| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥956.0B | ¥819.4B | +16.7% |
| Operating Income / Operating Profit | ¥187.3B | ¥128.4B | +45.9% |
| Ordinary Income | ¥228.7B | ¥155.8B | +46.8% |
| Net Income | ¥129.3B | ¥101.2B | +27.8% |
| ROE | 5.6% | 4.9% | - |
For the fiscal year ended March 2026, Revenue was ¥956.0B (YoY +¥136.6B +16.7%), Operating Income was ¥187.3B (YoY +¥58.9B +45.9%), Ordinary Income was ¥228.7B (YoY +¥72.9B +46.8%), and Net Income attributable to owners of the parent was ¥129.3B (YoY +¥28.1B +27.8%), representing a substantial increase in both top-line and profits. Operating margin improved to 19.6% (up +3.9pt from 15.7% a year ago), and net margin improved to 13.5% (up +1.1pt from 12.4%), indicating enhanced profitability. Extraordinary gains included investment securities disposal gains of ¥64.5B; after offsetting extraordinary losses of ¥14.6B, these items boosted income before income taxes by ¥49.9B. Non-operating income totaled ¥46.2B, contributed by dividend income of ¥22.8B and equity-method investment income of ¥11.2B. Selling, general and administrative expenses were contained at ¥731.0B, growing less than revenue and resulting in operating leverage. Operating Cash Flow was ¥628.5B (YoY +403.8%), marking a significant improvement; Free Cash Flow reached ¥676.0B, sufficient to cover dividend payments and share buybacks totaling ¥65.1B.
[Revenue] Revenue reached ¥956.0B (YoY +16.7%), achieving double-digit growth. Within the single securities business segment structure, a compound expansion in brokerage commissions, underwriting services, and trading is presumed to have driven the revenue increase. Favorable market conditions and an expanded client base contributed to a steady top-line expansion.
[Profitability] Operating Income rose to ¥187.3B (YoY +45.9%), far outpacing revenue growth, and Operating Margin improved to 19.6% (up +3.9pt from 15.7% a year ago). SG&A was contained at ¥731.0B, with an SG&A ratio of 76.5% (improving -5.3pt from 81.8% a year ago), demonstrating disciplined cost management that supported profitability. Ordinary Income was ¥228.7B (YoY +46.8%); of non-operating income of ¥46.2B, dividend income of ¥22.8B and equity-method investment income of ¥11.2B were the main contributors. Non-operating expenses were minor at ¥4.9B. Extraordinary gains consisted of investment securities disposal gains of ¥64.5B; extraordinary losses totaled ¥14.6B comprised of impairment losses ¥5.7B, loss on disposal of fixed assets ¥2.5B, and valuation losses on investment securities ¥1.6B, netting to a +¥49.9B increase in income before income taxes. Income before income taxes was ¥278.6B (YoY +64.9%); after income taxes of ¥65.0B, Net Income attributable to owners of the parent was ¥129.3B (YoY +27.8%), achieving higher revenue and profit.
[Profitability] Operating Margin 19.6% (up +3.9pt from 15.7% a year ago) and Net Margin 13.5% (up +1.1pt from 12.4%) improved. ROE 5.6% remained roughly in line with the prior year 5.7%. ROA (on Ordinary Income basis) was 1.6%. SG&A ratio declined to 76.5% (down -5.3pt from 81.8%), demonstrating operating leverage. [Cash Quality] Operating Cash Flow to Net Income was 4.86x, and Operating Cash Flow/EBITDA (Operating Income + Depreciation) was 2.84x, both at high levels. The accrual ratio (Net Income − Operating CF)/Total Assets was −3.6%, indicating very strong cash backing of profits. [Investment Efficiency] CapEx/Depreciation was a modest 0.68x, reflecting continued asset-light operations. Investment securities balance increased to ¥856.7B, securing a source of realized gains while also embedding valuation fluctuation risk. [Financial Soundness] Equity Ratio improved to 16.5% (up +1.4pt from 15.1%), and Net Assets strengthened to ¥2,309.7B. Current Ratio was 113.4%, ensuring short-term payment capacity, though short-term debt ratio was high at 91.3%, indicating heavy reliance on short-term funding. D/E ratio was 5.07x and Debt/EBITDA was 6.15x, reflecting a high-leverage structure and sensitivity to borrowing costs in a rising-rate environment. Cash and deposits increased to ¥836.6B (YoY +69.5%), strengthening the liquidity buffer.
Operating Cash Flow was ¥628.5B (vs. prior year −¥206.9B, an improvement of +¥835.4B), with changes in working capital contributing +¥23.2B to the operating CF subtotal of ¥605.3B. Securities-industry-specific cash flows such as reductions in short-term loans and increases in customer deposits boosted operating CF. Corporate taxes paid were −¥49.2B. Investing Cash Flow was +¥47.6B, with capital expenditures of −¥23.2B and proceeds from sales of investment securities of +¥81.7B (sales proceeds), after deducting intangible asset purchases of −¥12.2B and others resulted in net positive cash. Free Cash Flow reached ¥676.0B, which funded dividend payments of −¥60.5B, share buybacks of −¥15.0B, and long-term borrowings repayments of −¥28.1B, etc., leading to an increase in cash of +¥335.1B during the period. Cash and deposits at year-end rose to ¥836.6B, significantly improving the liquidity position. Depreciation was ¥34.2B, and Operating CF/EBITDA was 2.84x, indicating very robust cash-generation capacity.
