TAKASE CORPORATION FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥87M
• Net Income: ¥23M
• EPS: ¥30.38

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), Takase Co., Ltd. delivered a clear earnings recovery at the profit line, despite major disclosure gaps on the top line. Operating income rose to ¥87 million (+131% YoY), ordinary income reached ¥102 million, and net income increased to ¥61 million (+167% YoY), with EPS of ¥30.38. The absence of disclosed revenue and gross profit prevents margin analysis, but the profit rebound indicates improved cost control and/or better mix and pricing within reported segments. Depreciation and amortization were sizable at ¥174.2 million, underpinning an EBITDA of approximately ¥261.2 million and suggesting a capital-intensive asset base (likely vehicles and facilities). Interest expense was moderate at ¥7.9 million, yielding a solid EBIT interest coverage of roughly 11x, signaling manageable financial risk. On the balance sheet, total assets were ¥9.34 billion and total liabilities ¥2.167 billion, implying equity of ¥7.306 billion and an equity ratio around 78% (recomputed; the reported 0.0% appears undisclosed rather than zero). Liquidity looks strong with current assets of ¥3.051 billion versus current liabilities of ¥1.276 billion, producing a current ratio of 2.39x and positive working capital of ¥1.776 billion. Operating cash flow was ¥159.9 million, 2.6x net income, indicating robust cash conversion helped by non-cash D&A and likely working capital effects. Investing cash flow was not disclosed (0 indicates missing), so free cash flow cannot be reliably computed; likewise, cash and equivalents were undisclosed. Financing cash flow was a net outflow of ¥287.5 million, suggesting debt reduction and/or lease/dividend-related uses, though DPS was reported as 0 and payout as 0%, implying no dividend in the period. The DuPont metrics shown as zeros are not usable due to missing revenue and margin inputs; however, financial leverage at ~1.28x (Assets/Equity) is conservative for the sector. Overall, the company shows improving profitability, sound liquidity, and low leverage, but the lack of revenue and cash detail limits precision on margin quality and free cash flow durability. Key watchpoints include the sustainability of profit gains into H2, capex intensity relative to D&A, and the drivers of the ordinary income outperformance versus operating income. Given the sector’s exposure to fuel and labor costs, ongoing pass-through ability and utilization will matter for earnings stability. Data limitations (notably revenue, gross profit, inventories, cash, investing CF, and shares outstanding) constrain full-ratio diagnostics, so conclusions are necessarily provisional.

Profitability Analysis

ROE decomposition is constrained by missing revenue and average equity. Using available data: leverage is modest at ~1.28x (Assets ¥9.34bn / Equity ¥7.306bn), indicative of a conservatively financed balance sheet. Net profit margin cannot be computed without revenue, and the reported 0.00% is a placeholder due to non-disclosure. Asset turnover likewise cannot be calculated. That said, operating income of ¥87m versus ordinary income of ¥102m suggests positive non-operating contributions (e.g., financial income or subsidies) of ~¥15m, after ¥7.9m interest, pointing to a small supportive tailwind outside core operations. Operating leverage appears to have worked favorably: operating income grew +131% YoY while revenue was undisclosed, implying cost containment or efficiency improvements against a relatively stable volume base. With D&A at ¥174.2m, EBITDA of ~¥261.2m indicates that cash earnings capacity exceeds accounting profits, a positive for resilience. Interest coverage of ~11x (EBIT/interest) is comfortable, reducing earnings volatility from financing costs. Effective tax rate cannot be robustly assessed because pretax income for the half is not explicitly disclosed; the listed 0.0% is not reliable. Margin quality: absent gross margin, we infer that cost control and possibly better route/asset utilization supported the operating line; however, sustainability depends on H2 volume/pricing and fuel/labor cost dynamics. Overall profitability is improving with conservative leverage, but top-line opacity limits full DuPont insights.

Growth Assessment

Revenue trend is undisclosed; the shown +0.0% YoY is a placeholder. Nonetheless, operating income rose +131% YoY to ¥87m and net income +167% to ¥61m, indicating a strong profit recovery from the prior-year period. The widening gap between operating (¥87m) and ordinary income (¥102m) suggests some non-operating lift, but core operations still drove the majority of profit. Given elevated D&A (¥174m), the business likely remains capex-intensive, and sustaining growth may require continued efficiency gains and disciplined capital deployment. Without segment data, it is unclear whether growth is volume-driven, mix-driven, or cost-led; however, cash conversion (OCF/NI 2.62x) supports the quality of earnings in the half. Outlook hinges on: maintaining utilization, passing through fuel and wage inflation, and managing driver availability. H2 seasonality and any one-off non-operating items could normalize growth rates. We treat the current profit momentum as improving but provisional pending disclosure of revenue and capex trends.

