| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue (Net Sales) | ¥311.5B | ¥296.8B | +5.0% |
| Operating Income | ¥44.2B | ¥40.5B | +9.2% |
| Ordinary Income | ¥45.8B | ¥42.4B | +8.1% |
| Net Income (attributable to owners of parent) | ¥17.7B | ¥28.9B | -39.0% |
| ROE | 5.4% | 9.4% | - |
For the full year ended May 2026, Revenue was ¥311.5B (YoY +¥14.8B +5.0%), Operating Income was ¥44.2B (YoY +¥3.7B +9.2%), Ordinary Income was ¥45.8B (YoY +¥3.4B +8.1%), and Net Income attributable to owners of the parent was ¥17.7B (YoY -¥11.2B -39.0%). The operating phase delivered revenue and operating profit growth, with Gross Profit Margin at 43.6% (up +1.1pt from 42.5%) and Operating Margin at 14.2% (up +0.6pt from 13.6%), indicating improved core profitability. Net income declined significantly due to a one-off factor: the prior year included ¥17.9B of gains on disposal of fixed assets, whereas the current year recorded only ¥6.0B of gains on sales of investment securities. The disclosure-related business, the core segment, drove double-digit operating profit growth to ¥37.9B (+12.6%), improving its operating margin to 16.6%. The Interpretation & Translation Business also continued its profit growth trend with Operating Income of ¥4.7B (+20.6%). The financial position is extremely solid, with Cash and Deposits ¥176.9B, Equity Ratio 77.1%, Interest-Bearing Debt ¥0.7B, effectively debt-free, and despite low ROE of 5.4%, asset efficiency in operating activities appears healthy when considering the temporary nature of the net income decline. For the next fiscal year, management forecasts Revenue ¥342.0B (+9.8%) and Operating Income ¥49.0B (+10.9%), expecting continued revenue and profit growth.
【Revenue】Revenue secured growth at ¥311.5B (YoY +5.0%). The Disclosure-related Business reported ¥228.6B (+5.0%) and the Interpretation & Translation Business ¥96.1B (+4.9%), both expanding in a balanced manner and maintaining growth rates similar to the prior year. Within Disclosure-related, products related to the Financial Instruments and Exchange Act grew double digits to ¥95.9B (+9.8%), and Corporate Law-related products remained solid at ¥68.2B (+4.9%), while IR-related products slightly declined to ¥48.6B (-1.0%). The Interpretation & Translation Business saw steady demand for interpreting/translation services and localization, keeping its revenue composition ratio at 30.9%, similar to the prior year. Gross profit grew faster than revenue to ¥135.9B (+7.6%), with Gross Profit Margin improving to 43.6% (up +1.1pt from 42.5%). This likely reflects strict cost control and a favorable mix shift toward higher value-added products and services.
【Profitability】SG&A expenses rose to ¥91.7B (+9.1%), outpacing revenue growth of +5.0%, but the increase in gross profit (+7.6%) absorbed this, resulting in Operating Income of ¥44.2B (+9.2%). Major SG&A increases were Salaries and Allowances ¥45.7B (+5.6%) and Amortization of Goodwill ¥3.1B (up ¥1.0B from ¥2.1B). Operating Margin improved to 14.2% (up +0.6pt from 13.6%), supported by improved gross margin despite higher SG&A. Ordinary Income was ¥45.8B (+8.1%), including Non-operating Income of ¥1.9B (including Dividend Income ¥1.2B), while Non-operating Expenses were limited at ¥0.3B (including Foreign Exchange Losses ¥0.2B). Extraordinary items included Extraordinary Gains ¥6.0B (gain on sale of investment securities) and Extraordinary Losses ¥0.4B (loss on disposal of fixed assets ¥0.3B, etc.), resulting in Profit before Income Taxes of ¥51.5B (down -14.4% from ¥60.2B). Income Taxes were ¥17.4B (effective tax rate 33.8%), leading to Net Income attributable to owners of the parent of ¥17.7B (-39.0%). The large decline in Net Income is mainly due to the prior year’s ¥17.9B gain on sale of fixed assets shrinking to ¥6.0B in the current year; operating activities maintained revenue and operating profit growth. Conclusion: revenue and operating-profit growth at the operating stage.
