Sumasapo Inc. FY2025 Q4 Earnings Report

Financial Highlights

• Net Sales: ¥2.82B
• Operating Income: ¥190M
• Net Income: ¥130M
• EPS: ¥54.15

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

For FY2025 Q4 (JGAAP, non-consolidated), 株式会社スマサポ delivered solid top-line growth and strong operating leverage, with revenue rising 5.3% YoY to ¥2,816m and operating income up 75.6% YoY to ¥190m. Gross profit reached ¥883m, translating to a gross margin of 31.3%, indicating a healthy contribution margin profile for a service-oriented model with limited inventory exposure (inventories not disclosed). Operating margin improved to 6.7% (¥190m/¥2,816m), reflecting better cost discipline and scale benefits. Ordinary income of ¥191m was close to operating income, implying minimal non-operating distortion and low financial charges (interest expense ¥0.5m). Net income increased 22.7% YoY to ¥130m, corresponding to a net margin of 4.6%, with an implied effective tax rate around 3–4% based on reported income tax of ¥6.9m and pre-tax income near ¥191m. DuPont analysis shows ROE of 22.8% driven by a combination of high asset turnover (3.39x) and moderate leverage (assets/equity 1.45x), with a modest net margin; this points to a capital-efficient model. Cash generation was robust: operating cash flow of ¥194m exceeded net income (OCF/NI 1.49x), and free cash flow was positive at ¥87m after ¥107m of investing outflows, underscoring good earnings quality. The balance sheet appears conservative, with total liabilities of ¥248m against equity of ¥571m (debt-to-equity ~0.43x) and a strong liquidity profile (current ratio ~180%). The reported equity ratio field is 0.0%, but based on non-zero assets and equity provided, the implied equity ratio is high (c. 69%), suggesting ample solvency headroom; we treat the 0.0% field as undisclosed rather than an actual value. Interest coverage is very comfortable at 363x, highlighting minimal interest burden. EBITDA was ¥248m (8.8% margin), providing additional cushion and signaling improving operating efficiency. Dividend information is not disclosed (DPS and payout appear as zero placeholders), so capital return policy cannot be concluded from the data provided; however, internal funding capacity improved on positive FCF. Absence of disclosed cash and equivalents limits precision in short-term liquidity assessment, though current assets are adequate relative to current liabilities. Overall, the company exhibits improving profitability, solid cash conversion, and a light balance sheet, positioning it to fund growth and maintain resilience. Key uncertainties relate to visibility on cash balances, dividend policy, and the sustainability of margin gains as growth moderates.

Profitability Analysis

ROE_decomposition: ROE 22.77% = Net margin 4.62% × Asset turnover 3.393 × Financial leverage 1.45. The ROE is predominantly powered by very high asset turnover, with a moderate contribution from leverage and a modest but improving net margin. margin_quality: Gross margin 31.3% and operating margin ~6.7% (¥190m/¥2,816m) indicate improving operating efficiency and cost control. Ordinary margin is similar to operating margin, suggesting limited reliance on non-operating items. Net margin of 4.62% reflects a low interest burden and a low-to-normalized effective tax rate (~3–4% implied by tax expense vs. pre-tax income). operating_leverage: Operating income grew 75.6% YoY on 5.3% revenue growth, indicating strong operating leverage from fixed cost absorption and scalability. EBITDA margin of 8.8% versus operating margin of ~6.7% shows a moderate D&A load (¥57.9m), leaving room for further operating margin expansion if volumes grow.

Growth Assessment

revenue_sustainability: Revenue grew 5.3% YoY to ¥2,816m, suggesting steady, organic-like growth. High asset turnover (3.39x) implies efficient utilization of the asset base to generate sales, supporting repeatable revenue generation. profit_quality: Ordinary income (~¥191m) is aligned with operating income, indicating limited non-operating noise. Interest expense is negligible (¥0.5m), and cash generation exceeded earnings (OCF/NI 1.49x), pointing to high-quality profits. outlook: With positive operating leverage and conservative leverage, the company appears well positioned to translate incremental revenue into earnings gains. Key to sustaining growth will be maintaining gross margin discipline and controlling SG&A. Lack of disclosure on segment mix and customer concentration tempers visibility.

