Buy Or Sell Opportunity • Jun 10
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at JP¥7,841. The fair value is estimated to be JP¥9,828, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 12%. For the next 3 years, revenue is forecast to grow by 12% per annum. Earnings are also forecast to grow by 13% per annum over the same time period. Reported Earnings • May 20
Second quarter 2026 earnings: EPS and revenues exceed analyst expectations Second quarter 2026 results: EPS: JP¥90.73 (up from JP¥69.67 in 2Q 2025). Revenue: JP¥23.6b (up 15% from 2Q 2025). Net income: JP¥6.89b (up 30% from 2Q 2025). Profit margin: 29% (up from 26% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.3%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 12% p.a. on average during the next 3 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 12% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. New Risk • May 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 8.1% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥8,774, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 13x in the Diversified Financial industry in Japan. Total loss to shareholders of 18% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥10,070 per share. Live News • May 17
GMO Payment Gateway Sees Double-Digit Profit Growth and Raises Dividend Guidance for FY2026 GMO Payment Gateway reported first-half FY2026 revenue growth of more than 13% year over year, with profit rising over 22%.
The company kept its full-year FY2026 guidance, indicating expectations for continued double-digit growth in both revenue and operating profit.
Management raised the dividend forecast and highlighted a healthy balance sheet and higher earnings per share as support for stronger shareholder returns.
The combination of double-digit profit growth, reaffirmed guidance and a higher dividend forecast points to management confidence in the current business trajectory and financial footing.
Investors may want to watch how the second half of FY2026 tracks against these growth targets, as any change in revenue momentum or balance sheet strength could affect the sustainability of the higher dividend. Buy Or Sell Opportunity • May 13
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to JP¥7,430. The fair value is estimated to be JP¥9,409, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 4.1%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings are also forecast to grow by 13% per annum over the same time period. Announcement • Apr 16
GMO Payment Gateway, Inc. to Report Q2, 2026 Results on May 15, 2026 GMO Payment Gateway, Inc. announced that they will report Q2, 2026 results on May 15, 2026 Buy Or Sell Opportunity • Mar 02
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 22% to JP¥7,818. The fair value is estimated to be JP¥9,913, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 4.1%. For the next 3 years, revenue is forecast to grow by 12% per annum. Earnings are also forecast to grow by 14% per annum over the same time period. Reported Earnings • Feb 14
First quarter 2026 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2026 results: EPS: JP¥67.86 (up from JP¥60.18 in 1Q 2025). Revenue: JP¥22.5b (up 11% from 1Q 2025). Net income: JP¥5.15b (up 13% from 1Q 2025). Profit margin: 23% (in line with 1Q 2025). Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) missed analyst estimates by 3.1%. Revenue is forecast to grow 12% p.a. on average during the next 3 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 4% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Feb 14
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 23% to JP¥7,636. The fair value is estimated to be JP¥9,738, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 4.1%. For the next 3 years, revenue is forecast to grow by 12% per annum. Earnings are also forecast to grow by 14% per annum over the same time period. Announcement • Jan 06
GMO Payment Gateway, Inc. to Report Q1, 2026 Results on Feb 12, 2026 GMO Payment Gateway, Inc. announced that they will report Q1, 2026 results on Feb 12, 2026 Reported Earnings • Nov 15
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: JP¥288 (up from JP¥247 in FY 2024). Revenue: JP¥82.5b (up 12% from FY 2024). Net income: JP¥21.8b (up 17% from FY 2024). Profit margin: 27% (up from 25% in FY 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) exceeded analyst estimates by 8.7%. Revenue is forecast to grow 12% 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 fallen by 2% per year whereas the company’s share price has fallen by 7% per year. Valuation Update With 7 Day Price Move • Nov 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥9,820, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 13x in the Diversified Financial industry in Japan. Total loss to shareholders of 19% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥8,795 per share. Announcement • Nov 13
