e-LogiT co.,ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥4.54B
• Operating Income: ¥-145M
• Net Income: ¥-193M
• EPS: ¥-19.72

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend 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

E-LogiT Co., Ltd. (93270) reported FY2026 Q2 (non-consolidated, JGAAP) results marked by a sharp top-line contraction and continued operating losses, with some evidence of cost containment. Revenue declined 20.5% YoY to ¥4.54bn, while operating income remained a loss of ¥145m (flat YoY), suggesting management offset a portion of the volume decline through cost adjustments. Gross profit was ¥356m, implying a gross margin of 7.8%, which is thin for a 3PL/EC fulfillment operator and leaves little cushion to cover fixed overhead. EBITDA was negative at ¥109m and EBITDA margin was -2.4%, indicating the core operations are not yet cash-generative before depreciation. Ordinary loss widened to ¥178m, but financial expenses are modest (interest expense ¥2.26m), implying non-operating factors beyond interest also weighed on results. Net loss was ¥193m (-69.3% YoY), translating to a net margin of -4.25% and driving a negative ROE of -11.07% via DuPont decomposition (NPM -4.25%, asset turnover 1.174x, leverage 2.22x). On the balance sheet, total assets were ¥3.87bn and equity ¥1.74bn; based on these, the implied equity ratio is approximately 45%, though the disclosed equity ratio field is unreported. Liquidity is tight with a current ratio of 68.5% and negative working capital of ¥556m, typical of logistics models that rely on trade payables but risky during downturns. Operating cash flow was negative at ¥331m in 1H, reflecting loss-making operations and/or working capital outflows; financing cash flow of ¥289m suggests reliance on external funding to bridge cash needs. Investing cash flow, cash and equivalents, and certain share metrics are unreported; therefore, free cash flow cannot be robustly assessed despite an indicative FCF field at 0. Leverage appears elevated relative to equity (debt-to-equity 1.33x), yet interest burden is currently small, providing some time to execute a turnaround if liquidity is managed. Dividend remains suspended (DPS ¥0), which is appropriate given negative earnings and OCF. Overall, the company is operating under margin pressure with evidence of operating leverage sensitivity to volumes; stabilization of revenue and improving throughput/utilization are critical to restoring profitability. Near-term priorities include recovering gross margin, tightening SG&A, and improving working capital conversion to reduce cash burn. Data limitations (notably cash balance, investing cash flows, and share-based metrics) constrain full ratio analysis, but the available figures point to a business under earnings and liquidity stress that is funding operations via financing inflows.

Profitability Analysis

ROE decomposition (DuPont): Net profit margin -4.25% (¥-193m/¥4,538m), asset turnover 1.174x (revenue/total assets), and financial leverage 2.22x (assets/equity) yield a calculated ROE of -11.07%. Gross margin stands at 7.8%, indicating limited value-add per unit and exposure to pricing and cost inflation; with such a thin gross margin, small changes in yield and mix can materially swing operating results. Operating margin is approximately -3.2% (¥-145m/¥4,538m), highlighting inadequate scale or cost absorption in the current demand environment. EBITDA margin is -2.4%, confirming weak cash earnings before non-cash charges; depreciation is modest at ¥36m, so the swing factor remains the core operating cost base. The flat YoY operating loss despite a 20.5% revenue drop suggests management removed some variable costs and likely trimmed fixed costs, dampening negative operating leverage; nonetheless, the level of losses implies fixed costs are still high relative to the lower volume base. Ordinary loss of ¥178m vs operating loss of ¥145m indicates net non-operating costs (~¥33m) beyond interest expense, which may include other non-operating items. Interest coverage is -64.2x (EBIT/interest), a mechanical outcome of negative EBIT; while actual interest burden is low, sustained losses could tighten debt headroom over time. Overall profitability quality is weak, with thin gross margin, negative operating margin, and dependence on external financing to fund operations.

Growth Assessment

Revenue declined 20.5% YoY to ¥4.54bn, signaling a significant slowdown in underlying demand or customer activity in the company’s served verticals (likely EC fulfillment/logistics). The scale of contraction suggests either customer churn, lower shipping volumes, pricing pressure, or a deliberate pruning of unprofitable accounts. Profit quality is strained: negative EBITDA and operating loss indicate that current revenue mix and utilization levels cannot cover fixed costs. The flat YoY operating loss despite the steep revenue decline does provide a modest positive signal—cost actions and productivity improvements appear to be offsetting some of the volume impact. Sustainability hinges on stabilizing volumes and improving gross profit per order through pricing discipline, yield management, and operational efficiency (e.g., better labor scheduling, slotting, and throughput). Without evidence of new contract wins or backlog growth (not disclosed), near-term growth visibility is low. Outlook: if demand conditions normalize and throughput rises, margins could improve disproportionally given operating leverage; conversely, further volume declines would likely deepen losses. Given the missing disclosures on order pipeline, capacity utilization, and customer concentration, the growth trajectory remains uncertain, and guidance inference is limited.

