MAKIYA CO.,LTD. FY2026 Q2 earnings report and financial analysis
/
About Quarterly Earnings Report Disclosures
| Item | Current | Prior | YoY % |
|---|---|---|---|
| Operating Income | ¥986M | ¥930M | +6.0% |
| Ordinary Income | ¥1.04B | ¥980M | +6.1% |
| Net Income Attributable to Owners | ¥689M | ¥640M | +7.7% |
| Total Comprehensive Income | ¥856M | ¥717M | +19.4% |
| Basic EPS | ¥68.96 | ¥64.12 | +7.5% |
| Dividend Per Share | ¥12.50 | ¥12.50 | +0.0% |
| Item | Current End | Prior End | Change |
|---|---|---|---|
| Total Assets | ¥39.99B | ¥39.83B | +¥165M |
| Total Equity | ¥21.54B | ¥20.80B | +¥743M |
| Owners' Equity | ¥21.54B | ¥20.80B | +¥743M |
| Item | Value |
|---|---|
| Book Value Per Share | ¥2,152.77 |
| Item | YoY Change |
|---|---|
| Operating Revenues YoY Change | +5.4% |
| Operating Income YoY Change | +6.0% |
| Ordinary Income YoY Change | +6.1% |
| Net Income Attributable to Owners YoY Change | +7.7% |
| Total Comprehensive Income YoY Change | +19.3% |
| Item | Value |
|---|---|
| Shares Outstanding (incl. Treasury) | 10.54M shares |
| Treasury Stock | 535K shares |
| Average Shares Outstanding | 10.00M shares |
| Book Value Per Share | ¥2,152.72 |
| Item | Amount |
|---|---|
| Q2 Dividend | ¥12.50 |
| Year-End Dividend | ¥12.50 |
| Item | Forecast |
|---|---|
| Operating Income Forecast | ¥2.33B |
| Ordinary Income Forecast | ¥2.42B |
| Net Income Attributable to Owners Forecast | ¥1.52B |
| Basic EPS Forecast | ¥152.10 |
| Dividend Per Share Forecast | ¥15.00 |
This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.
MakiyA Co., Ltd. (TSE: 9890) delivered steady profitability in FY2026 Q2 under JGAAP on a consolidated basis, with top-line essentially flat year over year at ¥43,188,129,000 and operating income up 6.0% to ¥986,000,000. Net income increased 7.7% to ¥689,000,000, lifting the calculated ROE to 3.20%, supported by asset turnover of 1.08x and financial leverage of 1.86x. Gross profit reached ¥10,210,844,000, translating to a gross margin of 23.6%, indicative of relatively stable merchandise margins for a value retail format despite cost pressures. Operating margin was 2.3% (operating income/revenue), while EBITDA margin was 3.9%, highlighting a modest operating leverage profile and meaningful depreciation load (¥699,586,000) given the store network and fixtures. Ordinary income of ¥1,040,000,000 exceeded operating income, indicating positive non-operating contribution net of low interest expense (¥17,914,000) and corroborating strong interest coverage of 55x. Cash generation was reasonable with operating cash flow of ¥655,185,000, equating to an OCF/net income ratio of 0.95, broadly validating earnings quality for the period. Liquidity is tight but positive, with a current ratio of 101.3% and working capital of ¥162,306,000; however, the quick ratio matches the current ratio due to inventories not disclosed, so true short-term liquidity may be somewhat lower. The balance sheet shows total assets of ¥39,992,000,000 and total equity of ¥21,538,000,000; while the reported equity ratio is shown as 0.0%, the stated equity and asset figures imply an equity ratio of roughly 54%, suggesting a solid solvency profile. The reported debt-to-equity ratio of 0.88x suggests moderate leverage, consistent with low interest burden. Revenue growth was flat year over year, indicating a mature footprint and likely reliance on store-level productivity and merchandising rather than aggressive expansion in the latest half. The company has not disclosed dividends for the period (DPS shown as ¥0.00), and payout ratio is shown as 0.0%; given limited disclosure on free cash flow, dividend visibility remains low. Investing and cash balances are shown as zero, which likely reflect non-disclosure rather than actual zeros; as such, full free cash flow analysis is constrained. Overall, profitability improved modestly with disciplined cost control, and earnings are largely supported by cash flow. The outlook depends on the sustainability of gross margins, expense control, and any traffic/mix recovery against a flattish sales base. Data limitations (notably inventories, cash, investing cash flows, and certain per-share data) constrain precision in liquidity and FCF assessments; analysis focuses on available non-zero datapoints.
