PLATZ Co.,Ltd. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥1.88B
• Operating Income: ¥-22M
• Net Income: ¥33M
• EPS: ¥-3.36

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

Platz Co., Ltd. (7813) reported FY2026 Q1 consolidated results under JGAAP showing a modest top-line contraction but a meaningful improvement in operating loss dynamics. Revenue was ¥1,878 million (-4.7% YoY), while gross profit was ¥602 million, implying a gross margin of 32.1%, indicating resilient pricing and/or mix despite softer sales. Operating income was a loss of ¥22 million, a marked YoY improvement (+118% YoY), suggesting early benefits from cost discipline or mix management even with revenue pressure. Ordinary income and net income remained slightly negative at -¥10 million and -¥11 million, respectively, keeping the company in loss-making territory. The DuPont bridge shows a net margin of -0.59%, asset turnover of 0.287x, and financial leverage of 2.14x, yielding a calculated ROE of -0.36%, consistent with the reported figure. Operating leverage remains a key swing factor: with SG&A inferred at roughly ¥624 million (≈33.3% of sales), small changes in volume/mix can flip operating income. Liquidity appears solid with a current ratio of 232% and quick ratio of 194.6%, underpinned by current assets of ¥4,123 million versus current liabilities of ¥1,777 million. Capital structure is moderate with a debt-to-equity ratio of 1.03x; total liabilities of ¥3,154 million versus total equity of ¥3,063 million suggest balanced solvency. The reported equity ratio is shown as 0.0% (likely undisclosed), but a simple proxy using total equity over total assets implies about 46.8%, indicating a reasonable equity buffer. Interest coverage is negative at -6.2x given the operating loss, underlining sensitivity to execution and revenue recovery. Cash flow statements, depreciation and amortization, and cash balances are not disclosed in the provided data, limiting assessment of earnings quality and FCF. Dividend is currently suspended (DPS ¥0), reflecting loss-making status and a likely focus on reinvestment and balance sheet prudence. Overall, profitability is fragile but improving at the operating level, liquidity is strong, and leverage is manageable. Key watchpoints are demand recovery to lift utilization, sustained gross margin resilience, and tangible cash flow generation once disclosed. Data gaps (cash flows, D&A, share count, equity ratio disclosure) constrain the depth of analysis; conclusions rely on available non-zero metrics and straightforward derivations from the provided statements.

Profitability Analysis

ROE decomposition (DuPont): Net profit margin -0.59% × asset turnover 0.287 × financial leverage 2.14 = ROE -0.36%. Gross margin of 32.1% (¥602m/¥1,878m) shows decent value-add; cost of sales ratio is ~68.9%. Operating margin is -1.17% (¥-22m/¥1,878m), indicating SG&A burden of roughly 33.3% of sales (inferred SG&A ≈ ¥624m = gross profit minus operating income). Ordinary margin stands at -0.53% and net margin at -0.59%, reflecting minor non-operating items and limited below-the-line distortions. Interest expense of ¥3.54m against negative EBIT yields interest coverage of -6.2x; while absolute interest cost is modest, profitability must normalize to restore coverage. The YoY +118% improvement in operating income (from a deeper loss) suggests operating leverage is material; small revenue or mix gains can revert to positive operating income. Margin quality appears supported by stable gross profitability despite revenue decline, implying manageable input costs and/or pricing power, but sustainability depends on volume recovery and SG&A control. With D&A undisclosed, EBITDA and cash profit analysis are constrained; however, the proximity of operating loss to breakeven highlights sensitivity to cost absorption and utilization.

Growth Assessment

Revenue declined 4.7% YoY to ¥1,878m, indicating soft demand or timing effects. Despite the top-line contraction, operating income improved meaningfully (+118% YoY) to a small loss, implying effective cost actions and/or improved mix. Net income fell 36.9% YoY to -¥11m, which could reflect tax-related items or non-operating factors given the small absolute loss. Sustainability hinges on stabilizing sales while preserving the 32.1% gross margin; any rebound in orders should translate efficiently to profit given the current cost base. The gross margin resilience suggests no acute input cost shock in the quarter; continued procurement discipline and pricing execution will be important. With asset turnover at 0.287x, capital efficiency appears modest; improved throughput and inventory turns could support growth without heavy balance sheet usage. Outlook: if revenue normalizes and SG&A remains controlled (~33% of sales), the company can move to positive operating income; however, visibility is limited due to lack of order/backlog data and nondisclosure of cash flow. Monitoring sequential sales momentum and gross margin is key to assessing demand recovery and mix quality.