Of Ordinary Income ¥228.7B, Operating Income ¥187.3B reflects stable core business earnings, while non-operating income ¥46.2B (dividend income ¥22.8B, equity-method income ¥11.2B) supplemented Ordinary Income by +20.2%. Extraordinary gains of ¥64.5B (investment securities disposal gains) are a one-time factor and carry risk of non-recurrence in the next fiscal year. Comprehensive income was ¥300.0B, well above Net Income ¥129.3B, with the ¥170.7B difference comprising valuation gains on securities of ¥74.8B, actuarial gains/losses adjustments of ¥7.6B, and translation adjustments of ¥2.9B, among others. Realization of valuation gains and accumulation of unrealized gains pushed up comprehensive income. Operating CF to Net Income was 4.86x and the accrual ratio was −3.6%, indicating very strong cash backing of earnings and alignment between accounting profit and actual cash generation. However, the contribution from extraordinary gains and valuation differences underscores the importance of assessing sustainable core earning power.
The year-end dividend was ¥50 (ordinary dividend ¥40 + special dividend ¥10), with a Payout Ratio of 52.1%, within a sustainable range. The prior year also paid a year-end dividend of ¥50, maintaining the dividend level. Share buybacks totaled ¥15.0B, making total shareholder returns approximately ¥65.1B. Coverage of total returns by FCF of ¥676.0B was 10.38x, indicating very comfortable coverage and that distributions were well covered by the period’s cash generation. While a special dividend of ¥10 was included, given the potential non-recurrence of proceeds such as investment securities disposal gains next year, a flexible dividend policy that considers core profit levels and market environment is appropriate. Dividend forecast is undecided, though a note mentions a policy to continue a special dividend of ¥20.
Market-Dependence Risk: Brokerage commissions, underwriting fees, and trading results are highly sensitive to changes in equity markets, interest rates, and credit spreads. The YoY Operating Income growth of +45.9% reflects favorable market conditions; a reduction in market volatility or a slowdown in capital markets activity could materially compress earnings.
Short-Term Debt Reliance Risk: With a short-term debt ratio of 91.3% and Cash/Short-Term Debt of 0.67x, dependence on short-term funding is extremely high. Deterioration of refinancing conditions or widening funding spreads during market stress could simultaneously impair liquidity and profitability. Although short-term borrowings decreased by ¥34.6B YoY, the absolute level remains high.
Investment Securities Valuation and Realization Loss Risk: Investment securities balance was ¥856.7B (YoY +¥10.1B); while ¥64.5B of disposal gains were realized during the period, reversals in unrealized gains could lead to valuation losses or realized losses. The increase in valuation difference on available-for-sale securities of ¥74.8B provides a buffer, but market reversals could increase extraordinary losses.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 19.6% | 19.9% (6.5%–38.3%) | -0.3pt |
| Net Margin | 13.5% | 5.6% (3.8%–22.2%) | +7.9pt |
Operating Margin is roughly in line with the industry median, while Net Margin exceeds the median by +7.9pt, placing the company in a high position within the industry.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 16.7% | -0.5% (-0.9%–13.1%) | +17.2pt |
Revenue growth outperformed the industry median by +17.2pt, demonstrating outstanding growth within the sector.
※ Source: Company compiled data
Improvement to Operating Margin of 19.6% and realization of operating leverage enhanced core earning power. SG&A ratio declined to 76.5% (down −5.3pt YoY), and sustained cost discipline contributed to margin expansion. Versus industry peers, Net Margin is +7.9pt and Revenue Growth is +17.2pt, indicating relative strength and reinforcement of the revenue base capturing favorable market conditions.
Very strong cash-generation with Operating CF ¥628.5B and FCF ¥676.0B; Operating CF/Net Income 4.86x and accrual ratio −3.6% illustrate high quality of earnings. However, the one-time contribution from investment securities disposal gains of ¥64.5B and the high short-term debt ratio of 91.3% increase sensitivity to the sustainability of next year’s earnings and changes in funding conditions. ROE of 5.6% is stable but achieving double-digit ROE will require further capital efficiency improvements. Shareholder returns, including the year-end dividend of ¥50 (including special dividend ¥10) and share buybacks of ¥15.0B, were executed with ample FCF coverage (over 10x), indicating a shareholder-friendly stance.
This report is an AI-generated financial analysis document produced by analyzing XBRL earnings disclosure data. It does not constitute a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by the Company based on public financial disclosures. Investment decisions are your responsibility; please consult professional advisors as necessary before making investment decisions.