GMO Payment Gateway, Inc., Annual General Meeting, Dec 14, 2025 GMO Payment Gateway, Inc., Annual General Meeting, Dec 14, 2025. Announcement • Oct 17
GMO Payment Gateway, Inc. to Report Fiscal Year 2025 Results on Nov 13, 2025 GMO Payment Gateway, Inc. announced that they will report fiscal year 2025 results on Nov 13, 2025 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥124 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 17 December 2025. Payout ratio is a comfortable 44% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (3.2%). Buy Or Sell Opportunity • Sep 10
Now 21% overvalued Over the last 90 days, the stock has fallen 8.3% to JP¥8,549. The fair value is estimated to be JP¥7,082, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has declined by 7.2%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings are also forecast to grow by 16% per annum over the same time period. Declared Dividend • Aug 14
Dividend of JP¥124 announced Shareholders will receive a dividend of JP¥124. Ex-date: 29th September 2025 Payment date: 17th December 2025 Dividend yield will be 1.5%, which is lower than the industry average of 3.1%. Sustainability & Growth Dividend is well covered by both earnings (44% earnings payout ratio) and cash flows (20% cash payout ratio). The dividend has increased by an average of 39% 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 59% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 09
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: JP¥75.65 (down from JP¥78.06 in 3Q 2024). Revenue: JP¥20.2b (up 12% from 3Q 2024). Net income: JP¥5.74b (down 3.1% from 3Q 2024). Profit margin: 28% (down from 33% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) exceeded analyst estimates by 7.1%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 9% per year. Announcement • Jul 17
GMO Payment Gateway, Inc. to Report Q3, 2025 Results on Aug 08, 2025 GMO Payment Gateway, Inc. announced that they will report Q3, 2025 results After-Market on Aug 08, 2025 Reported Earnings • May 18
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: JP¥69.67 (up from JP¥64.34 in 2Q 2024). Revenue: JP¥20.5b (up 12% from 2Q 2024). Net income: JP¥5.28b (up 8.3% from 2Q 2024). Profit margin: 26% (in line with 2Q 2024). Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) also surpassed analyst estimates by 2.3%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 6.9% 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 whereas the company’s share price has fallen by 7% per year. Declared Dividend • May 16
Dividend of JP¥124 announced Shareholders will receive a dividend of JP¥124. Ex-date: 29th September 2025 Payment date: 17th December 2025 Dividend yield will be 1.5%, which is lower than the industry average of 3.1%. Sustainability & Growth Dividend is well covered by both earnings (44% earnings payout ratio) and cash flows (20% cash payout ratio). The dividend has increased by an average of 39% 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 57% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 25
GMO Payment Gateway, Inc. to Report Q2, 2025 Results on May 14, 2025 GMO Payment Gateway, Inc. announced that they will report Q2, 2025 results on May 14, 2025 Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥8,933, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 11x in the Diversified Financial industry in Japan. Total loss to shareholders of 16% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥7,333 per share. Reported Earnings • Feb 13
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: EPS: JP¥60.17 (up from JP¥45.45 in 1Q 2024). Revenue: JP¥20.3b (up 14% from 1Q 2024). Net income: JP¥4.56b (up 32% from 1Q 2024). Profit margin: 23% (up from 19% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.3%. Earnings per share (EPS) also surpassed analyst estimates by 3.5%. Revenue is forecast to grow 14% 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 increased by 3% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Jan 16
GMO Payment Gateway, Inc. to Report Q1, 2025 Results on Feb 12, 2025 GMO Payment Gateway, Inc. announced that they will report Q1, 2025 results on Feb 12, 2025 Announcement • Jan 09
GMO Payment Gateway, Inc. (TSE:3769) acquired an additional unknown stake in enpay Inc. GMO Payment Gateway, Inc. (TSE:3769) acquired an additional unknown stake in enpay Inc. on January 8, 2025. Upon completion, enpay Inc. will be a consolidated subsidiary of GMO Payment Gateway, Inc.
