Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,818, the stock trades at a trailing P/E ratio of 41.7x. Average trailing P/E is 12x in the Real Estate industry in Japan. Total returns to shareholders of 158% over the past three years. Reported Earnings • Mar 19
First quarter 2026 earnings released: JP¥12.42 loss per share (vs JP¥18.39 profit in 1Q 2025) First quarter 2026 results: JP¥12.42 loss per share (down from JP¥18.39 profit in 1Q 2025). Revenue: JP¥4.69b (down 51% from 1Q 2025). Net loss: JP¥356.0m (down 168% from profit in 1Q 2025). Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jan 16
Good Com Asset Co., Ltd. Receives Notice of Lawsuit Goodcom Asset Co., Ltd. has been served with a lawsuit as detailed and have received the complaint. Company would like to inform of this matter. The date on which the action was brought: December 1, 2025 (Date of delivery of complaint: December 23, 2025); Cause of the lawsuit and the background of the lawsuit: RIBATY Co., Ltd. (RIBATY) has filed a lawsuit seeking damages against company. This is in connection with multiple transactions related to real estate sales negotiations between company and RIBATY (hereinafter referred to as this transaction). Despite company having created a legally protected expectation for RIBATY that a contract regarding this transaction would be concluded, company unjustly terminated the negotiations related to this transaction, causing RIBATY to incur damages. Contents of litigation: Content of lawsuit: lawsuit for claim for damages; Billing amount: JPY 3,706,003,229; Responses and Future Outlook: Regarding the future litigation process, company will provide timely disclosure as needed. According to the complaint, RIBATY claims that despite the fact that company caused RIBATY to have a legally protected expectation concerning the formation of a contract related to this transaction, company unfairly terminate the negotiation of this transaction. The details of the negotiation process for this transaction will be clarified through arguments and evidence in this lawsuit. As a responsible listed company, company has made it a condition for significant transactions to be approved by Board of Directors, and this has been clearly communicated to the counterparties in the transaction. The purchase offer document related to this transaction, presented to RIBATY, clearly states that it is "subject to approval by the Board of Directors." Moreover, no approval for the conclusion of a contract related to this transaction was given by Board of Directors. Therefore, company believe that company did not induce RIBATY to have a legally protected expectation concerning the formation of a contract related to this transaction, nor did company unfairly terminate the negotiation of the transaction. Given this, company recognize company do not bear any legal responsibility for the non-formation of a contract related to this transaction and will actively contest RIBATY's claims for damages in this lawsuit, seeking full dismissal of their claims. New Risk • Dec 17
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.7% average weekly change). Profit margins are more than 30% lower than last year (2.8% net profit margin). Reported Earnings • Dec 16
Full year 2025 earnings released: EPS: JP¥53.29 (vs JP¥115 in FY 2024) Full year 2025 results: EPS: JP¥53.29 (down from JP¥115 in FY 2024). Revenue: JP¥54.6b (down 8.7% from FY 2024). Net income: JP¥1.52b (down 54% from FY 2024). Profit margin: 2.8% (down from 5.6% in FY 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 15% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 15
Good Com Asset Co., Ltd., Annual General Meeting, Jan 29, 2026 Good Com Asset Co., Ltd., Annual General Meeting, Jan 29, 2026. Valuation Update With 7 Day Price Move • Nov 04
