| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥977.2B | ¥863.3B | +13.2% |
| Operating Income | ¥148.2B | ¥117.4B | +26.2% |
| Ordinary Income | ¥204.9B | ¥151.2B | +35.5% |
| Net Income | ¥28.6B | ¥96.8B | -70.4% |
| ROE | 1.4% | 5.0% | - |
For the fiscal year ended March 2026, Revenue was ¥977.2B (YoY +¥113.9B +13.2%), Operating Income was ¥148.2B (YoY +¥30.8B +26.2%), Ordinary Income was ¥204.9B (YoY +¥53.7B +35.5%), and Net Income was ¥28.6B (YoY -¥68.2B -70.4%). While top-line growth accelerated operating-stage profitability, a large increase in special losses of ¥153.3B (prior year ¥8.4B) led to a substantial decline in bottom-line profit. Operating margin improved to 15.2% (+1.6pt from 13.6% a year earlier), enhancing profitability, but special losses including impairment losses of ¥20.7B compressed net profit. As a single-segment Investment & Financial Services business, market improvement and cost control drove operating-stage profit growth, while non-recurring factors depressed final profit.
【Revenue】 Revenue was ¥977.2B (YoY +¥113.9B +13.2%), a double-digit increase. As a single segment Investment & Financial Services business, combined increases in fee income, trading income, and investment income led growth. Market conditions were tailwinds, activating client transactions and expanding asset management income. Cost of sales increased to ¥206.6B (YoY +¥19.8B +10.6%) with revenue growth but lagged revenue growth, resulting in a gross profit margin of 78.9%, a slight improvement from 78.4% a year earlier.
【Profit & Loss】 Operating Income was ¥148.2B (YoY +¥30.8B +26.2%), with an operating margin of 15.2% (+1.6pt from 13.6% a year earlier). Selling, General & Administrative Expenses were ¥771.0B (YoY +¥56.3B +7.9%) but growth was contained below revenue growth of +13.2%, producing operating leverage. SG&A composition included depreciation ¥37.6B (YoY +¥0.9B), provision expense 55百万円 (YoY +40百万円), etc. Ordinary Income was ¥204.9B (YoY +¥53.7B +35.5%), aided by a significant increase in non-operating income to ¥59.8B (prior year ¥36.5B). Breakdown includes dividend income ¥12.0B (YoY +¥1.7B), investment partnership operating gains ¥12.5B (YoY +¥1.2B), etc. Non-operating expenses were modest at ¥3.0B, with limited increase in financing costs. Profit before tax was ¥227.2B (prior year ¥170.5B). Special losses totaled ¥23.4B (impairment loss ¥20.7B, valuation losses on investment securities ¥1.7B, etc.) and special gains were ¥45.7B (gains on sales of investment securities ¥30.1B, gains on sales of subsidiary shares ¥14.3B, etc.), yielding a net special item of +¥22.3B that boosted ordinary income. Income taxes were ¥45.3B (prior year ¥54.4B), lowering the effective tax rate to 19.9%. After deducting non-controlling interests of ¥16.2B, profit attributable to owners of parent is calculated as ¥165.7B, but XBRL Net Income (当期純利益) is presented as ¥28.6B, reflecting a difference in reporting item definitions. YoY Net Income fell sharply by -70.4%, driven by increased special losses and tax variability. In conclusion, while the company exhibited revenue and operating profit growth, non-recurring items and tax effects resulted in a large decline in final profit.
【Profitability】Operating margin improved to 15.2% from 13.6% (+1.6pt), and together with a gross profit margin of 78.9% indicates improving profitability. ROE is 1.4% (stable YoY) and remains low, reflecting Net Income of ¥28.6B against shareholders' equity of ¥2,095.3B. ROA is 1.4%, slightly up from 1.1% a year earlier. Operating Cash Flow (OCF) margin is 4.9% (OCF ¥47.4B / Revenue ¥977.2B), indicating limited cash generation. EBITDA is ¥185.8B (Operating Income ¥148.2B + Depreciation ¥37.6B), with an EBITDA margin of 19.0%.
【Cash Quality】OCF / Net Income is 1.66x (OCF ¥47.4B / Net Income ¥28.6B), formally under 2x, but evaluation is reserved given the special nature of Net Income. OCF / EBITDA is 0.26x, weak cash conversion mainly due to working capital increases. Free Cash Flow is -¥160.0B (OCF ¥47.4B - Investing CF ¥207.3B), negative, with capital expenditures of ¥14.8B plus substantial investments in securities and loans. Capital expenditure / depreciation is 0.39x, restrained, indicating modest capital investment. Total asset turnover is 0.06x (Revenue ¥977.2B / Total Assets ¥15,262.8B), very low, reflecting financial industry characteristics.
【Financial Soundness】Equity Ratio is 13.7% (down slightly from 13.8% a year earlier), indicating a highly leveraged capital structure. Current ratio is 127.1% (Current Assets ¥14,345.9B / Current Liabilities ¥11,287.7B), securing short-term liquidity. D/E Ratio is 6.28x (Interest-bearing debt ¥13,138.3B / Equity ¥2,095.3B), high and vulnerable to rising interest rates. Cash & deposits ¥935.4B represent 6.1% of total assets; short-term liability ratio is 85.4% (Current Liabilities ¥11,287.7B / Total Liabilities ¥13,167.6B), indicating high reliance on short-term funding. Debt / EBITDA is 70.7x, extremely high, limiting leverage resilience.
OCF was ¥47.4B, a large decrease of -77.2% from ¥207.8B a year earlier. OCF subtotal (before working capital changes) was -¥0.7B, a small negative, and included interest and dividend income ¥137.5B, interest paid -¥56.1B, and corporate tax paid -¥33.4B. Details of working capital changes are unclear, but increases in short-term loans (¥135,095B, prior year ¥110,680B) and other current asset movements likely pressured OCF. Investing CF was -¥207.3B, including capital expenditure -¥14.8B, acquisition of investment securities -¥57.8B, proceeds from sales ¥122.8B, short-term loan disbursements -¥556.4B and collections ¥312.2B, etc. Financing CF was -¥27.4B, with major items including long-term borrowings received ¥308.0B, repayments -¥105.0B, bond issuance ¥135.0B, redemptions -¥63.9B, and dividend payments -¥95.4B (of which -¥70.2B to owners of parent, -¥1.3B to non-controlling interests). Free Cash Flow was a large negative at -¥160.0B, so dividend payments were not covered by FCF and relied on external financing. Cash and deposits decreased by -¥187.2B from opening balance ¥1,122.6B to closing ¥935.4B, shrinking the liquidity buffer. Weak OCF appears driven by seasonality and market-driven changes in working capital; improvement over multiple periods will be key for investment decisions.
Ordinary Income was ¥204.9B and profit before tax was ¥227.2B, with a net special item of +¥22.3B boosting results. Special gains were mainly gains on sales of investment securities ¥30.1B and gains on sales of subsidiary shares ¥14.3B, which are largely non-recurring. Special losses comprised impairment losses ¥20.7B and valuation losses on investment securities ¥1.7B, reflecting asset value adjustments. Non-operating income of ¥59.8B mainly comprised dividend income ¥12.0B and investment partnership operating gains ¥12.5B, indicating high market sensitivity of investment income. Equity-method investment gains/losses of ¥12.6B also supported ordinary income but depend on associates' performance. Comprehensive income ¥237.2B far exceeded Net Income ¥28.6B, including other comprehensive income ¥55.3B (market valuation differences on securities ¥29.6B, retirement benefit adjustments ¥25.4B, etc.). Realization of valuation gains requires sales, so unrealized elements are included in profit quality. Given weak OCF relative to profit, there is a sizable gap between accrual profit and cash. For assessing sustainable earnings power, monitoring core earnings excluding one-offs and the trend in OCF is essential.
Annual dividend is ¥50 per share (interim ¥22, year-end ¥28), including an ordinary dividend of ¥34 and a commemorative dividend of ¥16. Total dividend payout is estimated at approximately ¥12.6B (average shares outstanding during the period 251,738 thousand shares × ¥50), yielding a payout ratio in excess of 440% relative to Net Income of ¥28.6B, which is abnormally high. However, this may be due to the presentation definition of Net Income; on a profit attributable to owners of parent basis, the payout ratio is about 76% (dividend total ¥12.6B / profit attributable to owners of parent ¥165.7B). Last fiscal year dividend was ¥12 per share with total dividends of approximately ¥3.0B; this year’s payout increased substantially including a commemorative dividend. A 76% payout ratio is within a tolerable range, but with Free Cash Flow of -¥160.0B and dividend payments to owners of parent of ¥70.2B not covered by internal funds, dependence on external financing was required. Cash & deposits of ¥935.4B provide some buffer, but considering weak OCF and high leverage, dividend sustainability depends on normalization of working capital and recovery of cash generation. Dividend forecast for the fiscal year ending March 2027 is undecided, and earnings guidance is not disclosed due to forecasting difficulty. Market conditions and funding stability are key prerequisites for dividend policy.
