| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥2519.1B | ¥2329.8B | +8.1% |
| 営業利益 | ¥362.7B | ¥326.2B | +11.2% |
| 経常利益 | ¥382.4B | ¥334.0B | +14.5% |
| 純利益 | ¥257.6B | ¥249.1B | +3.4% |
| ROE | 13.4% | 14.0% | - |
For the fiscal year ended March 2026, the company achieved revenue of ¥2519.1B (YoY +¥189.3B +8.1%), Operating Income of ¥362.7B (YoY +¥36.5B +11.2%), Ordinary Income of ¥382.4B (YoY +¥48.4B +14.5%), and Net Income of ¥257.6B (YoY +¥8.5B +3.4%), representing growth in both sales and profits. The core Real Estate Management business (Revenue ¥1068.4B, Operating Income ¥146.4B) continued stable growth, while Construction realized significant margin improvements with Revenue +9.6% and Operating Income +26.8%. The Brokerage (Buy/Sell) business also expanded strongly with Revenue +20.4% and Operating Income +35.6%. Operating margin improved to 14.4% (up +0.4pt from 14.0% last year), supported by growth in higher value-added segments and SG&A containment. Ordinary Income outpaced Operating Income growth due to recognition of ¥11.8B in foreign exchange gains; however, Net Income growth was constrained by the prior-year reversal of special gains (fixed asset sale gain of ¥29.5B fell to ¥0.6B this year) and recording of ¥4.0B in fixed asset retirement losses. ROE declined slightly to 13.4% from the prior level (14.4%), while equity ratio strengthened to 54.6% (up +2.2pt from 52.4%), indicating improved financial soundness. With total assets of ¥3527.5B and interest-bearing debt of ¥514.5B (Debt/EBITDA 1.19x), leverage remains low; liquidity is ample with a current ratio of 160.4% and cash balance of ¥845.1B. Operating Cash Flow was ¥172.2B (YoY -33.5%), constrained by working capital increases (Inventories -¥117.5B, Trade receivables -¥74.6B), yielding an OCF/Net Income of 0.67x, but the operating cash subtotal of ¥286.3B (prior year ¥359.2B) remains solid reflecting profit growth. Investing Cash Flow was -¥191.4B (of which Capital Expenditure -¥151.4B), reflecting continued active investment, and Free Cash Flow was slightly negative at -¥19.1B. Financing Cash Flow was -¥123.0B, with dividends of -¥62.5B (annual dividend ¥140, payout ratio 24.4%) and share buybacks of -¥41.0B, resulting in a Total Return Ratio of approximately 40%, maintaining balance with shareholder returns.
[Revenue] Revenue of ¥2519.1B (+8.1%) by segment was led by Real Estate Management ¥1068.4B (+7.4%), Construction ¥864.2B (+9.6%), Hotel & Leisure ¥169.6B (+5.7%), Consulting ¥140.9B (+12.5%), and Senior Support & Childcare ¥130.8B (+5.1%). Notable were sharp increases in Brokerage (Buy/Sell) ¥102.3B (+20.4%) and Condominium Sales ¥70.7B (+133.6%), reflecting a buoyant property market and inventory digestion. Rental Brokerage ¥107.0B (+2.6%) showed slightly decelerating growth, Publishing ¥81.5B (-9.2%) continued structural decline, and Retail Sales ¥73.8B (-2.7%) edged down. Gross profit was ¥837.4B (gross margin 33.2%, down -0.1pt from 33.3% prior), indicating stable cost control but slight decline due to sales mix shift toward Construction and Condominium Sales.
[Profitability] Operating Income ¥362.7B (+11.2%) outpaced sales growth due to SG&A containment (SG&A ¥474.7B, SG&A/Sales 18.8%, improved -0.5pt from 19.3%) and contributions from high-margin businesses (Brokerage OPM 41.5%, Rental Brokerage 22.0%). Segment OP improvements were led by Construction ¥77.5B (+26.8%, OPM 9.0%), Brokerage ¥42.5B (+35.6%), Real Estate Management ¥146.4B (+10.8%), and Hotel & Leisure ¥25.7B (+18.8%). Conversely, Rental Brokerage ¥23.5B (-13.0%), Publishing ¥16.8B (-34.9%), and Consulting ¥22.4B (-6.9%) saw declines. Ordinary Income ¥382.4B (+14.5%) exceeded operating growth aided by non-operating income of ¥28.6B (foreign exchange gains ¥11.8B, dividend income ¥4.8B, interest income ¥5.4B). Extraordinary items netted -¥3.6B (extraordinary gains ¥6.3B, extraordinary losses ¥9.9B), a sharp decline from prior-year extraordinary gains of ¥30.4B. After taxes of ¥121.2B (effective tax rate 32.0%) and non-controlling interests of ¥4.5B, Net Income was ¥257.6B (+3.4%), with the increase materially compressed by the reversal in extraordinary items. In summary, the company delivered revenue and profit growth, but Net Income expansion was limited by one-off factors.
