| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥8512.4B | ¥9244.8B | -7.9% |
| Operating Income / Operating Profit | ¥241.5B | ¥269.0B | -10.2% |
| Equity-method Investment Income (Share of Profit of Associates) | ¥23.9B | ¥17.8B | +34.5% |
| Profit Before Tax (Taxable Income) | ¥260.1B | ¥281.7B | -7.7% |
| Net Income / Net Profit | ¥183.4B | ¥202.4B | -9.4% |
| ROE | 8.7% | 10.0% | - |
For the fiscal year ended March 2026, Revenue was ¥8,512B (YoY -¥732B, -7.9%), Operating Income was ¥241B (YoY -¥27B, -10.2%), Ordinary Income (Profit Before Tax under JGAAP) was ¥180B (YoY +¥29B, +19.3%), and Net Income was ¥183B (YoY -¥19B, -9.4%). Top-line contraction amid an energy market adjustment reduced operating profit, but equity-method investment income expanded to ¥24B (¥18B prior year), driving a significant rise in Ordinary Income. Gross margin improved to 10.7% (up +0.5pt from 10.2%) due to price and mix improvements, while operating margin remained around 2.8% (down -0.1pt from 2.9%). Operating Cash Flow (OCF) reached ¥451B (YoY +42.1%), 2.5x Net Income, securing Free Cash Flow (FCF) of ¥302B and demonstrating robust cash generation. The core Car Life Business (68.7% of revenue) recorded Operating Income of ¥99B (-14.1%), a decline, whereas the Home Life Business turned profitable with ¥29B (+12.8%), evidencing portfolio diversification benefits.
Revenue: Revenue decreased to ¥8,512B (-7.9%). By segment, the Car Life Business recorded ¥5,847B (-7.2%), representing 68.7% of revenue, affected by demand adjustments in petroleum products and vehicle-related services and lower fuel prices. The Industrial Business declined significantly to ¥1,173B (-12.8%), driven by lower demand for asphalt and marine fuels and changes in import/export conditions. The Power & Utility Business was ¥714B (-8.0%) as wholesale power price volatility and tight supply-demand conditions persisted. The Home Life Business declined modestly to ¥778B (-5.5%), supported by stock-type revenues from LP gas and housing equipment. Cost of sales was ¥7,603B, yielding gross profit of ¥910B and gross margin of 10.7% (up +0.5pt YoY), indicating mix improvement and pricing measures offsetting volume declines.
Profitability: SG&A was ¥694B (¥707B prior year, -1.8%), showing limited cost elasticity to revenue decline. Operating Income was ¥241B (-10.2%), yielding an operating margin of 2.8% (down -0.1pt). Ordinary Income was ¥180B (+19.3%), boosted materially by equity-method investment income of ¥24B (¥18B prior year, +34.5%). Net Income was ¥183B (-9.4%); Profit Before Tax was ¥260B and income taxes and other amounted to ¥77B (effective tax rate 29.5%). Segment Operating Income: Car Life ¥99B (-14.1%, margin 1.7%), Industrial Business ¥60B (-12.9%, margin 5.1%), Power & Utility ¥44B (-23.7%, margin 6.2%), Home Life ¥29B (+12.8%, margin 3.7%). The Power segment saw the largest profit contraction due to compressed procurement–sales spreads, while Home Life’s profit increase provided company-wide support. Overall, revenue and profit declined, but cash generation and gross margin improvement provided qualitative support.
Car Life Business (Operating Income ¥99B, -14.1%): Revenue ¥5,847B (-7.2%); margin 1.7% (1.8% prior year). Assets ¥1,825B, asset turnover 3.2x, indicating high turnover but low-margin, high-volume structure. Industrial Business (Operating Income ¥60B, -12.9%): Revenue ¥1,173B (-12.8%); margin 5.1% (5.2% prior year), outperforming company average. Assets ¥651B, indicating efficient operations. Power & Utility Business (Operating Income ¥44B, -23.7%): Revenue ¥714B (-8.0%); margin 6.2% (down -1.3pt from 7.5%), most impacted by wholesale power price and supply-demand gaps. Assets ¥862B. Home Life Business (Operating Income ¥29B, +12.8%): Revenue ¥778B (-5.5%); margin 3.7% (up +0.6pt from 3.1%) supported by stock-type revenues and cost efficiencies. Assets ¥692B. Company-level adjustments added ¥10B to segment aggregate Operating Income of ¥231B to reach consolidated Operating Income of ¥241B. High reliance on Car Life, with Home Life gains and Industrial Business stable margins providing diversification benefits.
