Reported Earnings • May 13
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥83.05 (up from JP¥61.64 in FY 2025). Revenue: JP¥38.2b (up 15% from FY 2025). Net income: JP¥2.93b (up 33% from FY 2025). Profit margin: 7.7% (up from 6.6% in FY 2025). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.7%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Announcement • May 13
LITALICO Inc. (TSE:7366) announces an Equity Buyback for 1,000,000 shares, representing 2.88% for ¥1,000 million. LITALICO Inc. (TSE:7366) announces a share repurchase program. Under the program, the company will repurchase up to 1,000,000 shares, representing 2.88% of its issued share capital, for ¥1,000 million. The purpose of the program is to implement agile capital policies and improve capital efficiency, as well as to enhance shareholder returns. The program is valid till September 30, 2026. As of March 31, 2026, the company has 34,707,933 issued shares (excluding treasury stock) and 1,004,379 treasury shares. New Risk • May 12
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 8.9% 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 (72% net debt to equity). Share price has been volatile over the past 3 months (8.9% average weekly change). Price Target Changed • May 12
Price target increased by 11% to JP¥2,350 Up from JP¥2,125, the current price target is provided by 1 analyst. New target price is 60% above last closing price of JP¥1,470. Stock is up 9.4% over the past year. The company is forecast to post earnings per share of JP¥72.67 for next year compared to JP¥61.64 last year. Buy Or Sell Opportunity • May 12
Now 40% overvalued after recent price rise Over the last 90 days, the stock has risen 13% to JP¥1,470. The fair value is estimated to be JP¥1,054, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 7.3%. For the next 3 years, revenue is forecast to grow by 12% per annum. Earnings are also forecast to grow by 20% per annum over the same time period. Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to JP¥1,469, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 14x in the Consumer Services industry in Japan. Total loss to shareholders of 44% over the past three years. Announcement • May 11
LITALICO Inc., Annual General Meeting, Jun 25, 2026 LITALICO Inc., Annual General Meeting, Jun 25, 2026. Announcement • May 10
LITALICO Inc. to Report Fiscal Year 2026 Results on May 11, 2026 LITALICO Inc. announced that they will report fiscal year 2026 results at 3:00 PM, Tokyo Standard Time on May 11, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥11.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 12 June 2026. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 0.9%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.6%). Announcement • Jan 28
Litalico Inc. Provides Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2026 Litalico Inc. provided consolidated earnings guidance for the fiscal year ending March 31, 2026. For the period, the company expected net sales of JPY 36,500 million, Operating Profit of JPY 4,000 million and net profit attributable to Owners of Parent Company of JPY 2,500 million and basic per share of JPY 70.54. Announcement • Jan 27
LITALICO Inc. (TSE:7366) announces an Equity Buyback for 500,000 shares, representing 1.42% for ¥500 million. LITALICO Inc. (TSE:7366) announces a share repurchase program. Under the program, the company will repurchase up to 500,000 shares, representing 1.42% of its issued share capital, for ¥500 million. The purpose of the program is to implement agile capital policies and improve capital efficiency, as well as to enhance shareholder returns. The program is valid till March 31, 2026. As of December 31, 2025, the company has 35,095,833 issued shares (excluding treasury stock) and 616,479 treasury shares. Announcement • Nov 29
LITALICO Inc. to Report Q3, 2026 Results on Jan 26, 2026 LITALICO Inc. announced that they will report Q3, 2026 results on Jan 26, 2026 Declared Dividend • Oct 29
Dividend of JP¥11.00 announced Shareholders will receive a dividend of JP¥11.00. Ex-date: 30th March 2026 Payment date: 12th June 2026 Dividend yield will be 0.9%, which is lower than the industry average of 2.4%. Payout Ratios Payout ratio: 11%. Cash payout ratio: 14%. Reported Earnings • Oct 28
Second quarter 2026 earnings released: EPS: JP¥18.96 (vs JP¥13.23 in 2Q 2025) Second quarter 2026 results: EPS: JP¥18.96 (up from JP¥13.23 in 2Q 2025). Revenue: JP¥9.66b (up 8.5% from 2Q 2025). Net income: JP¥672.0m (up 42% from 2Q 2025). Profit margin: 7.0% (up from 5.3% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings. Announcement • Oct 27
LITALICO Inc. (TSE:7366) announces an Equity Buyback for 300,000 shares, representing 0.85% for ¥300 million. LITALICO Inc. (TSE:7366) announces a share repurchase program. Under the program, the company will repurchase up to 300,000 shares, representing 0.85% of its issued share capital, for ¥300 million. The purpose of the program is to implement agile capital policies and improve capital efficiency, as well as to enhance shareholder returns. The program is valid till December 31, 2025. As of September 30, 2025, the company has 35,335,933 issued shares (excluding treasury stock) and 376,379 treasury shares. Announcement • Sep 06
LITALICO Inc. to Report Q2, 2026 Results on Oct 27, 2025 LITALICO Inc. announced that they will report Q2, 2026 results on Oct 27, 2025 Price Target Changed • Aug 02
Price target increased by 13% to JP¥1,810 Up from JP¥1,600, the current price target is provided by 1 analyst. New target price is 30% above last closing price of JP¥1,394. Stock is up 28% over the past year. The company is forecast to post earnings per share of JP¥75.50 for next year compared to JP¥61.64 last year. Reported Earnings • Jul 29
First quarter 2026 earnings released: EPS: JP¥15.82 (vs JP¥4.34 in 1Q 2025) First quarter 2026 results: EPS: JP¥15.82 (up from JP¥4.34 in 1Q 2025). Revenue: JP¥9.21b (up 19% from 1Q 2025). Net income: JP¥564.0m (up 264% from 1Q 2025). Profit margin: 6.1% (up from 2.0% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 10.0% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Board Change • Jul 12
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Independent Outside Director Yoshie Komuro was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Jun 25
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: JP¥61.64 (down from JP¥99.38 in FY 2024). Revenue: JP¥33.2b (up 12% from FY 2024). Net income: JP¥2.20b (down 38% from FY 2024). Profit margin: 6.6% (down from 12% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 6.9%. Earnings per share (EPS) exceeded analyst estimates by 24%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Announcement • Jun 10
LITALICO Inc. to Report Q1, 2026 Results on Jul 28, 2025 LITALICO Inc. announced that they will report Q1, 2026 results on Jul 28, 2025 Major Estimate Revision • May 14
Consensus revenue estimates decrease by 11%, EPS upgraded The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast fell from JP¥41.4b to JP¥36.8b. EPS estimate increased from JP¥75.43 to JP¥81.48 per share. Net income forecast to grow 32% next year vs 26% growth forecast for Consumer Services industry in Japan. Consensus price target broadly unchanged at JP¥1,570. Share price rose 4.2% to JP¥1,351 over the past week. Reported Earnings • May 08
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: JP¥61.64 (down from JP¥99.38 in FY 2024). Revenue: JP¥33.2b (up 12% from FY 2024). Net income: JP¥2.20b (down 38% from FY 2024). Profit margin: 6.6% (down from 12% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 6.9%. Earnings per share (EPS) exceeded analyst estimates by 24%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 9.7% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥9.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 13 June 2025. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (2.6%). Announcement • Mar 12
E-Life Group Inc. agreed to acquire nCS Co., Ltd. from LITALICO Inc. (TSE:7366) for ¥800 million. E-Life Group Inc. agreed to acquire nCS Co., Ltd. from LITALICO Inc. (TSE:7366) for ¥800 million on March 12, 2025.
For the period ending March 31, 2024, nCS Co., Ltd. reported total revenue of ¥1.08 billion, EBIT of ¥130.83 million, net income of ¥96.74 million, total assets of ¥1.08 billion and total common equity of ¥326.5 million.
The expected completion of the transaction is March 31, 2025. Announcement • Mar 05
LITALICO Inc. to Report Fiscal Year 2025 Results on May 07, 2025 LITALICO Inc. announced that they will report fiscal year 2025 results on May 07, 2025 Valuation Update With 7 Day Price Move • Feb 03
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to JP¥1,134, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 16x in the Consumer Services industry in Japan. Total loss to shareholders of 63% over the past three years. Declared Dividend • Jan 29
Dividend increased to JP¥9.00 Dividend of JP¥9.00 is 13% higher than last year. Ex-date: 28th March 2025 Payment date: 13th June 2025 Dividend yield will be 0.9%, which is lower than the industry average of 2.4%. Payout Ratios Payout ratio: 12%. Cash payout ratio: 11%. Reported Earnings • Jan 28
Third quarter 2025 earnings released: EPS: JP¥21.20 (vs JP¥21.44 in 3Q 2024) Third quarter 2025 results: EPS: JP¥21.20 (down from JP¥21.44 in 3Q 2024). Revenue: JP¥9.28b (up 21% from 3Q 2024). Net income: JP¥757.0m (down 1.0% from 3Q 2024). Profit margin: 8.2% (down from 10.0% in 3Q 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 8.8% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has fallen by 30% per year, which means it is significantly lagging earnings. Announcement • Jan 27
LITALICO Inc. Revises Dividend Guidance for the Fiscal Year Ending March 31, 2025 LITALICO Group announced that it has resolved at the Board of Directors meeting held on January 27, 2025, to revise the dividend forecast for the fiscal year ending March 31, 2025. The company now expects to pay a dividend of JPY 9.00 per share as compared to the previous forecast of JPY 8.00 per share. Reason for Revision: LITALICO Inc. ("LITALICO") recognizes the return of profits to shareholders as one of its important management measures, and its basic policy is to return profits to shareholders while continuing to make M&A and business investments. In the year under review, LITALICO continued to expand its business both domestically and internationally, and based on its policy, LITALICO schedules to distribute JPY 9.00 per share (an increase of JPY 1.00 from the previous fiscal year) in the year-end dividends for the fiscal year ending March 2025, as stated above. Announcement • Nov 30
LITALICO Inc. to Report Q3, 2025 Results on Jan 27, 2025 LITALICO Inc. announced that they will report Q3, 2025 results on Jan 27, 2025 Announcement • Nov 27
LITALICO Inc. Announces Change in Representative Directors, Effective as of January 1, 2025 LITALICO Inc. announced a decision made at its Board of Directors' meeting held on November 25, 2024 regarding a change in its Representative Directors, effective as of January 1, 2025. Reason for the Change: LITALICO's company management team will be renewed in conjunction with the appointment of Atsumi Hasegawa, who served as the Representative Director and President since August 2009 and as the Representative Director and Chairperson since April 2023, as the Representative Director and President. Facility-type business groups that were formerly managed by Fumihiro Yamaguchi, including LITALICO Works and LITALICO Junior, will be managed by Atsumi Hasegawa thereafter. Details of the Change: Name; New Title; and Former Title. Atsumi Hasegawa: Representative Director and President; Representative Director and Chairperson. Fumihiro Yamaguchi: Director and Vice President; Representative Director and President. Takahiro Tsuji: Director and Vice President; Representative Director and Vice President. Reported Earnings • Oct 29
Second quarter 2025 earnings released: EPS: JP¥13.23 (vs JP¥11.87 in 2Q 2024) Second quarter 2025 results: EPS: JP¥13.23 (up from JP¥11.87 in 2Q 2024). Revenue: JP¥8.90b (up 21% from 2Q 2024). Net income: JP¥472.0m (up 12% from 2Q 2024). Profit margin: 5.3% (down from 5.8% in 2Q 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has fallen by 31% per year, which means it is significantly lagging earnings. Major Estimate Revision • Oct 29
Consensus EPS estimates fall by 35% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥84.81 to JP¥55.20. Revenue forecast unchanged from JP¥35.9b at last update. Net income forecast to grow 5.1% next year vs 14% growth forecast for Consumer Services industry in Japan. Consensus price target down from JP¥3,145 to JP¥2,710. Share price fell 8.0% to JP¥1,095 over the past week. Announcement • Sep 28
LITALICO Inc. to Report Q2, 2025 Results on Oct 28, 2024 LITALICO Inc. announced that they will report Q2, 2025 results on Oct 28, 2024 Reported Earnings • Aug 01
First quarter 2025 earnings released: EPS: JP¥4.34 (vs JP¥40.50 in 1Q 2024) First quarter 2025 results: EPS: JP¥4.34 (down from JP¥40.50 in 1Q 2024). Revenue: JP¥7.72b (up 9.4% from 1Q 2024). Net income: JP¥155.0m (down 89% from 1Q 2024). Profit margin: 2.0% (down from 21% in 1Q 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Jul 30
Now 27% undervalued after recent price drop Over the last 90 days, the stock has fallen 28% to JP¥1,331. The fair value is estimated to be JP¥1,823, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 58%. For the next 3 years, revenue is forecast to grow by 15% per annum. Earnings are also forecast to grow by 7.9% per annum over the same time period. Valuation Update With 7 Day Price Move • Jul 30
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to JP¥1,331, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 15x in the Consumer Services industry in Japan. Total loss to shareholders of 46% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,639 per share. New Risk • Jul 26
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: Minor Risks Share price has been volatile over the past 3 months (5.2% average weekly change). Large one-off items impacting financial results. New Risk • Jul 04
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 28% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. This is currently the only risk that has been identified for the company. Price Target Changed • Jun 15
Price target decreased by 16% to JP¥3,600 Down from JP¥4,300, the current price target is an average from 2 analysts. New target price is 107% above last closing price of JP¥1,735. Stock is down 32% over the past year. The company is forecast to post earnings per share of JP¥85.71 for next year compared to JP¥99.38 last year. Announcement • Jun 06
LITALICO Inc. to Report Q1, 2025 Results on Jul 30, 2024 LITALICO Inc. announced that they will report Q1, 2025 results on Jul 30, 2024 Reported Earnings • May 08
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: JP¥99.38 (up from JP¥46.13 in FY 2023). Revenue: JP¥29.8b (up 23% from FY 2023). Net income: JP¥3.55b (up 116% from FY 2023). Profit margin: 12% (up from 6.8% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 6.8%. Earnings per share (EPS) exceeded analyst estimates by 4.2%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • May 08
LITALICO Inc., Annual General Meeting, Jun 27, 2024 LITALICO Inc., Annual General Meeting, Jun 27, 2024. Buy Or Sell Opportunity • Apr 12
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.0% to JP¥1,913. The fair value is estimated to be JP¥2,398, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 55%. For the next 3 years, revenue is forecast to grow by 13% per annum. Earnings are also forecast to grow by 11% per annum over the same time period. New Risk • Mar 26
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: Minor Risks High level of debt (40% net debt to equity). Share price has been volatile over the past 3 months (5.8% average weekly change). Upcoming Dividend • Mar 21
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 13 June 2024. Payout ratio is a comfortable 7.3% and this is well supported by cash flows. Trailing yield: 0.3%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (2.1%). Announcement • Mar 02
LITALICO Inc. to Report Fiscal Year 2024 Results on May 07, 2024 LITALICO Inc. announced that they will report fiscal year 2024 results on May 07, 2024 Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥2,247, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 16x in the Consumer Services industry in Japan. Total returns to shareholders of 26% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,094 per share. Declared Dividend • Jan 31
Dividend increased to JP¥8.00 Dividend of JP¥8.00 is 23% higher than last year. Ex-date: 28th March 2024 Payment date: 13th June 2024 Dividend yield will be 0.4%, which is lower than the industry average of 2.4%. Payout Ratios Payout ratio: 7%. Cash payout ratio: 12%. Reported Earnings • Jan 30
Third quarter 2024 earnings released: EPS: JP¥21.44 (vs JP¥12.71 in 3Q 2023) Third quarter 2024 results: EPS: JP¥21.44 (up from JP¥12.71 in 3Q 2023). Revenue: JP¥7.68b (up 27% from 3Q 2023). Net income: JP¥765.0m (up 69% from 3Q 2023). Profit margin: 10.0% (up from 7.5% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jan 30
Price target decreased by 8.0% to JP¥3,450 Down from JP¥3,750, the current price target is an average from 2 analysts. New target price is 64% above last closing price of JP¥2,110. Stock is down 20% over the past year. The company is forecast to post earnings per share of JP¥93.40 for next year compared to JP¥46.13 last year. Buy Or Sell Opportunity • Jan 29
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.8% to JP¥1,860. The fair value is estimated to be JP¥2,326, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 50%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings are also forecast to grow by 14% per annum over the same time period. Buying Opportunity • Jan 17
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 2.4%. The fair value is estimated to be JP¥2,335, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 50%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings is also forecast to grow by 14% per annum over the same time period. Announcement • Nov 27
LITALICO Inc. to Report Q3, 2024 Results on Jan 29, 2024 LITALICO Inc. announced that they will report Q3, 2024 results on Jan 29, 2024 Buying Opportunity • Nov 27
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 5.1%. The fair value is estimated to be JP¥2,610, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 50%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings is also forecast to grow by 14% per annum over the same time period. Reported Earnings • Nov 01
Second quarter 2024 earnings released: EPS: JP¥11.86 (vs JP¥8.28 in 2Q 2023) Second quarter 2024 results: EPS: JP¥11.86 (up from JP¥8.28 in 2Q 2023). Revenue: JP¥7.33b (up 28% from 2Q 2023). Net income: JP¥423.0m (up 43% from 2Q 2023). Profit margin: 5.8% (up from 5.1% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Announcement • Oct 31
Litalico Inc. Provides No Dividend Guidance for the Fiscal Year Ending March 31, 2024 LITALICO Inc. provided no dividend guidance for the fiscal year ending March 31, 2024. For the period, company expects to pay no dividend compared to JPY 6.50 per share paid a year ago. Announcement • Oct 30
LITALICO Inc. Provides Earnings Guidance for the Fiscal Year Ending March 31, 2024 LITALICO Inc. provided earnings guidance for the fiscal year ending March 31, 2024. For the period, the company expects net sales of JPY 30,000 million, operating profit of JPY 3,850 million, profit attributale to owners of the parent of JPY 3,450 million and basic earnings per share of JPY 96.73. New Risk • Oct 25
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 5.3% 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 (56% net debt to equity). Share price has been volatile over the past 3 months (5.3% average weekly change). Announcement • Sep 28
LITALICO Inc. to Report Q2, 2024 Results on Oct 30, 2023 LITALICO Inc. announced that they will report Q2, 2024 results on Oct 30, 2023 Reported Earnings • Aug 08
First quarter 2024 earnings released: EPS: JP¥40.50 (vs JP¥10.30 in 1Q 2023) First quarter 2024 results: EPS: JP¥40.50 (up from JP¥10.30 in 1Q 2023). Revenue: JP¥7.06b (up 25% from 1Q 2023). Net income: JP¥1.44b (up 294% from 1Q 2023). Profit margin: 21% (up from 6.5% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Jul 26
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 7.7%. The fair value is estimated to be JP¥2,731, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 26%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings is also forecast to grow by 20% per annum over the same time period. Price Target Changed • Jul 14
Price target decreased by 14% to JP¥3,850 Down from JP¥4,500, the current price target is an average from 2 analysts. New target price is 70% above last closing price of JP¥2,262. Stock is down 1.8% over the past year. The company is forecast to post earnings per share of JP¥95.24 for next year compared to JP¥46.13 last year. New Risk • Jun 22
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: Minor Risks High level of debt (63% net debt to equity). Share price has been volatile over the past 3 months (5.2% average weekly change). Announcement • Jun 01
LITALICO Inc. to Report Q1, 2024 Results on Aug 07, 2023 LITALICO Inc. announced that they will report Q1, 2024 results on Aug 07, 2023 Announcement • May 12
LITALICO Inc. Revises Earnings Guidance for the Fiscal Year Ending March 31, 2024 LITALICO Inc. revised earnings guidance for the fiscal year ending March 31, 2024. For the period, the company expects Sales of JPY 30,000 million compared to previous guidance of JPY 30,000 million. Operating Profit of JPY 3,750 million compared to previous guidance of JPY 3,750 million. Net Profit Attributable to Owners of Parent Company of JPY 3,300 million compared to previous guidance of JPY 2,100 million. Net Profit per Share of JPY 92.59 compared to previous guidance of JPY 58.92. As a result of this share transfer, the company's equity method investment loss factored into the previous forecast, will no longer be recorded. The full-year consolidated earnings forecast announced on May 8, 2023 was revised accordingly, as above. Furthermore, given the above extraordinary income is expected to be appropriated in the first quarter of the fiscal year ending March 31, 2024, ordinary income and net profit attributable to owners of the parent company are expected to exceed forecasts. There is no change in the year-end dividend forecast for the fiscal year ending March 31, 2023. (Note) The above forecasts have been calculated based on information available as of the publication date of this material. Actual performance may differ based on various future factors. Reported Earnings • May 09
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥46.13 (up from JP¥30.32 in FY 2022). Revenue: JP¥24.2b (up 23% from FY 2022). Net income: JP¥1.64b (up 53% from FY 2022). Profit margin: 6.8% (up from 5.5% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 11%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Consumer Services industry in Japan. 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 32% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Apr 12
