UCHIDA YOKO CO.,LTD. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥80.12B
• Operating Income: ¥3.01B
• Net Income: ¥1.20B
• EPS: ¥234.52

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

Uchida Yoko (80570) delivered a strong FY2026 Q1 with revenue of ¥80.1bn, up 52.4% YoY, translating into operating income of ¥3.01bn (+95.6% YoY) and net income of ¥2.31bn (+92.1% YoY). Gross profit of ¥10.88bn implies a gross margin of 13.6%, indicating solid contribution from higher-margin solutions despite sharp top-line growth. Operating margin improved to 3.8% (operating income/revenue), suggesting operating leverage as fixed costs were spread over a larger revenue base. Ordinary income of ¥3.30bn outpaced operating income, reflecting minor non-operating gains versus small interest costs (¥13m). The net margin stood at 2.88%, consistent with the provided DuPont inputs, and the effective tax cash charge reported as ¥540m implies a normalized tax burden despite the “0.0%” metric shown for the effective tax rate (tax data are present). DuPont decomposition indicates ROE of 3.25% for the period, driven by a moderate net margin (2.88%), healthy asset turnover (0.461x), and financial leverage of 2.45x. Balance sheet strength is evident: total assets of ¥173.7bn and equity of ¥71.0bn imply an equity ratio of roughly 40.9% (the reported 0.0% should be treated as undisclosed rather than actual). Liquidity appears adequate with a current ratio of 142.6% and a quick ratio of 127.1%, supported by working capital of ¥39.3bn. Leverage is moderate at 1.47x liabilities-to-equity, and interest coverage is ample at 231x, underscoring low financial risk. Cash flow statements are undisclosed this quarter (OCF/FCF showing as zero are placeholders), so earnings-to-cash conversion cannot be assessed from the data provided. Depreciation and EBITDA are also undisclosed in this dataset; operating income should be used as the primary profitability anchor. EPS was ¥234.52; based on net income this implies an approximate share count near 9.9 million, given shares outstanding are undisclosed in the file. With strong YoY growth and margin expansion at the operating level, early-quarter performance sets a positive tone for the fiscal year, though seasonality and project phasing must be considered. Inventory of ¥14.33bn (about 10.9% of current assets) appears manageable and quick ratio indicates limited dependence on inventory for liquidity. Dividend information is not disclosed for the quarter (DPS and payout show as zero placeholders), precluding assessment of distribution trends. Overall, FY2026 Q1 shows robust top-line momentum, improving operational efficiency, conservative balance sheet metrics, and very low financing costs; the main limitation is the absence of cash flow and dividend detail in this disclosure.

Profitability Analysis

ROE of 3.25% (period basis) decomposes into: net margin 2.88% × asset turnover 0.461× × financial leverage 2.45×. Operating margin is ~3.75% (¥3,008m/¥80,116m), ahead of the net margin due to standard tax and minor interest. Gross margin at 13.6% suggests a product/service mix with modest value-add, yet operating leverage is evident given operating income growth (+95.6% YoY) outpaced revenue growth (+52.4% YoY). Ordinary income margin (~4.1%) exceeded operating margin, indicating small positive non-operating contributions and very low interest drag (¥13m). Margin quality appears supported by scale benefits; however, lack of D&A disclosure limits insight into underlying EBITDA and the role of non-cash costs. The tax expense (¥540m) against pre-tax earnings indicates a normalizing tax burden despite the reported effective tax rate field showing 0.0% (undisclosed). Interest coverage is very strong at 231x, reinforcing that profitability is driven by operations rather than financial leverage. Overall, profitability improved across the P&L with good operating leverage and benign financing costs, but full quality assessment awaits cash flow data.

Growth Assessment

Revenue growth of +52.4% YoY to ¥80.1bn is very strong, likely reflecting robust demand and/or large project deliveries in the quarter. Operating income growth of +95.6% YoY indicates meaningful operating leverage and/or mix improvement, with opex growth trailing gross profit expansion. Net income growth of +92.1% YoY is consistent with operating gains and minimal interest burden. Sustainability of revenue growth will hinge on order backlog, seasonality, and project timing; Q1 performance may not linearize through the year. Margin expansion at both gross and operating levels points to scalable cost structure, but durability depends on procurement conditions and pricing discipline. Without cash flow disclosure, the quality of growth (cash conversion, working capital intensity) cannot be validated this quarter. The asset turnover of 0.461x (quarter basis) indicates efficient use of the asset base to generate sales; annualized context is needed for precise benchmarking. Outlook qualitatively benefits from strong early-quarter trends and a healthy balance sheet, though visibility is constrained by the absence of CF and order-related disclosures in the provided data.

