Upcoming Dividend • Jun 22
Upcoming dividend of JP¥27.50 per share Eligible shareholders must have bought the stock before 29 June 2026. Payment date: 31 August 2026. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.9%). Higher than average of industry peers (1.0%). Buy Or Sell Opportunity • May 19
Now 22% undervalued Over the last 90 days, the stock has risen 6.1% to JP¥2,429. The fair value is estimated to be JP¥3,123, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.0% over the last 3 years. Earnings per share has grown by 18%. Revenue is forecast to grow by 23% in 2 years. Earnings are forecast to grow by 13% in the next 2 years. Buy Or Sell Opportunity • Apr 23
Now 24% undervalued Over the last 90 days, the stock has risen 13% to JP¥2,552. The fair value is estimated to be JP¥3,369, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.0% over the last 3 years. Earnings per share has grown by 18%. Revenue is forecast to grow by 23% in 2 years. Earnings are forecast to grow by 9.2% in the next 2 years. Declared Dividend • Apr 11
Final dividend of JP¥27.50 announced Shareholders will receive a dividend of JP¥27.50. Ex-date: 29th June 2026 Payment date: 31st August 2026 Dividend yield will be 2.1%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (33% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 19% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 31% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Board Change • Apr 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Outside Independent Director Masatoshi Tanaka was the last director to join the board, commencing their role in 2026. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. New Risk • Mar 23
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 9.2% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,224, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 18x in the Electrical industry in Japan. Total returns to shareholders of 155% over the past three years. Reported Earnings • Feb 14
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥151 (up from JP¥124 in FY 2024). Revenue: JP¥31.4b (up 7.8% from FY 2024). Net income: JP¥2.04b (up 33% from FY 2024). Profit margin: 6.5% (up from 5.3% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 1.9%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 12
Seiko Electric Co., Ltd., Annual General Meeting, Mar 27, 2026 Seiko Electric Co., Ltd., Annual General Meeting, Mar 27, 2026. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥2,612, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 16x in the Electrical industry in Japan. Total returns to shareholders of 181% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 12 March 2026. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.4%). Announcement • Dec 03
Seiko Electric Co., Ltd. to Report Fiscal Year 2025 Results on Feb 12, 2026 Seiko Electric Co., Ltd. announced that they will report fiscal year 2025 results on Feb 12, 2026 Valuation Update With 7 Day Price Move • Nov 03
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥2,210, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 14x in the Electrical industry in Japan. Total returns to shareholders of 147% over the past three years. Reported Earnings • Oct 28
Third quarter 2025 earnings released: EPS: JP¥29.13 (vs JP¥19.45 in 3Q 2024) Third quarter 2025 results: EPS: JP¥29.13 (up from JP¥19.45 in 3Q 2024). Revenue: JP¥6.39b (up 6.0% from 3Q 2024). Net income: JP¥394.0m (up 66% from 3Q 2024). Profit margin: 6.2% (up from 3.9% in 3Q 2024). Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Aug 30
First half dividend of JP¥25.00 announced Shareholders will receive a dividend of JP¥25.00. Ex-date: 29th December 2025 Payment date: 12th March 2026 Dividend yield will be 3.1%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (35% earnings payout ratio) and cash flows (22% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 30% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 02
Second quarter 2025 earnings released: EPS: JP¥17.02 (vs JP¥13.96 in 2Q 2024) Second quarter 2025 results: EPS: JP¥17.02 (up from JP¥13.96 in 2Q 2024). Revenue: JP¥5.91b (down 7.7% from 2Q 2024). Net income: JP¥230.0m (up 35% from 2Q 2024). Profit margin: 3.9% (up from 2.7% in 2Q 2024). Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 11% per year. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥22.50 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 01 September 2025. Payout ratio is a comfortable 32% but the company is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (4.0%). Higher than average of industry peers (2.0%). Reported Earnings • Apr 24