GMO Payment Gateway, Inc. (TSE:3769) completed the acquisition of an additional unknown stake in enpay Inc. on January 8, 2025. Reported Earnings • Nov 15
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥247 (up from JP¥178 in FY 2023). Revenue: JP¥73.8b (up 17% from FY 2023). Net income: JP¥18.7b (up 39% from FY 2023). Profit margin: 25% (up from 21% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 9.7%. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Nov 13
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥7,558, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 11x in the Diversified Financial industry in Japan. Total loss to shareholders of 51% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥7,948 per share. Announcement • Nov 12
GMO Payment Gateway, Inc., Annual General Meeting, Dec 15, 2024 GMO Payment Gateway, Inc., Annual General Meeting, Dec 15, 2024. New Risk • Nov 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.7% 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. This is currently the only risk that has been identified for the company. Buy Or Sell Opportunity • Oct 29
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 5.7% to JP¥8,950. The fair value is estimated to be JP¥7,391, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 13%. For the next 3 years, revenue is forecast to grow by 16% per annum. Earnings are also forecast to grow by 17% per annum over the same time period. Announcement • Oct 18
GMO Payment Gateway, Inc. to Report Fiscal Year 2024 Results on Nov 12, 2024 GMO Payment Gateway, Inc. announced that they will report fiscal year 2024 results on Nov 12, 2024 Buy Or Sell Opportunity • Oct 04
Now 22% overvalued The stock has been flat over the last 90 days, currently trading at JP¥9,067. The fair value is estimated to be JP¥7,438, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 13%. For the next 3 years, revenue is forecast to grow by 16% per annum. Earnings are also forecast to grow by 17% per annum over the same time period. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥103 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 19 December 2024. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (3.0%). Valuation Update With 7 Day Price Move • Aug 22
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥9,218, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 11x in the Diversified Financial industry in Japan. Total loss to shareholders of 32% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥6,441 per share. Reported Earnings • Aug 14
Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2024 results: EPS: JP¥78.06 (up from JP¥57.83 in 3Q 2023). Revenue: JP¥18.1b (up 9.4% from 3Q 2023). Net income: JP¥5.92b (up 35% from 3Q 2023). Profit margin: 33% (up from 27% in 3Q 2023). Revenue missed analyst estimates by 3.8%. Earnings per share (EPS) exceeded analyst estimates by 25%. Revenue is forecast to grow 17% 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 increased by 13% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Declared Dividend • Aug 10
Dividend of JP¥103 announced Shareholders will receive a dividend of JP¥103. Ex-date: 27th September 2024 Payment date: 19th December 2024 Dividend yield will be 1.3%, which is lower than the industry average of 3.1%. Sustainability & Growth Dividend is well covered by both earnings (43% earnings payout ratio) and cash flows (46% cash payout ratio). The dividend has increased by an average of 31% 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. Buy Or Sell Opportunity • Aug 06
Now 26% overvalued after recent price rise Over the last 90 days, the stock has risen 4.3% to JP¥8,187. The fair value is estimated to be JP¥6,486, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 18%. For the next 3 years, revenue is forecast to grow by 17% per annum. Earnings are also forecast to grow by 19% per annum over the same time period. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥7,411, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 11x in the Diversified Financial industry in Japan. Total loss to shareholders of 44% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥6,480 per share. Announcement • Jul 18
GMO Payment Gateway, Inc. to Report Q3, 2024 Results on Aug 08, 2024 GMO Payment Gateway, Inc. announced that they will report Q3, 2024 results at 3:31 PM, Tokyo Standard Time on Aug 08, 2024 Buy Or Sell Opportunity • Jun 03
Now 24% overvalued Over the last 90 days, the stock has fallen 30% to JP¥7,113. The fair value is estimated to be JP¥5,714, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 18%. For the next 3 years, revenue is forecast to grow by 17% per annum. Earnings are also forecast to grow by 19% per annum over the same time period. Reported Earnings • May 12
Second quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2024 results: EPS: JP¥64.35 (up from JP¥48.54 in 2Q 2023). Revenue: JP¥18.3b (up 17% from 2Q 2023). Net income: JP¥4.88b (up 33% from 2Q 2023). Profit margin: 27% (up from 24% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) exceeded analyst estimates by 4.0%. Revenue is forecast to grow 18% 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 increased by 18% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Announcement • Apr 13