Real Estate Management: Revenue ¥1068.4B (+7.4%), Operating Income ¥146.4B (+10.8%, OPM 13.7%), demonstrating stable earnings power of the stock business. Construction: Revenue ¥864.2B (+9.6%), Operating Income ¥77.5B (+26.8%, OPM 9.0%), showing notable margin improvement year-over-year. Brokerage (Buy/Sell): Revenue ¥102.3B (+20.4%), Operating Income ¥42.5B (+35.6%, OPM 41.5%), a high-margin contributor to consolidated profitability. Hotel & Leisure: Revenue ¥169.6B (+5.7%), Operating Income ¥25.7B (+18.8%, OPM 15.2%), benefiting from demand recovery and higher occupancy. Condominium Sales: Revenue ¥70.7B (+133.6%) grew rapidly but Operating Income ¥0.9B (OPM 1.2%) remains thin. Rental Brokerage: Revenue ¥107.0B (+2.6%), Operating Income ¥23.5B (-13.0%, OPM 22.0%) faces decelerating growth and profit decline. Publishing: Revenue ¥81.5B (-9.2%), Operating Income ¥16.8B (-34.9%, OPM 20.7%) continues structural contraction. Consulting: Revenue ¥140.9B (+12.5%) increased, but Operating Income ¥22.4B (-6.9%, OPM 15.9%) declined due to higher costs. Senior Support & Childcare: Revenue ¥130.8B (+5.1%), Operating Income ¥6.2B (+2.2%, OPM 4.7%) shows stable but low-margin growth. Retail Sales: Revenue ¥73.8B (-2.7%), Operating Income ¥2.5B (+23.9%, OPM 3.4%) saw sales decline but margin improvement.
[Profitability] Operating margin 14.4% (up +0.4pt from 14.0%), Gross margin 33.2% (down -0.1pt from 33.3%), Net margin 10.2% (down -0.5pt from 10.7%). ROE 13.4% (prior 14.4%) declined slightly but accompanied by an improved Equity Ratio of 54.6% (prior 52.4%) and higher Net Assets of ¥1925.7B (up ¥143.3B from ¥1782.4B), reflecting a healthy level. Operating margin improvement stems from SG&A ratio restraint (18.8%, down -0.5pt from 19.3%) and segment mix improvement; Net margin decline is primarily due to reversal in extraordinary items. [Cash Quality] Operating Cash Flow ¥172.2B equals 0.67x of Net Income ¥257.6B, pressured by working capital increases (Inventories -¥117.5B, Trade receivables -¥74.6B), and OCF/EBITDA at 0.40x is weak. Operating cash subtotal ¥286.3B (prior ¥359.2B) decreased despite profit growth due to inventory and receivables build and tax payments ¥119.4B. Free Cash Flow was -¥19.1B with aggressive capex of -¥151.4B (2.14x depreciation ¥70.8B). [Investment Efficiency] Total asset turnover 0.71x (Revenue ¥2519.1B / Total assets ¥3527.5B), capex/depreciation ratio 2.14x indicating expanded investment posture. Goodwill ¥1.4B and intangibles ¥64.2B are light, limiting M&A impairment risk. Investment securities ¥185.6B (up ¥46.4B from prior ¥139.2B) carry market volatility risk but are limited at 9.8% of Net Assets ¥1887.5B. [Financial Soundness] Equity Ratio 54.6% (up +2.2pt), Interest-bearing debt ¥514.5B (short-term borrowings ¥69.0B + long-term borrowings ¥445.5B), Debt/Equity 0.27x, Debt/EBITDA 1.19x indicate low leverage. Current ratio 160.4% (Current assets ¥1629.9B / Current liabilities ¥1016.0B), cash and deposits ¥845.1B provide ample liquidity. Contract liabilities ¥159.4B are largely advance receipts and represent a stable funding source.
