ENSHU TRUCK CO.,LTD. FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥1.43B
• Net Income: ¥1.05B
• EPS: ¥130.19

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

Enshu Truck Co., Ltd. (9057) reported FY2026 Q2 (cumulative) consolidated results under JGAAP with solid profitability and cash generation despite modest profit declines year on year. Operating income was ¥1,427m (-3.6% YoY), ordinary income ¥1,430m, and net income ¥972m (-7.4% YoY), indicating limited non-operating drag and a tax burden consistent with norms. Revenue and several line items were not disclosed in the provided XBRL extract (zeros signify non-disclosure), which constrains margin analysis; conclusions below focus on the non-zero data. Interest expense was modest at ¥37m, leaving a robust interest coverage of about 38.6x based on operating income, underscoring low financial risk from borrowing costs. Effective tax expense was ¥469m, implying an effective tax rate around 32.8% using ordinary income as a proxy for pre-tax income (the provided 0.0% is clearly an artifact of missing denominators). Cash flow from operations (OCF) was strong at ¥2,496m, more than 2.5x net income, supported by non-cash depreciation/amortization of ¥566m and a sizable working capital tailwind. The balance sheet is conservative with total assets of ¥39,471m, total liabilities of ¥16,873m, and total equity of ¥23,826m; this implies an equity ratio of roughly 60% (the reported 0.0% is a non-disclosure artifact), providing ample solvency headroom. Liquidity appears adequate, with a current ratio of about 1.50x and quick ratio similar given undisclosed inventories. Financing cash outflow of ¥1,470m suggests debt reduction and/or shareholder returns; given DPS and payout appear undisclosed (reported as zero), the mix cannot be confirmed. EBITDA approximates ¥1,993m (operating income plus D&A), supporting the high coverage and cash generation profile. While top-line trends are unavailable, the small YoY decline in operating income and net income points to manageable operating pressure rather than a structural deterioration. With moderate leverage (D/E ~0.71x using total liabilities as a proxy), the company retains balance sheet flexibility for capex and strategic investments, though investing cash flows are not disclosed. Overall, the quality of earnings appears good given strong OCF conversion, and financial resilience remains a strength. Key monitoring points include revenue trajectory, cost pass-through (fuel and labor), capex intensity, and sustainability of working capital inflows. Data limitations (notably revenue, gross profit, inventories, cash, and share counts) warrant a cautious interpretation of ratios that rely on these inputs.

Profitability Analysis

ROE decomposition is constrained by missing revenue and complete equity detail, but we can infer partial components. Using period-end equity as a proxy, half-year ROE is approximately 4.1% (¥972m / ¥23,826m), which annualizes to roughly 8.2% if earnings run rate holds. Financial leverage (Assets/Equity) is about 1.66x (¥39,471m / ¥23,826m), consistent with the provided figure. Asset turnover and net margin cannot be reliably calculated due to undisclosed revenue and gross profit. Operating income declined 3.6% YoY, suggesting modest operating pressure; ordinary income closely tracks operating income, indicating limited non-operating volatility. Interest expense is minimal relative to operating income, delivering an interest coverage of ~38.6x, which supports earnings stability. D&A of ¥566m against operating income of ¥1,427m suggests a meaningful capital base but still a solid operating margin on a cash basis (EBITDA of ~¥1,993m). Margin quality looks resilient from a cash standpoint given strong OCF/NI, though the absence of revenue prevents precise margin diagnostics (gross, operating, EBITDA margins). Operating leverage cannot be precisely assessed without revenue, but the small YoY decline in operating income implies cost control is generally effective. Effective tax rate is approximately 32.8% (¥469m / ¥1,430m ordinary income), broadly in line with standard rates, suggesting no unusual tax effects.

Growth Assessment

Top-line sustainability cannot be assessed due to undisclosed revenue; however, operating income fell 3.6% YoY and net income fell 7.4% YoY, indicating a moderate compression in profitability. The limited gap between operating and ordinary income implies stable non-operating items, so the YoY decline likely stems from core operations rather than financial swings. Given logistics sector dynamics, potential pressures include labor cost inflation and fuel price volatility; the results suggest these were largely managed but not fully offset. EPS of ¥130.19 for the half indicates healthy per-share earnings, though share count data is undisclosed, limiting per-share trend analysis. OCF outperformance versus net income indicates strong underlying cash realization, which supports the durability of earnings even as accounting profits eased. Outlook-wise, the business appears steady with modest headwinds; absent revenue disclosure, we cannot determine volume versus price contributions. Key to sustaining growth will be contract renewals, utilization rates, and fuel/labor cost pass-through. Without investing cash flow disclosure, we cannot gauge growth capex or expansion initiatives, which are important for medium-term trajectory. Overall, profit quality looks sound, but top-line momentum remains a data gap.

