Yasuda Logistics Corporation FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥2.01B
• Net Income: ¥1.39B
• EPS: ¥60.04

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), Yasuda Warehouse Co., Ltd. delivered strong profit growth despite limited disclosure on revenue. Operating income rose to 2.007 billion yen, up 38.3% year over year, signaling solid operational execution and cost control. Ordinary income reached 2.677 billion yen, indicating additional lift from non-operating items versus operating profit (likely logistics-related ancillary income or financial items). Net income was 1.739 billion yen, up 28.3% YoY, evidencing robust bottom-line momentum. EBITDA is estimated at 4.355 billion yen (operating income plus depreciation and amortization of 2.348 billion yen), highlighting healthy operating cash generation capacity in an asset-intensive business. Interest expense of 445 million yen results in an EBIT-based interest coverage of roughly 4.5x, which is acceptable for a warehousing/logistics operator with stable cash flows. Liquidity appears sound with a current ratio of 168.6% and working capital of 14.066 billion yen, providing short-term buffer. The balance sheet remains balanced with total liabilities of 116.135 billion yen against total equity of 99.653 billion yen (liabilities-to-equity of about 1.17x) and financial leverage (assets/equity) of 2.19x. Operating cash flow of 4.917 billion yen comfortably exceeds net income (OCF/NI of 2.83x), suggesting high earnings quality and conservative accruals. Investing cash flow and cash balances were not disclosed, limiting visibility into capex and liquidity reserves. Revenue, gross profit, and inventory were also not disclosed in XBRL, restricting margin and efficiency analysis; however, the reported profit trajectory and cash flow strength are supportive. The implied effective tax rate, inferred from disclosed tax expense and net income, appears to be around 30% (subject to consolidation adjustments and non-controlling interests), consistent with a normalized Japanese corporate tax burden. DuPont components tied to sales (net margin, asset turnover) were reported as zero due to non-disclosure of revenue, so ROE decomposition cannot be fully validated; financial leverage of 2.19x is reasonable. While dividend data were not provided, current profitability and OCF suggest capacity to sustain or enhance shareholder returns, depending on capex and debt service needs. Overall, results indicate improving profitability, solid liquidity, and adequate coverage metrics, with the main limitation being incomplete disclosure of sales and cash/investment details, which tempers precision around margins, capex, and free cash flow.

Profitability Analysis

ROE decomposition is constrained by the absence of revenue and reported net margin and asset turnover (both shown as 0 due to non-disclosure). Financial leverage stands at 2.19x (assets/equity 217.928/99.653), a moderate level for the sector. Operating income of 2.007 billion yen grew 38.3% YoY, indicating positive operating leverage, likely aided by cost discipline and scale benefits in warehousing/logistics utilization. EBITDA of 4.355 billion yen versus operating income of 2.007 billion yen implies D&A intensity typical of an asset-heavy storage/real estate-backed logistics model. Ordinary income at 2.677 billion yen exceeds operating income, suggesting supportive non-operating contributions (e.g., equity-method income, real estate-related income, or financial income) offsetting interest expense. Interest expense is 445 million yen; EBIT-based interest coverage is ~4.5x (2,007/445), acceptable but worth monitoring if rates rise or if the company expands capex with debt. Margin quality cannot be directly assessed without revenue and gross profit disclosure; however, the combination of higher operating income and robust OCF points to healthy underlying profitability. The implied effective tax rate, using net income (1,739) and income tax (750), is roughly 30% assuming minimal minority interests and other below-the-line items.

Growth Assessment

Top-line growth cannot be evaluated as revenue was not disclosed this period. Profit growth is strong: operating income +38.3% YoY and net income +28.3% YoY reflect either improved pricing, mix, utilization, or cost efficiencies. The gap between ordinary income and operating income suggests additional, potentially recurring non-operating earnings that supported growth. The scale of D&A (2.348 billion yen) hints at continued asset base investment historically, which can underpin capacity-driven growth if utilization remains high. Sustainability of profit growth will depend on macro logistics demand, warehousing occupancy rates, and any exposure to e-commerce, pharmaceuticals, or temperature-controlled segments. The high OCF/NI ratio (2.83x) supports the quality of earnings and reduces concerns over one-off gains driving profits. Without investing cash flow disclosure, the growth outlook via capex pipeline is unclear; if capex is rising, near-term FCF may be tighter but supportive of medium-term earnings. In the absence of revenue and segment data, we assume growth is primarily operational rather than acquisition-driven in this period.

