Declared Dividend • Jul 25
Final dividend of JP¥25.00 announced Dividend of JP¥25.00 is the same as last year. Ex-date: 29th September 2026 Payment date: 4th December 2026 Dividend yield will be 4.0%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (60% 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 not increased over the past 10 years but has been stable with no material reductions to payments, indicating a long track record of dividend stability. The company's earnings per share (EPS) would need to decline by 34% to shift the payout ratio to a potentially unsustainable range, which is more than the 22% EPS decline seen over the last 5 years. Anuncio • Jun 09
Avex Inc. to Report Q1, 2027 Results on Aug 06, 2026 Avex Inc. announced that they will report Q1, 2027 results on Aug 06, 2026 Reported Earnings • May 17
Full year 2026 earnings released: EPS: JP¥83.67 (vs JP¥26.10 in FY 2025) Full year 2026 results: EPS: JP¥83.67 (up from JP¥26.10 in FY 2025). Revenue: JP¥146.6b (up 11% from FY 2025). Net income: JP¥3.55b (up 212% from FY 2025). Profit margin: 2.4% (up from 0.9% in FY 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 14% per year whereas the company’s share price has fallen by 10% per year. Anuncio • May 16
Avex Inc. Provides Earnings Guidance for the Fiscal Year 2026 Avex Inc. provided earnings guidance for the fiscal year 2026. For the year, the company expects operating profit of USD 40 million, implying expected year-over-year growth of +47% in profit as Avex continues investing in long-term global growth initiatives across music, anime, live entertainment, publishing, and intellectual property ownership. Anuncio • May 14
Avex Inc., Annual General Meeting, Jun 26, 2026 Avex Inc., Annual General Meeting, Jun 26, 2026. Anuncio • Apr 09
Avex Inc. to Report Fiscal Year 2026 Results on May 14, 2026 Avex Inc. announced that they will report fiscal year 2026 results on May 14, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 12 June 2026. Payout ratio is a comfortable 52% but the company is not cash flow positive. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: JP¥51.83 (vs JP¥12.27 in 3Q 2025) Third quarter 2026 results: EPS: JP¥51.83 (up from JP¥12.27 in 3Q 2025). Revenue: JP¥39.0b (up 7.0% from 3Q 2025). Net income: JP¥2.20b (up 321% from 3Q 2025). Profit margin: 5.6% (up from 1.4% in 3Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Anuncio • Dec 16
Avex Inc. to Report Q3, 2026 Results on Feb 12, 2026 Avex Inc. announced that they will report Q3, 2026 results on Feb 12, 2026 Declared Dividend • Dec 05
First half dividend of JP¥25.00 announced Dividend of JP¥25.00 is the same as last year. Ex-date: 30th March 2026 Payment date: 12th June 2026 Dividend yield will be 4.3%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is not covered by earnings (dividend approximately 5x earnings) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has not increased over the past 10 years but has been stable with no material reductions to payments, indicating a long track record of dividend stability. The company's earnings per share (EPS) would need to grow by 538% to bring the payout ratio under control. However, EPS has declined by 36% over the last 5 years so the company would need to reverse this trend. New Risk • Nov 25
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 69% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 287% Paying a dividend despite having no free cash flows. High level of non-cash earnings (69% accrual ratio). Reported Earnings • Nov 16
Second quarter 2026 earnings released: EPS: JP¥2.43 (vs JP¥4.58 loss in 2Q 2025) Second quarter 2026 results: EPS: JP¥2.43 (up from JP¥4.58 loss in 2Q 2025). Revenue: JP¥31.3b (up 2.3% from 2Q 2025). Net income: JP¥103.0m (up JP¥305.0m from 2Q 2025). Profit margin: 0.3% (up from net loss in 2Q 2025). Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 05 December 2025. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.0%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.1%). Anuncio • Sep 01
Avex Inc. to Report Q2, 2026 Results on Nov 13, 2025 Avex Inc. announced that they will report Q2, 2026 results on Nov 13, 2025 Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥17.96 (vs JP¥40.53 in 1Q 2025) First quarter 2026 results: EPS: JP¥17.96 (down from JP¥40.53 in 1Q 2025). Revenue: JP¥32.7b (up 28% from 1Q 2025). Net income: JP¥761.0m (down 59% from 1Q 2025). Profit margin: 2.3% (down from 7.2% in 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 50% 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. New Risk • Aug 08
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: 0.05% Last year net profit margin: 0.09% 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: Major Risk Dividend is not well covered by earnings and cash flows. Dividend per share is over 32x earnings per share. Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.05% net profit margin). Anuncio • Jul 24
Avex Inc. to Report Q1, 2026 Results on Aug 07, 2025 Avex Inc. announced that they will report Q1, 2026 results on Aug 07, 2025 Declared Dividend • Jul 09
Final dividend of JP¥25.00 announced Dividend of JP¥25.00 is the same as last year. Ex-date: 29th September 2025 Payment date: 5th December 2025 Dividend yield will be 4.0%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is not covered by earnings (130% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has not increased over the past 10 years but has been stable with no material reductions to payments, indicating a long track record of dividend stability. The company's earnings per share (EPS) would need to grow by 44% to bring the payout ratio under control. However, EPS has declined by 14% over the last 5 years so the company would need to reverse this trend. Board Change • Jun 26
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 5 non-independent directors. Independent Outside Director Yoshihide Sugimoto was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Anuncio • May 08
Avex Inc., Annual General Meeting, Jun 27, 2025 Avex Inc., Annual General Meeting, Jun 27, 2025. Anuncio • Mar 27
Avex Inc. (TSE:7860) acquired 20% stake in S10 Entertainment & Media LLC from it's existing shareholders. Avex Inc. (TSE:7860) acquired 20% stake in S10 Entertainment & Media LLC from it's existing shareholders on February 28, 2025. As a part of acquisition, Ownership interest ratio in S10 Entertainment & Media LLC became 40%.
Avex Inc. (TSE:7860) completed the acquisition of 20% stake in S10 Entertainment & Media LLC from it's existing shareholders on February 28, 2025. David C Eisman and Ryne C Posey of Skadden, Arps, Slate, Meagher & Flom LLP acted as the legal advisor to S10 Entertainment and its founder Brandon Silverstein. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 09 June 2025. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.2%). Anuncio • Mar 12
Avex Inc. to Report Fiscal Year 2025 Results on May 08, 2025 Avex Inc. announced that they will report fiscal year 2025 results on May 08, 2025 Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: JP¥12.27 (vs JP¥22.56 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥12.27 (up from JP¥22.56 loss in 3Q 2024). Revenue: JP¥36.5b (up 22% from 3Q 2024). Net income: JP¥523.0m (up JP¥1.54b from 3Q 2024). Profit margin: 1.4% (up from net loss in 3Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 92 percentage points per year, which is a significant difference in performance. Declared Dividend • Dec 06
First half dividend of JP¥25.00 announced Dividend of JP¥25.00 is the same as last year. Ex-date: 28th March 2025 Payment date: 9th June 2025 Dividend yield will be 3.3%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is not covered by earnings (dividend approximately 20x earnings) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 2,228% to bring the payout ratio under control. However, EPS has remained steady over the last 5 years so the company would need to improve on their historical growth rates. New Risk • Nov 19
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 34% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Dividend per share is over 13x earnings per share. Paying a dividend despite having no free cash flows. High level of non-cash earnings (34% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (0.1% net profit margin). Reported Earnings • Nov 09