Financial Health

Liquidity: Current assets ¥13,126m vs current liabilities ¥8,782m yields a current ratio of ~1.50x and quick ratio similar (inventories undisclosed), indicating adequate short-term coverage. Working capital stands at ¥4,344m, providing operational flexibility. Solvency: Equity of ¥23,826m vs total assets ¥39,471m implies an equity ratio around 60.3% (despite the reported 0.0% non-disclosure), reflecting a conservative balance sheet. Leverage: Using total liabilities as a proxy for debt, D/E is ~0.71x; true interest-bearing leverage may be lower, given small interest expense. Interest coverage is ~38.6x, underscoring low refinancing risk and strong buffer against rate increases. Cash position is not disclosed, but strong OCF and modest interest cost suggest adequate liquidity even without explicit cash balances. No signs of strain are evident from the available data.

Cash Flow Quality

Earnings quality appears strong. OCF of ¥2,496m vs net income of ¥972m yields an OCF/NI ratio of ~2.57x, indicating robust cash conversion. Non-cash D&A of ¥566m explains part of the delta; the remaining ~¥958m likely reflects favorable working capital movements and/or other non-cash adjustments. EBITDA is ~¥1,993m (OI + D&A), supporting the high interest coverage and internal funding capacity. Free cash flow cannot be determined because investing cash flows were not disclosed; therefore, we cannot assess maintenance vs growth capex or the sustainability of FCF beyond OCF quality. Working capital details (receivables, payables, inventories) are not available, but the OCF strength suggests no adverse buildup in the period. Overall, cash generation comfortably supports operations and debt service, with unknowns around capex intensity the main caveat.

Dividend Sustainability

Dividend data for the period is not disclosed (DPS and payout shown as zero indicate non-disclosure). With half-year EPS at ¥130.19 and strong OCF, capacity to fund dividends appears intact from a fundamentals perspective, but without DPS or investing cash flow, coverage by free cash flow cannot be assessed. Financing cash outflow of ¥1,470m could include dividends and/or debt repayment; the actual mix is unknown. The company’s conservative balance sheet (equity ratio ~60%) and high interest coverage provide slack to sustain shareholder returns if policy targets a stable or progressive dividend. However, absent explicit dividend policy guidance and capex disclosure, our view on sustainability remains constrained by data limitations.

Risk Assessment

Business Risks:

• Fuel price volatility and timing of pass-through to customers
• Labor cost inflation and driver availability constraints in logistics
• Contract renewal risk and pricing pressure from key customers
• Macroeconomic sensitivity affecting shipment volumes and utilization
• Regulatory changes impacting transportation hours, safety, and emissions

Financial Risks:

• Potential increase in interest rates, albeit mitigated by strong coverage
• Working capital reversals after a favorable inflow this period
• Capex intensity uncertainty due to undisclosed investing cash flows
• Limited visibility on cash balances and liquidity buffers due to non-disclosure
• Reclassification or undisclosed contingent liabilities within total liabilities

Key Concerns:

• Revenue and gross profit undisclosed, limiting margin analysis and growth diagnostics
• Investing cash flows undisclosed, obscuring free cash flow and capex sustainability
• Dividend data unavailable, restricting payout policy assessment
• Small but notable YoY decline in operating and net income

Investment Implications

Key Takeaways:

• Core profitability remains solid with operating income of ¥1.43bn (-3.6% YoY)
• Net income of ¥0.97bn (-7.4% YoY) alongside a normalized tax rate (~33%) indicates no unusual one-offs
• Cash conversion is strong (OCF/NI ~2.6x), supported by D&A and working capital tailwinds
• Balance sheet is conservative (equity ratio ~60%, D/E ~0.71x using total liabilities), supporting resilience
• Interest burden is light with coverage of ~39x, limiting financial risk
• Key analytical gaps: revenue, gross margin, investing CF, cash balance, and dividend disclosures

Metrics to Watch:

• Revenue trend and unit economics (yields, utilization) once disclosed
• Operating income trajectory vs fuel and labor cost indices
• Capex and maintenance vs growth split (investing CF, PP&E additions)
• Working capital movements and OCF/NI sustainability
• Interest-bearing debt levels and effective interest rate
• Dividend announcements and payout/FCF coverage
• Equity ratio (Assets/Equity) and leverage stability

Relative Positioning: Within Japan’s mid-cap logistics peer set, Enshu Truck appears conservatively capitalized with superior interest coverage and strong cash conversion this period, though the lack of revenue disclosure precludes precise margin benchmarking; modest YoY profit declines suggest manageable headwinds relative to peers facing similar fuel and labor cost pressures.

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