| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥589.2B | ¥597.9B | -1.5% |
| Operating Income / Operating Profit | ¥24.8B | ¥30.1B | -17.4% |
| Ordinary Income | ¥24.9B | ¥30.2B | -17.7% |
| Net Income / Net Profit | ¥8.6B | ¥16.2B | -46.6% |
| ROE | 3.7% | 7.2% | - |
For the fiscal year ended March 2026, Revenue was ¥589.2B (YoY -¥8.7B -1.5%), Operating Income was ¥24.8B (YoY -¥5.2B -17.4%), Ordinary Income was ¥24.9B (YoY -¥5.3B -17.7%), and Net Income was ¥8.6B (YoY -¥7.6B -46.6%). Revenue was dragged down by declines in the Housing Business (-12.6%) and Architectural Consulting Business (-8.4%), and increases in the Clicla Business (+2.9%) and Rental Business (+0.5%) were insufficient to offset the declines, resulting in a slight revenue decrease. Operating Income declined as SG&A ratio rose from 42.0% to 44.0% (+2.0pt) and the Other segment widened its loss from ¥0.27B to ¥2.31B, causing Operating Margin to deteriorate from 5.0% to 4.2% (-0.8pt). Net Income declined 46.6% despite a significant reduction in extraordinary losses (current period special gains/losses net -¥0.4B vs prior year special losses of ¥6.3B for impairment, etc.), due to lower operating profit and reduced profit before tax.
【Revenue】 Revenue of ¥589.2B (YoY -1.5%) reflects steady performance in core Clicla Business ¥160.5B (+2.9%) and Rental Business ¥179.4B (+0.5%), while declines in Housing Business ¥116.9B (-12.6%) and Architectural Consulting Business ¥49.3B (-8.4%) pulled down overall sales. Other segment revenue increased substantially to ¥19.3B (+51.0%) but remains low in profitability with an operating loss of ¥2.31B. Segment revenue composition: Clicla 27.2%, Rental 30.5%, Housing 19.8%, Architectural Consulting 8.4%, Beauty & Health 11.4%, Other 3.3%. Gross profit was ¥283.8B with a gross margin of 48.2% (prior year 47.1%, +1.1pt), improved mainly due to reduced special losses and mix effects.
【Profit & Loss】 Operating Income ¥24.8B (YoY -17.4%) decreased primarily because SG&A expenses rose to ¥259.0B (YoY +3.0%) despite lower sales, worsening the SG&A ratio to 44.0% (prior year 42.0%, +2.0pt). Major SG&A items: Salaries and allowances ¥75.8B, Other SG&A ¥98.3B, Rent ¥17.1B. Operating margin fell to 4.2% (prior year 5.0%, -0.8pt). Ordinary Income ¥24.9B (YoY -17.7%) was nearly neutral on non-operating items (net ¥0.1B), reflecting the decline in operating income. Extraordinary items: Special gains ¥1.7B (gain on sale of investment securities ¥0.7B, etc.), Special losses ¥2.1B (impairment losses ¥0.6B, valuation losses on investment securities ¥0.5B, etc.), net -¥0.4B. Prior year special losses were ¥6.3B, so extraordinary losses narrowed substantially this period. Profit before tax was ¥24.4B (prior year ¥24.0B, +¥0.4B) — a slight increase — but lower corporate taxes ¥8.1B (prior year ¥10.4B) resulted in Net Income of ¥8.6B (prior year ¥16.2B, -46.6%). The main reason for the decline in Net Income is that prior-year Net Income ¥16.2B corresponded to EPS ¥31.82, while current EPS is ¥39.03 (+22.7%) — earnings per share increased due to a reduction in shares outstanding (share buybacks). In conclusion, the company had lower revenue and lower operating/ordinary profits, but reduced tax burden and narrower extraordinary losses left Net Income lower YoY while EPS improved.
Clicla Business (Revenue ¥160.5B +2.9%, Operating Income ¥18.5B +11.9%, Margin 11.5%) is the largest profit contributor, accounting for 74.5% of consolidated Operating Income, achieving revenue and profit growth with margin improving 0.9pt from 10.6% a year earlier. Rental Business (Revenue ¥179.4B +0.5%, Operating Income ¥14.8B -4.4%, Margin 8.3%) posted slight revenue growth but lower operating profit, with margin down 0.4pt from 8.7%. Architectural Consulting Business (Revenue ¥49.3B -8.4%, Operating Income ¥0.9B -77.1%, Margin 1.9%) saw substantial profit decline alongside revenue decline, margin deteriorated 5.5pt from 7.4% prior. Housing Business (Revenue ¥116.9B -12.6%, Operating Income ¥2.8B -30.5%, Margin 2.4%) experienced revenue and profit declines, margin down 0.6pt from 3.0%. Beauty & Health Business (Revenue ¥66.9B +2.9%, Operating Income ¥2.5B -26.3%, Margin 3.7%) posted revenue growth but operating profit decline, margin down 1.5pt from 5.2%. Other (Revenue ¥19.3B +51.0%, Operating Loss ¥2.3B) achieved large revenue growth but the loss widened from ¥0.27B to ¥2.31B (including impairment loss ¥0.57B). Margin dispersion across segments is large: high-margin Clicla drives the company, while low profitability in Architectural Consulting and Housing and losses in Other dilute consolidated margins.
【Profitability】Operating margin 4.2% (prior year 5.0%, -0.8pt), Net margin 1.5% (prior year 2.7%, -1.2pt), Gross margin 48.2% (prior year 47.1%, +1.1pt). Despite improved gross margin, higher SG&A ratio 44.0% (prior year 42.0%, +2.0pt) squeezed operating-level profit. ROE 3.7% (prior year 6.1%) fell due to lower Net Income, Equity Ratio 59.5% (prior year 58.6%, +0.9pt) indicates maintained financial soundness. 【Cash Quality】Operating Cash Flow (OCF) ¥13.5B is 1.57x Net Income ¥8.6B; EBITDA including depreciation ¥33.7B yields OCF/EBITDA 0.40x, a low conversion rate driven mainly by working capital absorption: inventory increase ¥9.2B, contract liabilities decrease ¥2.4B, customer advances decrease ¥3.4B. Free Cash Flow ¥9.0B (OCF ¥13.5B - CapEx ¥3.6B) is positive but covers dividends of ¥9.2B by only 0.98x, marginal. 【Investment Efficiency】CapEx ¥3.6B is 0.41x depreciation ¥8.9B, subdued. 【Financial Soundness】Current ratio 210%, Quick ratio 181% are strong; interest-bearing debt ¥52.4B (short-term ¥41.5B, long-term ¥26.0B, net of lease liabilities ¥5.4B) vs EBITDA ¥33.7B gives Debt/EBITDA 1.57x, interest coverage 41.7x (EBITDA ¥33.7B / interest expense ¥0.8B), conservative.
OCF ¥13.5B (prior year ¥41.4B, -67.5%) started from profit before tax ¥24.4B plus depreciation ¥8.9B, goodwill amortization ¥1.6B and other non-cash charges to record subtotal OCF ¥23.3B. Working capital movements included inventory increase -¥9.2B (work-in-progress +¥13.6B, etc.), increase in trade receivables -¥2.3B, increase in trade payables +¥1.8B, decrease in contract liabilities -¥2.4B, decrease in construction advances -¥3.4B as main cash outflows. After corporate tax payments ¥9.7B, OCF stood at ¥13.5B. Investing CF was -¥4.5B composed of CapEx -¥3.6B, intangible asset investment -¥1.5B, proceeds from sale of investment securities ¥1.1B, etc. Financing CF was -¥10.0B including share buybacks -¥8.2B, dividend payments -¥9.2B, proceeds from long-term borrowings ¥16.0B, repayments of long-term borrowings -¥15.5B, net decrease in short-term borrowings -¥4.9B, etc. Free Cash Flow ¥9.0B covers dividends by 0.98x and total shareholder return including buybacks ¥17.4B (dividends ¥9.2B + buybacks ¥8.2B) exceeds internally generated funds. Cash and deposits decreased ¥1.1B from ¥85.9B to ¥84.8B YoY.
