Board Change • Jun 19
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Takako Amitani was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • May 29
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥3,655, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 15x in the Chemicals industry in Japan. Total returns to shareholders of 344% over the past three years. Reported Earnings • May 20
Full year 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2026 results: EPS: JP¥65.95 (up from JP¥56.53 in FY 2025). Revenue: JP¥65.4b (up 4.9% from FY 2025). Net income: JP¥3.79b (up 17% from FY 2025). Profit margin: 5.8% (up from 5.2% in FY 2025). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) exceeded analyst estimates by 32%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 4.8% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 44% per year, which means it is well ahead of earnings. Announcement • May 15
Kanto Denka Kogyo Co., Ltd., Annual General Meeting, Jun 26, 2026 Kanto Denka Kogyo Co., Ltd., Annual General Meeting, Jun 26, 2026. Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,969, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 14x in the Chemicals industry in Japan. Total returns to shareholders of 128% over the past three years. Announcement • May 09
Kanto Denka Kogyo Co., Ltd. to Report Fiscal Year 2026 Results on May 15, 2026 Kanto Denka Kogyo Co., Ltd. announced that they will report fiscal year 2026 results on May 15, 2026 Board Change • Apr 07
High number of new directors Outside Independent Director Junko Koshino was the last director to join the board, commencing their role in 2024. Announcement • Feb 14
Kanto Denka Kogyo Co., Ltd. Revises Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2026 Kanto Denka Kogyo Co., Ltd. revised consolidated earnings guidance for the fiscal year ending March 31, 2026. For the year, the company expects net sales to be JPY 66,500 million against previous guidance of JPY 64,500 million. Operating profit to be JPY 4,500 million against previous guidance of JPY 3,300 million. Profit attributable to owners of parent to be JPY 2,700 million against previous guidance of JPY 1,700 million. Basic earnings per share to be JPY 47.03 against previous guidance of JPY 29.60. Reasons for revision: The consolidated earnings forecast for the full year is expected to exceed the previous forecast, as sales of fine chemicals are currently proceeding above assumptions, leading to higher net sales and operating income. In addition, ordinary income and net income attributable to owners of the parent are also expected to surpass the previous forecast due to the increase in operating income and the rise in foreign exchange gains. Announcement • Jan 07
Kanto Denka Kogyo Co., Ltd. Announces Notice of A Fire At Its Shibukawa Plant Kanto Denka Kogyo Co., Ltd. announced that on August 7, 2025, a fire broke out at its Shibukawa Plant (Shibukawa City, Gunma Prefecture). As a result of this accident, one of employees has passed away and another has been injured. The company extend its heartfelt tribute to the family of the deceased and offer sincerest apologies and sympathies. Among the two nitrogen trifluoride production facilities, the unin injured Facility 1 has resumed operations as of September 17, 2025. As for the other facility that sustained damage, after completing the restoration of the equipment and implementing safety measures, the company has obtained the necessary approvals from the relevant authorities and will resume operations from January 6, 2026, with shipments expected to resume shortly thereafter. Going forward, to prevent any recurrence of such accidents, will thoroughly implement recurrence prevention measures and continue to strengthen safety. Announcement • Dec 27
Kanto Denka Kogyo Co., Ltd. to Report Q3, 2026 Results on Feb 13, 2026 Kanto Denka Kogyo Co., Ltd. announced that they will report Q3, 2026 results on Feb 13, 2026 Announcement • Sep 16
Kanto Denka Kogyo Co., Ltd. Resumes One Nitrogen Trifluoride Production Line Operations After Fire Incident At Shibukawa Plant Kanto Denka Kogyo Co., Ltd. reported that at 4:31 a.m. on Thursday, August 7, 2025, a fire broke out at its Shibukawa Plant (Shibukawa City, Gunma Prefecture). As a result of this accident, one of its employees has passed away and another has been injured. Of the two nitrogen trifluoride production lines, part of one line has sustained damage. Operations for products other than nitrogen trifluoride have resumed after completing safety checks. Of the two nitrogen trifluoride production lines, the one that was not damaged will resume operations from September 17, 2025, after the above-mentioned countermeasures have been implemented. For the other production line that was damaged, the company will proceed with preparations to resume operations as soon as the necessary approvals are obtained from the relevant authorities. o Probably the Related Companies: Kanto Denka Kogyo Co., Ltd. (Kanto Denka Kogyo Co., Ltd. halted and is resuming operations at its Shibukawa Plant due to a fire incident). Announcement • Sep 02
Kanto Denka Kogyo Co., Ltd. to Report Q2, 2026 Results on Nov 17, 2025 Kanto Denka Kogyo Co., Ltd. announced that they will report Q2, 2026 results on Nov 17, 2025 Major Estimate Revision • Aug 15
Consensus EPS estimates fall by 31% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from JP¥68.0b to JP¥66.0b. EPS estimate also fell from JP¥62.70 per share to JP¥43.50 per share. Net income forecast to grow 12% next year vs 12% growth forecast for Chemicals industry in Japan. Consensus price target of JP¥1,300 unchanged from last update. Share price fell 6.9% to JP¥815 over the past week. Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: JP¥9.24 (vs JP¥20.28 in 1Q 2025) First quarter 2026 results: EPS: JP¥9.24 (down from JP¥20.28 in 1Q 2025). Revenue: JP¥15.1b (down 2.0% from 1Q 2025). Net income: JP¥531.0m (down 54% from 1Q 2025). Profit margin: 3.5% (down from 7.5% in 1Q 2025). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 9.2% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 74 percentage points per year, which is a significant difference in performance. Declared Dividend • Jul 09
Final dividend of JP¥9.00 announced Shareholders will receive a dividend of JP¥9.00. Ex-date: 29th September 2025 Payment date: 9th December 2025 Dividend yield will be 2.1%, which is lower than the industry average of 2.2%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 20% per year over the past 10 years. However, payments have been volatile during that time. Announcement • Jun 25
Kanto Denka Kogyo Co., Ltd. to Report Q1, 2026 Results on Aug 08, 2025 Kanto Denka Kogyo Co., Ltd. announced that they will report Q1, 2026 results on Aug 08, 2025 Price Target Changed • May 27
Price target decreased by 13% to JP¥1,300 Down from JP¥1,500, the current price target is provided by 1 analyst. New target price is 55% above last closing price of JP¥838. Stock is down 5.8% over the past year. The company is forecast to post earnings per share of JP¥62.70 for next year compared to JP¥56.53 last year. Reported Earnings • May 20
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: JP¥56.53 (up from JP¥80.24 loss in FY 2024). Revenue: JP¥62.4b (down 3.7% from FY 2024). Net income: JP¥3.25b (up JP¥7.86b from FY 2024). Profit margin: 5.2% (up from net loss in FY 2024). The move to profitability was driven by lower expenses. Revenue missed analyst estimates by 1.0%. Earnings per share (EPS) exceeded analyst estimates by 8.3%. Revenue is forecast to grow 9.3% p.a. on average during the next 2 years, compared to a 4.6% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 77 percentage points per year, which is a significant difference in performance. Announcement • May 15
Kanto Denka Kogyo Co., Ltd., Annual General Meeting, Jun 27, 2025 Kanto Denka Kogyo Co., Ltd., Annual General Meeting, Jun 27, 2025. New Risk • Apr 07
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.1% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. The company is not currently making a profit and is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (2.6%). Announcement • Mar 01
Kanto Denka Kogyo Co., Ltd. to Report Fiscal Year 2025 Results on May 15, 2025 Kanto Denka Kogyo Co., Ltd. announced that they will report fiscal year 2025 results on May 15, 2025 Reported Earnings • Feb 16
Third quarter 2025 earnings released: EPS: JP¥7.61 (vs JP¥0.54 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥7.61 (up from JP¥0.54 loss in 3Q 2024). Revenue: JP¥15.4b (up 8.1% from 3Q 2024). Net income: JP¥437.0m (up JP¥468.0m from 3Q 2024). Profit margin: 2.8% (up from net loss in 3Q 2024). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 76 percentage points per year, which is a significant difference in performance. New Risk • Dec 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Declared Dividend • Dec 10
First half dividend increased to JP¥8.00 Dividend of JP¥8.00 is 14% higher than last year. Ex-date: 28th March 2025 Payment date: 30th June 2025 Dividend yield will be 1.5%, which is lower than the industry average of 2.2%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 17% per year over the past 10 years. However, payments have been volatile during that time. Announcement • Dec 03
Kanto Denka Kogyo Co., Ltd. to Report Q3, 2025 Results on Feb 14, 2025 Kanto Denka Kogyo Co., Ltd. announced that they will report Q3, 2025 results on Feb 14, 2025 Price Target Changed • Nov 12
Price target decreased by 17% to JP¥1,500 Down from JP¥1,800, the current price target is provided by 1 analyst. New target price is 61% above last closing price of JP¥934. Stock is up 21% over the past year. The company is forecast to post earnings per share of JP¥54.00 next year compared to a net loss per share of JP¥80.24 last year. Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: JP¥4.65 (vs JP¥9.87 in 2Q 2024) Second quarter 2025 results: EPS: JP¥4.65 (down from JP¥9.87 in 2Q 2024). Revenue: JP¥15.8b (down 15% from 2Q 2024). Net income: JP¥267.0m (down 53% from 2Q 2024). Profit margin: 1.7% (down from 3.1% in 2Q 2024). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 64 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 09 December 2024. The company is not currently making a profit and there are not enough cash flows to support it either. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.4%). Announcement • Aug 27
Kanto Denka Kogyo Co., Ltd. to Report Q2, 2025 Results on Nov 08, 2024 Kanto Denka Kogyo Co., Ltd. announced that they will report Q2, 2025 results on Nov 08, 2024 Reported Earnings • Aug 13
First quarter 2025 earnings released: EPS: JP¥20.28 (vs JP¥5.40 loss in 1Q 2024) First quarter 2025 results: EPS: JP¥20.28 (up from JP¥5.40 loss in 1Q 2024). Revenue: JP¥15.4b (down 5.3% from 1Q 2024). Net income: JP¥1.17b (up JP¥1.48b from 1Q 2024). Profit margin: 7.5% (up from net loss in 1Q 2024). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. New Risk • Aug 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.6% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (7.6% average weekly change). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 380% Declared Dividend • Jul 11
Final dividend increased to JP¥8.00 Dividend of JP¥8.00 is 14% higher than last year. Ex-date: 27th September 2024 Payment date: 9th December 2024 Dividend yield will be 1.5%, which is lower than the industry average of 2.2%. Sustainability & Growth Dividend is not adequately covered by earnings (99% earnings payout ratio) nor is it covered by cash flows (380% cash payout ratio). The dividend has increased by an average of 18% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 9.6% to bring the payout ratio under control. EPS is expected to grow by 397% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Announcement • Jun 26
Kanto Denka Kogyo Co., Ltd. to Report Q1, 2025 Results on Aug 09, 2024 Kanto Denka Kogyo Co., Ltd. announced that they will report Q1, 2025 results on Aug 09, 2024 Reported Earnings • May 20
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: JP¥80.24 loss per share (down from JP¥163 profit in FY 2023). Revenue: JP¥64.8b (down 18% from FY 2023). Net loss: JP¥4.61b (down 149% from profit in FY 2023). Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates significantly. Revenue is forecast to grow 9.8% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • May 17
Kanto Denka Kogyo Co., Ltd., Annual General Meeting, Jun 27, 2024 Kanto Denka Kogyo Co., Ltd., Annual General Meeting, Jun 27, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥7.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is on the higher end at 99% but the company is not cash flow positive. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (2.1%). Announcement • Mar 02
Kanto Denka Kogyo Co., Ltd. to Report Fiscal Year 2024 Results on May 15, 2024 Kanto Denka Kogyo Co., Ltd. announced that they will report fiscal year 2024 results on May 15, 2024 Major Estimate Revision • Feb 16
Consensus EPS estimates upgraded to JP¥24.40 loss The consensus outlook for fiscal year 2024 has been updated. 2024 losses forecast to reduce from -JP¥27.80 to -JP¥24.40 per share. Revenue forecast unchanged from JP¥64.0b at last update. Chemicals industry in Japan expected to see average net income growth of 21% next year. Consensus price target up from JP¥1,100 to JP¥1,700. Share price rose 7.0% to JP¥958 over the past week. Reported Earnings • Feb 10
Third quarter 2024 earnings released: JP¥0.54 loss per share (vs JP¥46.44 profit in 3Q 2023) Third quarter 2024 results: JP¥0.54 loss per share (down from JP¥46.44 profit in 3Q 2023). Revenue: JP¥14.2b (down 29% from 3Q 2023). Net loss: JP¥31.0m (down 101% from profit in 3Q 2023). Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Dec 27
Kanto Denka Kogyo Co., Ltd. to Report Q3, 2024 Results on Feb 09, 2024 Kanto Denka Kogyo Co., Ltd. announced that they will report Q3, 2024 results on Feb 09, 2024 Reported Earnings • Nov 11
Second quarter 2024 earnings released: EPS: JP¥9.87 (vs JP¥39.36 in 2Q 2023) Second quarter 2024 results: EPS: JP¥9.87 (down from JP¥39.36 in 2Q 2023). Revenue: JP¥18.5b (down 2.1% from 2Q 2023). Net income: JP¥567.0m (down 75% from 2Q 2023). Profit margin: 3.1% (down from 12% in 2Q 2023). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Sep 22
Kanto Denka Kogyo Co., Ltd. to Report Q2, 2024 Results on Nov 10, 2023 Kanto Denka Kogyo Co., Ltd. announced that they will report Q2, 2024 results on Nov 10, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥7.00 per share at 1.6% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 07 December 2023. Payout ratio is a comfortable 31% but the company is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (2.5%). Major Estimate Revision • Aug 17
Consensus EPS estimates fall by 32% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥79.0b to JP¥77.0b. EPS estimate also fell from JP¥103 per share to JP¥69.60 per share. Net income forecast to shrink 21% next year vs 7.0% growth forecast for Chemicals industry in Japan . Consensus price target down from JP¥1,500 to JP¥1,300. Share price fell 7.9% to JP¥796 over the past week. Price Target Changed • Aug 14
Price target decreased by 12% to JP¥1,300 Down from JP¥1,475, the current price target is provided by 1 analyst. New target price is 61% above last closing price of JP¥808. Stock is down 16% over the past year. The company is forecast to post earnings per share of JP¥103 for next year compared to JP¥163 last year. New Risk • Aug 13
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 8.0% Last year net profit margin: 13% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 12
First quarter 2024 earnings released: JP¥5.40 loss per share (vs JP¥51.02 profit in 1Q 2023) First quarter 2024 results: JP¥5.40 loss per share (down from JP¥51.02 profit in 1Q 2023). Revenue: JP¥16.3b (down 11% from 1Q 2023). Net loss: JP¥310.0m (down 111% from profit in 1Q 2023). Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Jul 07
Kanto Denka Kogyo Co., Ltd. to Report Q1, 2024 Results on Aug 10, 2023 Kanto Denka Kogyo Co., Ltd. announced that they will report Q1, 2024 results on Aug 10, 2023 Major Estimate Revision • May 31
Consensus EPS estimates fall by 38% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥87.3b to JP¥79.0b. EPS estimate also fell from JP¥166 per share to JP¥103 per share. Net income forecast to shrink 37% next year vs 5.0% growth forecast for Chemicals industry in Japan . Consensus price target down from JP¥1,475 to JP¥1,275. Share price fell 6.2% to JP¥848 over the past week. Price Target Changed • May 30
Price target decreased by 18% to JP¥1,275 Down from JP¥1,560, the current price target is an average from 2 analysts. New target price is 45% above last closing price of JP¥878. Stock is down 5.5% over the past year. The company is forecast to post earnings per share of JP¥103 for next year compared to JP¥163 last year. Reported Earnings • May 20
Full year 2023 earnings released: EPS: JP¥163 (vs JP¥135 in FY 2022) Full year 2023 results: EPS: JP¥163 (up from JP¥135 in FY 2022). Revenue: JP¥78.7b (up 26% from FY 2022). Net income: JP¥9.38b (up 21% from FY 2022). Profit margin: 12% (in line with FY 2022). Revenue is forecast to grow 9.8% p.a. on average during the next 2 years, compared to a 3.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • May 17
Kanto Denka Kogyo Co., Ltd., Annual General Meeting, Jun 29, 2023 Kanto Denka Kogyo Co., Ltd., Annual General Meeting, Jun 29, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥22.00 per share at 2.4% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 14% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.8%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥46.44 (vs JP¥44.96 in 3Q 2022) Third quarter 2023 results: EPS: JP¥46.44 (up from JP¥44.96 in 3Q 2022). Revenue: JP¥19.9b (up 20% from 3Q 2022). Net income: JP¥2.67b (up 3.3% from 3Q 2022). Profit margin: 13% (down from 16% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Dec 28
Kanto Denka Kogyo Co., Ltd. to Report Q3, 2023 Results on Feb 10, 2023 Kanto Denka Kogyo Co., Ltd. announced that they will report Q3, 2023 results on Feb 10, 2023 Price Target Changed • Dec 06
Price target decreased to JP¥1,475 Down from JP¥1,660, the current price target is an average from 2 analysts. New target price is 49% above last closing price of JP¥988. Stock is down 6.7% over the past year. The company is forecast to post earnings per share of JP¥162 for next year compared to JP¥135 last year. Major Estimate Revision • Nov 18
Consensus EPS estimates increase by 12% The consensus outlook for earnings per share (EPS) in 2023 has improved. 2023 revenue forecast increased from JP¥78.6b to JP¥83.0b. EPS estimate increased from JP¥147 to JP¥165 per share. Net income forecast to shrink 4.2% next year vs 5.1% growth forecast for Chemicals industry in Japan . Consensus price target down from JP¥1,660 to JP¥1,560. Share price was steady at JP¥987 over the past week. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Outside Director Yuko Kariya was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 13
Second quarter 2023 earnings released: EPS: JP¥39.36 (vs JP¥23.38 in 2Q 2022) Second quarter 2023 results: EPS: JP¥39.36 (up from JP¥23.38 in 2Q 2022). Revenue: JP¥18.9b (up 31% from 2Q 2022). Net income: JP¥2.26b (up 68% from 2Q 2022). Profit margin: 12% (up from 9.3% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Sep 22
Kanto Denka Kogyo Co., Ltd. to Report Q2, 2023 Results on Nov 11, 2022 Kanto Denka Kogyo Co., Ltd. announced that they will report Q2, 2023 results on Nov 11, 2022 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 08 December 2022. Payout ratio is a comfortable 14% but the company is paying out more than the cash it is generating. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (2.9%). Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥51.02 (vs JP¥29.42 in 1Q 2022) First quarter 2023 results: EPS: JP¥51.02 (up from JP¥29.42 in 1Q 2022). Revenue: JP¥18.4b (up 33% from 1Q 2022). Net income: JP¥2.93b (up 73% from 1Q 2022). Profit margin: 16% (up from 12% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 20%, compared to a 9.6% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 14% per year. Announcement • Jul 02
Kanto Denka Kogyo Co., Ltd. to Report Q1, 2023 Results on Aug 10, 2022 Kanto Denka Kogyo Co., Ltd. announced that they will report Q1, 2023 results on Aug 10, 2022 Major Estimate Revision • May 28
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 revenue forecast increased from JP¥70.0b to JP¥77.6b. EPS estimate fell from JP¥148 to JP¥145. Net income forecast to grow 6.9% next year vs 4.5% growth forecast for Chemicals industry in Japan. Consensus price target down from JP¥1,645 to JP¥1,610. Share price fell 8.3% to JP¥911 over the past week. Reported Earnings • May 16
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥135 (up from JP¥62.72 in FY 2021). Revenue: JP¥62.3b (up 20% from FY 2021). Net income: JP¥7.76b (up 115% from FY 2021). Profit margin: 13% (up from 6.9% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.4%. Over the next year, revenue is forecast to grow 12%, compared to a 7.9% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 15
