Anicom Holdings,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Income: ¥2.14B
• EPS: ¥19.20

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Anicom Holdings (8715) reported FY2026 Q2 consolidated results under JGAAP with operating income of ¥2,098 million and net income of ¥1,429 million, with the latter declining 34.4% YoY. Reported revenue and several line items show as zero, which indicates non-disclosure in the provided dataset rather than actual zero values; therefore margin metrics tied to revenue cannot be computed from this extract. Ordinary income equaled operating income at ¥2,098 million, implying minimal net non-operating impact in this period based on available data. Operating cash flow was ¥1,495 million, modestly exceeding net income (OCF/NI = 1.05x), suggesting reasonable earnings-to-cash conversion. Depreciation and amortization were ¥406 million, yielding EBITDA of ¥2,504 million. Total assets were ¥74,673 million, liabilities ¥44,427 million, and equity ¥28,311 million, implying financial leverage (assets/equity) of 2.64x. Using the disclosed net income and period-end equity as a rough point-in-time proxy, half-year ROE approximates 5.0% (¥1,429m / ¥28,311m), though this is not directly comparable to full-year ROE. Financing cash flow was an outflow of ¥2,051 million, indicating capital returns (e.g., dividends/share repurchases) and/or debt reduction, but the split is not available. Several liquidity metrics (current/quick ratios), revenue-based margins, and per-share balance metrics cannot be assessed due to non-disclosure of the underlying components in this dataset. The decline in net income despite positive operating income points to either higher tax burden, non-operating losses, or prior-year one-offs; based on NI and reported income tax, the implied effective tax rate appears elevated. Balance sheet leverage is moderate for an insurance-related business, but sector-specific solvency indicators (e.g., solvency margin ratio) are not provided. Overall, cash conversion is sound, operating profitability is positive, and the balance sheet shows ample equity, but the YoY decline in bottom line and missing revenue/underwriting disclosures limit interpretability. For an insurer, underwriting quality (loss and expense ratios) and investment income are key drivers, yet are not disaggregated here. Dividend data are not disclosed in this extract; however, the negative financing cash flow suggests distributions or balance sheet actions continued. Given data gaps, conclusions should be treated as preliminary and focused on the observable non-zero items.

Profitability Analysis

ROE_decomposition: A full DuPont decomposition is not feasible because revenue and asset turnover in the dataset are reported as zero (undisclosed). Using available figures: financial leverage (A/E) is 2.64x. A rough half-year ROA proxy using operating income is 2.8% (¥2,098m / ¥74,673m). If we annualize NI for context only, implied annualized ROE could be around ~10%, but this is a simplistic extrapolation and not a substitute for reported TTM ROE. margin_quality: Operating income is ¥2,098m and EBITDA is ¥2,504m, but gross profit and revenue are undisclosed, preventing computation of gross, operating, and EBITDA margins. Ordinary income equals operating income, indicating limited net non-operating effects this period; in an insurer context, this could reflect balanced underwriting and investment results in aggregate, though the mix is unknown. operating_leverage: D&A of ¥406m (≈19% of EBITDA) indicates a moderate non-cash component. Without revenue and cost breakdowns, operating leverage sensitivity cannot be quantified. The YoY decline in net income (-34.4%) versus flat reported operating income YoY suggests deleveraging below the operating line (e.g., higher taxes or non-operating items) rather than negative top-line operating leverage in this dataset.

Growth Assessment

revenue_sustainability: Revenue is undisclosed in this extract, so topline growth cannot be assessed. For an insurance group, sustainable growth depends on policy count, average premium, retention, and price adequacy—none of which are provided here. profit_quality: Operating income of ¥2,098m and OCF of ¥1,495m give OCF/NI of 1.05x, supporting reasonable profit quality. The decline in net income (-34.4% YoY) despite stable operating income (reported as flat YoY) implies pressure from taxes or below-the-line items rather than core operations in this period. outlook: Absent underwriting metrics (loss ratio, expense ratio, combined ratio) and investment income detail, forward growth signals are limited. Key determinants ahead will be claims inflation in pet insurance, reinsurance terms, pricing actions, and asset yield trends. If operating trends are stable and cash conversion remains >1.0x of net income, earnings stability improves; however, higher tax burdens or realized investment losses could continue to weigh on bottom line.