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,302, the stock trades at a trailing P/E ratio of 16.8x. Average trailing P/E is 11x in the Real Estate industry in Japan. Total returns to shareholders of 114% over the past three years. Upcoming Dividend • Oct 23
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 30 October 2025. Payment date: 02 February 2026. Payout ratio is a comfortable 53% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.4%). Announcement • Oct 04
Good Com Asset Co., Ltd. to Report Fiscal Year 2025 Results on Dec 15, 2025 Good Com Asset Co., Ltd. announced that they will report fiscal year 2025 results on Dec 15, 2025 Reported Earnings • Sep 14
Third quarter 2025 earnings released: JP¥18.33 loss per share (vs JP¥43.73 profit in 3Q 2024) Third quarter 2025 results: JP¥18.33 loss per share (down from JP¥43.73 profit in 3Q 2024). Revenue: JP¥5.67b (down 75% from 3Q 2024). Net loss: JP¥524.0m (down 142% from profit in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Jul 17
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 0% Dividend yield: 3.7% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Shares are highly illiquid. Minor Risks High level of debt (131% net debt to equity). Dividend is not well covered by cash flows (0% cash payout ratio). Announcement • Jul 02
Good Com Asset Co., Ltd. to Report Q3, 2025 Results on Sep 12, 2025 Good Com Asset Co., Ltd. announced that they will report Q3, 2025 results on Sep 12, 2025 Declared Dividend • Jun 15
Dividend of JP¥45.00 announced Shareholders will receive a dividend of JP¥45.00. Ex-date: 30th October 2025 Payment date: 2nd February 2026 Dividend yield will be 4.1%, which is higher than the industry average of 2.5%. Sustainability & Growth Dividend is well covered by both earnings (29% earnings payout ratio) and cash flows (5% cash payout ratio). The dividend has increased by an average of 49% per year over the past 8 years and payments have been stable during that time. Earnings per share has grown by 30% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Jun 06
Good Com Asset Co., Ltd. (TSE:3475) completed the acquisition of 80% stake in Livenup Group Co., Ltd. from Grit Partners Co., Ltd. and others. Good Com Asset Co., Ltd. (TSE:3475) entered into agreement to acquire 80% stake in Livenup Group Co., Ltd. from Grit Partners Co., Ltd. and others for ¥1.6 billion on May 28, 2025. A cash consideration of ¥1.6 billion will be paid by Good Com Asset Co., Ltd. As part of consideration, ¥1.6 billion is paid towards common equity of Livenup Group Co., Ltd.
The expected completion of the transaction is June 5, 2025.
Good Com Asset Co., Ltd. (TSE:3475) completed the acquisition of 80% stake in Livenup Group Co., Ltd. from Grit Partners Co., Ltd. and others on June 5, 2025. The payment procedures have been completed for the acquisition of shares (subsidiary status) of Livenup Group. Announcement • May 28
Good Com Asset Co., Ltd. (TSE:3475) entered into agreement to acquire 80% stake in Livenup Group Co., Ltd. from Grit Partners Co., Ltd. and others for ¥1.6 billion. Good Com Asset Co., Ltd. (TSE:3475) entered into agreement to acquire 80% stake in Livenup Group Co., Ltd. from Grit Partners Co., Ltd. and others for ¥1.6 billion on May 28, 2025. A cash consideration of ¥1.6 billion will be paid by Good Com Asset Co., Ltd. As part of consideration, ¥1.6 billion is paid towards common equity of Livenup Group Co., Ltd.
The expected completion of the transaction is June 5, 2025. Announcement • Apr 28
Good Com Asset Co., Ltd. (TSE:3475) agreed to acquire 14% stake in Nissei Advance Co.,Ltd. Good Com Asset Co., Ltd. (TSE:3475) agreed to acquire 14% stake in Nissei Advance Co.,Ltd. on April 28, 2025.
For the period ending October 31, 2024, Nissei Advance Co.,Ltd. reported total revenue of ¥23.09 billion.
The expected completion of the transaction is April 30, 2025. Announcement • Apr 09
Good Com Asset Co., Ltd. to Report Q2, 2025 Results on Jun 13, 2025 Good Com Asset Co., Ltd. announced that they will report Q2, 2025 results on Jun 13, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to JP¥1,054, the stock trades at a trailing P/E ratio of 9.2x. Average trailing P/E is 10x in the Real Estate industry in Japan. Total returns to shareholders of 126% over the past three years. New Risk • Apr 04
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 6.2% 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. Currently, the following risks have been identified for the company: Minor Risks High level of debt (114% net debt to equity). Share price has been volatile over the past 3 months (6.2% average weekly change). Reported Earnings • Mar 15
First quarter 2025 earnings released: JP¥2.94 loss per share (vs JP¥0.21 loss in 1Q 2024) First quarter 2025 results: JP¥2.94 loss per share (further deteriorated from JP¥0.21 loss in 1Q 2024). Revenue: JP¥2.58b (down 17% from 1Q 2024). Net loss: JP¥84.0m (loss widened JP¥78.0m from 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Announcement • Feb 03
Good Com Asset Co., Ltd. to Report Q1, 2025 Results on Mar 14, 2025 Good Com Asset Co., Ltd. announced that they will report Q1, 2025 results on Mar 14, 2025 New Risk • Jan 12
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Share price has been volatile over the past 3 months (6.4% average weekly change). Reported Earnings • Dec 16
Full year 2024 earnings released: EPS: JP¥115 (vs JP¥35.79 in FY 2023) Full year 2024 results: EPS: JP¥115 (up from JP¥35.79 in FY 2023). Revenue: JP¥59.8b (up 169% from FY 2023). Net income: JP¥3.32b (up 222% from FY 2023). Profit margin: 5.6% (up from 4.6% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Announcement • Dec 13
Good Com Asset Co., Ltd., Annual General Meeting, Jan 30, 2025 Good Com Asset Co., Ltd., Annual General Meeting, Jan 30, 2025. Announcement • Oct 29
Good Com Asset Co., Ltd. to Report Fiscal Year 2024 Results on Dec 13, 2024 Good Com Asset Co., Ltd. announced that they will report fiscal year 2024 results on Dec 13, 2024 Upcoming Dividend • Oct 23
Upcoming dividend of JP¥36.00 per share Eligible shareholders must have bought the stock before 30 October 2024. Payment date: 31 January 2025. Payout ratio is a comfortable 58% but the company is not cash flow positive. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.7%). Reported Earnings • Sep 17
Third quarter 2024 earnings released: EPS: JP¥43.73 (vs JP¥4.20 in 3Q 2023) Third quarter 2024 results: EPS: JP¥43.73 (up from JP¥4.20 in 3Q 2023). Revenue: JP¥22.6b (up JP¥19.0b from 3Q 2023). Net income: JP¥1.26b (up JP¥1.14b from 3Q 2023). Profit margin: 5.6% (up from 3.3% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Sep 12
Good Com Asset Co., Ltd. (TSE:3475) announces an Equity Buyback for 900,000 shares, representing 3.12% for ¥765 million. Good Com Asset Co., Ltd. (TSE:3475) announces a share repurchase program. Under the program, the company will repurchase up to 900,000 shares, representing 3.12% of its issued share capital, for ¥765 million. The purpose of the program is to return profits to shareholders by improving capital efficiency and implement flexible capital policies according to the business environment. The shares acquired may be used to pay restricted stock compensation to the Group's executive directors or as part of the consideration for M&A transactions, etc. The program will be valid till September 12, 2025. As of September 12, 2024, the company had 28,812,167 issued shares (excluding treasury stock) and 1,718,233 treasury shares. Buy Or Sell Opportunity • Aug 06
Now 28% overvalued Over the last 90 days, the stock has fallen 16% to JP¥688. The fair value is estimated to be JP¥537, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 16% over the last 3 years. Earnings per share has declined by 26%. 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 8.4% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (8.4% average weekly change). Dividend is not well covered by earnings and cash flows. Payout ratio: 166% Paying a dividend despite having no free cash flows. High level of non-cash earnings (58% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (2.7% net profit margin). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 29% After last week's 29% share price decline to JP¥619, the stock trades at a trailing P/E ratio of 29.4x. Average trailing P/E is 11x in the Real Estate industry in Japan. Total loss to shareholders of 1.5% over the past three years. Announcement • Jul 27