Price target increased by 12% to JP¥4,500 Up from JP¥4,007, the current price target is an average from 2 analysts. New target price is 84% above last closing price of JP¥2,450. Stock is down 16% over the past year. The company is forecast to post earnings per share of JP¥41.63 for next year compared to JP¥30.32 last year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥6.50 per share at 0.2% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 15 June 2023. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 0.2%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.5%). Reported Earnings • Jan 31
Third quarter 2023 earnings released: EPS: JP¥12.71 (vs JP¥5.92 in 3Q 2022) Third quarter 2023 results: EPS: JP¥12.71 (up from JP¥5.92 in 3Q 2022). Revenue: JP¥6.07b (up 19% from 3Q 2022). Net income: JP¥453.0m (up 7.6% from 3Q 2022). Profit margin: 7.5% (down from 8.2% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 24% per year. Announcement • Jan 11
LITALICO Inc. (TSE:7366) agreed to acquire nCS Co., Ltd from Yoshiyuki Ogawa and others for ¥850 million. LITALICO Inc. (TSE:7366) agreed to acquire nCS Co., Ltd from Yoshiyuki Ogawa and others for ¥850 million on January 10, 2023. As part of acquisition, LITALICO will acquire 200 shares. For the period ended September 30, 2022, nCS reported total assets of ¥1 billion, net worth of ¥170 million, sales of ¥1.8 billion, operating income of ¥165 million and net income of ¥154 million. The transaction is expected to complete on January 26, 2023. Announcement • Jan 06
LITALICO Inc. to Report Q3, 2023 Results on Jan 30, 2023 LITALICO Inc. announced that they will report Q3, 2023 results on Jan 30, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: JP¥8.28. Revenue: JP¥5.74b (up 19% from 2Q 2022). Net income: JP¥295.0m (up 6.5% from 2Q 2022). Profit margin: 5.1% (down from 5.8% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 22%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Consumer Services industry in Japan. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent Outside Non-Executive Director Yasuo Kitamura was the last independent director to join the board, commencing their role in 2020. 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 • Nov 07
Investor sentiment deteriorated over the past week After last week's 22% share price decline to JP¥2,465, the stock trades at a forward P/E ratio of 47x. Average forward P/E is 15x in the Consumer Services industry in Japan. Total returns to shareholders of 123% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,933 per share. Reported Earnings • Nov 02
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: JP¥8.28. Revenue: JP¥5.74b (up 19% from 2Q 2022). Net income: JP¥295.0m (up 6.5% from 2Q 2022). Profit margin: 5.1% (down from 5.8% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 22%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the Consumer Services industry in Japan. Announcement • Oct 05
LITALICO Inc. to Report Q2, 2023 Results on Oct 31, 2022 LITALICO Inc. announced that they will report Q2, 2023 results on Oct 31, 2022 Price Target Changed • Sep 02
Price target increased to JP¥4,000 Up from JP¥3,375, the current price target is an average from 5 analysts. New target price is 34% above last closing price of JP¥2,974. Stock is up 7.0% over the past year. The company is forecast to post earnings per share of JP¥45.73 for next year compared to JP¥30.32 last year. Reported Earnings • Aug 10
First quarter 2023 earnings: EPS exceeds analyst expectations First quarter 2023 results: EPS: JP¥10.30 (up from JP¥3.21 in 1Q 2022). Revenue: JP¥5.67b (up 22% from 1Q 2022). Net income: JP¥367.0m (up 222% from 1Q 2022). Profit margin: 6.5% (up from 2.5% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 41%. Over the next year, revenue is forecast to grow 22%, compared to a 9.5% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 48% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 08
Litalico Inc. Provides Earnings Guidance for the Year 2022 LITALICO Inc. provided earnings guidance for the year 2022. For the period, the company expects Sales of JPY 24,000 million. Operating Profit of JPY 3,100 million. Net Profit of JPY 1,450 million. Announcement • Aug 06
LITALICO Inc. to Report Q1, 2023 Results on Aug 08, 2022 LITALICO Inc. announced that they will report Q1, 2023 results on Aug 08, 2022 Valuation Update With 7 Day Price Move • Jul 08
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥2,332, the stock trades at a forward P/E ratio of 55x. Average forward P/E is 16x in the Consumer Services industry in Japan. Total returns to shareholders of 149% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,966 per share. Buying Opportunity • Jun 17
Now 26% undervalued after recent price drop Over the last 90 days, the stock is down 16%. The fair value is estimated to be JP¥2,739, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 13%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings is also forecast to grow by 22% per annum over the same time period.