ROE stands at 3.20%, decomposed via DuPont into a net profit margin of 1.60%, asset turnover of 1.08x, and financial leverage of 1.86x. The primary constraint on ROE is the thin net margin typical of discount/volume retail, while asset turnover is decent and leverage is moderate. Gross margin is 23.6%, indicating stable merchandise margins; operating margin of approximately 2.3% reflects tight SG&A discipline but limited operating leverage. EBITDA of ¥1,685,586,000 (3.9% margin) versus operating income of ¥986,000,000 implies a sizable depreciation burden (¥699,586,000), consistent with store fixtures and logistics assets. Positive spread between ordinary income and operating income indicates non-operating income contributions and very low financing costs (interest expense ¥17,914,000), boosting pre-tax earnings quality. Interest coverage is strong at 55x, underscoring ample buffer to service debt. Overall, profitability improved year over year with a 6% uplift in operating income despite flat revenue, implying modest operating leverage and effective cost control.
Revenue was flat year over year at ¥43,188,129,000, pointing to a stable but mature demand profile in the half. Operating income increased 6.0% and net income rose 7.7%, indicating margin-led growth rather than volume-driven expansion. The improvement in profits alongside flat sales suggests effective SG&A management and possibly mix optimization. With EBITDA margin at 3.9% and depreciation significant, incremental growth will rely on sustaining gross margin and improving store productivity. Ordinary income outpaced operating income, aided by low interest burden, which may not be a sustainable driver of long-term growth. Given the limited disclosure on store openings/closures and no detail on investing activities, capex-driven expansion signals are unclear. Outlook hinges on traffic trends, merchandising, inflation pass-through, and cost normalization; absent accelerating top-line, profit growth is likely to remain mid-single-digit unless new initiatives or footprint expansion contribute.
Total assets are ¥39,992,000,000, liabilities ¥19,032,049,000, and equity ¥21,538,000,000, implying an equity ratio near 54% based on the disclosed balances (reported equity ratio field shows 0.0%, likely undisclosed). Current assets are ¥12,905,928,000 and current liabilities ¥12,743,622,000, yielding a current ratio of 101.3% and working capital of ¥162,306,000, which is positive but thin for retail seasonality. The quick ratio is shown equal to the current ratio due to inventories not disclosed; true liquidity is likely lower given inventory intensity in retail. Debt-to-equity is reported at 0.88x, consistent with moderate leverage; interest expense of ¥17,914,000 and 55x coverage suggest low effective borrowing costs and manageable debt service. Solvency appears solid on the back of sizable equity and low interest burden. However, the absence of disclosed cash and cash equivalents complicates a granular view of near-term liquidity buffers.
Operating cash flow was ¥655,185,000 versus net income of ¥689,000,000, resulting in an OCF/NI ratio of 0.95, a healthy conversion for a first-half retail period. EBITDA of ¥1,685,586,000 provides additional coverage for non-cash charges, supporting cash earnings quality. Free cash flow cannot be reliably assessed as investing cash flow is undisclosed (shown as zero), and cash balance is also undisclosed. Working capital details are limited (inventories not disclosed), so it is not possible to parse whether OCF benefited from inventory reductions or payables timing; nonetheless, positive OCF alongside earnings suggests no major red flags. Sustained OCF conversion near or above 1.0x would strengthen confidence in earnings quality.
The period shows no dividend per share (DPS ¥0.00) and a payout ratio of 0.0%. With investing cash flows undisclosed and FCF shown as 0 by placeholder, coverage analysis is not feasible. Given moderate leverage and solid interest coverage, the balance sheet could support shareholder returns in principle, but the lack of disclosed dividend policy or cash position limits visibility. Absent explicit guidance, dividends appear not to be a current focus for the interim period; sustainability would hinge on consistent OCF and capex needs once disclosed.
Business Risks:
Financial Risks:
Key Concerns:
Key Takeaways:
Metrics to Watch:
Relative Positioning: MakiyA exhibits typical value retail margin structure with modest operating leverage and strong interest coverage; solvency appears solid, but flat revenue and limited disclosure on inventories, cash, and capex temper visibility versus peers with clearer growth and FCF trajectories.
This analysis was auto-generated by AI. Please note the following: