MAMIYA-OP CO.,LTD FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥13.21B
• Operating Income: ¥1.94B
• Net Income: ¥3.93B
• EPS: ¥152.26

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

For FY2026 Q2 (cumulative), Mamiya-OP Co., Ltd. reported consolidated revenue of ¥13,215 million, down 35.9% year over year, indicating a sharp contraction in top-line activity. Operating income fell 63.3% YoY to ¥1,938 million, evidencing significant operating deleveraging as fixed costs were not fully absorbed by the lower sales base. Net income declined 60.0% YoY to ¥1,572 million, with EPS at ¥152.26, still profitable but materially off prior-year levels. Despite the revenue drop, the company posted a high gross profit of ¥7,283 million and a gross margin of 55.1% based on the figures provided, suggesting resilient pricing and/or a favorable mix, though line-item comparability may be affected by reporting classifications. The DuPont decomposition yields a Net Profit Margin of 11.9%, Asset Turnover of 0.326x, and Financial Leverage of 1.55x, resulting in a calculated ROE of 6.03%, matching the reported figure and indicating mid–single-digit equity returns. Operating margin of 14.7% (¥1,938m/¥13,215m) and ordinary margin of 16.5% remain solid relative to the depressed revenue base, supported by an interest coverage ratio of 50.6x that underscores manageable financing costs. Balance sheet strength is a clear positive: total assets are ¥40,526 million against total equity of ¥26,062 million, implying an equity ratio around 64.3% by our calculation despite the reported 0.0% placeholder. Liquidity appears robust with a current ratio of 324.7% and quick ratio of 299.8%, and working capital of ¥18,333 million. Inventories stand at ¥2,032 million, a manageable portion of current assets, which should help mitigate obsolescence risk if demand remains soft. Ordinary income at ¥2,176 million exceeded operating income, indicating positive non-operating contributions relative to interest expense of ¥38 million. The effective tax rate is shown as 0.0% due to placeholder effects, while taxes of ¥1,576 million were reported; this suggests caution when interpreting period tax dynamics from summarized data. Cash flow statements are unreported in this dataset (zeros reflect non-disclosure rather than true zeros), limiting assessment of cash conversion and free cash flow coverage. The company has not disclosed dividends (DPS 0), resulting in a nominal payout ratio of 0%, though this may reflect policy timing rather than a definitive stance for the full year. Overall, the quarter shows resilient profitability ratios on a much smaller revenue base, strong liquidity and solvency, and mid–single-digit ROE, but also heightened operating leverage risk if the revenue shortfall persists. Data gaps (cash flows, equity ratio, share count) constrain precision, so conclusions are guided by available non-zero metrics and standard interpretations under JGAAP.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 11.90%
• asset_turnover: 0.326x
• financial_leverage: 1.55x
• calculated_ROE: 6.03%
• interpretation: ROE is driven mainly by respectable profitability (11.9% NPM) on low asset turnover (0.33x). Leverage is modest at 1.55x, indicating equity-heavy funding and limiting ROE amplification. margin_quality:
• gross_margin: 55.1% (based on provided gross profit)
• operating_margin: 14.7%
• ordinary_margin: 16.5%
• net_margin: 11.9%
• commentary: Despite a 35.9% YoY revenue decline, margins remain solid, suggesting pricing/mix support and cost control. Non-operating results were net positive versus small interest expense, lifting ordinary margin above operating margin. operating_leverage: Operating income fell 63.3% on a 35.9% revenue decline, reflecting meaningful operating leverage and reduced fixed-cost absorption. If revenue stabilizes, margins could normalize; if not, profitability remains exposed. other_observations: Interest coverage is strong at 50.6x. The apparent discrepancy between reported cost of sales and gross profit likely stems from classification/reporting scope; conclusions rely on the provided margin metrics.

Growth Assessment

revenue_sustainability: Revenue contracted to ¥13.2bn (-35.9% YoY), implying demand softness and/or timing effects in key end-markets. Asset turnover of 0.326x indicates a muted utilization of the asset base during the period. profit_quality: Net margin of 11.9% and operating margin of 14.7% on reduced sales indicate underlying profitability remains intact, though sensitive to volume. Ordinary income exceeded operating income, suggesting supportive non-operating items. outlook: Short-term growth hinges on volume recovery and execution on cost flexibility. With ample liquidity and modest leverage, the company is positioned to support operations during a downturn, but sustained top-line weakness would weigh on earnings.

