SENKON LOGISTICS CO.,LTD FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥331M
• Net Income: ¥294M
• EPS: ¥29.97

Income Statement

Balance Sheet

Cash Flow Statement

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

For FY2026 Q2 (consolidated, JGAAP), Senkon Logistics (90510) delivered operating income of ¥331.0m (-26.8% YoY) and net income of ¥149.0m (-48.9% YoY) amid limited revenue disclosure. Ordinary income was ¥317.0m, implying modest non-operating headwinds after interest expense of ¥33.7m. Despite weaker earnings, operating cash flow was strong at ¥1,049.2m, yielding an OCF/Net income ratio of 7.04x, supported by substantial non-cash expenses (depreciation and amortization of ¥347.8m) and likely working-capital tailwinds. The balance sheet shows total assets of ¥19.594bn and equity of ¥6.246bn, implying an equity ratio of approximately 31.9% (despite a reported 0.0% placeholder) and financial leverage of 3.14x. Liquidity is tight with a current ratio of 85.3% and negative working capital of ¥-1.10bn, which is not uncommon in logistics models but does increase refinancing and payables management risk. Interest coverage remains comfortable at about 9.8x on an EBIT basis, reflecting manageable debt service capacity. The effective tax rate appears elevated at roughly 56% when comparing income tax (¥177.0m) to ordinary income (¥317.0m), suggesting one-off tax items or timing effects; this contributed to the sharper drop in net profit versus operating profit. EBITDA was ¥678.8m, but margin metrics are not interpretable due to undisclosed revenue. Free cash flow cannot be assessed because investing cash flows are undisclosed (reported as 0), and cash balance disclosure is also absent, limiting visibility on near-term funding headroom. Capital structure shows total liabilities of ¥12.713bn (D/E ~2.04x), in line with an asset-intensive logistics profile but warranting monitoring given the sub-1.0x current ratio. Dividend payments are currently nil (DPS ¥0.00), with a payout ratio of 0% and FCF coverage not meaningful given unreported capex. Overall, the quarter reflects pressure on profitability, solid cash generation from operations, constrained short-term liquidity, and moderate leverage. Outlook hinges on revenue normalization, cost pass-through, and capex cadence, which we cannot fully evaluate without sales and investment disclosures. Key data gaps (sales, COGS/gross margin, investing CF, cash) limit precision of margin, FCF, and liquidity runway analyses. Nevertheless, the available figures suggest resilient cash conversion offset by tighter working capital and a higher-than-usual tax burden impacting bottom line.

Profitability Analysis

ROE_decomposition: Using DuPont with available data: financial leverage is 3.14x (assets ¥19.594bn / equity ¥6.246bn). Net profit margin and asset turnover are undisclosed (revenue not provided), so calculated ROE cannot be meaningfully derived despite reported placeholders at 0.00%. Net income was ¥149.0m against ordinary income of ¥317.0m, indicating a high effective tax and/or below-the-line effects compressing the margin. margin_quality: Operating income declined to ¥331.0m (-26.8% YoY). Gross profit is undisclosed (0 placeholder), preventing gross margin assessment. EBITDA of ¥678.8m reflects significant depreciation (¥347.8m), consistent with an asset-heavy logistics model. The apparent effective tax rate (~56% vs ordinary income) reduced net margin disproportionately versus operating performance, pointing to one-offs or timing effects. operating_leverage: With revenue unreported, classical operating leverage inference is limited. However, the larger YoY decline in net income (-48.9%) vs operating income (-26.8%) indicates negative operating and below-the-line leverage this half, potentially from cost inflation not fully passed through, mix effects, and higher tax burden.

Growth Assessment

revenue_sustainability: Revenue is unreported this period; thus, we cannot quantify top-line growth. As a logistics provider, volume trends, unit pricing, and fuel/driver cost pass-through are key to sustaining revenue, but current data does not allow assessment. profit_quality: Profit quality is mixed: EBIT fell, but cash conversion is strong (OCF/NI 7.04x) due to high D&A and likely favorable working-capital movements. The high tax charge relative to ordinary income suggests non-recurring items or timing, which may normalize and improve bottom-line run-rate. outlook: Near-term earnings trajectory depends on demand in core logistics segments, success of price revisions to offset input costs, and capex discipline. If tax effects normalize and working-capital benefits persist, profit conversion could improve; conversely, tighter liquidity and potential capex outlays could pressure near-term margins and cash.