Operating Cash Flow was ¥172.2B (YoY -33.5%), after deductions from the operating cash subtotal ¥286.3B (prior ¥359.2B) for insufficient working capital liquidation and corporate tax payments ¥119.4B. Key drivers include inventory increase -¥117.5B (build-up of condominium and for-sale inventories), trade receivables increase -¥74.6B (uncollected receivables in Construction and Brokerage), and accounts payable increase +¥12.2B, resulting in approximately -¥180B of working capital cash outflow. Operating Cash Flow/Net Income 0.67x and OCF/EBITDA 0.40x indicate weak cash conversion; inventory and receivables turnover improvement is required. Investing Cash Flow was -¥191.4B, primarily due to capex -¥151.4B (to enhance hotel and real estate management operations and revenue base) and acquisition of investment securities -¥53.2B. Financing Cash Flow was -¥123.0B, including long-term borrowings raised ¥134.6B, repayments -¥151.2B, dividends -¥62.5B, and share buybacks -¥41.0B. Free Cash Flow was -¥19.1B (Operating CF ¥172.2B - Investing CF ¥191.4B), and the ample cash balance ¥845.1B (from opening ¥990.9B, decrease -¥145.8B) serves as a buffer. In the short term, accelerating collection of inventory and receivables and bringing forward cash-generating investments are keys to stabilizing cash flows.
Earnings quality is anchored by recurring Operating Income ¥362.7B, while non-operating income ¥28.6B includes a significant one-off element in foreign exchange gains ¥11.8B; interest income ¥5.4B and dividend income ¥4.8B are steady. Extraordinary items netted -¥3.6B (extraordinary gains ¥6.3B, extraordinary losses ¥9.9B), versus prior-year extraordinary gains of ¥30.4B (fixed asset sale gain ¥29.5B), which explains the slowdown in Net Income growth. The bridge from Operating Income to Ordinary Income shows non-operating net income of ¥19.7B (non-operating income ¥28.6B - non-operating expenses ¥8.9B), and Ordinary Income ¥382.4B is about 5.5% higher than Operating Income; however, there is risk of this gap narrowing if foreign exchange gains dissipate. Operating CF/Net Income 0.67x and OCF/EBITDA 0.40x show working capital increases (Inventories -¥117.5B, Trade receivables -¥74.6B) are pressuring cash conversion, and accrual factors are weighing on earnings quality. Comprehensive Income ¥246.6B (parent company ¥242.5B) was below Net Income ¥257.6B, with valuation differences on available-for-sale securities +¥7.2B, foreign currency translation adjustments -¥3.8B, and retirement benefit adjustments -¥14.3B reducing Net Income by ¥11.0B. Effective tax rate 32.0% (Tax expense ¥121.2B / Profit before tax ¥378.8B) is standard, with limited tax distortions.
Full Year guidance is Revenue ¥2900.0B (YoY +15.1%), Operating Income ¥400.0B (YoY +10.3%), Ordinary Income ¥390.0B (YoY +2.0%), Net Income ¥260.0B (EPS forecast ¥549.17). Current progress rates are Revenue 86.9%, Operating Income 90.7%, Ordinary Income 98.1%, Net Income 99.1%, implying expectations for further top-line additions in H2 while profit targets are mostly on track. The implied full-year Operating margin of 13.8% (vs. current-year 14.4%) is somewhat conservative, likely reflecting seasonality and investment burdens in H2. The forecast assumes Ordinary Income growth lagging Operating Income (+2.0% vs +10.3%), a realistic outlook premised on the absence of non-operating gains such as foreign exchange gains. Net Income guidance ¥260.0B (current-year ¥257.6B) includes risks from extraordinary items, while dividend guidance of ¥75 (annualized ¥150, up from current-year ¥140) indicates continued shareholder return commitment. Keys to achieving guidance: (1) digestion of Construction order backlog while maintaining margins, (2) stabilization of occupancy rates in Real Estate Management, (3) sustained Brokerage market conditions, and (4) normalization of working capital and improved cash conversion.
