Sakai Moving Service Co.,Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥60.72B
• Operating Income: ¥6.53B
• Net Income: ¥4.54B
• EPS: ¥105.81

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment 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

Sakai Moving Service Co., Ltd. reported FY2026 Q2 consolidated results under JGAAP with steady top-line growth but mild profit contraction. Revenue rose 2.6% year over year to ¥60.7bn, while operating income slipped 1.1% to ¥6.53bn, indicating modest margin pressure. Net income declined 5.2% to ¥4.30bn, with an implied effective tax rate around 34% (based on tax expense of ¥2.22bn and net income), despite the metrics table showing 0.0% (likely an artifact of incomplete disclosures). Gross margin stands at a solid 37.4%, and operating margin is 10.8%, reflecting a relatively healthy core profitability profile for a logistics/service operator. Ordinary income (¥6.68bn) exceeded operating income, suggesting positive non-operating contributions (e.g., interest/dividend income or other non-operating gains). DuPont analysis indicates ROE of 4.44%, driven by a 7.08% net margin, asset turnover of 0.514x, and conservative leverage of 1.22x (Assets/Equity). Balance sheet strength is notable: liabilities of ¥31.2bn against equity of ¥96.9bn imply a liabilities-to-equity ratio of ~0.32x and an equity ratio near 82% (the reported 0.0% equity ratio appears unreported, not zero). Liquidity is robust with a current ratio of 164% and working capital of ¥17.4bn, providing ample short-term coverage. Interest burden is negligible (¥12m), yielding an exceptionally high interest coverage of ~544x, underscoring low financial risk. Cash flow statements are unreported this quarter (OCF/FCF shown as zero are placeholders), limiting assessment of earnings-to-cash conversion and capex intensity. EPS is ¥105.81, implying roughly 40.6 million average shares outstanding this period (share count not disclosed in the table). The slight divergence between revenue growth and declining operating profit points to negative operating leverage in the quarter, likely from higher SG&A (e.g., labor and logistics costs) or mix effects. With stable gross margin and lower operating profit, pressure probably resides below gross profit (marketing, labor, or other overhead). Dividend details are not disclosed this period; therefore, payout and FCF coverage cannot be evaluated. Overall, the company maintains strong financial health and resilient margins, but near-term profit growth appears constrained by cost dynamics and potentially normalizing non-operating contributions. Data limitations (notably D&A, cash flows, dividend, and share data) temper the confidence level of cash flow and capital allocation assessments.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 7.08% (Net Income ¥4.30bn / Revenue ¥60.72bn)
• asset_turnover: 0.514x (Revenue ¥60.72bn / Total Assets ¥118.23bn)
• financial_leverage: 1.22x (Assets ¥118.23bn / Equity ¥96.94bn)
• calculated_ROE: 4.44% (matches reported) margin_quality:
• gross_margin: 37.4% (Gross Profit ¥22.69bn)
• operating_margin: 10.8% (Operating Income ¥6.53bn)
• ordinary_margin: 11.0% (Ordinary Income ¥6.68bn)
• net_margin: 7.08% (Net Income ¥4.30bn)
• tax_rate_commentary: Implied effective tax rate ~34% (¥2.216bn / (¥4.300bn + ¥2.216bn)), while the provided 0.0% is an unreported placeholder. operating_leverage: Negative in the quarter: revenue grew +2.6% YoY while operating income fell −1.1% YoY, indicating cost growth in SG&A/overheads or mix shifts outweighed top-line gains. Given stable gross profitability, pressure likely arose below gross profit (labor, sales/marketing, or other operating costs).

Growth Assessment

revenue_sustainability: Top-line growth of +2.6% YoY suggests steady demand in the moving business, potentially supported by stable household moves and corporate relocation activity. Without segment disclosures, sustainability across consumer vs. corporate and regional mix cannot be verified. profit_quality: Ordinary income exceeding operating income implies supportive non-operating items; core profit quality is acceptable (10.8% OPM), but YoY decline in OI points to near-term cost headwinds. The implied tax rate normalization also weighed on net income. outlook: Absent guidance and cash flow detail, near-term growth hinges on cost control (labor, fuel, subcontracting) and pricing/mix discipline. With a strong balance sheet, the company has flexibility to invest in fleet, systems, and service quality to underpin medium-term growth, but operating leverage will be a key swing factor.

Financial Health

liquidity: Current ratio 164.1% (Current Assets ¥44.66bn / Current Liabilities ¥27.22bn); quick ratio similar due to unreported inventories; working capital ¥17.44bn. Indicates ample short-term coverage. solvency: Low leverage: liabilities-to-equity ~0.32x (¥31.23bn / ¥96.94bn). Interest expense is minimal (¥12m) with coverage ~544x, implying negligible refinancing risk. capital_structure: Implied equity ratio ~82% (Equity ¥96.94bn / Assets ¥118.23bn). The reported equity ratio of 0.0% is unreported. Conservative balance sheet provides capacity for capex and potential shareholder returns.

Cash Flow Quality

earnings_quality: OCF not disclosed this period (shown as zero). As such, OCF/Net Income, accrual intensity, and conversion cannot be assessed. Given stable margins, earnings quality appears reasonable, but confirmation requires cash data. FCF_analysis: Capex and investing CF are unreported; FCF cannot be computed. Fleet renewal cycles and facility investments can materially influence FCF in this industry. working_capital: Receivables, payables, and inventories are not detailed; inventories show as zero (unreported). With strong working capital at ¥17.44bn, liquidity looks comfortable, but changes in receivables/payables days cannot be assessed.

Dividend Sustainability

payout_ratio_assessment: Dividend per share and payout ratio are unreported this period (0.00 placeholders). EPS is ¥105.81, but without DPS we cannot calculate payout. FCF_coverage: Not assessable due to unreported OCF/FCF. Historical distribution policy and cash generation would be needed to evaluate sustainability. policy_outlook: With high equity ratio and low leverage, capacity for distributions exists in principle; actual policy will depend on earnings trajectory, capex for fleet/IT, and cash conversion.

Risk Assessment

Business Risks:

• Demand cyclicality tied to housing activity, relocations, and corporate moves
• Seasonality (peak moving periods) and operational execution during high-demand months
• Labor availability and wage inflation, including driver shortages
• Fuel and energy cost volatility affecting transportation costs
• Competitive pricing pressure in household moving and logistics
• Accident/claim rates and service quality impacting costs and reputation
• Demographic headwinds in Japan potentially limiting long-term volume growth
• Natural disasters and weather events disrupting operations and raising costs

Financial Risks:

• Potential capex upcycles for fleet renewal and facilities impacting FCF
• Interest rate normalization marginally increasing financing costs (though current leverage is low)
• Working capital swings around peak seasons affecting short-term liquidity
• Non-operating income variability influencing ordinary profit

Key Concerns:

• Negative operating leverage in the quarter despite revenue growth
• Lack of disclosed cash flow data, obscuring earnings-to-cash conversion and FCF
• Unreported D&A and EBITDA, limiting assessment of economic depreciation and asset intensity
• Tax rate normalization pressuring net income

Investment Implications

Key Takeaways:

• Steady revenue growth (+2.6% YoY) but slight operating profit decline (−1.1% YoY) indicates cost pressure
• Healthy margins (37.4% gross, 10.8% operating) and strong balance sheet (equity ratio ~82%)
• ROE at 4.44% reflects conservative leverage and moderate profitability
• Exceptional interest coverage (~544x) underscores minimal financial risk
• Cash flow and dividend data are not disclosed, constraining capital allocation analysis

Metrics to Watch:

• Operating expense ratio and labor cost per job
• Average selling price per move and volume growth (household vs. corporate)
• Fuel cost trends and surcharges
• OCF and capex once disclosed; FCF conversion and coverage of dividends
• Accident/claims ratio and service quality KPIs
• Non-operating income components affecting ordinary profit
• Effective tax rate versus statutory rate

Relative Positioning: Within Japan’s moving/logistics peer set, the company exhibits stronger-than-average balance sheet conservatism and solid operating margins, positioning it defensively; however, current ROE is middling and near-term profit growth is constrained by cost dynamics.

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
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