FCF coverage, though DPS details are unreported

Metrics to Watch:

• Order intake/backlog and book-to-bill (if disclosed)
• Gross margin trajectory and pricing power
• SG&A-to-sales ratio and operating leverage
• Receivables days and overall cash conversion cycle
• Capex-to-sales and technology refresh cadence
• Any disclosure on interest-bearing debt and interest expense
• Dividend policy updates (DPS, payout targets, DOE)

Relative Positioning: Within Japanese small-cap printing/visual communication peers, the company appears above-average on margins, ROE, and balance sheet strength (cash-rich, low leverage), with an asset-light model that supports resilient FCF.

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