USS Co.,Ltd.
4732・Prime Market・Services
Business
USS Co., Ltd. is a comprehensive used vehicle distribution company that operates a nationwide Auto Auction network with used vehicle dealers as members. Since opening its Nagoya venue in 1982, the company has expanded to more than 20 venues nationwide, with On-site Auto Auction listings reaching 3,504 thousand units in FY2026 (ending March 2026), up 9.4% year on year. Its main customers are corporate members such as used car dealers and exporters (49,176 registered On-site Auto Auction member companies). Centered on the Auto Auction business, the group also operates complementary businesses including Purchase & Sale of Used Vehicles, etc., Recycling, and Auto Loan and electricity sales.
Business Model
The company adopts a membership-based platform model that collects three types of fees—listing fees, contract fees, and winning bid fees—each time a member used-vehicle dealer lists or wins a bid at auction. In FY2026 (ending March 2026), winning bid fee revenue reached ¥34,856 million (up 14.2% year on year), making it the largest revenue source, while remote participation services via dedicated terminals (USS JAPAN) and the internet (CIS) also contribute to fee income. The structure of earning fee income linked to transaction volume without bearing vehicle trading risk enables a high operating margin (65.3% in the Auto Auction segment).
Company Strengths
The company has 49,176 registered members for On-site Auto Auction (up 2.1% year on year) and 36,279 registered members for CIS (up 3.2% year on year), achieving a 43.2% share of the Auto Auction market in calendar year 2025. The combination of a physical network spanning more than 20 venues nationwide and remote participation channels forms a member base that is difficult for competitors to replicate in a short period.
The Auto Auction segment achieved an operating margin of 65.3% (operating profit of ¥58,584 million) in FY2026 (ending March 2026). Since the company does not bear the risk of vehicle trading itself, its fee-based model creates a highly profitable structure in which increases in the number of vehicles listed and sold translate directly into profit. The consolidated operating margin has been on an improving trend, rising from 51.0% in FY2022 (ending March 2022) to 52.6% in FY2026 (ending March 2026).
As of the end of FY2026 (ending March 2026), interest-bearing debt stood at an extremely low ¥2,098 million, while cash and cash equivalents totaled ¥88,933 million. The company generated operating cash flow of ¥43,913 million and returned a combined ¥38,475 million to shareholders through dividends of ¥22,475 million and share buybacks of ¥16,000 million. ROE reached 20.1%, achieving the company's own target of 20% or higher.
ENVALITH's Perspective
Performance Trend
The company achieved five consecutive periods of revenue and profit growth from FY2022 (ending March 2022) through FY2026 (ending March 2026). Revenue expanded 39.7% over the five periods, from ¥81,482 million to ¥113,854 million. In FY2026 (ending March 2026), revenue reached ¥113,854 million (up 9.5% year on year), operating profit reached ¥59,847 million (up 10.4% year on year), and net income attributable to owners of the parent reached ¥41,360 million (up 9.9% year on year), all renewing record highs. As an external factor, the used vehicle export market expanded 10.1% year on year (to 1,738 thousand units), and the total number of vehicles listed across the auction market as a whole also grew 5.1% year on year (to 8,013 thousand units), with a favorable market environment providing a tailwind. As an internal factor, the revision of USS JAPAN's winning bid commission and a 9.4% increase in the number of vehicles listed and sold combined to drive winning bid commission revenue up 14.2% year on year. For FY2027 (ending March 2027), the company projects a slowdown in growth (revenue up 5.2%, operating profit up 1.9%), and, including an expected decline in the contract conversion rate (from 67.0% to a projected 66.3%), the situation is entering a phase in which changes in growth momentum warrant close attention.
Growth Strategy
The company aims to expand market share through the rebuilding and expansion investment of its major venues, while strengthening shareholder returns with a total payout ratio target of 100% or more.
Capital expenditure (on a completion basis) for FY2026 (ending March 2026) surged 235.2% year on year to the equivalent of ¥10.8 billion. Tangible fixed assets (net buildings and structures) increased by ¥5,493 million year on year. For FY2027 (ending March 2026), capital expenditure of the equivalent of ¥7.8 billion is planned, aiming to improve market share in the Auto Auction industry.
The company revised the winning bid commission fee for members participating in auctions using the dedicated terminal USS JAPAN, raising the per-vehicle winning bid commission fee by 4.4% year on year to ¥14,855. Winning bid commission revenue increased 14.2% year on year to ¥34,856 million, significantly contributing to increased revenue and profit in the Auto Auction segment.
From FY2026 (ending March 2026), the company set a consolidated dividend payout ratio of 60% or more (actual result: 61.4%), and has set a target of a total payout ratio of 100% or more over the three years from FY2026 (ending March 2026) to FY2028 (ending March 2026). On May 12, 2026, the company resolved to conduct a facility-type share buyback (upper limit of 12,000,000 shares / ¥18,000 million), aiming to maintain ROE of 20% or more over the medium term through a combination of continuous share buybacks and stable dividends.
The Plant Recycling Business achieved ¥4,334 million in FY2026 (ending March 2026), up 42.3% year on year, driven by an increase in orders for large-scale demolition work. For FY2027 (ending March 2026), the equivalent of ¥6,000 million is forecast, up 38.4% year on year, and overall Recycling segment revenue is expected to expand from ¥10,292 million to the equivalent of ¥12,000 million.
Last updated: July 19, 2026