Ordinary Income ¥24.9B is primarily from core operations; non-operating income ¥2.4B (non-operating income ratio 0.4%) included dividend income ¥0.2B, investment partnership gains ¥0.1B, etc. Non-operating expenses ¥2.3B included interest expense ¥0.8B, foreign exchange losses ¥0.2B, etc., resulting in net non-operating items of ¥0.1B, neutral. Extraordinary items net -¥0.4B (special gains ¥1.7B - special losses ¥2.1B) substantially narrowed from prior year -¥6.3B (special gains ¥0.1B - special losses ¥6.3B). Special gains mainly from sale of investment securities ¥0.7B; special losses mainly impairment loss ¥0.6B and valuation loss on investment securities ¥0.5B. The gap between Ordinary Income ¥24.9B and Net Income ¥8.6B (-65%) is large, driven by tax burden ¥8.1B and the impact of special losses. Comprehensive income ¥16.0B exceeds Net Income ¥8.6B, affected by valuation difference on other securities -¥0.2B, foreign currency translation adjustment -¥0.1B, and deferred hedge gains/losses -¥0.0B. OCF/EBITDA = ¥13.5B/¥33.7B = 0.40x indicates low conversion; inventory and advance fluctuations are significant. Under JGAAP, goodwill amortization ¥1.6B (4.8% of EBITDA) slightly suppresses profit but the distortion is minor.
Full year guidance: Revenue ¥635.0B (YoY +7.8%), Operating Income ¥28.0B (+12.7%), Ordinary Income ¥28.0B (+12.6%), Net Income ¥9.0B (+4.2%). Compared with current results (Revenue ¥589.2B, Operating Income ¥24.8B), an increment of Revenue +¥45.8B and Operating Income +¥3.2B is required. Revenue upside assumptions: recovery in Architectural Consulting and Housing, and stable growth in Clicla and Rental. Improvement in Operating Income (Operating margin assumed to improve from 4.2% to 4.4%, +0.2pt) hinges on SG&A containment and narrowing of Other segment losses. Net Income guidance ¥9.0B is near current Net Income ¥8.6B; EPS forecast ¥40.67 (current ¥39.03) implies slight improvement on a per-share basis. Dividend forecast annual ¥5 (note: this appears inconsistent with later statement of annual dividend; see Shareholder Returns), payout ratio 69.1% is high, but on next-year forecast basis payout ratio is 12.3% (forecast dividend ¥5 / forecast EPS ¥40.67 × average shares 41.8 million ≒ annual dividend total ¥2.09B / forecast Net Income ¥17B ≒ 12.3%) and thus expected to drop substantially. Guidance achievement assumes continued revenue growth in Clicla and Rental, recovery in Architectural Consulting margin, and significant narrowing of Other segment losses.
Dividends: year-end dividend ¥17, interim dividend ¥5, annual total ¥22, a large increase from prior annual ¥5 (+340% YoY). Payout ratio 69.1% (annual dividend ¥22 / EPS ¥31.82 × prior year shares) is high, but with current EPS up to ¥39.03, the effective payout ratio is 56.4% (¥22 / ¥39.03). Total shareholder return including share buybacks ¥8.2B is (dividends ¥9.2B + buybacks ¥8.2B) / Net Income ¥8.6B ≒ 202%, extremely high and not sustainable from internal funds alone; even with Free Cash Flow ¥9.0B, coverage is tight. Dividend sustainability depends on cash and deposits ¥84.8B and recovery of OCF; if this period’s working capital absorption is temporary, dividend may be maintainable with improved OCF going forward. The high total return ratio signals a shareholder-focused stance but continued implementation requires improvement in OCF/EBITDA conversion and normalization of working capital.
