Maruzen Showa Unyu Co.,Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥72.24B
• Operating Income: ¥7.52B
• Net Income: ¥5.95B
• EPS: ¥306.29

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

Maruzen Showa Unyu (TSE:9068) delivered steady topline growth and stronger profitability in FY2026 Q2 under JGAAP on a consolidated basis. Revenue grew 1.4% year over year to ¥72.24bn, while operating income rose a faster 9.3% to ¥7.52bn, indicating margin expansion. Operating margin improved to roughly 10.4%, supported by cost discipline and/or pricing/mix tailwinds. Ordinary income reached ¥8.11bn, exceeding operating income and suggesting positive non-operating contributions. Net income increased 1.5% to ¥5.98bn, translating to a net margin of 8.28%. DuPont decomposition points to an ROE of 4.30%, driven primarily by a healthy net margin and modest asset turnover (0.363x), with conservative financial leverage (1.43x). EBITDA was ¥9.96bn, for a 13.8% margin, underscoring solid operating cash generation capability relative to sales. Interest coverage is strong at 67.1x, reflecting low interest burden (¥112m) and a defensive balance sheet. Liquidity appears robust with a current ratio of 209%, and total liabilities of ¥59.94bn against equity of ¥138.94bn imply low gearing (liabilities-to-equity 0.43x). Operating cash flow of ¥7.37bn exceeded net income (OCF/NI 1.23x), indicating sound earnings quality. Reported zero figures for gross profit, inventories, investing cash flow, cash and equivalents, equity ratio, dividends, and share counts reflect non-disclosure in this dataset rather than true zeros; conclusions are therefore drawn only from available non-zero items. EPS was ¥306.29; this implies c. 19.5 million shares outstanding, though the reported shares figure is unavailable. The positive spread between ordinary and operating income hints at stable non-operating income sources, potentially financial income or equity-method contributions. Effective tax assessment is constrained by incomplete disclosure, though reported income taxes were ¥2.71bn. Overall, the company exhibits improving operating leverage, robust liquidity, and conservative solvency, supporting resilience amid a modest demand backdrop. However, limited disclosure on capex and dividends constrains free cash flow and payout analysis. Near-term outlook appears stable to cautiously positive given margin trends, with key sensitivities including freight volumes, pricing, labor costs, fuel, and regulatory impacts. Data limitations are noted, but available metrics point to solid fundamentals and prudent financial management.

Profitability Analysis

ROE_decomposition: Reported/Calculated ROE 4.30% = Net margin 8.28% × Asset turnover 0.363 × Financial leverage 1.43. ROE is primarily driven by margin strength; asset turnover is modest for an asset-heavy logistics platform, and leverage is conservative. margin_quality: Operating margin ~10.4% (¥7.52bn/¥72.24bn) and EBITDA margin 13.8% demonstrate improved operating efficiency. Ordinary income (¥8.11bn) above operating income suggests recurring non-operating support. Net margin of 8.28% is solid for the sector, implying disciplined cost control and pricing/mix benefits. operating_leverage: Revenue grew 1.4% YoY while operating income rose 9.3% YoY, evidencing positive operating leverage. This indicates fixed-cost absorption and/or structural efficiency gains. Sustainability will depend on volume stability, labor productivity, and contract repricing.

Growth Assessment

revenue_sustainability: Topline growth of 1.4% YoY appears modest but stable, consistent with a mature domestic logistics market. Sustainability likely hinges on steady contract logistics, warehouse utilization, and cautious macro demand. profit_quality: Margin expansion outpaced sales growth, indicating quality improvement from cost efficiencies and mix. The ordinary income uplift above operating income hints at stable non-operating contributions, though details are not disclosed. outlook: Assuming stable freight volumes and continued cost discipline, earnings trajectory appears cautiously positive. Key watchpoints are contract renewals with pricing uplifts, labor cost inflation, and fuel cost pass-through. Non-operating gains may normalize, so core operating momentum is critical.