Good Com Asset Co., Ltd. to Report Q3, 2024 Results on Sep 12, 2024 Good Com Asset Co., Ltd. announced that they will report Q3, 2024 results on Sep 12, 2024 Reported Earnings • Jun 17
Second quarter 2024 earnings released: EPS: JP¥12.64 (vs JP¥27.03 in 2Q 2023) Second quarter 2024 results: EPS: JP¥12.64 (down from JP¥27.03 in 2Q 2023). Revenue: JP¥8.25b (up 6.3% from 2Q 2023). Net income: JP¥364.0m (down 53% from 2Q 2023). Profit margin: 4.4% (down from 10.0% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Declared Dividend • Jun 15
Dividend of JP¥36.00 announced Shareholders will receive a dividend of JP¥36.00. Ex-date: 30th October 2024 Payment date: 31st January 2025 Dividend yield will be 4.8%, which is higher than the industry average of 2.5%. Sustainability & Growth Dividend is not adequately covered by earnings (99% earnings payout ratio) and the company has 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 53% per year over the past 7 years and payments have been stable during that time. The company's earnings per share (EPS) would need to grow by 9.7% to bring the payout ratio under control. However, EPS has remained steady over the last 5 years so the company would need to improve on their historical growth rates. New Risk • Jun 14
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 7.8% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (7.8% average weekly change). Dividend is not well covered by earnings and cash flows. Payout ratio: 99% Paying a dividend despite having no free cash flows. Minor Risk Profit margins are more than 30% lower than last year (4.6% net profit margin). Valuation Update With 7 Day Price Move • May 24
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥678, the stock trades at a trailing P/E ratio of 19.1x. Average trailing P/E is 11x in the Real Estate industry in Japan. Total returns to shareholders of 5.8% over the past three years. New Risk • Apr 10
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 5.8% 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. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Payout ratio: 99% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (5.8% average weekly change). Profit margins are more than 30% lower than last year (4.6% net profit margin). Announcement • Apr 03
Good Com Asset Co., Ltd. to Report Q2, 2024 Results on Jun 13, 2024 Good Com Asset Co., Ltd. announced that they will report Q2, 2024 results on Jun 13, 2024 Valuation Update With 7 Day Price Move • Apr 01
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥921, the stock trades at a trailing P/E ratio of 26x. Average trailing P/E is 13x in the Real Estate industry in Japan. Total returns to shareholders of 41% over the past three years. Reported Earnings • Mar 17
First quarter 2024 earnings released: JP¥0.21 loss per share (vs JP¥0.10 profit in 1Q 2023) First quarter 2024 results: JP¥0.21 loss per share (down from JP¥0.10 profit in 1Q 2023). Revenue: JP¥3.10b (up 5.0% from 1Q 2023). Net loss: JP¥6.00m (down 300% from profit in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Reported Earnings • Feb 03
Full year 2023 earnings released: EPS: JP¥35.79 (vs JP¥99.57 in FY 2022) Full year 2023 results: EPS: JP¥35.79 (down from JP¥99.57 in FY 2022). Revenue: JP¥22.2b (down 45% from FY 2022). Net income: JP¥1.03b (down 64% from FY 2022). Profit margin: 4.6% (down from 7.1% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Jan 28
Good Com Asset Co., Ltd. to Report Q1, 2024 Results on Mar 14, 2024 Good Com Asset Co., Ltd. announced that they will report Q1, 2024 results on Mar 14, 2024 Reported Earnings • Dec 15
Full year 2023 earnings released: EPS: JP¥35.79 (vs JP¥99.57 in FY 2022) Full year 2023 results: EPS: JP¥35.79 (down from JP¥99.57 in FY 2022). Revenue: JP¥22.2b (down 45% from FY 2022). Net income: JP¥1.03b (down 64% from FY 2022). Profit margin: 4.6% (down from 7.1% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • Dec 13