Financial Health

liquidity: Current and quick ratios are undisclosed here; cash and equivalents are also not disclosed in this dataset. For insurers, traditional liquidity ratios are less indicative than liquid asset coverage and claim payout profiles, which are not provided. solvency: Total assets ¥74,673m, liabilities ¥44,427m, equity ¥28,311m. Debt-to-equity from the dataset is 1.57x, though in insurance, liabilities include policy reserves and are not equivalent to financial debt. Leverage (A/E) is 2.64x and appears moderate for the sector. capital_structure: Financing cash outflow of ¥2,051m suggests distributions and/or debt repayment. Without specific debt notes or solvency metrics (e.g., SMR), we cannot assess regulatory capital headroom. Equity ratio is shown as 0.0% in the dataset due to non-disclosure; the computed equity-to-asset ratio based on totals is approximately 37.9%.

Cash Flow Quality

earnings_quality: OCF/Net income is 1.05x (¥1,495m / ¥1,429m), indicating good conversion. D&A of ¥406m supports EBITDA of ¥2,504m and provides a cushion to cash flows. FCF_analysis: Investing CF is undisclosed; therefore, free cash flow cannot be computed reliably. The reported FCF of 0 in the dataset should be treated as a placeholder for missing data, not as actual zero. working_capital: Working capital metrics are not available. For insurance operations, changes in reserves and receivables/payables (premiums, claims) drive OCF; the positive OCF suggests manageable movement in these items, but details are not disclosed.

Dividend Sustainability

payout_ratio_assessment: DPS and payout ratio are undisclosed here. With EPS at ¥19.20 for the period, a payout assessment cannot be made without DPS or policy guidance. FCF_coverage: FCF is not computable due to missing investing cash flows; hence FCF coverage of dividends cannot be evaluated from this dataset. Financing CF of -¥2,051m could include dividends, but the split is unknown. policy_outlook: No dividend policy information is included. Historically, Japanese insurers often target stable dividends; confirmation would require management guidance or prior-year actuals, which are not provided here.

Risk Assessment

Business Risks:

• Underwriting risk: higher pet medical cost inflation driving elevated loss ratios
• Pricing adequacy risk amid competitive pressure in pet insurance
• Reinsurance availability and cost, including renewal terms and counterparty credit risk
• Regulatory changes impacting insurance product terms and capital requirements
• Epidemiological events affecting pet health claims frequency/severity
• Customer acquisition and retention dynamics affecting policy count growth
• Brand/reputation risks from claims handling or product changes

Financial Risks:

• Interest rate and market risk affecting investment income and valuation of securities
• Asset-liability duration mismatch impacting economic solvency
• Credit risk in the investment portfolio
• Potential volatility in realized gains/losses impacting bottom line
• Tax rate volatility and one-off tax items influencing net income
• Liquidity needs for claims payments during spikes in loss events

Key Concerns:

• Net income declined 34.4% YoY despite positive operating income, implying pressure below the operating line
• Revenue and key underwriting metrics are undisclosed, limiting visibility on core drivers
• Dividend and share count information are not disclosed, constraining per-share and payout analysis

Investment Implications

Key Takeaways:

• Operating income of ¥2.1bn and EBITDA of ¥2.5bn demonstrate positive operating performance in FY2026 Q2
• Net income of ¥1.43bn declined 34.4% YoY, likely due to higher taxes or non-operating effects
• OCF/NI at 1.05x indicates solid earnings-to-cash conversion
• Balance sheet shows equity of ¥28.3bn and leverage (A/E) of 2.64x, moderate for an insurance group
• Financing cash outflow of ¥2.05bn suggests ongoing capital returns and/or deleveraging
• Key revenue and underwriting metrics are missing, which constrains margin and growth assessment

Metrics to Watch:

• Loss ratio, expense ratio, and combined ratio trends
• Policy count growth, average premium, and retention rates
• Net investment income and realized gains/losses
• Solvency margin ratio and capital adequacy buffers
• Tax rate normalization and any one-off items
• Reinsurance costs and coverage terms at renewal

Relative Positioning: Within Japan’s insurance universe, the company appears to have moderate leverage and decent cash conversion, but the lack of disclosed revenue and underwriting metrics in this dataset limits comparative assessment versus domestic non-life peers. Additional disclosures (combined ratio, SMR, investment yield) are needed to gauge relative profitability and capital strength.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis