Announcement • Jun 09
Japan Investment Adviser Co., Ltd. announced that it has received ¥2.376 billion in funding from Sojitz Corporation On June 8, 2026, Japan Investment Adviser Co., Ltd. has closed the transaction. Reported Earnings • May 01
First quarter 2026 earnings released: EPS: JP¥102 (vs JP¥66.58 in 1Q 2025) First quarter 2026 results: EPS: JP¥102 (up from JP¥66.58 in 1Q 2025). Revenue: JP¥13.8b (up 25% from 1Q 2025). Net income: JP¥6.17b (up 53% from 1Q 2025). Profit margin: 45% (up from 37% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 1.6% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Announcement • Apr 21
Japan Investment Adviser Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Japan Investment Adviser Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Declared Dividend • Apr 11
Final dividend of JP¥54.00 announced Shareholders will receive a dividend of JP¥54.00. Ex-date: 29th June 2026 Payment date: 1st September 2026 Dividend yield will be 4.8%, which is higher than the industry average of 3.1%. Sustainability & Growth Dividend is covered by earnings (50% 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 36% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 68% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Board Change • Mar 27
Less than half of directors are independent There are 3 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 3 new directors. No experienced directors. 3 highly experienced directors. 1 independent director (2 non-independent directors). Representative Director, President & CEO Naoto Shiraiwa is the most experienced director on the board, commencing their role in 2006. Outside Independent Director Chiharu Mariko was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Major Estimate Revision • Feb 20
Consensus revenue estimates fall by 19% The consensus outlook for revenues in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from JP¥58.2b to JP¥47.4b. EPS estimate fell from JP¥284 to JP¥202 per share. Net income forecast to grow 16% next year vs 7.0% growth forecast for Diversified Financial industry in Japan. Consensus price target of JP¥2,200 unchanged from last update. Share price fell 4.1% to JP¥1,963 over the past week. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥2,003, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 13x in the Diversified Financial industry in Japan. Total returns to shareholders of 110% over the past three years. Reported Earnings • Feb 11
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥174 (up from JP¥133 in FY 2024). Revenue: JP¥38.7b (up 24% from FY 2024). Net income: JP¥10.5b (up 31% from FY 2024). Profit margin: 27% (up from 26% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.5%. Earnings per share (EPS) also surpassed analyst estimates by 2.4%. Revenue is forecast to grow 31% p.a. on average during the next 2 years, while revenues in the Diversified Financial industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 28% per year whereas the company’s share price has increased by 33% per year. Announcement • Feb 10
Japan Investment Adviser Co., Ltd., Annual General Meeting, Mar 26, 2026 Japan Investment Adviser Co., Ltd., Annual General Meeting, Mar 26, 2026. Announcement • Dec 24
Japan Investment Adviser Co., Ltd. to Report Fiscal Year 2025 Results on Feb 10, 2026 Japan Investment Adviser Co., Ltd. announced that they will report fiscal year 2025 results on Feb 10, 2026 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥44.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 27 March 2026. Payout ratio is a comfortable 27% and the cash payout ratio is 86%. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (3.0%). New Risk • Nov 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 5.4% 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 (4.4% operating cash flow to total debt). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.4% average weekly change). Valuation Update With 7 Day Price Move • Nov 10
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥2,107, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 13x in the Diversified Financial industry in Japan. Total returns to shareholders of 82% over the past three years. Reported Earnings • Nov 01
Third quarter 2025 earnings released: EPS: JP¥33.23 (vs JP¥41.02 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥33.23 (up from JP¥41.02 loss in 3Q 2024). Revenue: JP¥8.76b (up 43% from 3Q 2024). Net income: JP¥2.01b (up JP¥4.49b from 3Q 2024). Profit margin: 23% (up from net loss in 3Q 2024). The move to profitability was primarily driven by higher revenue. Revenue is forecast to grow 31% p.a. on average during the next 3 years, compared to a 1.5% growth forecast for the Diversified Financial 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 13% per year. Announcement • Sep 27
Japan Investment Adviser Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 Japan Investment Adviser Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 Declared Dividend • Sep 02
First half dividend of JP¥44.00 announced Shareholders will receive a dividend of JP¥44.00. Ex-date: 29th December 2025 Payment date: 27th March 2026 Dividend yield will be 4.6%, which is higher than the industry average of 3.1%. Sustainability & Growth Dividend is covered by both earnings (41% earnings payout ratio) and cash flows (86% cash payout ratio). The dividend has increased by an average of 38% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 169% 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¥34.96 (vs JP¥26.75 in 2Q 2024) Second quarter 2025 results: EPS: JP¥34.96 (up from JP¥26.75 in 2Q 2024). Revenue: JP¥9.74b (up 64% from 2Q 2024). Net income: JP¥2.12b (up 31% from 2Q 2024). Profit margin: 22% (down from 27% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 31% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • Jun 26
Japan Investment Adviser Co., Ltd. to Report Q2, 2025 Results on Jul 31, 2025 Japan Investment Adviser Co., Ltd. announced that they will report Q2, 2025 results on Jul 31, 2025 Reported Earnings • May 01
First quarter 2025 earnings released: EPS: JP¥66.58 (vs JP¥67.51 in 1Q 2024) First quarter 2025 results: EPS: JP¥66.58 (down from JP¥67.51 in 1Q 2024). Revenue: JP¥11.0b (up 22% from 1Q 2024). Net income: JP¥4.03b (down 1.3% from 1Q 2024). Profit margin: 37% (down from 45% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 31% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Declared Dividend • Apr 11
Final dividend of JP¥43.00 announced Shareholders will receive a dividend of JP¥43.00. Ex-date: 27th June 2025 Payment date: 1st September 2025 Dividend yield will be 3.7%, which is higher than the industry average of 3.1%. Sustainability & Growth Dividend is covered by earnings (44% 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 37% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 139% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Apr 08
Now 29% overvalued after recent price rise Over the last 90 days, the stock has risen 28% to JP¥1,520. The fair value is estimated to be JP¥1,176, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Earnings per share has declined by 17%. For the next 3 years, revenue is forecast to grow by 30% per annum. Earnings are also forecast to grow by 34% per annum over the same time period. Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,568, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 11x in the Diversified Financial industry in Japan. Total returns to shareholders of 42% over the past three years. Announcement • Mar 27
Japan Investment Adviser Co., Ltd. to Report Q1, 2025 Results on Apr 30, 2025 Japan Investment Adviser Co., Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥1,840, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 11x in the Diversified Financial industry in Japan. Total returns to shareholders of 72% over the past three years. New Risk • Feb 10
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 8.0% 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 (8.0% average weekly change). Shareholders have been substantially diluted in the past year (100% increase in shares outstanding). Reported Earnings • Feb 08
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥133 (up from JP¥78.09 in FY 2023). Revenue: JP¥31.1b (up 43% from FY 2023). Net income: JP¥8.06b (up 242% from FY 2023). Profit margin: 26% (up from 11% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 7.3%. Earnings per share (EPS) also surpassed analyst estimates by 6.0%. Revenue is forecast to grow 24% p.a. on average during the next 2 years, compared to a 6.6% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has remained flat, which means it is well ahead of earnings. 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 Risks No financial data reported. Shareholders have been substantially diluted in the past year (100% increase in shares outstanding). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥12.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 27 March 2025. Payout ratio is a comfortable 44% but the company is not cash flow positive. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (3.2%). Announcement • Dec 19
Japan Investment Adviser Co., Ltd. Announces Executive Changes, Effective as of January 1, 2025 Japan Investment Adviser Co., Ltd. announced that have decided personnel change, at the meeting of the board of directors held on December 19, 2024 Eiichiro Saito: New: Head of Strategic Sales Department Sales Division, National Area Business Matcing Sales Director. Current: Strategic Sales Department /Senior Director. Masayuki Kamada: New: Head of Strategic Sales Department. Takeyoshi Ii New: Deputy Head of Sales Division, Tokyo Metropolitan Sales Department /Executive Director, Shikoku Sales Department /Executive Director, from current: Deputy Head of Sales Division, Tokyo Metropolitan Sales Department /Executive Director. Kouichi Yahagi New: Sales Division Tokyo Sales Department /Executive Director, Current: Sales Division Tokyo Metropolitan Sales Department /Senior Director. Toshihiro Kakuta: Sales Division, Kyusyu Sales Department /Executive Director from the current: Sales Division, Kansai Sales Department /Senior Director. Fumitaka Sato: Sales Division Sales Planning Department /Executive Director from the current: Head of Strategic Sales Department. Effective as of January 1, 2025. Announcement • Dec 12
Japan Investment Adviser Co., Ltd. to Report Fiscal Year 2024 Results on Feb 07, 2025 Japan Investment Adviser Co., Ltd. announced that they will report fiscal year 2024 results on Feb 07, 2025 Reported Earnings • Nov 02
Third quarter 2024 earnings released: JP¥41.02 loss per share (vs JP¥17.71 profit in 3Q 2023) Third quarter 2024 results: JP¥41.02 loss per share (down from JP¥17.71 profit in 3Q 2023). Revenue: JP¥6.14b (up 4.2% from 3Q 2023). Net loss: JP¥2.48b (down JP¥3.02b from profit in 3Q 2023). Revenue is forecast to grow 28% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Announcement • Sep 14
Japan Investment Adviser Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 Japan Investment Adviser Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 Major Estimate Revision • Aug 21
Consensus EPS estimates increase by 69% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from JP¥27.9b to JP¥29.0b. EPS estimate increased from JP¥74.40 to JP¥126 per share. Net income forecast to grow 37% next year vs 11% growth forecast for Diversified Financial industry in Japan. Consensus price target up from JP¥1,270 to JP¥2,100. Share price rose 6.3% to JP¥1,167 over the past week. Valuation Update With 7 Day Price Move • Aug 07
Investor sentiment deteriorates as stock falls 32% After last week's 32% share price decline to JP¥1,009, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 10x in the Diversified Financial industry in Japan. Total loss to shareholders of 25% over the past three years. New Risk • Aug 03
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: 2.2% 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: 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 (8.6% average weekly change). Shareholders have been substantially diluted in the past year (100% increase in shares outstanding). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Aug 02
Second quarter 2024 earnings released: EPS: JP¥26.75 (vs JP¥36.40 in 2Q 2023) Second quarter 2024 results: EPS: JP¥26.75. Revenue: JP¥5.96b (up 19% from 2Q 2023). Net income: JP¥1.62b (up 47% from 2Q 2023). Profit margin: 27% (up from 22% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Diversified Financial industry in Japan. Announcement • Jul 17
Japan Investment Adviser Co., Ltd. Revises Dividend Forecast for the First Half of 2024 and Full Year Ending December 2024 Japan Investment Adviser Co., Ltd. revised dividend forecast for the first half of 2024 and full year ending December 2024. For the first half, the company now expects JPY 12.00 per share against previous guidance of JPY 8.00 per share.
For the year, the company now expects JPY 12.00 per share against previous guidance of JPY 8.00 per share. Reason for the revision (increase) of the dividend forecast: JIA's policy is to pay dividends while securing internal reserve required for operating business in the future and fortifying JIA's financial foundation and considering the balance between the reflection of business performance and stable dividends. Under this policy, JIA determine the dividend amount so that payout ratio will be 20% or higher. In accordance with the upward revision to the earnings forecast for the fiscal year ending December 2024, which has been disclosed on July 17, 2024, JIA will upwardly revise the dividend forecast to JPY 24 per share so that full-year payout ratio will be around 20%. JIA will pay an interim dividend of JPY 12 per share, which is half of the annual dividend forecast. It indicates a 50% increase from the initial dividend forecast. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 02 September 2024. Payout ratio is a comfortable 21% but the company is not cash flow positive. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (3.0%). Announcement • Jun 01
Japan Investment Adviser Co., Ltd. (TSE:7172) acquired CF Startups, Inc. Japan Investment Adviser Co., Ltd. (TSE:7172) acquired CF Startups, Inc. on May 31, 2024. CF Startups, Inc. reported Total revenue of ¥55.2 million, Total assets of ¥93.6 million, Total Common equity of ¥54.7 million, Operating loss of ¥88.7 million and Net loss of ¥11.9 million as on Dec. 31, 2023. Japan Investment Adviser Co., Ltd. (TSE:7172) completed the acquisition of CF Startups, Inc. on May 31, 2024. Buy Or Sell Opportunity • May 24
Now 22% undervalued Over the last 90 days, the stock has risen 47% to JP¥1,297. The fair value is estimated to be JP¥1,671, 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 declined by 5.8%. Revenue is forecast to grow by 55% in 2 years. Earnings are forecast to grow by 98% in the next 2 years. Buy Or Sell Opportunity • May 09
Now 21% undervalued Over the last 90 days, the stock has risen 43% to JP¥1,303. The fair value is estimated to be JP¥1,645, 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 declined by 5.8%. Revenue is forecast to grow by 55% in 2 years. Earnings are forecast to grow by 98% in the next 2 years. Valuation Update With 7 Day Price Move • May 07
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to JP¥1,391, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 13x in the Diversified Financial industry in Japan. Total loss to shareholders of 8.4% over the past three years. Reported Earnings • May 01
First quarter 2024 earnings released: EPS: JP¥67.51 (vs JP¥19.77 in 1Q 2023) First quarter 2024 results: EPS: JP¥67.51 (up from JP¥19.77 in 1Q 2023). Revenue: JP¥9.02b (up 130% from 1Q 2023). Net income: JP¥4.08b (up JP¥3.49b from 1Q 2023). Profit margin: 45% (up from 15% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 5% per year. Declared Dividend • Apr 11
Final dividend of JP¥8.00 announced Shareholders will receive a dividend of JP¥8.00. Ex-date: 27th June 2024 Payment date: 2nd September 2024 Dividend yield will be 2.2%, which is lower than the industry average of 2.8%. Sustainability & Growth Dividend is covered by earnings (56% 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 26% per year over the past 8 years and payments have been stable during that time. EPS is expected to grow by 213% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 28
Japan Investment Adviser Co., Ltd. to Report Q1, 2024 Results on Apr 30, 2024 Japan Investment Adviser Co., Ltd. announced that they will report Q1, 2024 results on Apr 30, 2024 Valuation Update With 7 Day Price Move • Mar 20
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,019, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 13x in the Diversified Financial industry in Japan. Total loss to shareholders of 22% over the past three years. New Risk • Mar 17
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 100% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. 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 (12% average weekly change). Shareholders have been substantially diluted in the past year (100% increase in shares outstanding). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (11% net profit margin). Announcement • Feb 22
Japan Investment Adviser Co., Ltd. Announces Retirement of Yoshitaka Murata as Director Japan Investment Adviser Co., Ltd. announced retirement of Yoshitaka Murata as director. Major Estimate Revision • Feb 16
Consensus revenue estimates increase by 26%, EPS downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from JP¥22.2b to JP¥27.9b. EPS estimate fell from JP¥133 to JP¥74.40. Net income forecast to grow 91% next year vs 20% growth forecast for Diversified Financial industry in Japan. Consensus price target down from JP¥1,460 to JP¥1,270. Share price was steady at JP¥913 over the past week. Reported Earnings • Feb 10
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: JP¥78.09 (down from JP¥146 in FY 2022). Revenue: JP¥21.8b (up 21% from FY 2022). Net income: JP¥2.36b (down 47% from FY 2022). Profit margin: 11% (down from 24% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 12%. Earnings per share (EPS) missed analyst estimates by 9.3%. Revenue is forecast to grow 8.1% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 10% per year. Announcement • Feb 09
Japan Investment Adviser Co., Ltd., Annual General Meeting, Mar 26, 2024 Japan Investment Adviser Co., Ltd., Annual General Meeting, Mar 26, 2024. New Risk • Jan 15
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 11% 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 (11% average weekly change). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.9% net profit margin). Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment deteriorates as stock falls 28% After last week's 28% share price decline to JP¥1,071, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Diversified Financial industry in Japan. Total loss to shareholders of 5.3% over the past three years. Buying Opportunity • Jan 15
Now 34% undervalued after recent price drop Over the last 90 days, the stock is down 36%. The fair value is estimated to be JP¥1,624, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 18%. Revenue is forecast to grow by 42% in 2 years. Earnings is forecast to grow by 514% in the next 2 years. Announcement • Dec 28
Japan Investment Adviser Co., Ltd. Revises Consolidated Earnings Guidance for the Fiscal Year Ending December 31, 2023 Japan Investment Adviser Co., Ltd. revised consolidated earnings guidance for the fiscal year ending December 31, 2023. For the year, the company expects net sales of JPY 21,450 million, operating profit of JPY 5,430 million, profit attributable to owners of parent of JPY 2,400 million and net income per share of JPY 79.49 compared to previous guidance of net sales of JPY 19,300 million, operating profit of JPY 5,000 million, profit attributable to owners of parent of JPY 2,400 million and net income per share of JPY 79.49. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥16.00 per share at 2.1% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 29 March 2024. Payout ratio is a comfortable 56% but the company is not cash flow positive. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (3.3%). Announcement • Dec 05
Japan Investment Adviser Co., Ltd. to Report Fiscal Year 2023 Results on Feb 09, 2024 Japan Investment Adviser Co., Ltd. announced that they will report fiscal year 2023 results on Feb 09, 2024 Reported Earnings • Nov 02
Third quarter 2023 earnings released: EPS: JP¥17.71 (vs JP¥15.27 in 3Q 2022) Third quarter 2023 results: EPS: JP¥17.71 (up from JP¥15.27 in 3Q 2022). Revenue: JP¥5.90b (up 98% from 3Q 2022). Net income: JP¥535.0m (up 16% from 3Q 2022). Profit margin: 9.1% (down from 16% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Sep 19
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥1,869, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 13x in the Diversified Financial industry in Japan. Total returns to shareholders of 67% over the past three years. Announcement • Sep 16
Japan Investment Adviser Co., Ltd. to Report Q3, 2023 Results on Oct 31, 2023 Japan Investment Adviser Co., Ltd. announced that they will report Q3, 2023 results on Oct 31, 2023 Buying Opportunity • Aug 17
Now 21% undervalued Over the last 90 days, the stock is up 28%. The fair value is estimated to be JP¥1,760, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 12%. Revenue is forecast to grow by 65% in 2 years. Earnings is forecast to grow by 517% in the next 2 years. New Risk • Aug 03
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 41% 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). Dividend is not well covered by earnings and cash flows. Payout ratio: 123% Paying a dividend despite having no free cash flows. High level of non-cash earnings (41% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (5.4% net profit margin). Reported Earnings • Aug 01
Second quarter 2023 earnings released: EPS: JP¥36.40 (vs JP¥116 in 2Q 2022) Second quarter 2023 results: EPS: JP¥36.40 (down from JP¥116 in 2Q 2022). Revenue: JP¥5.03b (down 51% from 2Q 2022). Net income: JP¥1.10b (down 69% from 2Q 2022). Profit margin: 22% (down from 34% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Announcement • Aug 01
Japan Investment Adviser Co., Ltd. Announce Executive Changes Japan Investment Adviser Co., Ltd. notify that Mr. Hisao Yamaguchi, who is an outside auditor of company, is scheduled to resign as an auditor of company on July 31, 2023, in order to concentrate on the treatment of his disease. Due to his resignation, the number of auditors will fall below the number set forth by law. Accordingly, will appoint Mr. Hitoshi Imuta, who is a fill-in auditor, as an auditor on August 1, 2023. New Audit & Supervisory Board Member Name Hitoshi Imuta Date of resignation August 1, 2023 Mr. Hitoshi Imuta was selected as a fill-in auditor at the 16th annual meeting of shareholders held on March 29, 2022, so he satisfies the requirements for (part-time) auditors. His term of office will be the remaining term of office of the predecessor, in accordance with thearticles of incorporation of company. Biography: April 1970: Joined Nomura Securities Co., Ltd. June 1987: Senior Vice President of Nomura New York LimitedJuly 1988: Head of International Finance Dept., Nomura Securities Co., Ltd. June 1990: Managing Director of Nomura Singapore Limited June 1993: Director of Japan Associated Finance Co., Ltd. (Currently JAFCO Group Co., Ltd.). June 1997 Chairman of JAFCO America Ventures Inc. June 2001 Senior Managing Director of JAFCO Co., Ltd. (Currently JAFCO Group Co., Ltd.) June 2003 Vice President of Nomura China Investment Co., Ltd. Vice Chairman of Okura Garden Hotel Shanghai. June 2008 Representative Director and Executive Vice President of SHIROYAMA HOTEL kagoshima Co., Ltd. April 2009 Representative Director and President of SHIROYAMA. HOTEL kagoshima Co., Ltd. June 2015 Executive Chairman of SHIROYAMA HOTEL kagoshima Co., Ltd. April 2016 Full-time auditor (in charge of operations) of National University Corporation KAGOSHIMA UNIVERSITY. April 2020 Kagoshima Prefecture Tourism Producer (Commissioned by prefectural governor). January 2022 Representative Director and President of Nangoku Hotels Co., Ltd. (Current Position). Announcement • Jul 12
Japan Investment Adviser Co., Ltd. (TSE:7172) acquired an unknown minority stake in AVILEN Co., Ltd. Japan Investment Adviser Co., Ltd. (TSE:7172) acquired an unknown minority stake in AVILEN Co., Ltd. on July 10, 2023.Japan Investment Adviser Co., Ltd. (TSE:7172) completed the acquisition of an unknown minority stake in AVILEN Co., Ltd. on July 10, 2023. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥16.00 per share at 2.8% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 01 September 2023. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.5%). In line with average of industry peers (3.1%). Announcement • Jun 03
Japan Investment Adviser Co., Ltd. to Report Q2, 2023 Results on Jul 31, 2023 Japan Investment Adviser Co., Ltd. announced that they will report Q2, 2023 results on Jul 31, 2023 Reported Earnings • Apr 01
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥146 (up from JP¥97.04 in FY 2021). Revenue: JP¥18.0b (up 28% from FY 2021). Net income: JP¥4.41b (up 51% from FY 2021). Profit margin: 24% (up from 21% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 7.9%. Earnings per share (EPS) also missed analyst estimates by 32%. Revenue is forecast to grow 4.2% p.a. on average during the next 2 years, compared to a 7.2% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. Reported Earnings • Feb 12
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥146 (up from JP¥97.04 in FY 2021). Revenue: JP¥18.0b (up 28% from FY 2021). Net income: JP¥4.41b (up 51% from FY 2021). Profit margin: 24% (up from 21% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 7.9%. Earnings per share (EPS) also missed analyst estimates by 32%. Revenue is forecast to grow 4.2% p.a. on average during the next 2 years, compared to a 4.8% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 20% per year, which means it is performing significantly worse than earnings. Announcement • Feb 10
Japan Investment Adviser Co., Ltd., Annual General Meeting, Mar 28, 2023 Japan Investment Adviser Co., Ltd., Annual General Meeting, Mar 28, 2023. Announcement • Jan 28
Japan Investment Adviser Co., Ltd. Announces Change in Charge of Directors Japan Investment Adviser Co., Ltd. announced Naoto Shiraiwa as Head of Strategic Sales Department and Yoshitaka Murata as Head of Strategic Sales Department, effective as of February 1, 2023. Announcement • Jan 12
Japan Investment Adviser Co., Ltd. Announces Executive Changes, Effective January 16, 2023 Japan Investment Adviser Co., Ltd. announced organizational change and personnel change on January 16, 2023, at the meeting of the board of directors held on January 11, 2023. The name of the personnel is Kenzo Tanaka. Current Position is Strategic Sales Department /Senior Director and new position is Investment Banking Division: Financial Advisory Department(Osaka) /Executive Director; M&A Advisory Group(Osaka) /Senior Director, Strategic Sales Department /Senior Director.