| Indicator | Current Period | Same Period Last Year | YoY |
|---|---|---|---|
| Revenue | - | - | - |
| Operating Income | ¥6.2B | ¥3.6B | +73.2% |
| Ordinary Income | ¥8.0B | ¥4.8B | +65.7% |
| Net Income | ¥5.7B | ¥3.3B | +73.8% |
| ROE | 6.9% | 4.3% | - |
Maruhachi Securities’ FY2026 Q3 results (non-consolidated) delivered a sharp profit increase, with Operating Income of ¥6.2B (¥3.6B in the same period last year, +¥2.6B, +73.2%), Ordinary Income of ¥8.0B (¥4.8B, +¥3.2B, +65.7%), and Net Income of ¥5.7B (¥3.3B, +¥2.4B, +73.8%). Non-operating income totaled ¥1.9B, mainly comprising gains on sales of securities of ¥1.6B and dividend income of ¥0.3B. Total assets expanded to ¥140.7B (up ¥41.5B from ¥99.2B a year ago), and net assets increased to ¥81.7B (up ¥5.8B from ¥75.9B).
[Profitability] ROE 6.9% (annualized basis; Net Income ¥5.7B ÷ Net Assets ¥81.7B; improved from 4.4% in the same period last year). [Cash Quality] Cash and deposits ¥66.0B (+166.2% from ¥24.8B in the same period last year), indicating a significant improvement in short-term liquidity. Short-term liability coverage is 1.1x (cash and deposits ¥66.0B ÷ current liabilities ¥58.2B). [Financial Soundness] Equity Ratio 58.0% (Net Assets ¥81.7B ÷ Total Assets ¥140.7B), Current Ratio 200.7% (current assets ¥116.6B ÷ current liabilities ¥58.2B), Debt-to-Equity Ratio 0.72x (liabilities ¥59.1B ÷ net assets ¥81.7B). Financial leverage stands at 1.72x at a conservative level. Working capital is ample at ¥58.4B.
Cash and deposits surged by ¥41.2B year on year to ¥66.0B, materially enhancing short-term liquidity. The main driver is presumed to be monetization of investment-related income, including ¥1.6B in gains on sales of securities. On the working capital front, accrued expenses of ¥1.5B and accrued income of ¥1.2B were recorded, indicating normal operating cash circulation. Investment securities stand at ¥17.2B with limited change from the same period last year, suggesting continued investment holdings alongside partial disposals. Cash coverage of short-term liabilities is 1.1x, securing adequate payment capacity. Non-current liabilities are small at ¥0.8B, implying low maturity mismatch risk. Cash headroom as a source for dividend payments has improved, underpinning near-term dividend sustainability.
Against Ordinary Income of ¥8.0B, Operating Income is ¥6.2B, indicating a net increase of ¥1.9B in non-operating items. The main components of non-operating income are ¥1.6B in gains on sales of securities and ¥0.3B in dividend income, with one-off, investment-related gains contributing to the earnings upside. As gains on sales of securities account for the majority of non-operating income, the contribution is more transitory compared with recurring core business earnings. At the Operating Income level, profit rose +73.2% YoY; however, with SG&A at ¥20.4B, there remains room to improve operating leverage. The significant increase in cash and deposits relative to Net Income of ¥5.7B supports the quality of earnings, but given that the source of the increase is gains on sales of securities, the sustainability of the earnings structure warrants attention.
[Position within Industry] (Reference information; our research) Note: While the company is classified under the securities industry, the benchmark data referenced are utilities sector (N=3) 2025-Q3 data. Please note the limitations of direct comparison due to differing industry characteristics. Profitability: The reference Operating Margin median for the sector is 8.6%, while the company’s Operating Income is at ¥6.2B; however, Operating Margin cannot be directly calculated due to lack of Revenue disclosure. The same applies to Net Profit Margin; calculation is not possible without Revenue data. Comparisons with sector medians (Net Profit Margin 6.6%, Operating Margin 8.6%) are limited. Soundness: The Equity Ratio of 58.0% compares favorably with general soundness levels in the sector. Efficiency: While a quantitative comparison of Operating Margin is difficult, the high dependence on investment income leaves room for evaluation of core business efficiency versus the sector. (Industry: utilities, N=3 companies, comparison period: 2025-Q3, source: our compilation)
This report is an earnings analysis document automatically generated by AI based on XBRL financial summary data. It does not constitute a recommendation to invest in any specific security. The industry benchmark is reference information compiled by our company from publicly available financial data. Investment decisions are your own responsibility; consult a professional as needed before making any decisions.