Financial Health

liquidity: Current assets ¥72.11bn vs current liabilities ¥34.49bn yields a current ratio of 209% and quick ratio effectively the same given lack of inventory disclosure. Working capital is ¥37.63bn, indicating ample short-term liquidity. solvency: Total liabilities of ¥59.94bn vs equity of ¥138.94bn imply low leverage (liabilities-to-equity 0.43x) and financial leverage of 1.43x. Interest burden is low (¥112m), supporting solvency resilience. capital_structure: Balance sheet is equity-heavy with conservative use of debt. The reported equity ratio figure is unavailable in this dataset; however, assets of ¥198.76bn against equity of ¥138.94bn imply an equity ratio near 70% on a point-in-time basis.

Cash Flow Quality

earnings_quality: OCF/Net income of 1.23x (¥7.37bn/¥5.98bn) indicates that earnings are backed by cash generation, a positive quality signal. FCF_analysis: Investing cash flow is not disclosed here (reported as zero), so Free Cash Flow cannot be reliably determined. EBITDA of ¥9.96bn suggests capacity to fund routine capex, but capex intensity for logistics facilities and fleets is a key unknown. working_capital: Working capital position is strong (¥37.63bn). Without component detail, the OCF outperformance vs NI likely reflects either disciplined receivables management or timing benefits; sustainability needs monitoring.

Dividend Sustainability

payout_ratio_assessment: Dividend and payout data are not disclosed in this dataset (zeros denote non-reporting). With EPS at ¥306.29 and solid cash generation, capacity for dividends appears supported in principle, but actual payout policy cannot be assessed here. FCF_coverage: FCF is indeterminable due to missing investing cash flow and capex detail; therefore, dividend coverage by FCF cannot be evaluated from this dataset. policy_outlook: Given conservative leverage and stable OCF, a sustainable payout would be plausible, but confirmation requires management guidance and historical dividend track record, which are not provided here.

Risk Assessment

Business Risks:

• Domestic macro slowdown leading to weaker freight volumes and warehouse throughput
• Cost inflation (labor, fuel, utilities) outpacing contract repricing
• Driver and warehouse labor shortages amid tightening work-hour regulations
• Contract renewal risk and pricing pressure from large shippers
• Competition from major logistics peers and 3PLs compressing margins
• Operational disruptions (accidents, natural disasters) impacting network efficiency
• Customer concentration in key industries (if applicable) leading to demand volatility

Financial Risks:

• Potential capex upcycle for fleets and logistics facilities increasing cash needs
• Interest rate normalization raising financing costs over time (though current exposure is low)
• Working capital swings affecting OCF seasonality
• Pension/lease liabilities not visible in this dataset could elevate leverage on an adjusted basis
• Non-operating income normalization reducing ordinary income

Key Concerns:

• Limited disclosure on investing cash flows and capex constrains FCF visibility
• Dividend policy and actual payout are not disclosed, limiting capital return assessment
• Sustainability of operating margin expansion amid cost pressures requires monitoring

Investment Implications

Key Takeaways:

• Margin expansion with operating income up 9.3% on 1.4% revenue growth demonstrates positive operating leverage
• ROE at 4.30% reflects strong margins but modest asset turnover and conservative leverage
• Robust liquidity (current ratio 209%) and low gearing (0.43x liabilities-to-equity) underpin resilience
• OCF exceeds net income (1.23x), indicating solid earnings quality
• Ordinary income above operating income implies supportive non-operating items that may not be permanent

Metrics to Watch:

• Operating margin and EBITDA margin sustainability
• Asset turnover and warehouse/fleet utilization rates
• OCF vs NI and capex to gauge FCF generation
• Contract repricing, yield per shipment, and volume growth
• Labor cost ratio and productivity metrics
• Interest coverage and any changes in leverage
• Dividend announcements and payout guidance

Relative Positioning: Within Japanese logistics peers, Maruzen Showa Unyu appears conservatively financed with stronger-than-typical operating margins and high interest coverage; scale is smaller than mega-peers, and visibility on capex/FCF is lower due to limited disclosure in this dataset.

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