Second quarter 2025 earnings released: JP¥4.58 loss per share (vs JP¥5.44 loss in 2Q 2024) Second quarter 2025 results: JP¥4.58 loss per share (improved from JP¥5.44 loss in 2Q 2024). Revenue: JP¥30.6b (down 5.6% from 2Q 2024). Net loss: JP¥202.0m (loss narrowed 18% from 2Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 98 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.4%). Declared Dividend • Jul 11
Final dividend of JP¥25.00 announced Dividend of JP¥25.00 is the same as last year. Ex-date: 27th September 2024 Payment date: 4th December 2024 Dividend yield will be 3.4%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is not covered by earnings (167% earnings payout ratio) nor is it covered by cash flows (161% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 86% to bring the payout ratio under control. However, EPS has declined by 17% over the last 5 years so the company would need to reverse this trend. Reported Earnings • Jun 28
Full year 2024 earnings released: EPS: JP¥21.83 (vs JP¥60.79 in FY 2023) Full year 2024 results: EPS: JP¥21.83 (down from JP¥60.79 in FY 2023). Revenue: JP¥133.4b (up 9.7% from FY 2023). Net income: JP¥987.0m (down 64% from FY 2023). Profit margin: 0.7% (down from 2.3% in FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 80 percentage points per year, which is a significant difference in performance. Anuncio • Jun 28
Avex Inc. to Report Q1, 2025 Results on Aug 08, 2024 Avex Inc. announced that they will report Q1, 2025 results on Aug 08, 2024 Anuncio • May 30
Avex Inc. Provides Consolidated Earnings Forecasts for the Fiscal Year Ended March 31, 2024 Avex Inc. provided consolidated earnings forecasts for the fiscal year ended March 31, 2024. For the year, the company expected Operating profit of JPY 2,000 million, Profit attributable to owners of parent of JPY 2,200 million and Profit per share of JPY 48.77. Reported Earnings • May 11
Full year 2024 earnings released: EPS: JP¥21.83 (vs JP¥60.79 in FY 2023) Full year 2024 results: EPS: JP¥21.83 (down from JP¥60.79 in FY 2023). Revenue: JP¥133.4b (up 9.7% from FY 2023). Net income: JP¥987.0m (down 64% from FY 2023). Profit margin: 0.7% (down from 2.3% in FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. Anuncio • May 11
Avex Inc., Annual General Meeting, Jun 21, 2024 Avex Inc., Annual General Meeting, Jun 21, 2024. Anuncio • May 10
Avex Inc. (TSE:7860) announces an Equity Buyback for 3,000,000 shares, representing 6.63% for ¥4,500 million. Avex Inc. (TSE:7860) announces a share repurchase program. Under the program, the company will repurchase up to 3,000,000 shares, representing 6.63% of its share capital, for ¥4,500 million. The purpose of the program is to improve capital efficiency and shareholders' value. The program will expire on April 30, 2025. As of March 31, 2024, the company had 45,252,854 shares in issue (excluding treasury stock) and 410,546 shares in treasury. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 10 June 2024. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.8%). Anuncio • Mar 20
Avex Inc. to Report Fiscal Year 2024 Results on May 09, 2024 Avex Inc. announced that they will report fiscal year 2024 results on May 09, 2024 Reported Earnings • Feb 10
Third quarter 2024 earnings released: JP¥22.56 loss per share (vs JP¥8.44 loss in 3Q 2023) Third quarter 2024 results: JP¥22.56 loss per share (further deteriorated from JP¥8.44 loss in 3Q 2023). Revenue: JP¥30.0b (down 4.6% from 3Q 2023). Net loss: JP¥1.02b (loss widened 168% from 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 46% 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. Anuncio • Dec 10
Avex Inc. to Report Q3, 2024 Results on Feb 08, 2024 Avex Inc. announced that they will report Q3, 2024 results on Feb 08, 2024 New Risk • Nov 10
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: 1.5% Last year net profit margin: 2.4% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.5% net profit margin). Reported Earnings • Nov 10
Second quarter 2024 earnings released: JP¥5.44 loss per share (vs JP¥33.96 profit in 2Q 2023) Second quarter 2024 results: JP¥5.44 loss per share (down from JP¥33.96 profit in 2Q 2023). Revenue: JP¥32.4b (up 27% from 2Q 2023). Net loss: JP¥246.0m (down 116% from profit in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Board Change • Oct 13
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 3 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Outside Director Akihiro Tamaki was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Anuncio • Oct 05