Dividends are interim ¥65 and year-end forecast ¥75 for an annual ¥140, with a payout ratio of 24.4% (dividends total ¥62.5B relative to Net Income ¥257.6B), at a sustainable level. Total return of ¥103.5B (dividends ¥62.5B + share buybacks ¥41.0B) corresponds to a Total Return Ratio of 40.2% relative to Net Income, balancing shareholder returns. Free Cash Flow is -¥19.1B, so dividend FCF coverage is not met, but the cash balance ¥845.1B (24.0% of total assets) and low leverage (interest-bearing debt ¥514.5B, Debt/Equity 0.27x) provide room to continue dividends. Next fiscal year dividend guidance is ¥75 (annualized ¥150), an increase, implying a payout ratio of approximately 27.3% against projected Net Income ¥260.0B. The company repurchased ¥41.0B of treasury stock during the period, leaving year-end treasury stock balance ¥170.9B (12.3% of outstanding shares), which helps prevent EPS dilution. ROE 13.4% and ongoing dividends plus buybacks indicate a stance toward improving capital efficiency.
Weak cash conversion due to working capital increases: Operating CF/Net Income 0.67x and OCF/EBITDA 0.40x show that working capital (Inventories -¥117.5B, Trade receivables -¥74.6B) is constraining cash generation. If inventory and receivables turnover improvement is delayed, persistent negative FCF could constrain additional investments and total returns. Cash balance ¥845.1B is a buffer, but normalization of cash flows is essential to sustain investment pace.
Real estate market cycle reversal and reliance on high-margin segments: High-margin businesses such as Brokerage (OPM 41.5%) and Rental Brokerage (22.0%) drive consolidated margins but are vulnerable to interest rate rises or declines in transaction volumes. Construction margin improvements (OPM 9.0%) could reverse with rises in material or labor costs. Condominium Sales saw rapid revenue growth (+133.6%) but very thin margins (OPM 1.2%), raising mix deterioration concerns.
Volatility of extraordinary items and Net Income instability: This fiscal year extraordinary net -¥3.6B (prior +¥30.4B) compressed Net Income growth to +3.4%. Fixed asset retirement losses ¥4.0B and market price volatility of investment securities (¥185.6B holdings) remain risks. If divergence between Ordinary Income and Net Income widens, market concerns over sustainability of shareholder returns could increase.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 営業利益率 | 14.4% | 10.7% (6.8%–17.9%) | +3.7pt |
| 純利益率 | 10.2% | 5.8% (2.5%–11.9%) | +4.4pt |
The company outperforms the industry median on both Operating margin and Net margin, driven by stock revenue in Real Estate Management and a mix skewed toward high-margin Brokerage, establishing a top-tier profitability position within the industry.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | 8.1% | 12.8% (4.2%–29.2%) | -4.7pt |
Revenue growth is below the industry median, placing the company in the mid-to-lower range for growth. However, high profitability compensates for the more moderate growth, supporting quality growth.
※Source: Company aggregation
Industry-leading margins driven by Real Estate Management and high-margin Brokerage mix: Operating margin 14.4% (industry median 10.7%, +3.7pt) and Net margin 10.2% (industry median +4.4pt) show competitive advantage. Construction OPM improvement (9.0%) and Brokerage margin expansion (41.5%) have driven consolidated profitability; further expansion of high value-added areas could continue to improve margins structurally.
Temporary weakness in cash conversion from working capital increases and progress toward normalization: Operating CF/Net Income 0.67x and OCF/EBITDA 0.40x are short-term concerns, but the operating cash subtotal ¥286.3B reflects underlying profit growth. If inventory and receivables collection and cash-generating investments progress, FCF stabilization and sustainability of total returns are feasible. Cash ¥845.1B and Debt/EBITDA 1.19x provide financial capacity to support both investment and shareholder returns.
Balanced shareholder returns through dividends and buybacks, and sustainability of the dividend increase plan: Payout ratio 24.4% and Total Return Ratio 40.2% indicate balanced returns. Next-year dividend guidance ¥75 (annualized ¥150, up from ¥140) reflects continued shareholder return policy, premised on profit growth and cash normalization. ROE 13.4%, low leverage, and ample liquidity underpin dividend sustainability.
This report is an AI-generated earnings analysis document produced by analyzing XBRL financial statement data. It is not a recommendation to invest in any specific security. Industry benchmark figures are reference information compiled by the firm based on publicly disclosed financial statements. Investment decisions are your own responsibility; if necessary, consult a professional advisor.