| Metric | Current Period | Prior-Year Period | YoY |
|---|---|---|---|
| Revenue | ¥865.3B | ¥758.9B | +14.0% |
| Operating Income | ¥29.3B | ¥16.5B | +77.5% |
| Ordinary Income | ¥38.4B | ¥23.3B | +65.1% |
| Net Income | ¥29.5B | ¥19.6B | +50.5% |
| ROE | 5.1% | 4.1% | - |
For FY2026 Q3 (cumulative nine months), MITANI SANGYO reported Revenue of ¥865.3B (YoY +¥106.4B +14.0%), Operating Income of ¥29.3B (YoY +¥12.8B +77.5%), Ordinary Income of ¥38.4B (YoY +¥15.1B +65.1%), and Net Income of ¥29.5B (YoY +¥9.9B +50.5%), achieving substantial increases in both revenue and profit. The operating margin was 3.4%, improving by 1.6 percentage points from 1.8% a year ago, and Ordinary Income exceeded Operating Income by ¥9.1B, supported by non-operating income of ¥11.90B (including ¥5.95B in dividends received). Full-year guidance is Revenue ¥1,160B (YoY +12.5%), Operating Income ¥30B (YoY +44.6%), and Net Income ¥30B, with approximately 98% of both Operating Income and Net Income achieved by Q3.
[Profitability] ROE 5.0% (improved from 3.8% a year ago); operating margin 3.4% (+1.6pt from 1.8% a year ago); net profit margin 3.4% (+0.8pt from 2.6% a year ago). Gross margin 19.4%. EPS ¥47.67. DuPont breakdown: net profit margin 3.4% × total asset turnover 0.78x × financial leverage 1.90x, resulting in ROE of 5.0%. [Cash Quality] Cash and deposits ¥108.8B, up +28.8% YoY. Cash coverage of short-term borrowings of ¥136.4B is 0.80x. Working capital comprises accounts receivable ¥204.6B, inventories ¥29.3B, and accounts payable ¥140.4B, with net working capital of approximately ¥107.4B. [Investment Efficiency] Total asset turnover 0.78x; return on assets (ROA) 2.7% (improved from 2.1% a year ago). ROIC 3.4%, indicating low capital efficiency. Investment securities expanded significantly to ¥394.4B, up +43.7% YoY. [Financial Soundness] Equity ratio 52.5% (improved from 50.9% a year ago); current ratio 126.9%; quick ratio 119.5%. Interest-bearing debt ¥156.9B with a debt-to-capital ratio of 0.27x; interest coverage 21.4x, indicating ample debt service capacity. However, the short-term debt ratio is 86.9%, with current liabilities comprising the majority of total liabilities.
As the cash flow statement is not disclosed for Q3, funding trends are analyzed based on balance sheet movements. Cash and deposits increased by +¥24.3B YoY to ¥108.8B, with the ¥29.5B increase in Net Income contributing to cash accumulation. In working capital, accounts payable increased by +¥28.9B YoY to ¥140.4B, indicating improved funding efficiency through higher procurement tied to revenue growth and utilization of payment terms. Accounts receivable also increased by +¥25.4B to ¥204.6B, in line with higher revenue. In investing activities, investment securities expanded significantly by +¥120.0B YoY to ¥394.4B, reflecting progress in strategic investments and accumulation of valuation gains. In financing activities, short-term borrowings were flat, while net assets expanded by +¥106.6B YoY to ¥582.3B; recognition of comprehensive income of ¥113.4B strengthened shareholders’ equity. Cash coverage of short-term liabilities is 0.80x, indicating a certain level of liquidity, but given the high short-term debt ratio, the certainty of refinancing plans is critical.
Ordinary Income was ¥38.4B versus Operating Income of ¥29.3B, with a net non-operating gain of ¥9.1B. This comprises non-operating income of ¥11.9B less non-operating expenses of ¥2.8B; the main components of non-operating income were dividends received of ¥5.95B and investment-related gains. Non-operating income accounts for 1.4% of Revenue, indicating profit contribution from sources other than operating activities. The gap from Operating Income of ¥29.3B to Net Income of ¥29.5B is small (extraordinary losses, etc., were limited), and the majority of net profit is derived from operating activities and non-operating income. However, of the ¥113.4B in comprehensive income, approximately ¥83.9B in other comprehensive income exceeded Net Income of ¥29.5B, with valuation gains on investment securities significantly lifting net assets. As the Operating Cash Flow statement is not disclosed, the relationship between earnings and cash cannot be confirmed; however, the increase in cash and deposits is close to the level of net profit, suggesting a certain degree of cash backing for earnings.
[Positioning within the Industry] (Reference Information; In-House Survey) Compared with the wholesale industry’s FY2025 Q3 benchmark (median; 14 companies), the positioning is as follows. Profitability: The operating margin of 3.4% exceeds the industry median of 2.8% (IQR 1.2%–3.5%), placing the company in the upper tier within the industry. The net profit margin of 3.4% also significantly exceeds the industry median of 1.8% (IQR 0.9%–3.3%). ROE of 5.0% slightly exceeds the industry median of 4.0% (IQR 2.1%–8.7%), placing it in the mid-range. Revenue growth of +14.0% far exceeds the industry median of +1.1% (IQR -5.7%–+8.6%), achieving high growth. Soundness: The equity ratio of 52.5% exceeds the industry median of 47.3% (IQR 41.8%–53.2%) and is favorable. The current ratio of 126.9% is below the industry median of 184% (IQR 161%–231%), placing the company somewhat lower in short-term payment capacity within the industry. ROA of 2.7% is on par with the industry median of 2.2% (IQR 1.0%–4.0%). Overall, revenue growth and profit margins are advantageous within the industry, while liquidity indicators are below the industry average. Note: Industry: Wholesale (14 companies); Comparison period: 2025 Q3; Source: In-house aggregation
[Key Takeaways from Results] 1. Sustainability of Top-Line and Profit Growth: With revenue growth of +14.0% and Operating Income +77.5%, the company achieved high growth; progress toward full-year guidance is approximately 98% for both Operating Income and Net Income, suggesting limited upside in Q4 but continued solid momentum. The operating margin improved from 1.8% to 3.4%, which is a mid-range level even within the industry; further improvements in SG&A efficiency are key to medium-term profitability enhancement. 2. Significant Expansion of Investment Securities and Contribution to Comprehensive Income: Investment securities expanded by +¥120B YoY to ¥394B, substantially boosting net assets through +¥83.9B in other comprehensive income. If equity market conditions reverse, valuation losses could reduce net assets; monitoring the composition of the investment portfolio and market value fluctuations is necessary. 3. Short-Term Liability Structure and Cash Flow Disclosure: With a short-term debt ratio of 86.9% and cash of ¥108B against short-term borrowings of ¥136B, liquidity coverage is limited. As the Operating Cash Flow statement has not been disclosed, cash conversion of earnings remains unclear; in the full-year disclosure from Q4 onward, it will be important to confirm Operating Cash Flow, dividend sustainability, and debt repayment plans.
This report is an earnings analysis document automatically generated by AI based on XBRL financial results data. It does not constitute a recommendation to invest in any specific security. The industry benchmark is reference information aggregated by our firm based on publicly available financial results data. Investment decisions are your own responsibility; consult a professional as necessary before making any investment.