Financial Health

liquidity: Current assets ¥438.9m vs. current liabilities ¥243.9m yield a current ratio of ~180% and a similar quick ratio (no inventories disclosed), indicating comfortable near-term liquidity. Cash and equivalents were not disclosed, limiting precision, but working capital is positive at ¥195.0m. solvency: Total liabilities ¥248.3m vs. equity ¥571.0m imply a debt-to-equity of ~0.43x and assets/equity leverage of 1.45x. Interest coverage is very strong at 363x, implying low default risk under current conditions. capital_structure: The balance sheet is equity-heavy with modest liabilities. Although the reported equity ratio field shows 0.0% (undisclosed), the implied equity ratio based on provided totals is approximately 68.8% (¥571m/¥830m).

Cash Flow Quality

earnings_quality: OCF of ¥194m vs. net income of ¥130m (OCF/NI 1.49x) indicates healthy earnings-to-cash conversion, supported by non-cash charges (D&A ¥57.9m) and likely favorable working capital movements. FCF_analysis: Free cash flow was positive at ¥87m after ¥107m of investing outflows, suggesting disciplined capital spending relative to operating cash generation. working_capital: Working capital stands at ¥195.0m, with current assets exceeding current liabilities by a comfortable margin. Detailed receivables/payables dynamics are not disclosed, but the positive OCF suggests manageable working capital intensity.

Dividend Sustainability

payout_ratio_assessment: Dividend per share and payout ratio are not disclosed (zeros treated as undisclosed). Based on EPS of ¥54.15 and positive OCF, capacity for dividends exists in principle, but actual policy cannot be inferred. FCF_coverage: With FCF of ¥87m, internal coverage for potential distributions appears available; however, absent DPS and share count disclosures, payout coverage cannot be calculated. policy_outlook: No explicit dividend policy is available from the data. Given improving profitability and cash generation, the company could prioritize reinvestment or consider initiating/raising distributions, but this remains speculative without management guidance.

Risk Assessment

Business Risks:

• Potential reliance on a limited customer base or specific end-markets (concentration risk not disclosed).
• Margin sensitivity to wage inflation, subcontracting costs, or platform fees given service-driven cost structure.
• Growth dependence on continued client adoption and retention; slower demand could dilute operating leverage.
• Execution risk in scaling operations while maintaining quality and cost control.

Financial Risks:

• Limited visibility into cash balances (cash and equivalents undisclosed) constrains liquidity assessment.
• Potential working capital swings could impact OCF despite positive conversion this period.
• Exposure to interest rate changes is low currently but could rise if borrowing increases from current modest levels.
• Tax rate normalization risk (implied ~3–4% this period) could pressure net margin if effective tax reverts higher.

Key Concerns:

• Dividend policy and capital allocation priorities are not disclosed.
• Reported equity ratio and cash balances are undisclosed, requiring reliance on derived metrics.
• Sustainability of operating leverage as growth moderates remains to be validated over additional periods.

Investment Implications

Key Takeaways:

• Top-line grew 5.3% YoY with outsized operating income growth (+75.6%), evidencing strong operating leverage.
• ROE of 22.8% is driven primarily by very high asset turnover (3.39x) with moderate leverage.
• Earnings quality is strong: OCF/NI at 1.49x and positive FCF of ¥87m.
• Balance sheet appears conservative (debt-to-equity ~0.43x) with robust liquidity (current ratio ~180%).
• Non-operating items are minimal; interest burden is negligible with 363x coverage.
• Data gaps persist: equity ratio field, cash balance, DPS, and share count are undisclosed.

Metrics to Watch:

• Gross and operating margins (sustainability of recent expansion).
• OCF/NI ratio and working capital days (to validate cash conversion).
• Capex intensity vs. growth (to preserve FCF).
• Effective tax rate trend and any one-time items.
• Liability mix and any increase in interest-bearing debt.
• Disclosure of dividend policy and cash balances.

Relative Positioning: Within domestic small-cap service/IT-enabled peers, the company appears asset-light with superior asset turnover, improving margins, low leverage, and strong interest coverage, positioning it favorably on capital efficiency and balance sheet strength, albeit with disclosure limitations that constrain full 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