New Risk • Jul 03
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 23% 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 Risk High level of non-cash earnings (23% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.6% average weekly change). New Risk • Jun 13
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: 1.8% 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. Share price has been volatile over the past 3 months (7.4% average weekly change). Announcement • Jun 06
MATSUDA SANGYO Co., Ltd. to Report Q1, 2027 Results on Aug 07, 2026 MATSUDA SANGYO Co., Ltd. announced that they will report Q1, 2027 results on Aug 07, 2026 Reported Earnings • May 15
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥648 (up from JP¥365 in FY 2025). Revenue: JP¥687.8b (up 47% from FY 2025). Net income: JP¥16.8b (up 77% from FY 2025). Profit margin: 2.4% (up from 2.0% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.4%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Revenue is forecast to grow 4.2% p.a. on average during the next 2 years, compared to a 4.3% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has increased by 53% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 14
MATSUDA SANGYO Co., Ltd., Annual General Meeting, Jun 24, 2026 MATSUDA SANGYO Co., Ltd., Annual General Meeting, Jun 24, 2026. Announcement • May 11
MATSUDA SANGYO Co., Ltd. to Report Fiscal Year 2026 Results on May 13, 2026 MATSUDA SANGYO Co., Ltd. announced that they will report fiscal year 2026 results on May 13, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 26 June 2026. Payout ratio is a comfortable 19% but the company is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.0%). Valuation Update With 7 Day Price Move • Feb 27
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥8,710, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 16x in the Commercial Services industry in Japan. Total returns to shareholders of 295% over the past three years. Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: JP¥195 (vs JP¥134 in 3Q 2025) Third quarter 2026 results: EPS: JP¥195 (up from JP¥134 in 3Q 2025). Revenue: JP¥189.7b (up 50% from 3Q 2025). Net income: JP¥5.04b (up 45% from 3Q 2025). Profit margin: 2.7% (in line with 3Q 2025). Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 46% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 14
MATSUDA SANGYO Co., Ltd. Revises Consolidated Earnings Guidance for the Full Fiscal Year Ending March 31, 2026 MATSUDA SANGYO Co., Ltd. revised consolidated earnings guidance for the full fiscal year ending March 31, 2026. For the year, the company expected net sales of JPY 650,000 million, operating profit of JPY 20,000 million; profit attributable to owners of parent of JPY 14,700 million and Basic earnings per share of JPY 568.84 as compared to previous guidance of net sales of JPY 550,000 million, operating profit of JPY 15,400 million; profit attributable to owners of parent of JPY 11,500 million and Basic earnings per share of JPY 443.72. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥7,350, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 15x in the Commercial Services industry in Japan. Total returns to shareholders of 253% over the past three years. Declared Dividend • Dec 12
First half dividend of JP¥50.00 announced Shareholders will receive a dividend of JP¥50.00. Ex-date: 30th March 2026 Payment date: 26th June 2026 Dividend yield will be 2.0%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (21% 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 14% 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 21% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Dec 05
MATSUDA SANGYO Co., Ltd. to Report Q3, 2026 Results on Feb 13, 2026 MATSUDA SANGYO Co., Ltd. announced that they will report Q3, 2026 results on Feb 13, 2026 Major Estimate Revision • Nov 28
Consensus EPS estimates increase by 12%, revenue downgraded The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast fell from JP¥600.0b to JP¥570.0b. EPS estimate rose from JP¥397 to JP¥445. Net income forecast to grow 8.5% next year vs 11% growth forecast for Commercial Services industry in Japan. Consensus price target of JP¥4,300 unchanged from last update. Share price rose 7.6% to JP¥4,880 over the past week. Reported Earnings • Nov 15
Second quarter 2026 earnings released: EPS: JP¥119 (vs JP¥78.87 in 2Q 2025) Second quarter 2026 results: EPS: JP¥119 (up from JP¥78.87 in 2Q 2025). Revenue: JP¥141.6b (up 28% from 2Q 2025). Net income: JP¥3.08b (up 50% from 2Q 2025). Profit margin: 2.2% (up from 1.9% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.1% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Commercial 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 increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 10 December 2025. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.1%). Announcement • Sep 01
MATSUDA SANGYO Co., Ltd. to Report Q2, 2026 Results on Nov 12, 2025 MATSUDA SANGYO Co., Ltd. announced that they will report Q2, 2026 results on Nov 12, 2025 Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: JP¥116 (vs JP¥99.47 in 1Q 2025) First quarter 2026 results: EPS: JP¥116 (up from JP¥99.47 in 1Q 2025). Revenue: JP¥146.6b (up 31% from 1Q 2025). Net income: JP¥3.01b (up 17% from 1Q 2025). Profit margin: 2.1% (down from 2.3% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Declared Dividend • Jul 09
Final dividend of JP¥45.00 announced Shareholders will receive a dividend of JP¥45.00. Ex-date: 29th September 2025 Payment date: 10th December 2025 Dividend yield will be 2.4%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (17% 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 14% 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 24% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 29
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥365 (up from JP¥280 in FY 2024). Revenue: JP¥468.8b (up 30% from FY 2024). Net income: JP¥9.46b (up 30% from FY 2024). Profit margin: 2.0% (in line with FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 5.4%. Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Announcement • Jun 03
MATSUDA SANGYO Co., Ltd. to Report Q1, 2026 Results on Aug 08, 2025 MATSUDA SANGYO Co., Ltd. announced that they will report Q1, 2026 results on Aug 08, 2025 Reported Earnings • May 10
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥365 (up from JP¥280 in FY 2024). Revenue: JP¥468.8b (up 30% from FY 2024). Net income: JP¥9.46b (up 30% from FY 2024). Profit margin: 2.0% (in line with FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 5.4%. Revenue is forecast to grow 5.2% p.a. on average during the next 2 years, compared to a 4.1% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Announcement • May 09
MATSUDA SANGYO Co., Ltd., Annual General Meeting, Jun 25, 2025 MATSUDA SANGYO Co., Ltd., Annual General Meeting, Jun 25, 2025. Announcement • Apr 11
MATSUDA SANGYO Co., Ltd. Announces Retirement of Directorate and Committee Members MATSUDA SANGYO Co., Ltd. announced retiring Directors: Toshihiko Uchiyama as Director, Audit and Supervisory Committee Member and Toshiyuki Kojima Director, Audit and Supervisory Committee Member. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥2,891, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 13x in the Commercial Services industry in Japan. Total returns to shareholders of 32% over the past three years. Announcement • Apr 04
MATSUDA SANGYO Co., Ltd. to Report Fiscal Year 2025 Results on May 09, 2025 MATSUDA SANGYO Co., Ltd. announced that they will report fiscal year 2025 results on May 09, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 27 June 2025. Payout ratio is a comfortable 17% but the company is paying out more than the cash it is generating. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (2.1%). Major Estimate Revision • Feb 21
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥440.0b to JP¥470.0b. EPS estimate increased from JP¥347 to JP¥386 per share. Net income forecast to grow 2.0% next year vs 7.9% growth forecast for Commercial Services industry in Japan. Consensus price target up from JP¥4,200 to JP¥4,500. Share price fell 8.1% to JP¥3,075 over the past week. Price Target Changed • Feb 20
Price target increased by 13% to JP¥4,500 Up from JP¥4,000, the current price target is provided by 1 analyst. New target price is 43% above last closing price of JP¥3,145. Stock is up 31% over the past year. The company is forecast to post earnings per share of JP¥386 for next year compared to JP¥280 last year. Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: JP¥134 (vs JP¥49.39 in 3Q 2024) Third quarter 2025 results: EPS: JP¥134 (up from JP¥49.39 in 3Q 2024). Revenue: JP¥126.5b (up 37% from 3Q 2024). Net income: JP¥3.46b (up 170% from 3Q 2024). Profit margin: 2.7% (up from 1.4% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Declared Dividend • Dec 11
First half dividend of JP¥35.00 announced Shareholders will receive a dividend of JP¥35.00. Ex-date: 28th March 2025 Payment date: 27th June 2025 Dividend yield will be 2.3%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (10% earnings payout ratio) but not covered by cash flows (393% cash payout ratio). The dividend has increased by an average of 11% 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 48% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 15
Second quarter 2025 earnings released: EPS: JP¥78.87 (vs JP¥78.28 in 2Q 2024) Second quarter 2025 results: EPS: JP¥78.87 (up from JP¥78.28 in 2Q 2024). Revenue: JP¥110.4b (up 22% from 2Q 2024). Net income: JP¥2.04b (flat on 2Q 2024). Profit margin: 1.9% (down from 2.3% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 06 December 2024. Payout ratio is a comfortable 20% but the company is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (2.0%). Major Estimate Revision • Sep 14
Consensus revenue estimates increase by 16% The consensus outlook for revenues in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥380.0b to JP¥440.0b. EPS estimate increased from JP¥320 to JP¥332 per share. Net income forecast to grow 13% next year vs 9.5% growth forecast for Commercial Services industry in Japan. Consensus price target up from JP¥3,500 to JP¥4,000. Share price was steady at JP¥3,150 over the past week. Reported Earnings • Aug 13
First quarter 2025 earnings released: EPS: JP¥99.47 (vs JP¥77.48 in 1Q 2024) First quarter 2025 results: EPS: JP¥99.47 (up from JP¥77.48 in 1Q 2024). Revenue: JP¥111.8b (up 26% from 1Q 2024). Net income: JP¥2.58b (up 28% from 1Q 2024). Profit margin: 2.3% (in line with 1Q 2024). Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥2,421, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 12x in the Commercial Services industry in Japan. Total returns to shareholders of 19% over the past three years. Declared Dividend • Jul 11
Final dividend increased to JP¥35.00 Dividend of JP¥35.00 is 17% higher than last year. Ex-date: 27th September 2024 Payment date: 6th December 2024 Dividend yield will be 2.2%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (20% 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 11% 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. Reported Earnings • May 16
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥280 (down from JP¥372 in FY 2023). Revenue: JP¥360.5b (up 2.7% from FY 2023). Net income: JP¥7.29b (down 25% from FY 2023). Profit margin: 2.0% (down from 2.8% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.4%. Revenue is forecast to grow 5.2% p.a. on average during the next 2 years, compared to a 3.7% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • May 15
MATSUDA SANGYO Co., Ltd., Annual General Meeting, Jun 26, 2024 MATSUDA SANGYO Co., Ltd., Annual General Meeting, Jun 26, 2024. Major Estimate Revision • Mar 23
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥365.0b to JP¥360.0b. EPS estimate also fell from JP¥327 per share to JP¥293 per share. Net income forecast to grow 12% next year vs 8.8% growth forecast for Commercial Services industry in Japan. Consensus price target of JP¥4,000 unchanged from last update. Share price was steady at JP¥2,495 over the past week. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.8%). Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥49.39 (vs JP¥89.78 in 3Q 2023) Third quarter 2024 results: EPS: JP¥49.39 (down from JP¥89.78 in 3Q 2023). Revenue: JP¥92.6b (down 2.0% from 3Q 2023). Net income: JP¥1.28b (down 45% from 3Q 2023). Profit margin: 1.4% (down from 2.5% in 3Q 2023). Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 10% per year. Announcement • Nov 12
Matsuda Sangyo Co., Ltd. Declares Dividend for the Second Quarter Ended September 2023, Payable on December 6, 2023 and Provides Dividend Guidance for the Full Year Ending March 31, 2024 MATSUDA SANGYO Co., Ltd. declared dividend of JPY 30.00 per share for the second quarter ended September 2023, payable on December 6, 2023 against JPY 25.00 per share paid a year ago.The provided dividend guidance for the full year ending March 31, 2024, for the year, the company expects dividend of JPY 30.00 per Share against JPY 25.00 per share paid a year ago. Reported Earnings • Nov 11
Second quarter 2024 earnings released: EPS: JP¥78.28 (vs JP¥97.57 in 2Q 2023) Second quarter 2024 results: EPS: JP¥78.28 (down from JP¥97.57 in 2Q 2023). Revenue: JP¥90.2b (up 2.7% from 2Q 2023). Net income: JP¥2.04b (down 20% from 2Q 2023). Profit margin: 2.3% (down from 2.9% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 16% per year. Announcement • Nov 11
MATSUDA SANGYO Co., Ltd. Provides Consolidated Earnings Guidance for the Full Year Ending March 31, 2024 MATSUDA SANGYO Co., Ltd. provided consolidated earnings guidance for the full year ending March 31, 2024. for the year, the company expects net sales of JPY 360,000 million, operating profit of JPY 10,000 million and profit attributable to owners of parent of JPY 7,600 million or JPY 291.42 per basic share. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥30.00 per share at 2.5% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 06 December 2023. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.9%). Price Target Changed • Sep 07
Price target decreased by 11% to JP¥4,000 Down from JP¥4,500, the current price target is provided by 1 analyst. New target price is 74% above last closing price of JP¥2,293. Stock is down 0.8% over the past year. The company is forecast to post earnings per share of JP¥326 for next year compared to JP¥372 last year. Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥77.48 (vs JP¥118 in 1Q 2023) First quarter 2024 results: EPS: JP¥77.48 (down from JP¥118 in 1Q 2023). Revenue: JP¥88.6b (flat on 1Q 2023). Net income: JP¥2.02b (down 35% from 1Q 2023). Profit margin: 2.3% (down from 3.5% in 1Q 2023). Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Announcement • Aug 11
MATSUDA SANGYO Co., Ltd. (TSE:7456) announces an Equity Buyback for 200,000 shares, representing 0.77% for ¥400 million. MATSUDA SANGYO Co., Ltd. (TSE:7456) announces a share repurchase program. Under the program, the company will repurchase up to 200,000 shares, representing 0.77% of its issued share capital, for total worth of ¥400 million. The purpose of the share repurchases is to implement a flexible capital policy and improve shareholder value per share. The program is valid till October 31, 2023. As of June 30, 2023, the company had 26,085,621 issued shares and 822,960 shares in treasury. Reported Earnings • May 15
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥372 (up from JP¥366 in FY 2022). Revenue: JP¥351.0b (up 29% from FY 2022). Net income: JP¥9.70b (up 1.4% from FY 2022). Profit margin: 2.8% (down from 3.5% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.1%. Revenue is forecast to grow 4.6% p.a. on average during the next 2 years, compared to a 4.0% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥25.00 per share at 2.3% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 29 June 2023. Payout ratio is a comfortable 13% but the company is not cash flow positive. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.2%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥89.78 (vs JP¥93.19 in 3Q 2022) Third quarter 2023 results: EPS: JP¥89.78 (down from JP¥93.19 in 3Q 2022). Revenue: JP¥94.5b (up 40% from 3Q 2022). Net income: JP¥2.34b (down 3.7% from 3Q 2022). Profit margin: 2.5% (down from 3.6% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Dec 07
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 revenue forecast increased from JP¥340.0b to JP¥345.0b. EPS estimate fell from JP¥429 to JP¥383 per share. Net income forecast to grow 6.4% next year vs 12% growth forecast for Commercial Services industry in Japan. Consensus price target down from JP¥5,000 to JP¥4,500. Share price was steady at JP¥2,311 over the past week. Price Target Changed • Nov 16
Price target increased to JP¥5,000 Up from JP¥4,000, the current price target is provided by 1 analyst. New target price is 123% above last closing price of JP¥2,245. Stock is down 26% over the past year. The company is forecast to post earnings per share of JP¥429 for next year compared to JP¥366 last year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Outside Director Kaoru Yokomise was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 12
Second quarter 2023 earnings released: EPS: JP¥97.56 (vs JP¥95.15 in 2Q 2022) Second quarter 2023 results: EPS: JP¥97.56 (up from JP¥95.15 in 2Q 2022). Revenue: JP¥87.8b (up 33% from 2Q 2022). Net income: JP¥2.55b (up 2.5% from 2Q 2022). Profit margin: 2.9% (down from 3.8% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥24.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 06 December 2022. Payout ratio is a comfortable 12% but the company is not cash flow positive. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (2.3%). Major Estimate Revision • Aug 20
Consensus revenue estimates increase by 19% The consensus outlook for revenues in 2023 has improved. 2023 revenue forecast increased from JP¥285.0b to JP¥340.0b. EPS estimate increased from JP¥337 to JP¥429 per share. Net income forecast to grow 18% next year vs 6.0% growth forecast for Commercial Services industry in Japan. Consensus price target up from JP¥4,000 to JP¥5,000. Share price rose 10% to JP¥2,337 over the past week. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥2,310, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 14x in the Commercial Services industry in Japan. Total returns to shareholders of 72% over the past three years. Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥118 (vs JP¥115 in 1Q 2022) First quarter 2023 results: EPS: JP¥118 (up from JP¥115 in 1Q 2022). Revenue: JP¥88.2b (up 26% from 1Q 2022). Net income: JP¥3.09b (up 3.4% from 1Q 2022). Profit margin: 3.5% (down from 4.3% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to stay flat compared to a 5.1% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 18
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: JP¥366 (up from JP¥233 in FY 2021). Revenue: JP¥272.3b (up 18% from FY 2021). Net income: JP¥9.56b (up 57% from FY 2021). Profit margin: 3.5% (up from 2.6% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.5%. Over the next year, revenue is forecast to grow 2.8%, compared to a 2.4% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 27
Price target decreased to JP¥4,000 Down from JP¥4,500, the current price target is provided by 1 analyst. New target price is 78% above last closing price of JP¥2,244. Stock is up 0.2% over the past year. The company is forecast to post earnings per share of JP¥372 for next year compared to JP¥233 last year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Outside Director Kaoru Yokomise was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model.