Profitability: Operating margin 2.8% (down -0.1pt from 2.9%), gross margin 10.7% (up +0.5pt from 10.2%), Net Profit Margin 2.2% (flat YoY). ROE 9.1% (down -1.1pt from 10.2%) due to flat net margin and slight decline in asset turnover. Equity-method investment income ¥24B (¥18B prior year, +34.5%) supported Ordinary Income; EBIT (approximation: Operating Income + equity-method income) is about ¥266B, yielding EBIT/Total Assets 5.9% (mid-level asset efficiency).
Cash Quality: Operating Cash Flow ¥451B is 2.5x Net Income ¥183B (benchmark >0.8x indicates high quality). FCF ¥302B (OCF ¥451B - Investing CF ¥149B), FCF/Net Income 1.6x, indicating strong internal cash generation. Working capital changes were modest: Inventories -¥4B, Receivables -¥42B, Payables +¥17B, limited signs of opportunistic manipulation.
Investment Efficiency: Capex ¥155B / Depreciation ¥218B = 0.71x, focused on maintenance and efficiency. Total assets ¥4,527B (¥4,422B prior year, +2.4%), total asset turnover 1.88x (down from 2.09x), reflecting revenue decline pressuring asset efficiency. Goodwill ¥7B (¥5B prior year, +35.5%), 0.2% of total assets—limited impairment risk.
Financial Soundness: Equity Ratio 40.2% (up +1.2pt from 39.0%). D/E 1.15x (Interest-bearing debt ¥2,422B / Net assets ¥2,105B), within a stable range. Current Ratio 125% (Current assets ¥2,105B / Current liabilities ¥1,678B), acceptable; Quick Ratio 107% ensures short-term liquidity. Lease liabilities ¥547B (current ¥101B + non-current ¥447B) are fixed-cost items; watch for cash strain during utilization downturns.
OCF was ¥451B (¥317B prior year, +42.1%), 2.5x Net Income ¥183B. Adding back Depreciation ¥218B to Profit Before Tax ¥260B and considering working capital changes — inventory decrease +¥4B, receivables collection +¥42B, payables increase +¥17B — yielded a net working capital cash inflow of +¥63B. After tax payments -¥77B, cash generation remained strong. OCF/EBITDA (approximate EBITDA ¥460B) was 0.98x, indicating favorable cash conversion. Investing CF was -¥149B, mainly Capex -¥155B (tangible assets -¥135B, intangible assets -¥20B). Investment outflows narrowed from -¥283B prior year; proceeds from tangible asset disposals ¥47B contributed. Equity-method and similar investments -¥21B and minority interest acquisition -¥7B were executed. FCF ¥302B (OCF ¥451B - Investing CF ¥149B) comfortably covered parent dividends -¥73B. Financing CF was -¥222B, driven by lease liability repayments -¥105B, parent dividends -¥73B, minority dividends -¥33B. Short-term borrowings decreased by -¥4B; share repurchases -¥0.0B (effectively zero). Cash and cash equivalents rose from ¥139B at the beginning of the period to ¥219B at year-end, +¥80B (including FX effect +¥0.3B), improving liquidity. With Depreciation ¥218B vs Capex ¥155B (ratio 0.71x), capex allocation remained conservative and growth investments selective.
Earnings quality is driven by recurring items with limited one-off components. Against Operating Income ¥241B, non-operating income included interest income ¥3B and equity-method investment income ¥24B (expanded from ¥18B), the latter being the primary driver of Ordinary Income ¥180B. Non-operating expenses were interest expense -¥8B and lease payments -¥105B (cash flow basis), sustaining fixed-cost burden. Extraordinary items included gains on disposal of fixed assets of about +¥14B, leading to Profit Before Tax ¥260B. OCF/Net Income = 2.5x and OCF/EBITDA = 0.98x indicate strong cash backing; accrual (Net Income - OCF) was -¥268B (cash surplus), reflecting healthy cash conversion. The divergence between Ordinary Income and Net Income is primarily due to income taxes ¥77B (effective rate 29.5%), a reasonable level. Adding equity-method income to Operating Income raised EBIT by +¥24B, producing an EBIT margin of 3.1% (Operating margin 2.8% + 0.3pt). Overall, stable contribution from equity-method investments and strong OCF underpin earnings quality with limited reliance on one-offs.
Full Year guidance: Operating Income ¥245B (YoY +1.5%), Net Income attributable to parent ¥165B (YoY +2.8%), EPS ¥146.13, Dividend ¥34. Compared with results, Operating Income ¥241B represents 98.6% progress to guidance; Net Income ¥160B (parent attributable) is 97.3% progress—slightly below the 100% baseline. Shortfalls were minor: -¥4B on Operating Income and -¥5B on Net Income, mainly due to margin compression in Car Life and Power segments, partially offset by Home Life gains and expanded equity-method income. The announced dividend guidance of ¥34 was exceeded in practice by interim ¥31 + year-end ¥35 = ¥66, reflecting an upward revision of the year-end dividend from ¥31 to ¥35. The deviation from full-year assumptions was primarily due to larger-than-expected fuel margin compression in Car Life and tougher-than-anticipated power procurement conditions, with limited market recovery into the second half.