GMO Payment Gateway, Inc. to Report Q2, 2024 Results on May 10, 2024 GMO Payment Gateway, Inc. announced that they will report Q2, 2024 results on May 10, 2024 Valuation Update With 7 Day Price Move • Feb 27
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥9,938, the stock trades at a forward P/E ratio of 43x. Average forward P/E is 12x in the Diversified Financial industry in Japan. Total loss to shareholders of 29% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥5,303 per share. Reported Earnings • Feb 14
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: JP¥45.45 (up from JP¥32.26 in 1Q 2023). Revenue: JP¥17.8b (up 20% from 1Q 2023). Net income: JP¥3.45b (up 41% from 1Q 2023). Profit margin: 19% (up from 17% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) also missed analyst estimates by 7.1%. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Announcement • Jan 26
GMO Payment Gateway, Inc. to Report Q1, 2024 Results on Feb 13, 2024 GMO Payment Gateway, Inc. announced that they will report Q1, 2024 results on Feb 13, 2024 Announcement • Nov 15
GMO Payment Gateway, Inc., Annual General Meeting, Dec 17, 2023 GMO Payment Gateway, Inc., Annual General Meeting, Dec 17, 2023. Reported Earnings • Nov 15
Full year 2023 earnings: Revenues and EPS in line with analyst expectations Full year 2023 results: EPS: JP¥178 (down from JP¥318 in FY 2022). Revenue: JP¥63.1b (up 26% from FY 2022). Net income: JP¥13.5b (down 44% from FY 2022). Profit margin: 21% (down from 48% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 16% 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 increased by 33% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. New Risk • Nov 09
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.5% 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 Risk Share price has been highly volatile over the past 3 months (7.5% average weekly change). Minor Risk Profit margins are more than 30% lower than last year (22% net profit margin). Valuation Update With 7 Day Price Move • Nov 06
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥7,275, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 12x in the Diversified Financial industry in Japan. Total loss to shareholders of 48% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,890 per share. Announcement • Oct 21
GMO Payment Gateway, Inc. to Report Fiscal Year 2023 Results on Nov 13, 2023 GMO Payment Gateway, Inc. announced that they will report fiscal year 2023 results on Nov 13, 2023 Valuation Update With 7 Day Price Move • Oct 19
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥6,568, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 13x in the Diversified Financial industry in Japan. Total loss to shareholders of 46% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,937 per share. New Risk • Aug 11
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 22% Last year net profit margin: 48% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 10
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: JP¥57.83 (down from JP¥206 in 3Q 2022). Revenue: JP¥16.5b (up 28% from 3Q 2022). Net income: JP¥4.39b (down 72% from 3Q 2022). Profit margin: 27% (down from 121% in 3Q 2022). Revenue exceeded analyst estimates by 4.1%. Earnings per share (EPS) also surpassed analyst estimates by 19%. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Diversified Financial industry in Japan. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Jun 28
GMO Payment Gateway, Inc. to Report Q3, 2023 Results on Aug 09, 2023 GMO Payment Gateway, Inc. announced that they will report Q3, 2023 results on Aug 09, 2023 Reported Earnings • May 15
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: JP¥48.55 (up from JP¥39.57 in 2Q 2022). Revenue: JP¥15.6b (up 28% from 2Q 2022). Net income: JP¥3.68b (up 23% from 2Q 2022). Profit margin: 24% (down from 25% in 2Q 2022). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 4.4%. Revenue is forecast to grow 19% 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 increased by 51% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Feb 14
First quarter 2023 earnings: EPS misses analyst expectations First quarter 2023 results: EPS: JP¥32.26 (down from JP¥33.19 in 1Q 2022). Revenue: JP¥14.8b (up 25% from 1Q 2022). Net income: JP¥2.45b (down 2.8% from 1Q 2022). Profit margin: 17% (down from 21% in 1Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 27%. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Announcement • Dec 21
GMO Payment Gateway, Inc. to Report Q1, 2023 Results on Feb 13, 2023 GMO Payment Gateway, Inc. announced that they will report Q1, 2023 results on Feb 13, 2023 Reported Earnings • Nov 16
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥318 (up from JP¥118 in FY 2021). Revenue: JP¥50.3b (up 21% from FY 2021). Net income: JP¥24.2b (up 174% from FY 2021). Profit margin: 48% (up from 21% in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.6%. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥66.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 20 December 2022. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 0.7%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (1.7%). Reported Earnings • Aug 09