Kanto Denka Kogyo Co., Ltd., Annual General Meeting, Jun 29, 2022 Kanto Denka Kogyo Co., Ltd., Annual General Meeting, Jun 29, 2022. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 11 experienced directors. 1 highly experienced director. 3 independent directors (6 non-independent directors). Independent Outside Director Hitoshi Habuka was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Apr 07
Kanto Denka Kogyo Co., Ltd. to Report Fiscal Year 2022 Results on May 13, 2022 Kanto Denka Kogyo Co., Ltd. announced that they will report fiscal year 2022 results on May 13, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 30 June 2022. Payout ratio is a comfortable 5.6% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (2.6%). Price Target Changed • Feb 17
Price target increased to JP¥2,000 Up from JP¥1,710, the current price target is provided by 1 analyst. New target price is 71% above last closing price of JP¥1,173. Stock is up 33% over the past year. The company is forecast to post earnings per share of JP¥139 for next year compared to JP¥62.72 last year. Reported Earnings • Feb 12
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: JP¥44.96 (up from JP¥20.14 in 3Q 2021). Revenue: JP¥16.6b (up 27% from 3Q 2021). Net income: JP¥2.58b (up 123% from 3Q 2021). Profit margin: 16% (up from 8.9% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.5%. Earnings per share (EPS) also surpassed analyst estimates by 16%. Over the next year, revenue is forecast to grow 9.1%, compared to a 6.2% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Reported Earnings • Nov 15
Second quarter 2022 earnings released: EPS JP¥23.38 (vs JP¥8.96 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥14.4b (up 14% from 2Q 2021). Net income: JP¥1.34b (up 161% from 2Q 2021). Profit margin: 9.3% (up from 4.1% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥7.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 08 December 2021. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.0%). Lower than average of industry peers (1.9%). Reported Earnings • Aug 13
First quarter 2022 earnings released: EPS JP¥29.42 (vs JP¥5.32 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥13.8b (up 17% from 1Q 2021). Net income: JP¥1.69b (up 452% from 1Q 2021). Profit margin: 12% (up from 2.6% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Major Estimate Revision • May 22
Consensus EPS estimates increase to JP¥87.00 The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from JP¥55.0b to JP¥58.0b. EPS estimate increased from JP¥74.90 to JP¥87.00 per share. Net income forecast to grow 39% next year vs 14% growth forecast for Chemicals industry in Japan. Consensus price target up from JP¥1,230 to JP¥1,500. Share price rose 8.0% to JP¥918 over the past week. Reported Earnings • May 18
Full year 2021 earnings released: EPS JP¥62.72 (vs JP¥87.29 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥51.9b (down 3.3% from FY 2020). Net income: JP¥3.61b (down 28% from FY 2020). Profit margin: 6.9% (down from 9.4% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥7.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 29 June 2021. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (2.7%). Lower than average of industry peers (1.8%). Is New 90 Day High Low • Feb 15
New 90-day high: JP¥894 The company is up 26% from its price of JP¥707 on 17 November 2020. The Japanese market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥1,702 per share. Reported Earnings • Feb 14
Third quarter 2021 earnings released: EPS JP¥20.14 (vs JP¥27.88 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥13.0b (down 3.5% from 3Q 2020). Net income: JP¥1.16b (down 28% from 3Q 2020). Profit margin: 8.9% (down from 12% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Feb 14
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 0.2%. Earnings per share (EPS) missed analyst estimates by 5.2%. Over the next year, revenue is forecast to grow 4.2%, compared to a 6.5% growth forecast for the Chemicals industry in Japan. Is New 90 Day High Low • Jan 27
New 90-day high: JP¥851 The company is up 18% from its price of JP¥720 on 29 October 2020. The Japanese market is up 14% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Chemicals industry, which is up 19% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥1,811 per share.