Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to JP¥3,440, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 15x in the Machinery industry in Japan. Total returns to shareholders of 278% over the past three years. Reported Earnings • Aug 19
Second quarter 2026 earnings released: EPS: JP¥78.06 (vs JP¥40.22 in 2Q 2025) Second quarter 2026 results: EPS: JP¥78.06 (up from JP¥40.22 in 2Q 2025). Revenue: JP¥63.0b (up 21% from 2Q 2025). Net income: JP¥5.10b (up 91% from 2Q 2025). Profit margin: 8.1% (up from 5.1% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 50% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Aug 17
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 9.6% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥4,100, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 16x in the Machinery industry in Japan. Total returns to shareholders of 398% over the past three years. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 29 June 2026. Payment date: 14 September 2026. Payout ratio is a comfortable 18% but the company is not cash flow positive. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.9%). Lower than average of industry peers (1.6%). Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥3,440, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 16x in the Machinery industry in Japan. Total returns to shareholders of 321% over the past three years. Reported Earnings • May 20
First quarter 2026 earnings released: EPS: JP¥48.36 (vs JP¥34.17 in 1Q 2025) First quarter 2026 results: EPS: JP¥48.36 (up from JP¥34.17 in 1Q 2025). Revenue: JP¥55.4b (up 15% from 1Q 2025). Net income: JP¥3.16b (up 39% from 1Q 2025). Profit margin: 5.7% (up from 4.7% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.6% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 47% per year, which means it is tracking significantly ahead of earnings growth. Ankündigung • Apr 26
Nikkiso Co., Ltd. to Report Q2, 2026 Results on Aug 14, 2026 Nikkiso Co., Ltd. announced that they will report Q2, 2026 results on Aug 14, 2026 Declared Dividend • Apr 11
Final dividend of JP¥25.00 announced Shareholders will receive a dividend of JP¥25.00. Ex-date: 29th June 2026 Payment date: 14th September 2026 Dividend yield will be 1.7%, which is lower than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (19% earnings payout ratio) and cash flows (31% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 30% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 14
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: JP¥206 (up from JP¥120 in FY 2024). Revenue: JP¥215.6b (up 1.1% from FY 2024). Net income: JP¥13.7b (up 72% from FY 2024). Profit margin: 6.3% (up from 3.7% in FY 2024). The increase in margin was primarily driven by lower expenses. Revenue missed analyst estimates by 3.0%. Earnings per share (EPS) exceeded analyst estimates by 41%. Revenue is forecast to grow 6.7% p.a. on average during the next 2 years, compared to a 5.1% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 34% per year, which means it is well ahead of earnings. Ankündigung • Feb 13
Nikkiso Co., Ltd., Annual General Meeting, Mar 27, 2026 Nikkiso Co., Ltd., Annual General Meeting, Mar 27, 2026. Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥2,267, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 17x in the Machinery industry in Japan. Total returns to shareholders of 162% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,863 per share. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 12 March 2026. 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 (3.6%). Higher than average of industry peers (1.9%). New Risk • Nov 20
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 5.5% 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. Reported Earnings • Nov 18
Third quarter 2025 earnings released: EPS: JP¥36.25 (vs JP¥26.63 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥36.25 (up from JP¥26.63 loss in 3Q 2024). Revenue: JP¥52.0b (up 6.0% from 3Q 2024). Net income: JP¥2.40b (up JP¥4.17b from 3Q 2024). Profit margin: 4.6% (up from net loss in 3Q 2024). The move to profitability was primarily driven by higher revenue. Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Declared Dividend • Sep 13
First half dividend of JP¥18.00 announced Shareholders will receive a dividend of JP¥18.00. Ex-date: 29th December 2025 Payment date: 12th March 2026 Dividend yield will be 2.4%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (32% earnings payout ratio) and cash flows (20% cash payout ratio). The dividend has increased by an average of 8.4% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has remained steady over the last 5 years. Unless this trend deteriorates, it should provide adequate earnings cover for the dividend. Reported Earnings • Aug 15
