| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | - | - | - |
| 営業利益 | ¥28.2B | ¥6.9B | +306.2% |
| 経常利益 | ¥32.6B | ¥10.4B | +214.3% |
| 純利益 | ¥39.3B | ¥26.7B | +47.1% |
| ROE | 12.8% | 8.9% | - |
For the fiscal year ended March 2026, Toyo Securities achieved a significant increase in profit: Operating Income ¥28.2B (¥+21.3B YoY, +306.2%), Ordinary Income ¥32.6B (¥+22.2B YoY, +214.3%), and Net Income ¥39.3B (¥+12.6B YoY, +47.1%). In addition to improvement at the operating stage, Non-operating Income of ¥4.7B and Special Gains of ¥14.3B (Investment securities disposal gains ¥14.1B) boosted profitability. ROE improved to 12.8% (previous year 7.6%), up +5.2pt, and EPS rose to 57.97円 (previous year 34.45円, +68.3%), indicating a marked improvement in capital efficiency. However, Operating Cash Flow was negative at ¥-5.0B despite Net Income of ¥39.3B, leaving issues in converting profits into cash. Positive Investing Cash Flow including investment securities sale proceeds of ¥23.4B resulted in FCF of ¥18.5B, but coverage of total dividends of ¥35.1B remained at only 0.53x. Total assets expanded stably to ¥719.5B (¥+25.6B YoY, +3.7%), and Net Assets to ¥306.4B (¥+5.2B YoY, +1.7%), strengthening the financial base.
【売上高】Revenue (operating income) is undisclosed, but the sharp recovery to Operating Income ¥28.2B (previous year ¥6.9B), an increase of ¥21.3B, suggests significant top-line improvement. The single segment is Investment & Financial Services, with over 90% of revenue generated domestically. SG&A was contained at ¥103.9B (previous year ¥103.0B, +¥0.9B), showing control of fixed costs. Operating margin (versus Ordinary Income basis) improved to 86.5% (previous year 66.9%), up +19.6pt, indicating large improvement in operating-stage profitability.
【損益】Non-operating income of ¥4.7B (previous year ¥3.8B) was supported by investment partnership gains of ¥1.8B, while non-operating expenses were stable at ¥0.3B (same). Ordinary Income expanded to ¥32.6B. Special gains of ¥14.3B (previous year ¥22.5B), mainly investment securities disposal gains of ¥14.1B, though lower YoY, lifted Pre-tax Income to ¥46.8B (previous year ¥29.5B, +58.7%). Corporate taxes and similar amounted to ¥7.4B (effective tax rate 15.8%), up from ¥2.9B (10.0%) the prior year, though tax burden remained low and Net Income of ¥39.3B was secured. Comprehensive Income of ¥40.2B exceeded Net Income by ¥0.9B, with Foreign Currency Translation Adjustments ¥0.7B and Retirement Benefit Adjustments ¥5.0B offsetting a decrease in Available-for-sale Securities Valuation Difference of ¥-4.8B. In conclusion, the growth in revenue and profit was supported by both operating improvements and one-off gains; however, given the large contribution from special gains, sustainability of recurring earnings remains a focal point.
【収益性】ROE improved to 12.8% (previous year 7.6%), up +5.2pt, indicating materially improved capital efficiency. ROA (based on Ordinary Income) recovered to 4.6% (previous year 1.5%), showing improved asset efficiency. Operating margin (versus Ordinary Income) is 86.5%, reflecting high operating-stage profitability. The effective tax rate is low at 15.8%, suggesting temporary factors reducing tax burden. 【キャッシュ品質】Operating Cash Flow / Net Income ratio is -0.13x (negative), indicating issues in cash realization of profits. EBITDA (Operating Income ¥28.2B + Depreciation ¥3.1B) is ¥31.3B, and OCF/EBITDA is -0.16x, indicating weak cash conversion efficiency. The subtotal of Operating CF before working capital changes was ¥-6.2B, showing weak cash generation from core operations. 【投資効率】FCF was ¥18.5B, but coverage of total dividends of ¥35.1B remained at 0.53x, constraining the ability to continue distributions from internal funds alone. Investment securities were reduced to ¥54.0B (previous year ¥70.5B, -¥23.5B, -23.5%), balancing portfolio review and realization of disposal gains. Capital expenditures were ¥4.1B (depreciation ¥3.1B) maintaining renewal investment, and intangible fixed assets rose to ¥1.3B (previous year ¥0.6B, +125%), reflecting accumulated system investments. 【財務健全性】Equity Ratio is 42.6% (previous year 43.4%, -0.8pt), remaining at a high, stable level. Current ratio is 153.3%, and Cash and Deposits are ¥223.0B, covering 60.8% of current liabilities of ¥366.9B, indicating ample short-term liquidity. Long-term borrowings were significantly reduced to ¥14.4B (previous year ¥48.0B, -70.0%), lowering dependence on interest-bearing debt; however, short-term borrowings stand at ¥71.5B and the short-term debt ratio (short-term debt/total debt) is 83.2%, indicating concentration of maturities. Debt/EBITDA (interest-bearing debt/EBITDA) is 2.75x, and Debt/Capital (interest-bearing debt/total capital) is 21.9%, both at conservative levels.