The Disclosure-related Business maintained high profitability as the core segment with Revenue ¥228.6B (+5.0%), Operating Income ¥37.9B (+12.6%), and Operating Margin 16.6% (up +1.2pt from 15.4%). Double-digit growth in Financial Instruments and Exchange Act-related products drove the performance, and margin improvement is attributed to SG&A efficiency and a shift to higher value-added products. The segment contributed approximately 89% to consolidated Operating Income (before adjustments), underpinning the business portfolio. The Interpretation & Translation Business achieved Revenue ¥96.1B (+4.9%), Operating Income ¥4.7B (+20.6%), and Operating Margin 4.9% (up +1.0pt from 3.9%), delivering both top-line and bottom-line growth. Although margin remains low, the improvement pace has accelerated, suggesting scale effects and operational efficiencies. Its contribution to consolidated profits is about 11% (before adjustments), limited but with promising monetization potential from a growth perspective.
【Profitability】Operating Margin 14.2% (prior 13.6%) remains at the upper end for the Printing & BPO industry, aided by an improved Gross Profit Margin of 43.6% (prior 42.5%). ROE 5.4% declined from prior 9.7%, driven by a temporary reduction in Net Income (drop in extraordinary gains), while ROA on an ordinary income basis is steady at 11.1% (prior 11.1%), indicating stable underlying earning power. Net Profit Margin fell to 5.7% (prior 9.7%) for the same temporary reason, but the ongoing improvement in Operating Margin is a positive sign. 【Cash Quality】Operating Cash Flow (OCF) was ¥37.6B, 2.1x Net Income ¥17.7B, and from the subtotal OCF ¥51.2B including Depreciation ¥12.3B, less Corporate Tax Payments ¥15.0B. However, OCF/EBITDA (¥57.1B) was weak at 0.66x, affected by deterioration in working capital: Accounts Receivable increase ¥2.3B, Work-in-Process increase ¥0.7B, and Accounts Payable decrease ¥1.2B. Days Sales Outstanding are around 62 days, and the high WIP ratio is a business characteristic, indicating room to improve working capital management. Free Cash Flow was positive at ¥7.0B, but large CapEx ¥30.0B (2.4x depreciation) is underway, and coverage for Dividend Payments ¥17.5B is weak at 0.4x. 【Investment Efficiency】Total Asset Turnover was slightly down to 0.73x (prior 0.74x). CapEx surged from ¥3.1B to ¥30.0B, mainly for office building acquisition, expanding Tangible Fixed Assets to ¥64.8B (up +75.6% from ¥36.9B). CapEx/Sales ratio is high at 9.6%, and mid-term productivity gains and site consolidation benefits are expected to materialize. 【Financial Soundness】Equity Ratio 77.1% (prior 76.1%), Cash and Deposits ¥176.9B, Current Ratio 326% maintain an extremely strong financial position. Interest-Bearing Debt is ¥0.7B (down ¥0.9B from ¥1.6B), effectively debt-free, with Debt/EBITDA 0.01x and Interest Coverage approximately 1,700x, indicating very high debt tolerance. Net Cash ¥176.2B is substantial relative to market capitalization, securing ample capacity for investment and shareholder returns.