Avex Inc. to Report Q2, 2024 Results on Nov 09, 2023 Avex Inc. announced that they will report Q2, 2024 results on Nov 09, 2023 Anuncio • Jul 14
Avex Inc. Decides to Reorganize the Avex Group and Change the System for Execution of Business Operation Avex Inc. decided to reorganize the Avex Group and change the system for execution of business operation. After the Reorganization, Avex Entertainment Inc. and Avex Pictures Inc. will become intermediate holding companies. Details are as follows. Purpose of the Reorganization; Under "avex vision 2027" a medium-term management plan announced in May 2022, the Company focuses on "meeting and developing talent," which is the basis of the Company's value creation. It also actively invests in intellectual property development, and pursues a range of measures to build a system that enables it to achieve medium to long-term growth. To accelerate the implementation of measures in line with the management policy, the Company will establish an intermediate holding company responsible for the Music and Management business and one responsible for the Anime & Visual Content business and delegate authority to these companies, clarifying business responsibilities. In this way, the Company aims to enhance competitiveness and implement growth strategies. Overview of the Reorganization; AEI, API and Avex Management Inc. ("AMG") will split their business divisions into separate companies. AEI will become an intermediate holding company responsible for the Music business and management, and API will become one responsible for the Anime & Visual Content business. The Group companies will be positioned in the new organizational structure. Anuncio • Jun 29
Avex Inc. to Report Q1, 2024 Results on Aug 10, 2023 Avex Inc. announced that they will report Q1, 2024 results on Aug 10, 2023 Reported Earnings • May 15
Full year 2023 earnings released: EPS: JP¥60.78 (vs JP¥20.75 in FY 2022) Full year 2023 results: EPS: JP¥60.78 (up from JP¥20.75 in FY 2022). Revenue: JP¥121.6b (up 24% from FY 2022). Net income: JP¥2.74b (up 198% from FY 2022). Profit margin: 2.3% (up from 0.9% in FY 2022). Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 21% per year. Anuncio • May 13
Avex Inc., Annual General Meeting, Jun 23, 2023 Avex Inc., Annual General Meeting, Jun 23, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥25.00 per share at 3.3% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 09 June 2023. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.1%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: JP¥8.44 loss per share (vs JP¥17.65 profit in 3Q 2022) Third quarter 2023 results: JP¥8.44 loss per share (down from JP¥17.65 profit in 3Q 2022). Revenue: JP¥31.5b (up 5.8% from 3Q 2022). Net loss: JP¥381.0m (down 148% from profit in 3Q 2022). 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 7% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Feb 12
Now 25% undervalued Over the last 90 days, the stock is up 7.9%. The fair value is estimated to be JP¥2,165, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 7.7% over the last 3 years. Meanwhile, the company has become profitable. Anuncio • Dec 28
Avex Inc. to Report Q3, 2023 Results on Feb 09, 2023 Avex Inc. announced that they will report Q3, 2023 results on Feb 09, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥33.96 (vs JP¥35.57 in 2Q 2022) Second quarter 2023 results: EPS: JP¥33.96 (down from JP¥35.57 in 2Q 2022). Revenue: JP¥25.6b (down 4.8% from 2Q 2022). Net income: JP¥1.53b (down 4.3% from 2Q 2022). Profit margin: 6.0% (in line with 2Q 2022). Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Outside Director Akihiro Tamaki was the last independent director to join the board, commencing their role in 2020. 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¥33.96 (vs JP¥35.57 in 2Q 2022) Second quarter 2023 results: EPS: JP¥33.96 (down from JP¥35.57 in 2Q 2022). Revenue: JP¥25.6b (down 4.8% from 2Q 2022). Net income: JP¥1.53b (down 4.3% from 2Q 2022). Profit margin: 6.0% (in line with 2Q 2022). Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 02 December 2022. Payout ratio is on the higher end at 87% but the company is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.2%). Reported Earnings • Aug 05
