AZ-COM MARUWA Holdings Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥113.05B
• Operating Income: ¥6.07B
• Net Income: ¥2.99B
• EPS: ¥29.64

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

AZ-COM Maruwa Holdings (9090) delivered solid FY2026 Q2 consolidated results under JGAAP, with revenue of ¥113.1bn (+11.4% YoY) and operating income of ¥6.07bn (+40.2% YoY), indicating strong operating leverage. Gross profit was ¥9.81bn, translating to an 8.7% gross margin, while the operating margin improved to approximately 5.4%, a healthy level for asset-light contract logistics. Ordinary income reached ¥6.27bn and net income was ¥3.99bn (+40.2% YoY), driving EPS of ¥29.64. The DuPont-derived ROE is 6.21%, reflecting a combination of a 3.53% net margin, 0.713x asset turnover, and 2.47x financial leverage. Interest expense remained very low at ¥51m, yielding an exceptional operating interest coverage of roughly 119x, underscoring low interest burden and conservative debt servicing risk. Cash conversion was decent with operating cash flow (OCF) of ¥3.46bn, or 0.87x net income, likely reflecting working capital investment to support growth. The balance sheet is moderately leveraged with total liabilities of ¥78.1bn and total equity of ¥64.3bn; this implies an estimated equity ratio of about 40.6% (equity/assets), despite the reported metric being undisclosed. Liquidity appears adequate with current assets of ¥66.6bn and current liabilities of ¥50.7bn, giving a current ratio of 131%. Working capital stands at ¥15.9bn, providing a buffer for ongoing operations and seasonality. EBITDA was ¥7.49bn (6.6% margin), indicating reasonable cash earnings capacity for a logistics operator. The effective tax rate is approximately 27–28% based on income tax expense relative to pre-tax income, consistent with a normal tax profile. Dividend details were not disclosed (annual DPS shown as zero, which should be treated as undisclosed), so capital return policy assessment is constrained. Several items, including equity ratio, cash and equivalents, investing cash flows, and share counts, were undisclosed in the dataset; analysis focuses on available non-zero data. Overall, the company exhibits healthy growth, improved profitability, resilient cash generation, and manageable leverage, though free cash flow and capital allocation visibility are limited by disclosure gaps.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 3.53%
• asset_turnover: 0.713x
• financial_leverage: 2.47x
• calculated_ROE: 6.21%
• commentary: ROE of 6.21% is driven primarily by improved operating margin and moderate asset turnover typical of contract logistics; leverage is moderate and not the primary ROE driver. margin_quality:
• gross_margin: 8.7%
• operating_margin: 5.4%
• ordinary_margin: 5.5%
• EBITDA_margin: 6.6%
• tax_rate_estimate: ≈27.5% (¥1.72bn tax on ≈¥6.27bn pre-tax income)
• commentary: Operating margin expansion versus revenue growth (+11.4% revenue vs +40.2% operating income) signals better pricing, mix, and/or cost control. Low interest burden supports translation to net profit. operating_leverage:
• revenue_growth_YoY: 11.4%
• operating_income_growth_YoY: 40.2%
• assessment: Positive operating leverage evident; fixed-cost absorption and scale efficiencies likely contributed. Sustainability will depend on contract terms, labor productivity, and capacity utilization.

Growth Assessment

revenue_sustainability: Double-digit revenue growth (11.4% YoY) likely reflects expansion in contract logistics volumes and customer additions. Given the sector’s recurring contract base, growth is potentially durable, though sensitive to consumer demand and client inventory cycles. profit_quality: Net income growth (+40.2% YoY) outpaced revenue, mainly from margin uplift, not financial one-offs (ordinary income aligns with operating performance, and interest expense is minimal). This suggests underlying improvement rather than accounting gains. outlook: If the company maintains current utilization and cost discipline, mid-single-digit operating margin appears achievable. Near-term growth should hinge on e-commerce and retail logistics volumes, while wage inflation and subcontracting costs remain key constraints.