Third quarter 2022 earnings: EPS exceeds analyst expectations Third quarter 2022 results: EPS: JP¥206 (up from JP¥36.80 in 3Q 2021). Revenue: JP¥12.9b (up 21% from 3Q 2021). Net income: JP¥15.6b (up 464% from 3Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 432%. Over the next year, revenue is forecast to grow 22%, compared to a 11% 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. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment deteriorated over the past week After last week's 17% share price decline to JP¥8,790, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 19x in the IT industry in Japan. Total returns to shareholders of 25% over the past three years. Major Estimate Revision • May 20
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from JP¥147 to JP¥188. Revenue forecast steady at JP¥50.7b. Net income forecast to grow 34% next year vs 12% growth forecast for IT industry in Japan. Consensus price target broadly unchanged at JP¥13,601. Share price rose 2.6% to JP¥10,350 over the past week. Reported Earnings • May 15
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: EPS: JP¥39.57 (up from JP¥33.15 in 2Q 2021). Revenue: JP¥12.2b (up 21% from 2Q 2021). Net income: JP¥3.00b (up 22% from 2Q 2021). Profit margin: 25% (in line with 2Q 2021). Revenue missed analyst estimates by 2.7%. Earnings per share (EPS) exceeded analyst estimates by 5.4%. Over the next year, revenue is forecast to grow 23%, compared to a 8.2% 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 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 12
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: JP¥33.19 (up from JP¥23.15 in 1Q 2021). Revenue: JP¥11.9b (up 21% from 1Q 2021). Net income: JP¥2.52b (up 48% from 1Q 2021). Profit margin: 21% (up from 17% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) exceeded analyst estimates by 3.9%. Over the next year, revenue is forecast to grow 23%, compared to a 7.3% growth forecast for the 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 18% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 13
Full year 2021 earnings released: EPS JP¥118 (vs JP¥106 in FY 2020) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2021 results: Revenue: JP¥41.7b (up 26% from FY 2020). Net income: JP¥8.82b (up 13% from FY 2020). Profit margin: 21% (down from 24% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has increased by 39% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥54.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 21 December 2021. Trailing yield: 0.4%. Lower than top quartile of Japanese dividend payers (3.0%). Lower than average of industry peers (1.2%). Is New 90 Day High Low • Feb 15
New 90-day high: JP¥16,250 The company is up 29% from its price of JP¥12,560 on 17 November 2020. The Japanese market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥2,385 per share. Analyst Estimate Surprise Post Earnings • Feb 12
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) missed analyst estimates by 16%. Over the next year, revenue is forecast to grow 27%, compared to a 8.4% growth forecast for the IT industry in Japan. Reported Earnings • Feb 12
First quarter 2021 earnings released: EPS JP¥23.15 (vs JP¥23.50 in 1Q 2020) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2021 results: Revenue: JP¥9.77b (up 8.2% from 1Q 2020). Net income: JP¥1.70b (down 1.4% from 1Q 2020). Profit margin: 17% (down from 19% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has increased by 51% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Jan 18
New 90-day high: JP¥15,010 The company is up 12% from its price of JP¥13,360 on 20 October 2020. The Japanese market is also up 12% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it outperformed the IT industry, which is up 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥2,418 per share. Price Target Changed • Jan 12
Price target raised to JP¥12,757 Up from JP¥11,752, the current price target is an average from 9 analysts. The new target price is 11% below the current share price of JP¥14,280. As of last close, the stock is up 78% over the past year. Reported Earnings • Dec 27
Full year 2020 earnings released: EPS JP¥106 The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥33.0b (up 2.9% from FY 2019). Net income: JP¥7.80b (up 48% from FY 2019). Profit margin: 24% (up from 16% in FY 2019). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has increased by 43% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Dec 27
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 0.6%. Earnings per share (EPS) also surpassed analyst estimates by 4.5%. Over the next year, revenue is forecast to grow 22%, compared to a 8.1% growth forecast for the IT industry in Japan. Price Target Changed • Dec 16
Price target raised to JP¥11,752 Up from JP¥10,957, the current price target is an average from 8 analysts. The new target price is 14% below the current share price of JP¥13,710. As of last close, the stock is up 88% over the past year. Is New 90 Day High Low • Dec 01
New 90-day high: JP¥14,790 The company is up 26% from its price of JP¥11,700 on 02 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥2,774 per share.