Second quarter 2025 earnings released: EPS: JP¥40.22 (vs JP¥47.21 in 2Q 2024) Second quarter 2025 results: EPS: JP¥40.22 (down from JP¥47.21 in 2Q 2024). Revenue: JP¥52.0b (down 4.4% from 2Q 2024). Net income: JP¥2.67b (down 15% from 2Q 2024). Profit margin: 5.1% (down from 5.7% in 2Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 12 September 2025. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (4.0%). Higher than average of industry peers (2.2%). Ankündigung • May 29
Nikkiso Co., Ltd. Announces an Appeal to the Tokyo High Court Against Tax Reassessment Under the Controlled Foreign Company Tax Regime Nikkiso Co., Ltd. received a notice of reassessment for the 2018 business income of Nikkiso International Co., Ltd., which is the parent company of three (3) foreign subsidiaries under the Clean Energy & Industrial Gas Group (the "CE&IE Group"), a consolidated subsidiary group of the Company. The reassessment was based on the grounds that these foreign subsidiaries did not satisfy the exemption requirements under the CFC tax regime. As the Company did not agree with the decision, it filed a lawsuit with the Tokyo District Court seeking revocation of the tax reassessment. However, the court dismissed the Company's claims in the ruling dated May 16, 2025. Accordingly, the Company hereby announces that, in response to the court's ruling, it has decided to file an appeal with the Tokyo High Court on May 29, 2025. Future Outlook: The Company finds it deeply regrettable that its claims were not accepted and is unable to accept the ruling. Accordingly, the Company will file an appeal with the Tokyo High Court to reassert its legitimacy. Associated with this matter, the Company recorded corporate income tax of approximately JPY 1.7 billion in the fiscal year ended December 31, 2021, and the tax payment has already been completed. Should any material developments requiring disclosure arise, the Company will disclose them in a timely manner. Declared Dividend • May 20
Dividend increased to JP¥18.00 Dividend of JP¥18.00 is 20% higher than last year. Ex-date: 27th June 2025 Payment date: 12th September 2025 Dividend yield will be 2.7%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (27% earnings payout ratio) and cash flows (31% cash payout ratio). The dividend has increased by an average of 8.4% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 5.3% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 05
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥120 (down from JP¥137 in FY 2023). Revenue: JP¥213.4b (up 11% from FY 2023). Net income: JP¥7.96b (down 12% from FY 2023). Profit margin: 3.7% (down from 4.7% 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 9.5%. Revenue is forecast to grow 2.9% p.a. on average during the next 2 years, compared to a 4.7% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. 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¥1,118, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 11x in the Machinery industry in Japan. Total returns to shareholders of 42% over the past three years. Ankündigung • Mar 06
Nikkiso Co., Ltd. to Report Q1, 2025 Results on May 15, 2025 Nikkiso Co., Ltd. announced that they will report Q1, 2025 results on May 15, 2025 Buy Or Sell Opportunity • Feb 17
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 23% to JP¥1,218. The fair value is estimated to be JP¥986, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.1% over the last 3 years. Earnings per share has grown by 28%. Revenue is forecast to grow by 5.9% in 2 years. Earnings are forecast to grow by 12% in the next 2 years. Reported Earnings • Feb 16
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥120 (down from JP¥137 in FY 2023). Revenue: JP¥213.4b (up 11% from FY 2023). Net income: JP¥7.96b (down 12% from FY 2023). Profit margin: 3.7% (down from 4.7% 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 9.5%. Revenue is forecast to grow 2.9% p.a. on average during the next 2 years, compared to a 4.7% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. New Risk • Feb 14
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 5.1% 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. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.2x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.1% average weekly change). Ankündigung • Feb 14
Nikkiso Co., Ltd., Annual General Meeting, Mar 28, 2025 Nikkiso Co., Ltd., Annual General Meeting, Mar 28, 2025. Valuation Update With 7 Day Price Move • Feb 14
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,142, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 13x in the Machinery industry in Japan. Total returns to shareholders of 57% over the past three years. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 11 March 2025. Payout ratio is a comfortable 14% but the company is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.3%). New Risk • Nov 25
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.2x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.2x net interest cover). Minor Risk Paying a dividend despite having no free cash flows. New Risk • Sep 13
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 8.1% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 8.1% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (5.4% net profit margin). New Risk • Aug 19
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: 5.4% Last year net profit margin: 8.8% 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. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (5.4% net profit margin). Reported Earnings • Aug 19
Second quarter 2024 earnings released: EPS: JP¥47.21 (vs JP¥56.05 in 2Q 2023) Second quarter 2024 results: EPS: JP¥47.21 (down from JP¥56.05 in 2Q 2023). Revenue: JP¥54.4b (up 17% from 2Q 2023). Net income: JP¥3.13b (down 16% from 2Q 2023). Profit margin: 5.7% (down from 8.0% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to JP¥896, the stock trades at a trailing P/E ratio of 5.1x. Average trailing P/E is 11x in the Machinery industry in Japan. Total loss to shareholders of 14% over the past three years. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 12 September 2024. Payout ratio is a comfortable 16% but the company is not cash flow positive. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (2.1%). Reported Earnings • May 18
First quarter 2024 earnings released: EPS: JP¥42.70 (vs JP¥2.46 in 1Q 2023) First quarter 2024 results: EPS: JP¥42.70 (up from JP¥2.46 in 1Q 2023). Revenue: JP¥48.3b (up 18% from 1Q 2023). Net income: JP¥2.83b (up JP¥2.66b from 1Q 2023). Profit margin: 5.9% (up from 0.4% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Ankündigung • Mar 09
Nikkiso Co., Ltd. to Report Q1, 2024 Results on May 15, 2024 Nikkiso Co., Ltd. announced that they will report Q1, 2024 results on May 15, 2024 Ankündigung • Feb 16
Nikkiso Co., Ltd., Annual General Meeting, Mar 28, 2024 Nikkiso Co., Ltd., Annual General Meeting, Mar 28, 2024. Reported Earnings • Feb 16
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: JP¥137 (down from JP¥195 in FY 2022). Revenue: JP¥192.6b (up 8.8% from FY 2022). Net income: JP¥9.07b (down 34% from FY 2022). Profit margin: 4.7% (down from 7.7% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates by 78%. Revenue is forecast to grow 4.9% p.a. on average during the next 2 years, compared to a 4.4% growth forecast for the Machinery 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 2% per year, which means it is significantly lagging earnings growth. New Risk • Jan 31
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 8.4% This is considered a minor 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 Risk Earnings are forecast to decline by an average of 18% per year for the foreseeable future. Minor Risks Dividend is not well covered by cash flows (155% cash payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.8% net profit margin). Shareholders have been diluted in the past year (8.4% increase in shares outstanding). Upcoming Dividend • Dec 21
Upcoming dividend of JP¥12.50 per share at 2.6% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 13 March 2024. Payout ratio is a comfortable 17% but the company is paying out more than the cash it is generating. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (2.2%). Reported Earnings • Nov 15
Third quarter 2023 earnings released: EPS: JP¥36.19 (vs JP¥185 in 3Q 2022) Third quarter 2023 results: EPS: JP¥36.19 (down from JP¥185 in 3Q 2022). Revenue: JP¥46.3b (up 6.0% from 3Q 2022). Net income: JP¥2.40b (down 82% from 3Q 2022). Profit margin: 5.2% (down from 30% in 3Q 2022). Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 15
Second quarter 2023 earnings released: EPS: JP¥56.06 (vs JP¥18.05 in 2Q 2022) Second quarter 2023 results: EPS: JP¥56.06 (up from JP¥18.05 in 2Q 2022). Revenue: JP¥46.4b (down 1.0% from 2Q 2022). Net income: JP¥3.71b (up 189% from 2Q 2022). Profit margin: 8.0% (up from 2.7% in 2Q 2022). Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Machinery 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 fallen by 2% per year, which means it is significantly lagging earnings. New Risk • Jul 25
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 35% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 35% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥12.50 per share at 2.7% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 13 September 2023. Payout ratio is a comfortable 13% but the company is not cash flow positive. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (2.1%). Reported Earnings • May 19
First quarter 2023 earnings released: EPS: JP¥2.46 (vs JP¥8.76 in 1Q 2022) First quarter 2023 results: EPS: JP¥2.46 (down from JP¥8.76 in 1Q 2022). Revenue: JP¥40.9b (flat on 1Q 2022). Net income: JP¥163.0m (down 74% from 1Q 2022). Profit margin: 0.4% (down from 1.5% in 1Q 2022). Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Mar 02