Dividends: interim ¥31 and year-end ¥35, annual ¥66 (prior year ¥56, +¥10, +17.9%). Against Net Income attributable to parent ¥160B, total dividends were ¥70B (¥66 × approx. 112 million shares), implying a Payout Ratio of about 43%, within a sustainable range (<60%). FCF ¥302B covers parent dividends ¥73B at a FCF coverage ratio of 4.1x, indicating dividends are well funded by internal cash. Share buybacks were -¥0.0B (effectively zero), so returns are dividend-centric. Reported Payout Ratio 40.9% (disclosed) is mid-range; while maintaining stable dividends, management seeks balance with growth investments given ROE 9.1% and limited capital efficiency. The actual annual dividend of ¥66 versus guided ¥34 reflects the year-end increase and underscores strong cash generation and shareholder-return emphasis. Treasury stock holdings changed to ¥39B (prior ¥20B, change -¥2B), indicating restrained repurchases to preserve liquidity and dividend funding.
Volatility in crude oil, energy markets, and power prices: Approximately 69% of revenue is Car Life (petroleum products and vehicle-related), so fluctuations in crude and product prices directly impact gross profit and margins. The Power & Utility Business, with Operating Income ¥44B (-23.7%), is highly exposed to sudden swings in wholesale power prices and procurement–sales gaps that compress spreads. In a thin-margin environment (gross margin 10.7%), delayed pass-through and inventory valuation losses pose structural risks to profitability.
Sensitivity to economic and demand cycles due to Car Life dependence: Car Life revenue ¥5,847B (68.7% of total) and Operating Income ¥99B (41.0% of consolidated operating profit) make it the core driver, but with a low margin of 1.7% and high-volume, low-margin nature. Structural factors—declining vehicle ownership, improved fuel efficiency, and EV shift—pose medium-to-long-term demand pressures, increasing sensitivity of revenue and profit to such trends.
Lease liabilities and rising fixed-cost burden: Lease liabilities ¥547B (current ¥101B + non-current ¥447B) have been capitalized and become fixed costs; in periods of lower utilization or intensified price competition, cash demands rise. Although OCF ¥451B is strong, lease repayments -¥105B and dividends -¥106B (consolidated) are persistent cash outflows that could erode liquidity buffers in an economic downturn.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| ROE | 9.1% | 6.8% (3.6%–11.9%) | +2.3pt |
| Operating Margin | 2.8% | 3.4% (1.4%–5.0%) | -0.5pt |
| Net Profit Margin | 2.2% | 2.3% (1.0%–4.6%) | -0.1pt |
ROE at 9.1% is +2.3pt above the median 6.8%, ranking relatively high within the industry, but Operating Margin 2.8% trails the median 3.4%, highlighting the low-margin structure.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | -7.9% | 5.9% (0.4%–10.7%) | -13.8pt |
On growth, Revenue -7.9% markedly underperforms the median +5.9%, reflecting the pronounced impact of energy market adjustments and demand declines relative to industry averages.
※Source: Company aggregation
Strong cash generation and dividend capacity: OCF ¥451B is 2.5x Net Income and FCF ¥302B covers dividends ¥73B by 4.1x, Payout Ratio ~43%—a sustainable range. Equity Ratio 40.2% and D/E 1.15x demonstrate financial soundness, supporting continuation of stable dividends. The year-end dividend increase from ¥31 to ¥35 underscores management’s shareholder-return focus.
Gross margin improvement versus operating efficiency challenges: Gross margin improved to 10.7% (up +0.5pt), showing price and mix gains; however, Operating Margin remained around 2.8% (down -0.1pt), reflecting limited SG&A elasticity. Given heavy reliance on Car Life (68.7% of revenue), expanding the weight of Home Life (Operating Income +12.8%) and Industrial Business (margin 5.1%), and optimizing power procurement are keys to medium-term margin improvement.
Stable contribution from equity-method investments and portfolio diversification effects: Equity-method investment income ¥24B (¥18B prior year, +34.5%) supported Ordinary Income. Segment-wise, Home Life gains helped offset Car Life and Power declines, demonstrating diversification benefits that stabilize earnings.
This report is an AI-generated earnings analysis document produced by analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any particular security. Industry benchmark figures are compiled by the company based on public financial statements and are provided for reference. Investment decisions are made at your own risk; consult a professional advisor as appropriate.