Market volatility risk: As an Investment & Financial Services business, fee income, trading income, and investment partnership operating gains are highly sensitive to market volatility. This fiscal year, non-operating income of ¥59.8B (prior ¥36.5B) and favorable market conditions boosted ordinary income, but a market reversal could sharply reduce profits. Valuation fluctuations of investment securities ¥597.7B may affect shareholders’ equity through comprehensive income, and widening unrealized losses could lower the Equity Ratio from 13.7%.
High leverage and liquidity risk: With a D/E Ratio of 6.28x and Debt / EBITDA 70.7x, leverage is extremely high and vulnerable to rising interest rates and widening credit spreads. Short-term borrowings ¥1,983.4B and short-term bonds ¥112.9B, and a short-term liability ratio of 85.4%, mean refinancing deterioration directly impacts liquidity. Cash & deposits ¥935.4B cover only 8.3% of short-term liabilities (Current Liabilities ¥11,287.7B), so the liquidity buffer is thin. With OCF at ¥47.4B and FCF -¥160.0B implying high external funding dependence, constraints in the capital markets pose business continuity risk.
Working capital volatility and cash realization risk: OCF / Net Income 1.66x (note definition of Net Income), and OCF / EBITDA 0.26x indicate weak cash conversion. Short-term loans increased to ¥135,095B (prior year ¥110,680B), a ¥24,422B increase, substantially worsening working capital and pressuring OCF. Given financial industry characteristics, loans and other assets are seasonally and market-driven; if OCF < Net Income persists over multiple periods, concerns over profit quality will intensify. An impairment loss of ¥20.7B has been recorded, and continued deterioration in asset earning power could trigger additional impairment risk.
収益性・リターン
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 15.2% | 19.9% (6.5%–38.3%) | -4.8pt |
| Net Profit Margin | 2.9% | 5.6% (3.8%–22.2%) | -2.7pt |
Operating margin is 4.8pt below industry median, indicating somewhat lower profitability relative to peers. Net profit margin is also below median, noting the impact of special losses.
成長性・資本効率
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 13.2% | -0.5% (-0.9%–13.1%) | +13.7pt |
Revenue growth rate outperformed the industry median by 13.7pt, placing the company among the top within the peer group. Growth captured market tailwinds.
※Source: Company compilation
Revenue and operating income growth with market sensitivity: Revenue +13.2%, Operating Income +26.2% achieved double-digit growth and operating margin improved to 15.2% (+1.6pt). Increases in non-operating income and cost controls boosted profits, but investment income and fee income are market-sensitive, so profit elasticity under changing conditions warrants attention. Net special items of +¥22.3B raised profit before tax, so discerning core earning power is key for investment decisions.
Cash flow and dividend sustainability: OCF is ¥47.4B and weak relative to Net Income, and FCF is -¥160.0B so dividend payments of ¥70.2B were not covered by internal funds. Under high leverage (D/E 6.28x) and short-term funding dependence (short-term liability ratio 85.4%), normalization of working capital and improvement in OCF are critical for dividend policy and financial stability. Next fiscal year earnings and dividend forecasts are undecided; market and funding conditions will be focal points.
Balance sheet management and impairment risk: Equity Ratio 13.7% is low, and valuation fluctuations of investment securities ¥597.7B and impairment risk could pressure capital. This fiscal year recorded impairment losses of ¥20.7B, indicating deterioration in asset earning power. Liquidity buffer (cash & deposits ¥935.4B) is thin relative to short-term liabilities, so securing stable funding and improving asset quality are prerequisites for maintaining financial soundness.
This report was automatically generated by AI analyzing XBRL financial statement data. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the firm from publicly disclosed financial statements. Investment decisions are your responsibility; consult a professional advisor as needed.