Financial Health

Liquidity is solid: current assets of 34.559 billion yen versus current liabilities of 20.493 billion yen yields a current ratio of 168.6% and working capital of 14.066 billion yen. Quick ratio matches current ratio due to undisclosed inventories, so the true quick ratio may be lower if inventories are material. Solvency is adequate with total liabilities of 116.135 billion yen and total equity of 99.653 billion yen (liabilities/equity ~1.17x). Financial leverage (assets/equity) is 2.19x, reasonable for a warehousing/logistics enterprise with tangible asset backing. Interest coverage of ~4.5x provides a buffer against rate volatility, though sensitivity to interest expense warrants monitoring. The reported equity ratio was 0% due to non-disclosure; based on provided balance sheet totals, the implied equity ratio would be approximately 45.7% (99.653/217.928), indicating a relatively strong capital base.

Cash Flow Quality

Operating cash flow of 4.917 billion yen is 2.83x net income, signaling strong earnings quality and limited working-capital drag in the period. Free cash flow cannot be derived because investing cash flow was not disclosed; consequently, capex intensity and growth investment outlays are unclear. The substantial D&A (2.348 billion yen) versus EBIT indicates a meaningful non-cash component underpinning cash conversion. Working capital specifics are limited due to the absence of revenue, COGS detail, and inventories; nonetheless, the strong OCF suggests either stable receivables/ payables dynamics or favorable collections. Financing cash flow was an outflow of 3.903 billion yen, indicating net debt reduction, dividends, or share buybacks; detailed breakdown is unknown. Cash and equivalents were not disclosed, so period-end liquidity headroom cannot be quantified despite healthy OCF.

Dividend Sustainability

Dividend and payout details were not disclosed in the data provided (DPS and payout ratio appear as zero due to non-disclosure). From a capacity standpoint, net income of 1.739 billion yen and OCF of 4.917 billion yen indicate room to fund dividends alongside debt service, contingent on capex levels and policy. Without investing cash flow and cash balance information, free cash flow coverage of dividends cannot be precisely assessed. If capex is near D&A, implied FCF would likely cover a modest to moderate dividend; if capex is elevated for expansion, coverage would tighten. The company’s historical policy and target payout ratio are not available here; current profit resilience argues for sustainability, but policy clarity is required.

Risk Assessment

Business Risks:

• Sensitivity to macro logistics demand and industrial production affecting warehouse utilization
• Price competition in third-party logistics and storage rates
• Customer concentration risk typical in logistics contracts
• Potential delays or overruns in expansion capex and facility development
• Regulatory and safety compliance in warehousing (including temperature-controlled and hazardous goods, if applicable)

Financial Risks:

• Interest rate risk given 445 million yen annualized interest expense and ~4.5x coverage
• Refinancing risk tied to liability maturity profile (not disclosed)
• Capex and investment outlays potentially elevating leverage if funded with debt
• Limited visibility on cash balances and investing cash flows constraining liquidity assessment

Key Concerns:

• Lack of revenue, gross profit, and inventory disclosure limits margin analysis
• Undisclosed investing cash flow and cash position impede FCF and liquidity evaluation
• Ordinary income exceeding operating income introduces reliance on non-operating items

Investment Implications

Key Takeaways:

• Strong profit momentum: operating income 2.007 billion yen (+38.3% YoY), net income 1.739 billion yen (+28.3% YoY)
• Healthy cash generation: OCF 4.917 billion yen; OCF/NI 2.83x indicates high earnings quality
• Adequate leverage and coverage: liabilities/equity ~1.17x; interest coverage ~4.5x
• Liquidity buffer: current ratio 168.6% and working capital 14.066 billion yen
• Data gaps on revenue, margins, capex, and cash hinder full assessment of growth drivers and FCF

Metrics to Watch:

• Revenue and segment breakdown to validate margin expansion and utilization
• Capex and investing cash flows to assess FCF and growth investment pace
• Interest coverage and average borrowing costs amid rate environment
• Working capital turns (receivable days, payable days, inventory days) when disclosed
• Ordinary vs operating income mix to gauge reliance on non-operating items
• Equity ratio and net debt trend once cash is disclosed

Relative Positioning: Within Japanese warehousing/logistics peers, the company appears to combine moderate leverage with solid operating cash flow and improving profitability; however, incomplete disclosure on revenue and capex makes comparative margin and FCF benchmarking provisional.

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