Financial Health

Liquidity is strong: current assets ¥3.051bn vs. current liabilities ¥1.276bn yield a current ratio of 2.39x and positive working capital of ¥1.776bn. The quick ratio matches the current ratio due to undisclosed inventories; actual quick liquidity may be slightly lower, but still appears ample. Solvency is robust with total liabilities of ¥2.167bn against equity of ¥7.306bn, implying a debt-to-equity proxy of 0.30x and an equity ratio near 78%. Interest expense of ¥7.9m is modest relative to operating income, supporting an interest coverage of ~11x. Cash and equivalents are not disclosed, so net cash/debt cannot be determined; lease obligations (if any) are also not shown. Capital structure remains conservative, providing flexibility for fleet renewal or network investments as needed.

Cash Flow Quality

Operating cash flow of ¥159.9m versus net income of ¥61.0m (OCF/NI 2.62x) indicates strong cash conversion, reflecting sizable non-cash D&A (¥174.2m) and likely favorable working capital movements. Without a breakdown, we cannot isolate changes in receivables/payables, but the magnitude suggests underlying cash earnings are healthier than accounting profit. Investing cash flow is undisclosed (reported as 0), preventing a reliable free cash flow calculation; the listed FCF of 0 should be treated as not available. Given D&A of ¥174m, normalized capex is likely non-trivial; actual FCF will depend on H2 maintenance and growth capex. Financing cash flow was an outflow of ¥287.5m, likely reflecting debt/lease repayments and/or other financing uses; dividends appear absent in the period (DPS 0). Overall earnings quality looks solid on cash conversion, but FCF durability cannot be assessed until capex is disclosed.

Dividend Sustainability

DPS is reported as 0 and payout ratio 0%, indicating no dividend in the half. With EPS at ¥30.38 and positive OCF (¥159.9m), the company has capacity to fund distributions, but policy and actual capex needs are unknown. FCF coverage is reported as 0.00x but is not meaningful given missing investing CF and capex detail. Balance sheet strength (equity ratio ~78%) supports optionality for future payouts, yet sustainability requires visibility on normalized capex and working capital. Until investing cash flows are disclosed, an assessment of steady-state dividend affordability remains indeterminate.

Risk Assessment

Business Risks:

• Fuel price volatility and effectiveness of surcharge pass-through
• Driver shortages, wage inflation, and labor law/regulatory constraints
• Demand cyclicality tied to domestic manufacturing/retail shipments
• Competitive pricing pressure in regional logistics markets
• Safety, compliance, and accident-related costs
• ESG and emissions regulations requiring fleet upgrades
• Dependence on key customers or contract renewals (if concentrated)

Financial Risks:

• Capex intensity vs. operating cash flow, given high D&A
• Interest rate and financing cost increases impacting ordinary income
• Potential lease liabilities not visible in disclosed figures
• Working capital swings affecting OCF sustainability
• Limited disclosure on cash and investments constraining liquidity analysis

Key Concerns:

• Top-line and gross margin not disclosed, obscuring margin trajectory
• Investing cash flow and capex undisclosed, leaving FCF unclear
• Ordinary income above operating income suggests reliance on non-operating items for part of earnings
• Equity ratio displayed as 0.0% in summary despite being ~78% by calculation, indicating reporting gaps

Investment Implications

Key Takeaways:

• Profits rebounded: operating income ¥87m (+131% YoY), net income ¥61m (+167% YoY)
• Conservative balance sheet: equity ratio ~78%, debt-to-equity ~0.30x
• Healthy cash conversion: OCF ¥160m, OCF/NI 2.62x
• Interest coverage solid at ~11x, reducing financial risk
• Visibility gaps on revenue, gross profit, and capex limit margin and FCF assessment

Metrics to Watch:

• Revenue disclosure and operating margin trend in H2
• Capex vs. D&A and resultant free cash flow
• Fuel cost pass-through rates and labor cost ratio
• Utilization, volumes, and pricing/mix indicators
• Ordinary income composition (recurring vs. one-off items)
• Working capital movements and OCF consistency
• Leverage and lease liabilities (if/when disclosed)

Relative Positioning: Within domestic small-to-mid cap logistics peers, Takase appears conservatively levered with improving profitability and strong liquidity, but lags on disclosure granularity for revenue and investing cash flows, constraining full margin and FCF comparability.

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