OCF was ¥37.6B (down from ¥43.7B prior, -13.8%), representing the subtotal OCF ¥51.2B less Corporate Tax Payments ¥15.0B, and is 2.1x Net Income ¥17.7B, indicating solid cash backing of earnings. Non-cash expenses include Depreciation ¥12.3B and Amortization of Goodwill ¥3.1B, while working capital changes (Accounts Receivable increase ¥2.3B, WIP increase ¥0.7B, Accounts Payable decrease ¥1.2B, Accrued Expenses decrease ¥2.8B) worsened working capital by ¥-6.8B, pressuring OCF. Investing Cash Flow was -¥30.6B (from +¥12.7B prior, a large deterioration), driven by acquisition of Tangible Fixed Assets ¥30.0B (mainly office building), acquisition of Intangible Fixed Assets ¥9.9B (software, etc.), and Proceeds from Sales & Maturities of Investment Securities ¥9.3B. Financing Cash Flow was -¥21.6B (prior -¥11.3B), mainly dividend payments ¥17.5B, treasury stock acquisition ¥2.6B, and long-term debt repayments ¥1.3B. Free Cash Flow remained positive at ¥7.0B, but coverage for dividends is weak at 0.4x, and Cash & Deposits decreased ¥17.7B from ¥194.6B to ¥176.9B due to simultaneous large investments and shareholder returns. OCF/EBITDA ratio at 0.66x is low, and improving working capital management is key to enhancing future cash generation.
Earnings quality is generally favorable. Operating Income ¥44.2B is the core earnings driver, with Non-operating Income ¥1.9B (Dividend Income ¥1.2B, Interest Income ¥0.3B) limited and sustainable. Extraordinary Gains ¥6.0B (gain on sale of investment securities) account for about 34% of Net Income ¥17.7B, but this is reduced compared to the prior year’s ¥17.9B gain on sale of fixed assets, indicating declining contribution from one-offs. Non-operating income is 0.6% of Revenue and not dominant; Operating Income accounts for 96.5% of Ordinary Income ¥45.8B, supporting earnings recurrence. The accrual ratio (Net Income - OCF)/Total Assets is -4.7%, negative, indicating OCF substantially exceeds Net Income and accounting earnings are conservative. However, OCF/EBITDA of 0.66x is low, and working capital build-up leaves room to improve cash conversion. Comprehensive Income ¥41.1B deviates significantly from Net Income ¥17.7B, primarily due to Other Comprehensive Income ¥23.4B driven by actuarial adjustments related to retirement benefits ¥7.2B, reflecting temporary pension asset valuation changes. Unrealized gains (losses) on securities -¥0.4B and Foreign Currency Translation Adjustment +¥0.2B are limited, and there is no structural distortion in earnings quality.
The next fiscal year (FY ending May 2027) full-year plan forecasts Revenue ¥342.0B (+9.8%), Operating Income ¥49.0B (+10.9%), Net Income attributable to owners of the parent ¥35.0B (+97.7%), EPS271.16円, and Annual Dividend 90.00円. The plan corresponds to about a 90% achievement rate against current Operating Income ¥44.2B, and if the uptrend in revenue and operating profit continues through H1, attainment probability is high. Operating Margin is projected at approximately 14.3% (based on next year plan), a slight increase from 14.2% this year, premised on continued gross margin improvement and SG&A efficiency. The large increase in Net Income assumes normalization from this year’s temporary factors (decline in extraordinary gains), indicating recovery of recurring earning power. The dividend of ¥90 is effectively maintained (excluding this year’s special dividend of ¥60), with a Payout Ratio around 33% on forecasted Net Income, a sustainable level. If the benefits of large investments (office building acquisition, etc.) materialize in productivity gains, improvement in OCF/EBITDA alongside that should make guidance attainment well within view.
Annual dividend is ¥120 (interim ¥60, year-end ¥60; year-end broken down into ordinary dividend ¥45 + special dividend ¥30), implying a Payout Ratio of 46.7% (Total Dividends Paid / Net Income attributable to owners of the parent). The interim dividend was increased by ¥20 from prior interim ¥45, and adding a special dividend ¥30 resulted in a substantial effective increase. Total Dividends Paid amounted to ¥17.5B, nearly distributing the full Net Income ¥17.7B, but relative to OCF ¥37.6B this is 46.5%, indicating some headroom. Share buybacks of ¥2.6B were executed, bringing total shareholder returns to approximately ¥20.1B and a Total Return Ratio of about 113% (based on Net Income), demonstrating an aggressive stance. However, relative to Free Cash Flow ¥7.0B, total returns (dividends + buybacks) are 2.9x, indicating weak coverage. Funding is sufficiently secured by abundant Cash and Deposits ¥176.9B and an effectively debt-free balance sheet, but if high CapEx continues next year, improvement in working capital efficiency and cash generation will be critical to sustain returns. Next year’s dividend guidance of ¥90 is effectively maintained (excluding this year’s special dividend) and expected to return to a sustainable Payout Ratio of about 33% on forecasted Net Income.