First quarter 2025 earnings released: EPS: JP¥55.29 (vs JP¥55.40 in 1Q 2024) First quarter 2025 results: EPS: JP¥55.29. Revenue: JP¥8.50b (up 8.5% from 1Q 2024). Net income: JP¥746.0m (up 11% from 1Q 2024). Profit margin: 8.8% (up from 8.6% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Electrical industry in Japan. Declared Dividend • Apr 11
Final dividend of JP¥22.50 announced Shareholders will receive a dividend of JP¥22.50. Ex-date: 27th June 2025 Payment date: 1st September 2025 Dividend yield will be 3.9%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (30% earnings payout ratio) but 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 16% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 27% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 04
Seiko Electric Co., Ltd. to Report Q3, 2025 Results on Oct 27, 2025 Seiko Electric Co., Ltd. announced that they will report Q3, 2025 results on Oct 27, 2025 New Risk • Apr 04
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.3b (US$98.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Market cap is less than US$100m (JP¥14.3b market cap, or US$98.6m). New Risk • Feb 08
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 3.2% 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: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Reported Earnings • Feb 07
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥124 (up from JP¥98.88 in FY 2023). Revenue: JP¥29.1b (up 7.5% from FY 2023). Net income: JP¥1.54b (up 28% from FY 2023). Profit margin: 5.3% (up from 4.4% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 6.1%. Earnings per share (EPS) also missed analyst estimates by 5.4%. Revenue is forecast to grow 6.2% p.a. on average during the next 2 years, compared to a 4.1% growth forecast for the Electrical 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 only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Feb 05
Seiko Electric Co., Ltd., Annual General Meeting, Mar 27, 2025 Seiko Electric Co., Ltd., Annual General Meeting, Mar 27, 2025. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 12 March 2025. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.9%). Announcement • Dec 14
Seiko Electric Co., Ltd. to Report Fiscal Year 2024 Results on Feb 05, 2025 Seiko Electric Co., Ltd. announced that they will report fiscal year 2024 results on Feb 05, 2025 Reported Earnings • Oct 31
Third quarter 2024 earnings released: EPS: JP¥19.45 (vs JP¥13.48 in 3Q 2023) Third quarter 2024 results: EPS: JP¥19.45 (up from JP¥13.48 in 3Q 2023). Revenue: JP¥6.03b (flat on 3Q 2023). Net income: JP¥237.0m (up 45% from 3Q 2023). Profit margin: 3.9% (up from 2.7% in 3Q 2023). Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. New Risk • Oct 25
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.1b (US$99.3m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥1,044, the stock trades at a trailing P/E ratio of 8.9x. Average trailing P/E is 9x in the Electrical industry in Japan. Total loss to shareholders of 25% over the past three years. Reported Earnings • Aug 02
Second quarter 2024 earnings released: EPS: JP¥13.96 (vs JP¥15.30 in 2Q 2023) Second quarter 2024 results: EPS: JP¥13.96 (down from JP¥15.30 in 2Q 2023). Revenue: JP¥6.40b (up 9.2% from 2Q 2023). Net income: JP¥170.0m (down 8.6% from 2Q 2023). Profit margin: 2.7% (down from 3.2% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. New Risk • Jul 26
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.1b (US$98.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (5.4% average weekly change). Market cap is less than US$100m (JP¥15.1b market cap, or US$98.6m). Reported Earnings • May 01
First quarter 2024 earnings released: EPS: JP¥55.40 (vs JP¥35.58 in 1Q 2023) First quarter 2024 results: EPS: JP¥55.40 (up from JP¥35.58 in 1Q 2023). Revenue: JP¥7.84b (up 17% from 1Q 2023). Net income: JP¥674.0m (up 56% from 1Q 2023). Profit margin: 8.6% (up from 6.5% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Declared Dividend • Apr 11
Final dividend increased to JP¥20.00 Dividend of JP¥20.00 is 14% higher than last year. Ex-date: 27th June 2024 Payment date: 26th August 2024 Dividend yield will be 2.6%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (31% earnings payout ratio) and cash flows (19% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 13% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 10
Full year 2023 earnings released: EPS: JP¥98.88 (vs JP¥89.19 in FY 2022) Full year 2023 results: EPS: JP¥98.88 (up from JP¥89.19 in FY 2022). Revenue: JP¥27.1b (up 8.3% from FY 2022). Net income: JP¥1.20b (up 11% from FY 2022). Profit margin: 4.4% (up from 4.3% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Announcement • Feb 08
Seiko Electric Co., Ltd., Annual General Meeting, Mar 27, 2024 Seiko Electric Co., Ltd., Annual General Meeting, Mar 27, 2024. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥17.50 per share at 3.1% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 14 March 2024. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (2.1%). Announcement • Dec 05
Seiko Electric Co., Ltd. to Report Fiscal Year 2023 Results on Jan 31, 2024 Seiko Electric Co., Ltd. announced that they will report fiscal year 2023 results on Jan 31, 2024 Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: JP¥13.48 (vs JP¥6.18 in 3Q 2022) Third quarter 2023 results: EPS: JP¥13.48 (up from JP¥6.18 in 3Q 2022). Revenue: JP¥6.05b (up 20% from 3Q 2022). Net income: JP¥164.0m (up 119% from 3Q 2022). Profit margin: 2.7% (up from 1.5% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Oct 26
Seiko Electric Co., Ltd. Provides Consolidated Earnings Guidance for the Fiscal Year Ending December 31, 2023 Seiko Electric Co., Ltd. provided consolidated earnings guidance for the fiscal year ending December 31, 2023. For the full year, the company expects to report net sales of JPY 25,500 million, operating profit of JPY 1,700 million, profit attributable to the owners of parent of JPY 1,240 million, and basic earnings per share of JPY 102.00. Reported Earnings • Jul 27
Second quarter 2023 earnings released: EPS: JP¥15.30 (vs JP¥7.75 in 2Q 2022) Second quarter 2023 results: EPS: JP¥15.30 (up from JP¥7.75 in 2Q 2022). Revenue: JP¥5.86b (down 4.5% from 2Q 2022). Net income: JP¥186.0m (up 98% from 2Q 2022). Profit margin: 3.2% (up from 1.5% in 2Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 4% per year. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥17.50 per share at 3.4% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 29 August 2023. Payout ratio is a comfortable 34% but the company is not cash flow positive. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.8%). Reported Earnings • May 12
First quarter 2023 earnings released: EPS: JP¥35.58 (vs JP¥35.48 in 1Q 2022) First quarter 2023 results: EPS: JP¥35.58 (up from JP¥35.48 in 1Q 2022). Revenue: JP¥6.70b (flat on 1Q 2022). Net income: JP¥432.0m (flat on 1Q 2022). Profit margin: 6.5% (up from 6.4% in 1Q 2022). Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 4.3% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 5% per year. Reported Earnings • Apr 01
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥89.19 (up from JP¥87.17 in FY 2021). Revenue: JP¥25.0b (up 1.7% from FY 2021). Net income: JP¥1.08b (up 2.5% from FY 2021). Profit margin: 4.3% (in line with FY 2021). Revenue missed analyst estimates by 3.8%. Earnings per share (EPS) also missed analyst estimates by 1.5%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 5.1% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 8% per year. Reported Earnings • Feb 02
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥89.18 (up from JP¥87.17 in FY 2021). Revenue: JP¥25.0b (up 1.7% from FY 2021). Net income: JP¥1.08b (up 2.5% from FY 2021). Profit margin: 4.3% (in line with FY 2021). Revenue missed analyst estimates by 3.8%. Earnings per share (EPS) also missed analyst estimates by 1.5%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 5.3% growth forecast for the Electrical 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 3% per year, which means it is significantly lagging earnings. Announcement • Feb 01
Seiko Electric Co., Ltd., Annual General Meeting, Mar 29, 2023 Seiko Electric Co., Ltd., Annual General Meeting, Mar 29, 2023. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 14 March 2023. Payout ratio is a comfortable 33% but the company is not cash flow positive. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.1%). 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. 3 experienced directors. 9 highly experienced directors. No independent directors (9 non-independent directors). External Auditor Kazuyuki Takeshima was the last director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: JP¥6.18 (vs JP¥7.59 in 3Q 2021) Third quarter 2022 results: EPS: JP¥6.18 (down from JP¥7.59 in 3Q 2021). Revenue: JP¥5.03b (flat on 3Q 2021). Net income: JP¥75.0m (down 19% from 3Q 2021). Profit margin: 1.5% (down from 1.8% in 3Q 2021). Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Sep 10
Seiko Electric Co., Ltd. to Report Q3, 2022 Results on Oct 26, 2022 Seiko Electric Co., Ltd. announced that they will report Q3, 2022 results on Oct 26, 2022 Reported Earnings • Jul 31
Second quarter 2022 earnings released: EPS: JP¥7.75 (vs JP¥11.06 in 2Q 2021) Second quarter 2022 results: EPS: JP¥7.75 (down from JP¥11.06 in 2Q 2021). Revenue: JP¥6.14b (up 6.1% from 2Q 2021). Net income: JP¥94.0m (down 30% from 2Q 2021). Profit margin: 1.5% (down from 2.3% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 13%, compared to a 9.8% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 17% per year. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 30 August 2022. Payout ratio is a comfortable 26% but the company is not cash flow positive. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.0%). 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. 3 experienced directors. 9 highly experienced directors. No independent directors (9 non-independent directors). External Auditor Kazuyuki Takeshima was the last director to join the board, commencing their role in 2014. 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 24
Seiko Electric Co., Ltd. to Report Q1, 2022 Results on Apr 22, 2022 Seiko Electric Co., Ltd. announced that they will report Q1, 2022 results on Apr 22, 2022 Announcement • Feb 12
Seiko Electric Co., Ltd., Annual General Meeting, Mar 29, 2022 Seiko Electric Co., Ltd., Annual General Meeting, Mar 29, 2022. Reported Earnings • Feb 10
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: JP¥87.16 (up from JP¥85.86 in FY 2020). Revenue: JP¥24.6b (up 5.2% from FY 2020). Net income: JP¥1.06b (up 1.6% from FY 2020). Profit margin: 4.3% (down from 4.4% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 8.9%. Earnings per share (EPS) also missed analyst estimates by 22%. Over the next year, revenue is forecast to grow 20%, compared to a 6.3% growth forecast for the 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 only increased by 11% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 15 March 2022. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.3%). Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS JP¥7.59 (vs JP¥9.58 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: JP¥5.07b (up 4.0% from 3Q 2020). Net income: JP¥92.0m (down 21% from 3Q 2020). Profit margin: 1.8% (down from 2.4% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 04
Second quarter 2021 earnings released: EPS JP¥11.06 (vs JP¥13.22 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: JP¥5.78b (up 21% from 2Q 2020). Net income: JP¥134.0m (down 16% from 2Q 2020). Profit margin: 2.3% (down from 3.4% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 02
Investor sentiment deteriorated over the past week After last week's 15% share price decline to JP¥1,548, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 14x in the Electrical industry in Japan. Total returns to shareholders of 66% over the past three years. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 29 June 2021. Payment date: 31 August 2021. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.1%). Higher than average of industry peers (1.3%). Reported Earnings • Apr 28
First quarter 2021 earnings released: EPS JP¥27.83 (vs JP¥23.90 in 1Q 2020) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: JP¥5.80b (down 1.5% from 1Q 2020). Net income: JP¥337.0m (up 17% from 1Q 2020). Profit margin: 5.8% (up from 4.9% in 1Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 16% per year. Reported Earnings • Apr 04
Full year 2020 earnings released The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: JP¥23.4b (down 4.6% from FY 2019). Net income: JP¥1.04b (up 48% from FY 2019). Profit margin: 4.4% (up from 2.9% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. 