Financial Health

liquidity:

• current_ratio: 324.7%
• quick_ratio: 299.8%
• working_capital: ¥18,333,123,000
• commentary: Very strong liquidity with low near-term refinancing risk. Inventories of ¥2,032m are modest relative to current assets. solvency:
• equity_ratio: Approximately 64.3% (Total equity ¥26,062m / Total assets ¥40,526m)
• debt_to_equity: 0.59x
• interest_coverage: 50.6x
• commentary: High equity cushion and strong interest cover suggest low solvency risk under current conditions. capital_structure: Leverage is conservative with financial leverage at 1.55x, indicating reliance on equity financing; provides resilience but caps ROE expansion.

Cash Flow Quality

earnings_quality: OCF is undisclosed in this dataset (shown as zero by placeholder), preventing a direct OCF/NI assessment. Given positive operating income and strong liquidity, cash generation is likely positive, but timing of receivables/payables remains unknown. FCF_analysis: Free cash flow is undisclosed. Without capex data, we cannot evaluate reinvestment intensity or FCF coverage. working_capital: Current assets ¥26.49bn vs current liabilities ¥8.16bn indicates ample buffer. Low inventories (¥2.03bn) relative to current assets may reduce obsolescence risk; receivables and payables data are not disclosed.

Dividend Sustainability

payout_ratio_assessment: Annual DPS is undisclosed (0 placeholder). With EPS at ¥152.26 for the period and positive net income, capacity for distributions exists in principle, but policy and cash flow timing are unknown. FCF_coverage: Not assessable due to undisclosed OCF and capex (FCF reported as 0 placeholder). policy_outlook: Given strong liquidity and low leverage, the balance sheet could support dividends; however, management stance, full-year earnings trajectory, and cash flow visibility will drive decisions.

Risk Assessment

Business Risks:

• Demand volatility in core end-markets leading to revenue swings
• Operating leverage from fixed-cost base amplifying profit sensitivity
• Pricing pressure or adverse mix effects as volumes decline
• Project/order timing risk affecting quarterly comparability
• Potential supply chain constraints or input cost variability
• Customer concentration risk (not disclosed but common in niche industrials)
• FX exposure if imports/exports are material (not disclosed here)

Financial Risks:

• Receivables collection risk in a downturn (AR not disclosed)
• Inventory obsolescence if demand remains weak (inventories ¥2.03bn)
• Interest rate increases marginally affecting borrowing costs (though interest expense is currently low at ¥38m)
• Tax expense volatility given period tax line vs summary ratios
• Potential covenant constraints if external debt increases from current levels

Key Concerns:

• Sustained revenue contraction (-35.9% YoY) and its impact on capacity utilization
• High operating leverage evidenced by a 63.3% drop in operating income
• Limited cash flow disclosure, constraining assessment of cash conversion and FCF

Investment Implications

Key Takeaways:

• Revenue fell sharply to ¥13.2bn (-35.9% YoY), pressuring scale efficiency
• Margins remain solid: operating margin 14.7%, net margin 11.9%
• ROE at 6.03% reflects decent profitability with conservative leverage
• Liquidity and solvency are strong: current ratio 325%, equity ratio ~64%
• Interest coverage robust at 50.6x, limiting financing risk
• Cash flow data are unavailable; dividend data not disclosed for the period

Metrics to Watch:

• Order intake and backlog to gauge revenue recovery
• Operating margin trajectory vs. volume changes (operating leverage)
• Working capital turns (receivables and inventories) and OCF once disclosed
• Capex and FCF to assess reinvestment and potential shareholder returns
• Non-operating gains/losses that bridge operating to ordinary income
• Full-year guidance vs. H1 run-rate on revenue and OP

Relative Positioning: Balance sheet strength and solid margins position the company defensively versus peers under demand pressure, but low asset turnover and operating leverage make earnings more sensitive to top-line recovery compared with more asset-light or variable-cost 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