Performance trends for No. 1 <3562>. Looking back at the past performance, revenue has increased along with the expansion of customer base and product line. In particular, the high growth rate of revenue since the February 2021 period can be attributed to the acquisition of Alexon, a company that provides effective information security equipment, and the efforts to create synergy. In addition, in terms of profitability, the operating margin has been on an upward trend due to the increase in sales of high-value-added in-house planned products and expansion of stock-type income. As a result, the operating (and ordinary) income for the February 2024 period set a new record high (6 consecutive terms). ※ Excluding the impact of the revenue recognition standard for the February 2023 period, there was a substantial increase in revenue. On the financial side, while the equity ratio has remained at around 45%, the ROE, which indicates capital efficiency, has consistently been above 10% (over 20% in the past 3 periods), indicating that the company's financial foundation is good in terms of both safety and efficiency. In addition, the cash flow (CF) situation is also abundant. With the exception of the February 2021 period, when a large-scale M&A was carried out, the amount of investment CF expenditures was within the range of operating CF income, and the end-of-period balance of cash and cash equivalents is generally maintained at a level of 2 billion yen or more. The abundance of handy liquidity can be seen as a driving force for growth investment, including future M&A.
When looking back at the past performance, revenue has increased along with the expansion of customer base and product line. In particular, the high growth rate of revenue since the February 2021 period can be attributed to the acquisition of Alexon, a company that provides effective information security equipment, and the efforts to create synergy. In addition, in terms of profitability, the operating margin has been on an upward trend due to the increase in sales of high-value-added in-house planned products and expansion of stock-type income. As a result, the operating (and ordinary) income for the February 2024 period set a new record high (6 consecutive terms). ※ Excluding the impact of the revenue recognition standard for the February 2023 period, there was a substantial increase in revenue.
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On the financial side, the company's self-capital ratio is at a level of around 45%, while its ROE, which indicates capital efficiency, has always been maintained at 10% or more (over 20% in the past three periods), and the company's financial foundation can be said to be good in terms of both safety and efficiency.
In addition, the cash flow (CF) situation is also abundant. With the exception of the February 2021 period, when a large-scale M&A was carried out, the amount of investment CF expenditures was within the range of operating CF income, and the end-of-period balance of cash and cash equivalents is generally maintained at a level of 2 billion yen or more. The abundance of handy liquidity can be seen as a driving force for growth investment, including future M&A.
(Written by Fisco Guest Analyst Ikuo Shibata)