# ARCS COMPANY,LIMITED: business model and financials

> Latest period: FY ending Feb 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第65期(2025/03/01－2026/02/28) (S100Y640)
> Page: https://vizora.meequs.com/en/company/arcs
> Retrieved: 2026-09-30T19:05:53.571Z

## Company

Arcs, founded in 1961, is a company in Supermarkets listed on TSE Prime. It has 5,464 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | ARCS COMPANY,LIMITED |
| Ticker | 9948 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/9948.T) |
| Listing | TSE Prime |
| Head office | 北海道札幌市中央区南十三条西十一丁目2番32号 |
| Representative (per filing) | 代表取締役会長・CEO 横山 清 |
| Founded | Oct 1961 |
| Share capital | ¥21.2B |
| Employees (consolidated) | 5,464 |
| Average salary (parent only) | ¥6.2M |
| Fiscal year end | February |
| Website | arcs-g.co.jp (https://arcs-g.co.jp/) |
| Corporate number | 1430001018377 |
| EDINET | E03199 |
| Industries (Vizora) | Supermarkets |

> Profile source: annual securities report (S100Y640, filed 2026-05-25). As of filing

## Five-axis industry profile

Primary industry: Supermarkets (2026-02-28)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 41.1 | 45 |
| Profitability | 48 | 49 |
| Cash conversion | 54.3 | 47 |
| Efficiency | 56.1 | 49 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- Arcs brought in ¥627B in revenue.
- Out of every ¥100 of sales, about ¥3 is left as operating profit.
- Revenue changed +3.1% from the prior year, operating profit +10.6%.

## Company structure

- Segment revenue mix: Segment revenue breakdown is not disclosed
- Revenue → net income: ¥626957000000 → ¥12445000000
- Net income → operating cash flow: ¥12445000000 → ¥26302000000（difference ¥13857000000）
- Main uses of operating cash flow: CapEx ¥7941000000 / dividends ¥4156000000 / buybacks ¥2299000000
- Change in cash: ¥11094000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥627B |  |
| Operating income | ¥17.6B | Margin 2.8% |
| Net income | ¥12.4B | Margin 2.0% |
| Free cash flow | ¥18.4B |  |
| Employees (consolidated) | 5,464 |  |
| EPS | ¥236.68 |  |
| Book value per share | ¥1264.79 |  |
| Equity ratio | 65.2% |  |
| Shares outstanding | 57,649,000 |  |
| Treasury shares | 4,371,400 |  |
| Shareholders | 46,963 |  |
| Average salary (parent only) | ¥6.2M | Filing company only |
| Cash ratio | 30.3% | Cash ÷ revenue 14.5% |
| Vs. industry median margin | 0 pp | Supermarkets |
| ROE | 6.7% | Derived from disclosed figures |
| ROA | 4.3% | Derived from disclosed figures |

## Notable figures

- FY2026, operating cash flow is 2.1× net income
- FY2026, cash is 30% of total assets
- FY2026, employees -4% while operating income rose 11%

## What changed in 5 years

| Metric | FY ending Feb 2021 | FY ending Feb 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥556946000000 | ¥626957000000 | +12.6% |
| Operating income | ¥17748000000 | ¥17632000000 | -0.7% |
| Operating margin | 3.2% | 2.8% | -0.4 pp |
| Employees | 5,393 people | 5,464 people | +1.3% |
| Cash and equivalents | ¥63767000000 | ¥91130000000 | +42.9% |

### Change in segment revenue mix

Span: FY ending Feb 2021 → FY ending Feb 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

## Income statement（FY ending Feb 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 626,957 | 100.0% | S100Y640 |
| Cost of revenue | 469,142 | 74.8% | S100Y640 |
| Gross profit | 157,815 | 25.2% | S100Y640 |
| SG&A | 140,183 | 22.4% | S100Y640 |
| Operating income | 17,632 | 2.8% | S100Y640 |
| Ordinary income | 19,161 | 3.1% | S100Y640 |
| Pretax income | 18,178 | 2.9% | S100Y640 |
| Income tax | 5,732 | 0.9% | S100Y640 |
| Net income | 12,445 | 2.0% | S100Y640 |
| Net income attributable to owners | 12,445 | 2.0% | S100Y640 |

## Per ¥100 of revenue（FY ending Feb 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 75 |
| SG&A | 22 |
| Operating income | 3 |
| (Ref.) Net income | 2 |

### Margin funnel

Gross margin 25.2% → Operating margin 2.8% → Net margin 2.0%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +3.1%; Core profit growth: +10.6%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 3.47×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Feb 2025 → FY ending Feb 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 608,284 | 626,957 | 18,673 | +3.1% |
| Gross profit | 152,939 | 157,815 | 4,876 | +3.2% |
| Operating income | 15,936 | 17,632 | 1,696 | +10.6% |
| Net income attributable to owners | 11,063 | 12,445 | 1,382 | +12.5% |
| Operating cash flow | 19,384 | 26,302 | 6,918 | +35.7% |
| Free cash flow | 7,395 | 18,361 | 10,966 | +148.3% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Feb 2020 | 519,218 | 12,119 | 2.3% | 6,870 | 16,584 | 4,411 | S100LDU7 |
| FY ending Feb 2021 | 556,946 | 17,748 | 3.2% | 12,967 | 29,047 | 23,219 | S100O645 |
| FY ending Feb 2022 | 577,568 | 15,562 | 2.7% | 10,304 | 14,215 | 8,364 | S100QT6A |
| FY ending Feb 2023 | 566,209 | 14,835 | 2.6% | 9,947 | 16,989 | 9,237 | S100THY6 |
| FY ending Feb 2024 | 591,557 | 16,831 | 2.8% | 11,766 | 24,052 | 13,014 | S100VTEG |
| FY ending Feb 2025 | 608,284 | 15,936 | 2.6% | 11,063 | 19,384 | 7,395 | S100Y640 |
| FY ending Feb 2026 | 626,957 | 17,632 | 2.8% | 12,445 | 26,302 | 18,361 | S100Y640 |

## People and productivity（FY ending Feb 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥114.7M |
| Operating income per employee (consolidated) | ¥3.2M |
| Net income per employee (consolidated) | ¥2.3M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Feb 2022 | FY ending Feb 2023 | FY ending Feb 2024 | FY ending Feb 2025 | FY ending Feb 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 5,810 | 5,787 | 5,720 | 5,663 | 5,464 |
| Average salary (parent company) | ¥5.6M | ¥5.7M | ¥6M | ¥6.1M | ¥6.2M |
| Average age (parent company) | 45.5 years | 45.8 years | 47.0 years | 47.3 years | 47.4 years |
| Average tenure (parent company) | 14.1 years | 14.4 years | 15.4 years | 15.9 years | 15.5 years |

Year over year: Employees (consolidated) -3.5% · Revenue (consolidated) +3.1%

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Feb 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 26,302 | 4.2% | S100Y640 |
| Capital expenditure | 7,941 | 1.3% | S100Y640 |
| Free cash flow | 18,361 | 2.9% | 算出 |
| Investing cash flow | -7,335 | -1.2% | S100Y640 |
| Financing cash flow | -7,872 | -1.3% | S100Y640 |
| Dividends paid | 4,156 | 0.7% | S100Y640 |
| Share buyback | 2,299 | 0.4% | S100Y640 |
| Change in cash | 11,094 | 1.8% | S100Y640 |
| Cash and equivalents | 91,130 | 14.5% | S100Y640 |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Feb 2022 | FY ending Feb 2023 | FY ending Feb 2024 | FY ending Feb 2025 | FY ending Feb 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 66,175 | 72,594 | 74,731 | 80,035 | 91,130 | S100THY6, S100VTEG, S100Y640 |
| Total assets | 258,025 | 266,155 | 274,972 | 282,662 | 300,714 | S100QT6A, S100THY6, S100VTEG, S100Y640 |
| Net assets | 163,995 | 171,686 | 177,809 | 184,037 | 196,142 | S100THY6, S100VTEG, S100Y640 |
| Share capital | 21,205 | 21,205 | 21,205 | 21,205 | 21,205 | S100QT6A, S100THY6, S100VTEG, S100Y640 |
| Inventories | 15,821 | 17,183 | 18,105 | 19,887 | 21,105 | S100QT6A, S100THY6, S100VTEG, S100Y640 |
| Property, plant and equipment | 125,547 | 127,158 | 131,234 | 135,188 | 133,528 | S100QT6A, S100THY6, S100VTEG, S100Y640 |
| Intangible assets excluding goodwill | 10,146 | 8,448 | 7,181 | 5,321 | 4,077 | S100QT6A, S100THY6, S100VTEG, S100Y640 |
| Goodwill | 233 | 140 | 136 | — | — | S100QT6A, S100THY6, S100VTEG |
| Investment securities | 10,048 | 9,720 | 11,957 | 10,461 | 13,523 | S100QT6A, S100THY6, S100VTEG, S100Y640 |
| Current assets | 95,949 | 105,729 | 108,890 | 116,286 | 129,436 | S100QT6A, S100THY6, S100VTEG, S100Y640 |
| Current liabilities | 62,664 | 62,899 | 66,840 | 68,386 | 73,654 | S100QT6A, S100THY6, S100VTEG, S100Y640 |
| Short-term borrowings | 8,699 | 7,890 | 7,592 | 10,584 | 10,663 | S100QT6A, S100THY6, S100VTEG, S100Y640 |
| Long-term borrowings | 11,649 | 14,917 | 14,394 | 13,797 | 13,486 | S100QT6A, S100THY6, S100VTEG, S100Y640 |
| Total liabilities | 94,029 | 94,469 | 97,163 | 98,624 | 104,571 | S100QT6A, S100THY6, S100VTEG, S100Y640 |
| Non-controlling interests | 84 | — | — | — | — | S100QT6A |
| Equity attributable to owners of parent | 165,730 | 171,917 | 175,180 | 182,302 | 188,297 | S100QT6A, S100THY6, S100VTEG, S100Y640 |
| Retained earnings | 122,622 | 129,491 | 137,984 | 145,107 | 153,396 | S100QT6A, S100THY6, S100VTEG, S100Y640 |
| Treasury stock | -3,094 | -3,775 | -9,005 | -9,006 | -11,300 | S100QT6A, S100THY6, S100VTEG, S100Y640 |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 30% | S100Y640 |
| Inventories | 7% | S100Y640 |
| Property, plant and equipment | 44% | S100Y640 |
| Intangibles and goodwill | 1% | S100Y640 |
| Investment securities | 5% | S100Y640 |
| Other assets | 13% | S100Y640 |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 35% | S100Y640 |
| Equity | 65% | S100Y640 |
| Other liabilities | 0% | S100Y640 |

### Balance sheet history

| Metric | FY ending Feb 2022 | FY ending Feb 2023 | FY ending Feb 2024 | FY ending Feb 2025 | FY ending Feb 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 258,025 | 266,155 | 274,972 | 282,662 | 300,714 |
| Equity | 163,995 | 171,686 | 177,809 | 184,037 | 196,142 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 66,175 | 72,594 | 74,731 | 80,035 | 91,130 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 21.3% | S100Y640 |
| Fixed assets ÷ total assets | 44.4% | S100Y640 |
| Goodwill ÷ parent equity | — | —, S100Y640 |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 30.3% |
| Cash ÷ revenue | 14.5% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 149.2% |
| Cash vs. profit gap | 13,857 JPY mn (of net income 111.3%) |
| Shareholder returns / net income | 51.9% |
| Shareholder returns / FCF | 35.2% |
| Shareholder payments — dividends / net income | 33.4% |
| Shareholder payments — dividends / FCF | 22.6% |
| CapEx intensity (capex ÷ revenue) | 1.3% |
| Investing CF relative to operating CF | 27.9% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 1.8% | 2.24× | 4.0% | 1.56× | 6.2% | S100QT6A |
| 2023 | 1.8% | 2.16× | 3.8% | 1.55× | 5.9% | S100THY6 |
| 2024 | 2.0% | 2.19× | 4.3% | 1.56× | 6.8% | S100VTEG |
| 2025 | 1.8% | 2.18× | 4.0% | 1.56× | 6.2% | S100Y640 |
| 2026 | 2.0% | 2.15× | 4.3% | 1.57× | 6.7% | S100Y640 |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 横山 清 | Major shareholder | 5.7% | 2026-02-28 |
| 日本マスタートラスト信託銀行㈱（信託口） | Major shareholder | 5.6% | 2026-02-28 |
| ㈱北海道銀行 | Major shareholder | 4.8% | 2026-02-28 |
| ㈱丸治 | Major shareholder | 2.7% | 2026-02-28 |
| ㈱北洋銀行 | Major shareholder | 2.6% | 2026-02-28 |
| ㈱リテールパートナーズ | Major shareholder | 2.5% | 2026-02-28 |
| ㈱バローホールディングス | Major shareholder | 2.5% | 2026-02-28 |
| ㈱日本カストディ銀行（信託口） | Major shareholder | 2.1% | 2026-02-28 |
| 三浦 建彦 | Major shareholder | 1.9% | 2026-02-28 |
| アークスグループ取引先持株会 | Major shareholder | 1.9% | 2026-02-28 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Sales reached ¥627B, up +3.1%, helped mainly by renovations and other upgrades at existing stores.
- Operating income rose +10.6% to ¥17.6B because gross profit grew by more than the extra labor and other SG&A costs.
- Cash from operations was ¥26.3B, up +35.7%.

### Drivers

- With rice prices still high, the chains kept rice reasonably priced and sold more of it.
- At Doto ARCS, standardized shelf layouts improved sales and gross profit on packaged food and snacks.
- Online grocery sales grew, including the Amazon Net Supermarket ARCS service.

### Risks

- Rising prices are expected to keep shoppers careful with money.
- Competition is heating up across store formats and industries.
- A shrinking population makes store staff harder to hire.

Cited: Annual securities report, 65th fiscal year (Mar 2025–Feb 2026) (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析); Annual securities report, 65th fiscal year (Mar 2025–Feb 2026) (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第65期(2025/03/01－2026/02/28) | S100Y640 | 2026-05-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100Y640,, |
| 有価証券報告書－第64期(2024/03/01－2025/02/28) | S100VTEG | 2025-05-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VTEG,, |
| 有価証券報告書－第63期(2023/03/01－2024/02/29) | S100THY6 | 2024-05-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100THY6,, |
| 有価証券報告書－第62期(2022/03/01－2023/02/28) | S100QT6A | 2023-05-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100QT6A,, |
| 訂正有価証券報告書－第61期(令和3年3月1日－令和4年2月28日) | S100O645 | 2022-06-01 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100O645,, |
| 有価証券報告書－第60期(令和2年3月1日－令和3年2月28日) | S100LDU7 | 2021-05-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LDU7,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).