Good Com Asset Co., Ltd., Annual General Meeting, Jan 30, 2024 Good Com Asset Co., Ltd., Annual General Meeting, Jan 30, 2024. New Risk • Dec 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 10% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (10% average weekly change). Minor Risk Paying a dividend despite having no free cash flows. Valuation Update With 7 Day Price Move • Dec 05
Investor sentiment deteriorates as stock falls 28% After last week's 28% share price decline to JP¥729, the stock trades at a trailing P/E ratio of 12.9x. Average trailing P/E is 11x in the Real Estate industry in Japan. Negligible returns to shareholders over past three years. Upcoming Dividend • Oct 23
Upcoming dividend of JP¥35.00 per share at 3.5% yield Eligible shareholders must have bought the stock before 30 October 2023. Payment date: 29 January 2024. Payout ratio is a comfortable 50% but the company is not cash flow positive. Trailing yield: 3.5%. Within top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (2.7%). New Risk • Oct 20
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 5.2% 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. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.2% average weekly change). Announcement • Oct 13
Good Com Asset Co., Ltd. to Report Fiscal Year 2023 Results on Dec 13, 2023 Good Com Asset Co., Ltd. announced that they will report fiscal year 2023 results on Dec 13, 2023 Reported Earnings • Sep 14
Third quarter 2023 earnings released: EPS: JP¥4.20 (vs JP¥0.07 loss in 3Q 2022) Third quarter 2023 results: EPS: JP¥4.20 (up from JP¥0.07 loss in 3Q 2022). Revenue: JP¥3.68b (up 17% from 3Q 2022). Net income: JP¥121.0m (up JP¥123.0m from 3Q 2022). Profit margin: 3.3% (up from net loss in 3Q 2022). The move to profitability was driven by higher revenue. 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 18% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 06
Good Com Asset Co., Ltd. to Report Q3, 2023 Results on Sep 11, 2023 Good Com Asset Co., Ltd. announced that they will report Q3, 2023 results on Sep 11, 2023 New Risk • Jun 16
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 93% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (93% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. New Risk • Jun 14
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 16% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Jun 13
Second quarter 2023 earnings released: EPS: JP¥27.03 (vs JP¥82.76 in 2Q 2022) Second quarter 2023 results: EPS: JP¥27.03 (down from JP¥82.76 in 2Q 2022). Revenue: JP¥7.76b (down 67% from 2Q 2022). Net income: JP¥778.0m (down 67% from 2Q 2022). Profit margin: 10.0% (in line with 2Q 2022). Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. Buying Opportunity • Jun 13
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 2.4%. The fair value is estimated to be JP¥1,005, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 14%. Reported Earnings • Mar 15
First quarter 2023 earnings released: EPS: JP¥0.10 (vs JP¥8.48 loss in 1Q 2022) First quarter 2023 results: EPS: JP¥0.10 (up from JP¥8.48 loss in 1Q 2022). Revenue: JP¥2.96b (up 61% from 1Q 2022). Net income: JP¥3.00m (up JP¥246.0m from 1Q 2022). Profit margin: 0.1% (up from net loss in 1Q 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has increased by 49% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥772, the stock trades at a trailing P/E ratio of 7.8x. Average trailing P/E is 9x in the Real Estate industry in Japan. Total returns to shareholders of 240% over the past three years. Announcement • Jan 06
Good Com Asset Co., Ltd. to Report Q1, 2023 Results on Mar 13, 2023 Good Com Asset Co., Ltd. announced that they will report Q1, 2023 results on Mar 13, 2023 Reported Earnings • Dec 14
Full year 2022 earnings released: EPS: JP¥199 (vs JP¥67.51 in FY 2021) Full year 2022 results: EPS: JP¥199 (up from JP¥67.51 in FY 2021). Revenue: JP¥40.0b (up 17% from FY 2021). Net income: JP¥2.86b (up 46% from FY 2021). Profit margin: 7.1% (up from 5.7% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 13
Investor sentiment improved over the past week After last week's 18% share price gain to JP¥875, the stock trades at a trailing P/E ratio of 10.5x. Average trailing P/E is 10x in the Real Estate industry in Japan. Total returns to shareholders of 93% over the past three years. Announcement • Dec 12