Consensus revenue estimates increase by 11%, EPS downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from JP¥157.0b to JP¥175.0b. EPS estimate fell from JP¥48.30 to JP¥42.30. Net income forecast to shrink 79% next year vs 5.8% growth forecast for Machinery industry in Japan . Consensus price target down from JP¥905 to JP¥875. Share price rose 3.1% to JP¥956 over the past week. Ankündigung • Feb 16
Nikkiso Co., Ltd., Annual General Meeting, Mar 30, 2023 Nikkiso Co., Ltd., Annual General Meeting, Mar 30, 2023. Reported Earnings • Feb 15
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: JP¥195 (up from JP¥3.10 in FY 2021). Revenue: JP¥177.1b (up 5.6% from FY 2021). Net income: JP¥13.6b (up JP¥13.4b from FY 2021). Profit margin: 7.7% (up from 0.1% in FY 2021). The increase in margin was primarily driven by higher revenue. Revenue exceeded analyst estimates by 5.7%. Earnings per share (EPS) missed analyst estimates by 7.9%. Revenue is expected to decline by 4.4% p.a. on average during the next 2 years, while revenues in the Machinery industry in Japan are expected to grow by 4.4%. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Major Estimate Revision • Feb 15
Consensus EPS estimates fall by 18% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from JP¥59.24 to JP¥48.30. Revenue forecast unchanged from JP¥157.0b at last update. Net income forecast to shrink 56% next year vs 6.2% growth forecast for Machinery industry in Japan . Consensus price target of JP¥905 unchanged from last update. Share price fell 11% to JP¥940 over the past week. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥12.50 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 13 March 2023. Payout ratio is a comfortable 11% but the company is paying out more than the cash it is generating. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (2.6%). Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: JP¥185 (vs JP¥3.20 in 3Q 2021) Third quarter 2022 results: EPS: JP¥185 (up from JP¥3.20 in 3Q 2021). Revenue: JP¥43.7b (up 6.0% from 3Q 2021). Net income: JP¥13.0b (up JP¥12.8b from 3Q 2021). Profit margin: 30% (up from 0.6% in 3Q 2021). The increase in margin was primarily driven by lower expenses. Revenue is expected to decline by 3.1% p.a. on average during the next 3 years, while revenues in the Machinery industry in Japan are expected to grow by 4.1%. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 5 non-independent directors. Independent Outside Director Mitsuaki Nakakubo 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. Price Target Changed • Sep 03
Price target increased to JP¥885 Up from JP¥805, the current price target is an average from 2 analysts. New target price is 12% below last closing price of JP¥1,009. Stock is up 9.8% over the past year. The company is forecast to post earnings per share of JP¥234 for next year compared to JP¥3.10 last year. Reported Earnings • Aug 17
Second quarter 2022 earnings released: EPS: JP¥18.06 (vs JP¥20.66 loss in 2Q 2021) Second quarter 2022 results: EPS: JP¥18.06 (up from JP¥20.66 loss in 2Q 2021). Revenue: JP¥46.8b (up 19% from 2Q 2021). Net income: JP¥1.29b (up JP¥2.76b from 2Q 2021). Profit margin: 2.7% (up from net loss in 2Q 2021). The move to profitability was driven by higher revenue. Over the next year, revenue is expected to shrink by 13% compared to a 8.7% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥12.50 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 12 September 2022. The company is not currently making a profit and is not cash flow positive. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.4%). Price Target Changed • Apr 27
Price target decreased to JP¥830 Down from JP¥945, the current price target is provided by 1 analyst. New target price is 5.1% above last closing price of JP¥790. Stock is down 29% over the past year. The company is forecast to post earnings per share of JP¥210 for next year compared to JP¥3.10 last year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 5 non-independent directors. Independent Outside Director Mitsuaki Nakakubo 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. Price Target Changed • Mar 10
Price target decreased to JP¥830 Down from JP¥945, the current price target is an average from 2 analysts. New target price is 19% above last closing price of JP¥697. Stock is down 42% over the past year. The company is forecast to post earnings per share of JP¥147 for next year compared to JP¥3.10 last year. Major Estimate Revision • Mar 02
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from JP¥74.98 to JP¥84.07. Revenue forecast unchanged at JP¥164.5b. Net income forecast to grow 2,726% next year vs 12% growth forecast for Machinery industry in Japan. Consensus price target up from JP¥945 to JP¥965. Share price was steady at JP¥761 over the past week. Reported Earnings • Feb 16