Financial Health

liquidity: Current assets ¥6,394.2m vs current liabilities ¥7,494.4m yields a current ratio of 0.85x and working capital of ¥-1,100.2m. Quick ratio is the same (inventories unreported). Cash on hand is undisclosed (0 placeholder), limiting visibility on immediate liquidity buffers. solvency: Total liabilities ¥12,712.7m vs equity ¥6,246.0m results in D/E of ~2.04x and an equity ratio of ~31.9% (calculated). Interest coverage is ~9.8x (EBIT ¥331.0m / interest ¥33.7m), indicating adequate debt service capacity at current earnings. capital_structure: Leverage (assets/equity) is 3.14x. The liability mix is not disclosed, but logistics businesses typically combine leasing and bank debt; the sub-1.0x current ratio elevates refinancing and rollover risk if short-term borrowings are significant.

Cash Flow Quality

earnings_quality: OCF of ¥1,049.2m vs NI of ¥149.0m (7.04x) indicates strong conversion, supported by non-cash D&A (¥347.8m) and likely working-capital release. This suggests earnings are not overly reliant on accruals this period. FCF_analysis: Investing CF is undisclosed (reported as 0), so FCF cannot be computed. Given the asset-intensive nature of logistics, baseline maintenance capex is typically material; actual FCF is likely below OCF. working_capital: Negative working capital (¥-1.10bn) and a current ratio of 0.85x imply reliance on supplier credit and possibly short-term borrowings. OCF strength may partly reflect timing benefits that could reverse in subsequent periods.

Dividend Sustainability

payout_ratio_assessment: DPS is ¥0.00 and payout ratio is 0%. With NI of ¥149.0m and strong OCF, capacity exists in principle; however, payout decisions likely reflect liquidity discipline and capex needs. FCF_coverage: Not assessable this period due to unreported investing CF; thus, dividend coverage by FCF cannot be determined. policy_outlook: Given leverage (D/E ~2.04x), a sub-1.0x current ratio, and typical capex requirements in logistics, a conservative dividend stance appears prudent until FCF visibility and liquidity improve.

Risk Assessment

Business Risks:

• Demand volatility in core logistics end-markets affecting volumes and utilization
• Cost inflation (labor, fuel) and timing of price pass-through to customers
• Capacity and driver availability constraints impacting service levels and cost base
• Competitive pricing pressure in regional logistics and 3PL services
• Operational disruptions (weather, accidents, supply chain bottlenecks)

Financial Risks:

• Tight liquidity (current ratio 0.85x, negative working capital ¥-1.10bn)
• Potential refinancing risk if short-term debt is significant
• Higher-than-normal effective tax burden (~56%) depressing net income
• Capex intensity typical of logistics may reduce FCF despite strong OCF
• Interest rate exposure affecting borrowing costs and coverage

Key Concerns:

• Lack of revenue and cash balance disclosure limiting visibility on margins and liquidity buffers
• Investing cash flows not disclosed, preventing FCF assessment
• Sharp YoY decline in net income (-48.9%) vs operating income (-26.8%), implying below-the-line pressures

Investment Implications

Key Takeaways:

• EBIT down 26.8% YoY to ¥331.0m; NI down 48.9% to ¥149.0m
• Strong operating cash flow (¥1,049.2m; OCF/NI 7.04x) supports near-term funding needs
• Leverage moderate-to-high (D/E ~2.04x; equity ratio ~31.9%) with comfortable interest cover (~9.8x)
• Liquidity tight (current ratio 0.85x; working capital ¥-1.10bn), increasing short-term funding reliance
• Tax rate appears elevated (~56%), weighing on bottom line and potentially non-recurring

Metrics to Watch:

• Top-line recovery and disclosed revenue/gross margin to gauge pass-through and mix
• Investing cash flows and capex commitments to assess FCF and balance sheet trajectory
• Cash and equivalents disclosure to refine liquidity assessment
• Working-capital movements (receivables/payables/days) to test sustainability of OCF
• Effective tax rate normalization and any one-off tax items
• Interest coverage and debt maturity profile amid rate environment

Relative Positioning: Within the logistics sector, the company exhibits typical asset intensity and depreciation burden, moderate leverage with adequate interest cover, but tighter-than-peer liquidity; earnings-side pressure contrasts with robust OCF, leaving relative standing contingent on capex discipline and the ability to pass through costs.

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