SG&A ratio increase risk: SG&A ¥259.0B (YoY +3.0%) rose despite sales decline (-1.5%), pushing SG&A ratio to 44.0% (prior year 42.0%, +2.0pt). The ¥12.3B increase in overall costs and a worsening mix toward low-margin segments (Architectural Consulting, Housing, Other) are primary causes. Persistently high SG&A ratio would worsen operating leverage and constrain ROE improvement.
Working capital management risk: Inventory increase ¥9.2B (notably work-in-progress +¥13.6B), contract liabilities decrease ¥2.4B, and construction advances decrease ¥3.4B pressured OCF. Declines in inventory turnover and advances may indicate demand volatility or project progress delays, reducing cash conversion (OCF/EBITDA 0.40x). Prolonged normalization of working capital would constrain dividend capacity and investment flexibility.
Segment profitability dispersion risk: While Clicla (margin 11.5%) and Rental (8.3%) are core, Architectural Consulting (1.9%), Housing (2.4%), and Beauty & Health (3.7%) are low-margin, and Other is loss-making (-12.0%). Revenue declines in Architectural Consulting (-8.4%) and Housing (-12.6%) and widening losses in Other (loss ¥2.31B, YoY △9.6x) dilute consolidated margin. If inter-segment profitability divergence widens, improving consolidated ROE will be difficult.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 4.2% | 8.1% (3.6%–16.0%) | -3.9pt |
| Net Margin | 1.5% | 5.8% (1.2%–11.6%) | -4.4pt |
Operating margin 4.2% is 3.9pt below the industry median 8.1%, and Net margin 1.5% is 4.4pt below the median 5.8%. Profitability ranks in the lower part of the industry, primarily due to high SG&A ratio (44.0%).
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | -1.5% | 10.1% (1.7%–20.2%) | -11.6pt |
Revenue growth -1.5% is 11.6pt below the industry median +10.1%, indicating significant underperformance in the sector. Slowdown in Architectural Consulting and Housing is the primary cause; marginal increases in core Clicla and Rental could not offset.
※ Source: Company compilation
Contribution and sustainability of Clicla Business: Operating Income ¥18.5B (74.5% of consolidated) with margin 11.5%, the highest among segments. Achieved revenue and profit growth (Revenue +2.9%, Operating Income +11.9%) and supports consolidated results. Achieving next-year guidance depends on stable growth in Clicla, progress in new customer acquisition and retention of existing customers. Customer-related assets ¥1.92B (Clicla) accumulation suggests future revenue potential.
Normalization of working capital and recovery of cash generation: OCF ¥13.5B fell 67.5% from ¥41.4B, with OCF/EBITDA 0.40x at a low level. Main factors: inventory increase ¥9.2B (work-in-progress +¥13.6B), contract liabilities decrease ¥2.4B, construction advances decrease ¥3.4B, suggesting demand variability or project delays. Improvement in inventory turnover and recovery of advances in the next fiscal year are directly linked to dividend sustainability (current high payout ratio 69.1%) and investment capacity. Progress in working capital management will determine future financial flexibility.
Room to improve segment mix: Low-margin segments Architectural Consulting (margin 1.9%, Operating Income -77.1%), Housing (margin 2.4%, Operating Income -30.5%), and loss-making Other (-12.0%) dilute consolidated margin. Other segment loss widened from ¥0.27B to ¥2.31B (including impairment ¥0.57B), pushing consolidated SG&A ratio to 44.0% (+2.0pt). Achieving guidance (Operating Income +12.7%) requires significant narrowing of Other losses and recovery of Architectural Consulting margins. Execution of segment-level profit improvement measures (cost cuts, considering withdrawal) is key to returning toward industry-average margins.
This report is a financial analysis document automatically generated by AI from XBRL financial statement data. It does not constitute a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by the company based on public financial statement data. Investment decisions are the responsibility of the reader; please consult professionals as needed before making investment decisions.