Bell-Park Co.,Ltd. FY2025 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥96.27B
• Operating Income: ¥4.50B
• Net Income: ¥2.58B
• EPS: ¥183.67

Income Statement

Balance Sheet

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

Bell-Park (9441) delivered solid FY2025 Q3 YTD results with clear operating leverage and disciplined cost control. Revenue increased 12.4% year over year to ¥96.27bn, supported by healthy topline momentum in the carrier shop business and related services. Gross profit of ¥20.34bn translates to a 21.1% gross margin per the provided metric set. Operating income rose 25.4% YoY to ¥4.50bn, outpacing revenue growth and indicating favorable operating leverage and expense discipline. Ordinary income was ¥4.61bn, modestly above operating income due to small net non-operating gains, while interest expense remained de minimis at ¥0.314m. Net income increased 20.1% YoY to ¥3.10bn, yielding a net margin of 3.21%. The DuPont breakdown shows ROE of 11.95%, driven by a 3.21% net margin, robust asset turnover of 2.217x, and moderate financial leverage of 1.68x. Liquidity is strong with a current ratio of 264% and quick ratio of 218%, underpinned by ¥41.68bn of current assets and ¥15.78bn of current liabilities. The balance sheet remains conservative: total liabilities are ¥16.50bn vs equity of ¥25.90bn, implying low leverage (liabilities/equity 0.64x) and an implied equity ratio around 59.6%. Working capital is ample at ¥25.90bn, providing buffer against operating volatility. Inventory of ¥7.26bn looks manageable relative to sales and current assets. The reported effective tax rate metric of 0.0% appears non-representative; based on income tax expense of ¥1.27bn and net income of ¥3.10bn, the implied tax rate is roughly 29–30%. Cash flow and cash balance were not disclosed in this dataset (zeros indicate unreported), limiting assessment of earnings-to-cash conversion and dividend coverage. Dividend-related fields show 0 (undisclosed), so payout details are not assessable from the provided data. Overall, profitability improved with margin expansion, ROE is healthy for the sector, liquidity is strong, and balance sheet risk is low; the main analytical gap is the absence of cash flow disclosures in this extract.

Profitability Analysis

ROE_decomposition: ROE 11.95% = Net margin 3.21% × Asset turnover 2.217× × Financial leverage 1.68×. This indicates returns are primarily driven by efficient asset utilization and modest leverage rather than high margins. margin_quality: Operating margin is approximately 4.67% (¥4.50bn / ¥96.27bn). Net margin at 3.21% reflects limited financing burden (interest expense ¥0.314m) and a normalized tax rate (~29–30% implied). Gross margin is 21.1% per provided metric. The step-down from gross to operating suggests SG&A intensity around 16.5% of sales (implied SG&A ≈ ¥15.84bn). operating_leverage: Revenue grew 12.4% YoY while operating income rose 25.4% YoY, implying positive operating leverage and fixed-cost absorption. Estimated operating margin expanded from roughly 4.2% in the prior-year period to ~4.7%.

Growth Assessment

revenue_sustainability: Topline growth of 12.4% appears broad-based within the carrier shop and service ecosystem; sustainability will hinge on carrier commission structures, device replacement cycles, and cross-sell of services. profit_quality: Operating income grew faster than sales, pointing to improved mix and/or cost control. Non-operating items had minimal impact (ordinary income ~¥4.61bn vs operating income ¥4.50bn). The implied tax rate is consistent with statutory levels, supporting earnings quality. outlook: With strong working capital and low leverage, Bell-Park is positioned to continue investing in store productivity and service attach rates. Near-term growth will depend on consumer device demand, 5G upgrade waves, and carrier incentive dynamics; operating leverage could persist if SG&A discipline holds.

Financial Health

liquidity: Current ratio 264.2% (¥41.68bn / ¥15.78bn); quick ratio 218.2% after backing out inventories of ¥7.26bn. Working capital totals ¥25.90bn, indicating strong short-term solvency. solvency: Total liabilities/Equity is 0.64× (¥16.50bn / ¥25.90bn). Interest expense is negligible (¥0.314m), and interest coverage is extremely high at ~14,331× using operating income, reflecting minimal financial risk. capital_structure: Implied equity ratio is ~59.6% (¥25.90bn / ¥43.42bn). Balance sheet is equity-heavy with modest liabilities, providing resilience against shocks.

Cash Flow Quality

earnings_quality: Cash flow statements were not disclosed in this dataset (OCF reported as 0 indicates unreported). As such, OCF/Net income and FCF cannot be assessed here. Earnings quality must be inferred from accrual metrics and low reliance on financing. FCF_analysis: Free cash flow not available in the extract. Given ample working capital and low interest burden, conversion is likely sensitive to inventory and receivables swings; however, no direct conclusion can be drawn without OCF and capex data. working_capital: Current assets ¥41.68bn vs current liabilities ¥15.78bn. Inventories ¥7.26bn represent ~17% of current assets; maintaining healthy turns will be important to sustain cash conversion.

Dividend Sustainability

payout_ratio_assessment: Dividend per share and payout ratio are undisclosed in this extract (fields show 0, indicating not reported). EPS is ¥183.67 for the period; absent payout information, a payout ratio cannot be computed. FCF_coverage: FCF data is not available; coverage of dividends by FCF cannot be assessed from the provided data. policy_outlook: Without disclosed DPS or historical policy context in this dataset, we cannot infer policy direction. Balance sheet strength would support capacity for distributions, but actual payouts depend on board policy and cash flow generation.

Risk Assessment

Business Risks:

• Carrier commission and incentive volatility affecting shop-level economics
• Smartphone replacement cycle sensitivity and potential demand softness
• Regulatory changes in telecom pricing and handset subsidies in Japan
• Competitive intensity among carrier shops and independent retailers
• Labor availability and personnel cost inflation impacting SG&A
• Supply chain timing for flagship device launches affecting quarterly mix

Financial Risks:

• Working capital swings in inventories and receivables impacting OCF
• Potential concentration risk to major carriers for commissions
• Limited disclosure of cash flows in this extract constrains visibility on cash conversion
• Tax rate variability vs statutory due to discrete items or credits

Key Concerns:

• Absence of cash flow and cash balance disclosure in the provided data
• Exposure to carrier policy changes that can compress margins
• Sustaining operating leverage as growth normalizes

Investment Implications

Key Takeaways:

• Revenue up 12.4% YoY to ¥96.27bn with operating income up 25.4% to ¥4.50bn, indicating positive operating leverage
• ROE at 11.95% supported by strong asset turnover (2.217×) and moderate leverage (1.68×)
• Robust liquidity: current ratio 264%, quick ratio 218%, working capital ¥25.90bn
• Low financial risk: liabilities/equity 0.64×, negligible interest expense and very high coverage
• Net margin 3.21% and implied tax rate ~29–30% suggest normalized earnings quality
• Cash flow and dividend details not disclosed; assessment of cash conversion and payout capacity requires additional information

Metrics to Watch:

• Operating margin progression and SG&A as a percentage of sales
• Same-store sales, device volumes, and service attach rates
• Carrier commission terms and policy changes
• Inventory turnover and receivables days to gauge cash conversion
• Ordinary income components and any non-operating gains/losses
• Effective tax rate consistency
• Cash and equivalents, OCF, capex, and FCF once disclosed
• ROE and asset turnover trends

Relative Positioning: Within Japan’s mobile phone retail/operator shop peers, Bell-Park exhibits healthy ROE and superior balance sheet conservatism with strong liquidity and minimal financing costs; operating leverage is trending positively, though cash conversion visibility is currently limited due to undisclosed cash flow data.

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