Financial Health

Liquidity is strong: current ratio 232%, quick ratio 194.6%, and working capital of ¥2,346m (current assets ¥4,123m less current liabilities ¥1,777m) suggest good near-term coverage. Inventories are ¥666m, representing about 16.1% of total assets and 37.5% of current liabilities, reasonable for manufacturing but requiring turns discipline. Solvency appears balanced: total liabilities ¥3,154m vs total equity ¥3,063m yields D/E of 1.03x. The reported equity ratio is 0.0% (undisclosed), but an implied equity ratio from provided totals is roughly 46.8% (¥3,063m/¥6,546m), indicating a solid equity cushion. Interest expense is modest at ¥3.54m; however, negative EBIT makes coverage formally weak until profitability improves. Overall capital structure is moderate, with no evidence of over-leverage, and liquidity headroom appears ample even absent cash disclosure.

Cash Flow Quality

Operating, investing, and financing cash flows, as well as cash and equivalents, are not disclosed in the provided dataset (zeros indicate unreported). As such, OCF/NI, FCF, and cash conversion cannot be reliably assessed for the quarter. Earnings quality signals from the P&L are mixed: gross margin is steady, and the operating loss is small, but the absence of D&A prevents evaluation of cash vs accrual earnings and the degree of non-cash charges. Working capital inference is limited without CF; however, inventories at ¥666m and strong liquidity ratios suggest no acute short-term strain. Until cash flow data are available, we cannot determine FCF coverage of maintenance capex or assess the durability of any prospective dividend resumption.

Dividend Sustainability

The company paid no dividend for the period (DPS ¥0; payout ratio 0%). Given the net loss and lack of disclosed operating and free cash flows, dividend capacity cannot be evaluated quantitatively. From a balance sheet perspective, implied equity ratio (~46.8%) and strong liquidity provide flexibility, but prudent capital allocation would prioritize restoring consistent positive operating income and cash generation. Near-term dividend outlook likely remains conservative until profitability normalizes and FCF visibility improves. Once OCF and capex are disclosed, FCF coverage and payout headroom can be reassessed relative to any stated policy.

Risk Assessment

Business Risks:

• Demand softness leading to continued revenue decline (-4.7% YoY) and under-absorption of fixed costs
• High operating leverage around breakeven; small volume/mix shocks can swing to losses
• Potential input cost volatility affecting gross margin sustainability
• Inventory management and turns risk in a slower demand environment
• Limited visibility due to absence of order/backlog and cash flow disclosure

Financial Risks:

• Negative interest coverage (-6.2x) until EBIT turns positive
• Dependence on SG&A control to maintain near-breakeven operations
• Tax volatility relative to small earnings base (income tax expense vs small loss)
• Data gaps on cash, debt composition, and maturity profile constrain liquidity assessment

Key Concerns:

• Sustained operating losses, albeit small, could persist if revenue pressure continues
• Lack of disclosed cash flow and D&A impedes assessment of earnings quality and FCF
• Equity ratio reported as 0.0% (undisclosed); analysis relies on implied calculation

Investment Implications

Key Takeaways:

• Top line contracted 4.7% YoY to ¥1,878m, but operating loss narrowed to ¥22m, evidencing improving cost discipline
• Gross margin held at a healthy 32.1%, suggesting mix/pricing resilience
• Liquidity is strong (current ratio 232%, quick ratio 194.6%) with working capital of ¥2,346m
• Moderate leverage (D/E 1.03x) and an implied equity ratio around 46.8% point to balanced solvency
• Profitability remains fragile with negative interest coverage; operating leverage is the key driver of inflection
• Cash flow and D&A undisclosed, limiting FCF and earnings quality assessment
• No dividend currently; future payouts depend on restoring positive OCF and earnings

Metrics to Watch:

• Quarterly revenue trajectory and order momentum
• Gross margin trend vs input costs and pricing
• SG&A as a percentage of sales and operating margin breakeven
• Interest coverage improvement as EBIT turns positive
• Inventory levels and turnover
• Disclosure of OCF, capex, and FCF to validate cash conversion
• Equity ratio (official disclosure) and debt composition/maturities

Relative Positioning: Within domestic small-cap manufacturing peers, Platz exhibits stronger liquidity and a balanced leverage profile but weaker profitability near-term, with results highly sensitive to volume recovery and mix; disclosure gaps on cash flows and D&A reduce transparency compared to 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