Financial Health

liquidity:

• current_assets: ¥66.6bn
• current_liabilities: ¥50.7bn
• current_ratio: 131%
• quick_ratio: 131% (inventories undisclosed)
• working_capital: ¥15.9bn
• assessment: Adequate short-term liquidity with a positive buffer to support growth and seasonality. solvency_capital_structure:
• total_assets: ¥158.6bn
• total_liabilities: ¥78.1bn
• total_equity: ¥64.3bn
• debt_to_equity: 1.21x (liabilities/equity)
• estimated_equity_ratio: ≈40.6% (equity/assets; reported metric undisclosed)
• interest_coverage: ≈119x (operating income/interest)
• assessment: Moderate leverage with strong interest coverage. Balance sheet capacity appears sufficient for ongoing operations and selective investments.

Cash Flow Quality

earnings_quality:

• OCF: ¥3.46bn
• net_income: ¥3.99bn
• OCF_to_NI: 0.87x
• assessment: OCF trails NI modestly, consistent with working capital build during growth. No signs of earnings overstatement from the available data. FCF_analysis:
• investing_CF: Undisclosed in dataset (shown as 0)
• free_cash_flow: Not derivable due to missing investing cash flows (reported 0 should be treated as undisclosed)
• assessment: True FCF cannot be assessed. Capex intensity (e.g., logistics centers, vehicles, IT) is a critical unknown for cash yield evaluation. working_capital:
• observations: Positive working capital of ¥15.9bn supports operations; inventories were not disclosed. Growth likely increased receivables and contract assets, tempering OCF conversion.

Dividend Sustainability

payout_ratio_assessment: Annual DPS and payout ratio are shown as zero but should be treated as undisclosed; EPS of ¥29.64 indicates capacity to pay dividends, but policy and historical payout are not available from the dataset. FCF_coverage: Not assessable due to undisclosed investing cash flows; therefore, FCF coverage of dividends cannot be calculated. policy_outlook: With decent profitability and moderate leverage, the company could sustain a dividend under typical policies, but lack of disclosure on DPS and capital allocation priorities prevents firm conclusions.

Risk Assessment

Business Risks:

• Client concentration and contract repricing risk in contract logistics
• Labor cost inflation and driver shortages impacting margins
• Fuel price volatility and subcontracting rate pressure
• Demand cyclicality in e-commerce/retail end-markets
• Execution risk on new facility ramp-ups and IT systems
• Regulatory changes in labor/workstyle reforms affecting overtime and staffing

Financial Risks:

• Working capital swings reducing OCF conversion during growth spurts
• Potential capex requirements for logistics centers and fleet affecting FCF
• Refinancing and interest rate risk (though current interest burden is low)
• Counterparty credit risk from large retail clients

Key Concerns:

• Sustainability of margin gains given cost inflation
• Visibility on capex and investing cash flows (undisclosed)
• Dividend/capital return policy remains unclear from available data

Investment Implications

Key Takeaways:

• Strong operating leverage: +11.4% revenue translated into +40.2% operating income
• Healthy operating margin at ~5.4% with robust 119x interest coverage
• ROE at 6.21% reflects moderate leverage and improving profitability
• Adequate liquidity (current ratio 131%) and estimated equity ratio ~41%
• OCF-to-NI at 0.87x indicates decent earnings quality amid working capital investment
• Limited visibility on FCF and dividends due to undisclosed investing CF and DPS

Metrics to Watch:

• Operating margin progression and cost-to-serve (labor, fuel, subcontracting)
• OCF/NI conversion and working capital days (receivables/payables)
• Capex and investing cash flows tied to network expansion and IT
• Asset turnover and utilization of logistics centers
• Leverage (liabilities/equity) and any changes in interest expense
• Client concentration and contract renewal pricing

Relative Positioning: Within Japanese contract logistics/3PL peers, the company exhibits above-average operating leverage and solid mid-single-digit operating margins with strong interest coverage and moderate leverage; however, transparency on capex and dividends appears weaker in this dataset, constraining FCF-based comparisons.

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