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: JP¥3.10 (down from JP¥92.08 in FY 2020). Revenue: JP¥167.8b (up 5.8% from FY 2020). Net income: JP¥221.0m (down 97% from FY 2020). Profit margin: 0.1% (down from 4.1% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 3.3%. Earnings per share (EPS) also missed analyst estimates by 92%. Over the next year, revenue is expected to shrink by 2.0% compared to a 8.2% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Feb 15
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from JP¥74.98 to JP¥82.68. Revenue forecast unchanged at JP¥177.0b. Net income forecast to grow 59% next year vs 15% growth forecast for Machinery industry in Japan. Consensus price target of JP¥945 unchanged from last update. Share price fell 2.9% to JP¥824 over the past week. Price Target Changed • Jan 27
Price target decreased to JP¥945 Down from JP¥1,043, the current price target is an average from 2 analysts. New target price is 16% above last closing price of JP¥812. Stock is down 21% over the past year. The company is forecast to post earnings per share of JP¥38.71 for next year compared to JP¥92.08 last year. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 11 March 2022. Payout ratio is a comfortable 43% but the company is not cash flow positive. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.8%). Major Estimate Revision • Dec 22
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast increased from JP¥164.0b to JP¥173.5b. EPS estimate fell from JP¥64.50 to JP¥38.71 per share. Net income forecast to grow 74% next year vs 13% growth forecast for Machinery industry in Japan. Consensus price target down from JP¥1,043 to JP¥997. Share price fell 13% to JP¥761 over the past week. Price Target Changed • Dec 21
Price target decreased to JP¥997 Down from JP¥1,090, the current price target is an average from 3 analysts. New target price is 27% above last closing price of JP¥785. Stock is down 23% over the past year. The company is forecast to post earnings per share of JP¥64.80 for next year compared to JP¥92.08 last year. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS JP¥3.21 (vs JP¥19.77 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: JP¥41.2b (up 12% from 3Q 2020). Net income: JP¥229.0m (down 84% from 3Q 2020). Profit margin: 0.6% (down from 3.8% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Price Target Changed • Aug 26
Price target decreased to JP¥1,043 Down from JP¥1,300, the current price target is an average from 3 analysts. New target price is 17% above last closing price of JP¥892. Stock is down 17% over the past year. Valuation Update With 7 Day Price Move • Aug 19
Investor sentiment deteriorated over the past week After last week's 24% share price decline to JP¥885, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 14x in the Machinery industry in Japan. Total loss to shareholders of 24% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,489 per share. Reported Earnings • Aug 13
Second quarter 2021 earnings released: JP¥20.66 loss per share (vs JP¥29.63 profit in 2Q 2020) The company reported a soft second quarter result with weaker earnings and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: JP¥39.3b (up 2.5% from 2Q 2020). Net loss: JP¥1.47b (down 170% from profit in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 9% per year whereas the company’s share price has fallen by 5% per year. Upcoming Dividend • Jun 23
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 29 June 2021. Payment date: 14 September 2021. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.1%). Higher than average of industry peers (1.5%). Major Estimate Revision • May 27
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast fell from JP¥183.0b to JP¥178.0b. EPS estimate rose from JP¥104 to JP¥115. Net income forecast to grow 0.1% next year vs 24% growth forecast for Machinery industry in Japan. Consensus price target up from JP¥1,350 to JP¥1,400. Share price rose 2.8% to JP¥1,203 over the past week. Reported Earnings • May 19
First quarter 2021 earnings released: EPS JP¥31.24 (vs JP¥10.29 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: JP¥38.3b (up 4.9% from 1Q 2020). Net income: JP¥2.23b (up 204% from 1Q 2020). Profit margin: 5.8% (up from 2.0% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 3% per year. Reported Earnings • Apr 06
Full year 2020 earnings released: EPS JP¥92.08 (vs JP¥95.67 in FY 2019) The company reported a poor full year result with weaker earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: JP¥158.5b (down 4.4% from FY 2019). Net income: JP¥6.56b (down 3.7% from FY 2019). Profit margin: 4.1% (in line with FY 2019). Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has remained flat. Price Target Changed • Mar 17
Price target increased to JP¥1,350 Up from JP¥1,160, the current price target is an average from 2 analysts. New target price is 7.9% above last closing price of JP¥1,251. Stock is up 83% over the past year.