Working capital stagnation risk: Days Sales Outstanding 62 days and Work-in-Process ¥11.8B (4.8% of current assets) indicate continued working capital stagnation, keeping OCF/EBITDA at a low 0.66x. If additional working capital is required with revenue expansion, cash generation could be pressured, impacting Free Cash Flow stability. Improving WIP turnover and accelerating receivables collection are key issues.
Dependence on extraordinary items risk: This year, gain on sale of investment securities ¥6.0B accounted for 34% of Net Income ¥17.7B, and although reduced versus prior year’s gain on sale of fixed assets ¥17.9B (62% of prior Net Income ¥28.9B), dependence on one-off gains remains high. Future Net Income may fluctuate depending on valuation gains/losses of securities or the presence of asset disposals, making core earnings stability less visible. Next year’s plan expects Net Income ¥35.0B normalizing, but achievement depends on occurrence of extraordinary items.
Recovery of CapEx risk: This year’s CapEx ¥30.0B (2.4x depreciation) mainly for office building acquisition expanded Tangible Fixed Assets to ¥64.8B. Increased depreciation (Depreciation expected to rise from ¥12.3B annually) and higher fixed costs may worsen operating leverage. If the investment benefits (productivity gains, site consolidation efficiencies) are delayed, they could exert downward pressure on profit margins.
収益性・リターン
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 14.2% | 7.8% (4.6%–12.3%) | +6.4pt |
| Net Profit Margin | 5.7% | 5.2% (2.3%–8.2%) | +0.5pt |
Operating Margin materially exceeds the manufacturing median, securing top-tier profitability within the industry. Net Profit Margin is also slightly above the median.
成長性・資本効率
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 5.0% | 3.7% (-0.4%–9.3%) | +1.3pt |
Revenue growth rate exceeds the manufacturing median, maintaining a solid growth trend.
※Source: Company aggregation
Continued improvement in operating profitability is a sustainable strength: Operating Margin 14.2% (prior 13.6%) and Gross Profit Margin 43.6% (prior 42.5%) show an established improvement trend, driven by a shift to higher value-added products and SG&A efficiency. The core Disclosure-related Business maintains a high Operating Margin of 16.6%, and the Interpretation & Translation Business improved to 4.9% (prior 3.9%), indicating segment-level progress. The decline in Net Income this year is a one-off due to reduced extraordinary gains, and OCF being 2.1x Net Income supports the underlying robustness.
Balance between large investments and cash generation is focal: CapEx ¥30.0B (2.4x depreciation) to acquire an office building aims at mid-term productivity gains and consolidation, but Free Cash Flow ¥7.0B is limited and dividend + buybacks coverage is weak at 0.35x. OCF/EBITDA 0.66x and working capital stagnation are issues; improving DSO 62 days and the high WIP ratio would substantially enhance cash generation. If next year’s growth plan is achieved, investment benefits and cash conversion improvement can proceed in parallel, expanding return capacity.
Sustaining both financial capacity and shareholder returns is feasible: With Cash and Deposits ¥176.9B, effectively no net debt, and Equity Ratio 77.1%, the company has a very strong balance sheet and executed active shareholder returns (Payout Ratio 46.7% this year, share buybacks ¥2.6B). Next year’s dividend guidance of ¥90 (effectively maintained) returns to a sustainable Payout Ratio of about 33% on forecasted Net Income, indicating a clear stance to balance high-level investment and returns. If working capital efficiency improves, dividend continuity and scope for further increases will be enhanced.
This report was automatically generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by our firm based on public financial statements. Investment decisions are your responsibility; consult a professional advisor as necessary.