Operating Cash Flow was negative at ¥-5.0B (previous year ¥8.5B), turning negative despite Net Income of ¥39.3B, indicating weak conversion of profits to cash. The subtotal of Operating CF before working capital changes was ¥-6.2B, with interest and dividend receipts of ¥6.6B overlapping with non-operating income, while core business cash generation was weak. Including corporate tax payments of ¥3.5B, it is inferred that working capital movements and inventory adjustments negatively impacted cash flow. Investing Cash Flow saw an inflow of ¥23.4B, primarily driven by investment securities sale proceeds of ¥22.6B, far exceeding tangible and intangible asset acquisitions of ¥-4.1B. Financing Cash Flow was ¥-21.1B, where dividend payments of ¥-35.1B, net of long-term borrowing repayments and short-term borrowing increases of +¥6.0B, and long-term borrowing proceeds of +¥8.0B combined to shorten debt maturities while effecting returns. FCF of ¥18.5B was secured, but coverage of total dividends of ¥35.1B remained at 0.53x, indicating dependence on investment securities disposals. Cash and deposits were ¥223.0B (previous year ¥224.6B), essentially flat, maintaining ample liquidity; improvement in Operating CF will be key to sustaining distributions next fiscal year.
Of Net Income ¥39.3B, Special Gains of ¥14.3B (investment securities disposal gains ¥14.1B) made a large contribution, necessitating separation from recurring earnings. Pre-tax income excluding special gains is ¥32.5B (equivalent to Ordinary Income ¥32.6B), and applying the effective tax rate of 15.8% yields an adjusted Net Income of approximately ¥27.4B; the difference from reported Net Income is about +¥11.9B (+43%). Non-operating income of ¥4.7B includes investment partnership gains of ¥1.8B, which are dependent on market conditions. Operating CF lagged Net Income by ¥-5.0B, producing an accrual amount (Net Income − Operating CF) of ¥44.3B and an accrual ratio (to Net Income) of 112.7%, a high level indicating that much of profit recognition relies on receivables or valuation gains. Comprehensive Income of ¥40.2B exceeded Net Income by ¥0.9B; Other Comprehensive Income of ¥0.9B is nearly neutral, with Retirement Benefit Adjustments +¥5.0B offsetting Available-for-sale Securities Valuation Difference -¥4.8B. While recurring earnings power was lifted by operating improvements, the large contributions from one-off gains and non-operating items warrant attention to the risk of normalization in the coming fiscal year.
Year-end dividend is ¥50 (ordinary dividend ¥30 + special dividend ¥20), with a policy to maintain year-end ¥50 through the fiscal year ending March 2027. Total dividends were ¥35.1B (previous year ¥8.3B), a large increase driven by the prior year’s ¥80B share buyback which suppressed dividends. The disclosed payout ratio is 1.5% (BPS basis), but on an EPS basis it is about 86.3% (dividend ¥50 / EPS 57.97円), a high level. With FCF of ¥18.5B, coverage of total dividends of ¥35.1B is 0.53x, meaning continuation from internal funds alone would require supplementing via investment securities disposals. No share buybacks were executed this period, making the total return ratio dividend-focused. The high payout on an EPS basis and insufficient FCF coverage mean sustainability depends on improvement in Operating CF and reproducibility of one-off gains.
Market volatility risk: As a single Investment & Financial Services segment with high market sensitivity, fluctuations in equities, interest rates, and FX directly impact fee income and trading income. Despite a high operating margin (versus Ordinary Income) of 86.5%, the structure is exposed to revenue swings, posing a risk of rapid profit deterioration under adverse market conditions.
Dependence on one-off gains and earnings normalization risk: Special Gains of ¥14.3B account for 30.6% of Pre-tax Income ¥46.8B, and adjusted Net Income is estimated at about ¥27.4B. With investment securities balances reduced to ¥54.0B (-23.5%), sources of future disposal gains are diminished, lowering the likelihood of repeat one-off gains and risking a decline in Net Income in subsequent periods.
Cash conversion and dividend sustainability risk: Operating CF is negative at ¥-5.0B, and FCF coverage is only 0.53x. Payout ratio (EPS basis) is about 86.3%, high, making it difficult to continue distributions from internal funds alone. If reliance on investment securities disposals or external financing continues, risks of dividend cuts or constraints on growth investment may materialize.
Industry benchmark data not available
A rapid recovery in Operating Income of +306.2% and improvement in ROE to 12.8% indicate substantially improved capital efficiency; however, Special Gains of ¥14.3B contributed materially (30.6% of Pre-tax Income), and adjusted recurring earnings are estimated at approximately ¥27.4B. With the compression of investment securities balances (-23.5%), future sources of disposal gains are reduced, making sustainability of earnings dependent on maintaining operating-stage profitability. SG&A held broadly flat while operating improved, suggesting fee and trading income benefited from market recovery; if market conditions persist, foundational earnings may solidify.
Operating CF was negative at ¥-5.0B, with an accrual ratio versus Net Income of 112.7%, indicating difficulty in cash realization of profits. FCF coverage of dividends is 0.53x and dividend payments of ¥35.1B could not be covered by internal funds alone, relying on investment securities sale proceeds of ¥23.4B. The EPS-based payout of about 86.3% is high; while management targets a year-end ¥50 dividend through March 2027, improvement in Operating CF and reproducibility of one-off gains are prerequisites for sustainable returns. Although the short-term debt ratio is high at 83.2% indicating maturity concentration, Cash ¥223.0B and current ratio 153.3% provide ample short-term liquidity, limiting near-term funding risk; medium-term maintenance of financial flexibility depends on turning Operating CF positive.
This report is an AI-generated earnings analysis document produced by analyzing XBRL earnings release data. It does not constitute a recommendation to invest in any specific securities. Industry benchmarks are reference information compiled by our firm based on public financial statements. Investment decisions are your responsibility; please consult a professional if necessary before making any investment decisions.