First quarter 2023 earnings released: EPS: JP¥37.20 (vs JP¥0.26 in 1Q 2022) First quarter 2023 results: EPS: JP¥37.20 (up from JP¥0.26 in 1Q 2022). Revenue: JP¥28.5b (up 47% from 1Q 2022). Net income: JP¥1.68b (up JP¥1.66b from 1Q 2022). Profit margin: 5.9% (up from 0.1% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 23%, compared to a 12% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jun 15
Consensus EPS estimates fall by 56% The consensus outlook for earnings per share (EPS) in 2023 has deteriorated. 2023 revenue forecast decreased from JP¥137.9b to JP¥128.8b. EPS estimate also fell from JP¥115 per share to JP¥50.40 per share. Net income forecast to grow 147% next year vs 5.5% growth forecast for Entertainment industry in Japan. Consensus price target down from JP¥2,530 to JP¥1,700. Share price was steady at JP¥1,251 over the past week. Reported Earnings • May 17
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥20.75 (down from JP¥298 in FY 2021). Revenue: JP¥98.4b (up 21% from FY 2021). Net income: JP¥919.0m (down 93% from FY 2021). Profit margin: 0.9% (down from 16% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 4.2%. Earnings per share (EPS) also missed analyst estimates by 62%. Over the next year, revenue is forecast to grow 40%, compared to a 9.5% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Price Target Changed • Apr 27
Price target increased to JP¥2,530 Up from JP¥1,920, the current price target is provided by 1 analyst. New target price is 78% above last closing price of JP¥1,421. Stock is down 5.1% over the past year. The company is forecast to post earnings per share of JP¥55.30 for next year compared to JP¥298 last year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Outside Director Akihiro Tamaki was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 28 June 2022. Payout ratio is a comfortable 27% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.9%). Reported Earnings • Feb 12
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: JP¥17.65 (up from JP¥22.80 loss in 3Q 2021). Revenue: JP¥29.7b (up 46% from 3Q 2021). Net income: JP¥795.0m (up JP¥1.79b from 3Q 2021). Profit margin: 2.7% (up from net loss in 3Q 2021). Revenue missed analyst estimates by 19%. Earnings per share (EPS) exceeded analyst estimates. Over the next year, revenue is forecast to grow 26%, compared to a 5.7% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 05
Second quarter 2022 earnings released: EPS JP¥35.57 (vs JP¥36.35 loss in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥26.9b (up 33% from 2Q 2021). Net income: JP¥1.60b (up JP¥3.19b from 2Q 2021). Profit margin: 6.0% (up from net loss in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 03 December 2021. Trailing yield: 3.4%. Within top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.7%). Reported Earnings • Aug 11
First quarter 2022 earnings released: EPS JP¥0.26 (vs JP¥39.18 loss in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥19.4b (up 38% from 1Q 2021). Net income: JP¥11.0m (up JP¥1.72b from 1Q 2021). Profit margin: 0.1% (up from net loss in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 16
Full year 2021 earnings released: EPS JP¥298 (vs JP¥25.37 loss in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: JP¥81.5b (down 40% from FY 2020). Net income: JP¥12.8b (up JP¥13.9b from FY 2020). Profit margin: 16% (up from net loss in FY 2020). Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥96.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 29 June 2021. Trailing yield: 3.2%. Within top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.7%). Is New 90 Day High Low • Mar 11
New 90-day high: JP¥1,561 The company is up 52% from its price of JP¥1,025 on 11 December 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Entertainment industry, which is up 5.0% over the same period. Reported Earnings • Feb 06
Third quarter 2021 earnings released: JP¥22.80 loss per share (vs JP¥41.90 profit in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and control over costs. Third quarter 2021 results: Revenue: JP¥20.4b (down 48% from 3Q 2020). Net loss: JP¥995.0m (down 155% from profit in 3Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 103 percentage points per year, which is a significant difference in performance.