FUSHIKI KAIRIKU UNSO CO.,LTD. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥3.54B
• Operating Income: ¥338M
• Net Income: ¥241M
• EPS: ¥100.34

Income Statement

Balance Sheet

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

Fushiki Kairiku Unso (9361) reported solid topline and earnings momentum in FY2026 Q1 under JGAAP on a consolidated basis, with revenue of ¥3,544 million, up 11.2% year over year. Operating income rose 8.2% YoY to ¥338 million, indicating positive operating leverage albeit slightly less than revenue growth. Ordinary income reached ¥402 million, suggesting incremental non-operating gains or financial income offsetting modest interest expense. Net income increased 19.0% YoY to ¥259 million, with an EPS of ¥100.34, reflecting robust bottom-line execution. The reported net margin stands at 7.31%, supported by an operating margin of roughly 9.5% and a gross margin of 16.8%. Interest expense was modest at ¥12.25 million, and interest coverage is strong at 27.6x, underscoring manageable financing costs. The DuPont bridge shows ROE of 1.95% for the quarter, driven by a 7.31% net margin, low asset turnover of 0.151x (quarterly basis), and financial leverage of 1.77x. Liquidity is sound with a current ratio of 134.7% and quick ratio of 131.7%, supported by working capital of approximately ¥1.516 billion. The balance sheet scale is sizeable with total assets of ¥23.475 billion and total liabilities of ¥10.634 billion, implying a conservative capital structure relative to operating earnings. Tax expense was ¥100.33 million; based on net income, the implied effective tax rate is roughly 27.9%, consistent with domestic statutory levels. Inventory is limited at ¥132 million, consistent with an asset-light or service-centric logistics mix. Cash flow statements and several ratios (e.g., EBITDA, OCF/NI, equity ratio, DPS) are shown as zero, which in this dataset indicates items were not disclosed or mapped under different labels, not that cash flow or dividends are actually zero. As such, cash flow and dividend conclusions should be treated as provisional until full filings are available. Despite data gaps, the quarter reflects healthy demand, cost control sufficient to expand net income faster than sales, and low financial risk. The key strategic question is sustainability of the revenue growth into subsequent quarters given the low asset turnover and industry cyclicality. Overall, FY2026 Q1 evidences operational resilience and a disciplined balance sheet, with attention needed on working capital dynamics and capex not yet visible in the CF statement.

Profitability Analysis

ROE decomposition (DuPont): Net margin 7.31% x Asset turnover 0.151x x Leverage 1.77x = ROE 1.95% for the quarter. Operating margin is approximately 9.5% (¥338m / ¥3,544m), indicating healthy operating efficiency for a logistics/services model. Gross margin at 16.8% suggests material cost of services and labor, typical for stevedoring/port logistics; the spread between gross and operating margin implies controlled SG&A. Ordinary income margin at ~11.3% (¥402m / ¥3,544m) exceeds operating margin, implying positive non-operating balance (e.g., equity-method income, subsidies, or other income) outweighing interest and other costs. Interest burden is light with ¥12.25m expense and 27.6x coverage, so financing drag on profitability is minimal. Margin quality appears solid, evidenced by net income growth (+19% YoY) outpacing revenue growth (+11.2% YoY). Operating leverage is positive but moderate: gross margin (16.8%) to operating margin (~9.5%) suggests that incremental sales contribute meaningfully to EBIT, though room remains for further fixed-cost absorption. Given quarterly asset turnover of 0.151x, capital intensity is notable; improving utilization could augment ROE even without higher leverage. The implied effective tax rate (~27.9% from ¥100.3m tax on ~¥359.3m pre-tax) is within a normal range, supporting recurring margin sustainability.

Growth Assessment

Revenue grew 11.2% YoY to ¥3,544m, indicating healthy demand conditions across the company’s service lines. Operating income growth of 8.2% YoY trails sales, implying some cost pressures or mix effects; however, net income grew 19.0% YoY, aided by non-operating contributions and controlled financing costs. The 7.31% net margin reflects improved profit conversion versus the prior year’s implied level (given stronger NI growth), pointing to quality of earnings in the quarter. Sustainability will hinge on continued cargo volumes, port activity, and industrial production in the company’s served regions, as well as contractual pricing with customers. Asset turnover at 0.151x (quarterly) suggests capacity to scale revenues without immediate large capex, but visibility is limited due to unreported cash flow and capex data. Absent disclosed backlog or segment details, the growth outlook is cautiously positive near term given margin resilience, but sensitive to macro and seasonal logistics factors. Mix toward higher-value-added services would support margins if sustained. Non-operating income that boosted ordinary income this quarter may be less predictable, so core operating trajectory remains the key indicator for forward growth.

Financial Health

Total assets are ¥23.475bn and liabilities ¥10.634bn, with reported total equity ¥13.29bn, implying moderate leverage. The provided leverage factor in DuPont is 1.77x (Assets/Equity), supporting a conservative balance sheet stance. Debt-to-equity is cited at 0.80x, consistent with manageable solvency risk. Liquidity is solid: current ratio 134.7% and quick ratio 131.7%, underpinned by ¥5.880bn of current assets and ¥4.364bn of current liabilities. Working capital stands at about ¥1.516bn, sufficient for seasonal needs. Inventory is modest at ¥132m, lowering obsolescence risk and suggesting a services-heavy model. Interest expense is low at ¥12.25m, and coverage is strong at 27.6x, indicating ample buffer against rate or earnings volatility. Equity ratio was shown as 0.0% in the dataset, which should be treated as undisclosed; based on assets and equity figures, the implied equity ratio is roughly in the mid-50% range, indicating healthy capitalization. Overall solvency and liquidity profiles appear robust, though precise debt composition and maturities are not disclosed here.

Cash Flow Quality

Cash flow statements are not disclosed in this dataset (items shown as zero denote unreported), so OCF/NI and FCF cannot be reliably assessed. Earnings quality must therefore be inferred from P&L and balance sheet indicators. Positive indicators include strong interest coverage (27.6x) and manageable working capital, which typically support cash conversion in logistics. The YoY growth in operating income (+8.2%) alongside stable margins suggests underlying cash generation, but without OCF and capex figures, free cash flow cannot be quantified. Working capital: current assets of ¥5.88bn versus current liabilities of ¥4.36bn imply headroom; inventory is limited (¥132m), which reduces cash tied up in stock. Receivable and payable movements are not provided, constraining assessment of cash conversion cycle. Depreciation is shown as zero (unreported), limiting EBITDA analysis; the business likely has non-trivial depreciation given asset base, so actual cash earnings are higher than accounting net income by the depreciation amount. Conclusion: provisional view is neutral-to-positive on cash flow quality, pending full cash flow disclosure.

Dividend Sustainability

Dividend data (annual DPS, payout, and FCF coverage) are not disclosed in this dataset; the zeros presented should not be interpreted as actual values. EPS for the quarter is ¥100.34, and net income is ¥259m, but without historical payout policy, OCF, or capex, coverage cannot be computed. Balance sheet strength (moderate leverage and strong liquidity) would generally support dividend capacity, but sustainability depends on recurring cash generation and capital expenditure needs, which are not visible here. Policy outlook: absent formal guidance, assume continuation of a conservative shareholder return stance typical of regional logistics firms with stable but cyclical earnings. A more definitive assessment requires full-year earnings, cash flow statements, and board-approved dividend plans.

Risk Assessment

Business Risks:

• Exposure to cargo volume fluctuations tied to regional industrial activity and global trade cycles
• Pricing pressure from customers and competitive intensity in port/logistics services
• Seasonality and weather-related disruptions impacting port operations
• Potential labor availability and wage inflation pressures affecting service margins
• Regulatory and safety compliance requirements at ports and logistics facilities
• Customer concentration risk not disclosed but common in regional logistics

Financial Risks:

• Limited visibility on operating cash flow and capex due to unreported CF statements
• Potential fixed-asset intensity leading to lower asset turnover and sensitivity to utilization
• Interest rate risk is modest currently but could rise if borrowing increases
• Tax rate normalization around ~28% could affect net margins if non-operating gains normalize

Key Concerns:

• Sustainability of double-digit revenue growth amid macro uncertainty
• Dependence on non-operating items to lift ordinary income above operating income
• Data gaps on depreciation, capex, and cash flows that constrain FCF assessment

Investment Implications

Key Takeaways:

• Topline grew 11.2% YoY to ¥3.54bn with solid margin retention
• Operating income up 8.2% YoY to ¥338m; net income up 19.0% to ¥259m
• Net margin 7.31% and interest coverage 27.6x indicate resilient profitability and low financing risk
• ROE of 1.95% (quarterly) driven primarily by margin rather than leverage or asset turns
• Liquidity is sound (current ratio 134.7%, quick ratio 131.7%); working capital ~¥1.52bn
• Cash flow and dividend data are not disclosed; FCF and payout sustainability cannot be confirmed

Metrics to Watch:

• Operating margin trajectory and cost pass-through to sustain profitability
• Ordinary vs. operating income gap to gauge reliance on non-operating items
• Asset turnover and utilization rates as drivers of ROE improvement
• Disclosure of OCF and capex to assess FCF generation and dividend capacity
• Working capital movements (receivables/payables) affecting cash conversion
• Contract wins, cargo volume indicators, and regional industrial activity

Relative Positioning: Within Japan’s regional logistics/port services peers, the company exhibits above-average balance sheet conservatism, healthy interest coverage, and mid-tier profitability, with ROE constrained by low asset turnover; clearer cash flow disclosure would improve 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
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