Financial Health

Liquidity is sound: current assets ¥131.6bn versus current liabilities ¥92.3bn yields a current ratio of 142.6% and a quick ratio of 127.1%, indicating resilience even excluding inventories. Working capital is substantial at ¥39.3bn, providing operating flexibility. Solvency is comfortable with total liabilities of ¥104.1bn and equity of ¥71.0bn, implying liabilities-to-equity of 1.47x and an equity ratio of roughly 40.9%. Interest expense is only ¥13m in the quarter, and interest coverage is 231x, reflecting low financial risk. The capital structure appears balanced with moderate leverage and high liquidity buffers. Cash and equivalents are undisclosed in this dataset (reported as zero placeholder), so immediate cash positioning cannot be assessed directly; however, the quick ratio indirectly supports near-term coverage. No information on long-term debt composition, covenants, or off-balance obligations is provided here, which limits deeper solvency analysis.

Cash Flow Quality

Operating CF, investing CF, financing CF, and cash balances are undisclosed in this report (zeros indicate not reported). Consequently, OCF/Net Income, FCF, and cash conversion cycles cannot be validated. Earnings quality thus must be inferred from P&L and balance sheet: strong operating leverage and low interest costs support sustainably earned profits, but the absence of depreciation amortization data prevents EBITDA reconciliation and non-cash expense analysis. Working capital indicators available: inventories at ¥14.33bn (10.9% of current assets) suggest moderate inventory intensity; however, receivables and payables were not disclosed, precluding DSO/DPO assessment. Until OCF is reported, treat earnings quality as unverified despite strong coverage and liquidity ratios.

Dividend Sustainability

Dividend data for the period are undisclosed (DPS and payout shown as zero placeholders). Without OCF/FCF information and with no stated DPS, payout ratio assessment and FCF coverage cannot be performed for this quarter. Historically oriented policy insights are not available in the provided data, so near-term distribution outlook is indeterminate. Given current profitability and liquidity metrics, the capacity to sustain distributions appears supported in principle, but confirmation requires cash flow and board policy disclosures.

Risk Assessment

Business Risks:

• Revenue concentration in large projects may introduce quarter-to-quarter volatility and backlog execution risk.
• Procurement and supply chain cost fluctuations could pressure gross margins given a 13.6% gross margin profile.
• Seasonality and academic/fiscal-year timing could skew quarterly comparability.
• Competitive pricing dynamics could erode operating leverage if top-line growth normalizes.
• Execution risk on multi-site rollouts and integration-heavy solutions.

Financial Risks:

• Cash flow conversion risk due to undisclosed OCF and potential working capital swings in high-growth quarters.
• Exposure to credit risk on receivables (not disclosed), which can expand with rapid sales growth.
• Potential refinancing/interest rate risk is low currently but could rise if leverage increases, despite strong coverage.
• Inventory management risk if demand timing shifts (inventories ¥14.33bn).

Key Concerns:

• Lack of cash flow disclosure impedes validation of earnings quality and FCF.
• Dividend policy and DPS not disclosed, limiting visibility on shareholder returns.
• Depreciation/EBITDA not reported, constraining comparability and non-cash cost analysis.

Investment Implications

Key Takeaways:

• Top-line growth was very strong (+52.4% YoY) with outsized operating income growth (+95.6% YoY).
• Margins improved: gross margin 13.6%, operating margin ~3.8%, net margin 2.9%.
• ROE of 3.25% reflects moderate profitability, healthy asset turnover, and measured leverage.
• Liquidity is ample (current ratio 142.6%, quick ratio 127.1%) with solid working capital.
• Financial risk is low with interest coverage of 231x and moderate leverage (1.47x liabilities-to-equity).
• Cash flow and dividend details are not disclosed; earnings-to-cash conversion remains unverified.

Metrics to Watch:

• Order intake and backlog to gauge sustainability of revenue growth.
• Gross margin trajectory versus procurement costs and mix.
• Operating margin and opex discipline as growth normalizes.
• Working capital turns (DSO/DPO/DIO) and OCF once disclosed.
• Capex and D&A trends to understand underlying EBITDA and asset intensity.
• Dividend announcements and payout guidance when available.

Relative Positioning: Within capital-light solution and equipment distributors/integrators, the company shows strong early-year growth, improving operating leverage, and conservative balance sheet metrics; however, limited disclosure of cash flows and dividends this quarter tempers comparability versus peers reporting full cash flow statements.

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