Financial Health

Liquidity: Current assets ¥1.21bn vs current liabilities ¥1.76bn yields a current ratio of 68.5% and negative working capital of ¥556m, pointing to tight liquidity and potential reliance on supplier credit and short-term financing. Quick ratio equals the current ratio given inventories are unreported; however, true quick liquidity is unknown due to missing cash data. Solvency: Total liabilities ¥2.32bn and equity ¥1.74bn imply an equity ratio of roughly 45% (calculated), better than the unreported headline, and a debt-to-equity ratio of 1.33x, indicating meaningful leverage for a small-cap operator. Interest expense of ¥2.26m is currently manageable, but interest coverage is negative due to operating losses, and persistent deficits may pressure covenants or refinancing terms. Capital structure: With financing cash inflow of ¥289m in the period, the company appears to be funding losses and/or working capital through debt or other financing means; absent equity raising, balance sheet flexibility could diminish if losses persist.

Cash Flow Quality

Earnings quality is weak as both net income (¥-193m) and operating cash flow (¥-331m) are negative; the OCF/NI ratio of 1.71 reflects larger cash burn relative to accounting loss, likely driven by working capital outflows or non-cash gains not evident in the data provided. Free cash flow cannot be reliably calculated because investing cash flows/capex are unreported (the investing CF field shows 0, which should be treated as undisclosed, not zero). The negative OCF implies operations are not self-funding; the company relied on ¥289m of financing inflow to support liquidity during the half. Working capital: Negative working capital (¥-556m) is structurally common in logistics but can swing adversely when volumes fall, as payables support diminishes relative to receivables, increasing cash needs. Monitoring receivables collection, payables terms, and any prepayment/advance structures is essential to gauge cash conversion improvements.

Dividend Sustainability

Dividend per share is ¥0 with a stated payout ratio of 0%, which is prudent given negative earnings and operating cash outflow. With OCF negative and FCF not observable due to undisclosed investing cash flows, there is no coverage for distributions. The near-term dividend policy outlook is likely to remain conservative (suspended or minimal) until the company restores positive EBITDA/OCF and stabilizes leverage. Resumption would require sustained profitability, visible cash generation, and adequate headroom under debt arrangements.

Risk Assessment

Business Risks:

• Demand volatility and customer concentration risk in EC/fulfillment volumes.
• Thin gross margins (7.8%) leaving limited buffer for wage, rent, and energy cost inflation.
• Operating leverage risk: lower throughput can quickly push operations deeper into loss.
• Pricing pressure in competitive 3PL markets and potential renegotiation of contracts.
• Execution risk in cost control, labor scheduling, and productivity improvements.
• Potential need for increased capex for automation to remain competitive, with uncertain ROI.

Financial Risks:

• Tight liquidity with current ratio 68.5% and negative working capital of ¥556m.
• Negative OCF (¥-331m) requiring external financing; financing CF of ¥289m indicates reliance on debt/other funding.
• Negative interest coverage (EBIT/interest), exposing the firm to covenant and refinancing risks if losses persist.
• Leverage at 1.33x debt-to-equity reduces balance sheet flexibility during downturns.
• Information gaps on cash balance, capex, and debt maturity profile complicate assessment of runway.

Key Concerns:

• Sustained operating losses and negative EBITDA amid a 20.5% YoY revenue decline.
• Dependence on financing inflows to fund operations in 1H.
• Uncertain visibility on demand recovery, new contracts, and utilization rates.
• Data limitations on cash, capex, and detailed debt structure hinder full solvency analysis.

Investment Implications

Key Takeaways:

• Revenue contracted 20.5% YoY to ¥4.54bn, while operating loss stayed flat at ¥145m, indicating some cost offset but ongoing margin stress.
• Gross margin at 7.8% and EBITDA margin at -2.4% reflect weak unit economics and under-absorption of fixed costs.
• Liquidity is tight (current ratio 68.5%, negative working capital ¥556m) and OCF was deeply negative (¥-331m) in the half.
• Balance sheet shows calculated equity ratio around 45% and modest interest burden, but leverage is meaningful (D/E 1.33x) and coverage negative.
• Dividend remains suspended; restoration depends on EBITDA/OCF recovery and improved balance sheet headroom.

Metrics to Watch:

• Quarterly revenue run-rate and gross margin trajectory.
• Operating margin and EBITDA progression versus labor and facility cost trends.
• Operating cash flow and working capital turns (DSO/DPO), including any changes in payment terms.
• Capex and investing cash flows (automation investments) once disclosed.
• Interest-bearing debt level, covenant headroom, and refinancing schedule.
• New contract wins, retention, and fulfillment center utilization rates.

Relative Positioning: Relative to larger Japanese logistics/3PL peers, E-LogiT appears more vulnerable to volume swings given thinner margins, smaller scale, and limited cash flow resilience; achieving higher utilization and pricing discipline will be key to narrowing the profitability gap.

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