Good Com Asset Co., Ltd., Annual General Meeting, Jan 26, 2023 Good Com Asset Co., Ltd., Annual General Meeting, Jan 26, 2023. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. No highly experienced directors. No independent directors (6 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Upcoming Dividend • Oct 21
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 28 October 2022. Payment date: 30 January 2023. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.6%). Announcement • Oct 05
Good Com Asset Co., Ltd. to Report Fiscal Year 2022 Results on Dec 12, 2022 Good Com Asset Co., Ltd. announced that they will report fiscal year 2022 results on Dec 12, 2022 Reported Earnings • Sep 15
Third quarter 2022 earnings released: JP¥0.14 loss per share (vs JP¥21.78 profit in 3Q 2021) Third quarter 2022 results: JP¥0.14 loss per share (down from JP¥21.78 profit in 3Q 2021). Revenue: JP¥3.14b (down 57% from 3Q 2021). Net loss: JP¥2.00m (down 101% from profit in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Announcement • Jun 29
Good Com Asset Co., Ltd. to Report Q3, 2022 Results on Sep 13, 2022 Good Com Asset Co., Ltd. announced that they will report Q3, 2022 results on Sep 13, 2022 Reported Earnings • Jun 15
Second quarter 2022 earnings released: EPS: JP¥166 (vs JP¥85.80 in 2Q 2021) Second quarter 2022 results: EPS: JP¥166 (up from JP¥85.80 in 2Q 2021). Revenue: JP¥23.3b (up 46% from 2Q 2021). Net income: JP¥2.38b (up 88% from 2Q 2021). Profit margin: 10% (up from 7.9% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Announcement • Jun 14
Good Com Asset Co., Ltd. Provides Earnings Guidance for the Fiscal Year Ending October 31, 2022 Good Com Asset Co., Ltd. Provided earnings guidance for the fiscal year ending October 31, 2022. For the period, The company expects net sales to be JPY 42,186 million, operating profit to be JPY 3,801 million, profit attributable to owners of parent to be JPY 2,337 million and net income per share to be JPY 162.90. Announcement • Jun 13
Good Com Asset Co., Ltd. Provides Ordinary Dividend Guidance for the Fiscal Year Ending October 31, 2022 Good Com Asset Co., Ltd. provided ordinary dividend guidance for the fiscal year ending October 31, 2022. For the year, the company expects ordinary dividend of JPY 50.00 per share against JPY 43.00 per share a year ago. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. No highly experienced directors. No independent directors (6 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Announcement • Apr 08
Good Com Asset Co., Ltd. to Report Q2, 2022 Results on Jun 13, 2022 Good Com Asset Co., Ltd. announced that they will report Q2, 2022 results on Jun 13, 2022 Reported Earnings • Mar 15
First quarter 2022 earnings: Revenues and EPS in line with analyst expectations First quarter 2022 results: JP¥16.95 loss per share (down from JP¥7.93 profit in 1Q 2021). Revenue: JP¥1.83b (down 51% from 1Q 2021). Net loss: JP¥243.0m (down 308% from profit in 1Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 15
Investor sentiment deteriorated over the past week After last week's 16% share price decline to JP¥1,098, the stock trades at a trailing P/E ratio of 8.2x. Average trailing P/E is 10x in the Real Estate industry in Japan. Total returns to shareholders of 68% over the past three years. Upcoming Dividend • Oct 21
Upcoming dividend of JP¥43.00 per share Eligible shareholders must have bought the stock before 28 October 2021. Payment date: 29 January 2022. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (2.3%). Reported Earnings • Sep 11
Third quarter 2021 earnings released: EPS JP¥21.78 (vs JP¥81.50 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥7.40b (down 43% from 3Q 2020). Net income: JP¥312.0m (down 74% from 3Q 2020). Profit margin: 4.2% (down from 9.3% in 3Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jun 11
Second quarter 2021 earnings released: EPS JP¥85.80 (vs JP¥21.57 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: JP¥16.0b (up 183% from 2Q 2020). Net income: JP¥1.26b (up 298% from 2Q 2020). Profit margin: 7.9% (up from 5.6% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth.