Reported Earnings • May 14
Full year 2026 earnings: EPS and revenues miss analyst expectations Full year 2026 results: EPS: JP¥228 (down from JP¥246 in FY 2025). Revenue: JP¥179.2b (down 6.6% from FY 2025). Net income: JP¥46.8b (down 13% from FY 2025). Profit margin: 26% (down from 28% in FY 2025). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 6.4%. Earnings per share (EPS) also missed analyst estimates by 8.1%. Revenue is forecast to grow 6.9% p.a. on average during the next 2 years, compared to a 4.7% growth forecast for the Leisure industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 12% per year. Annonce • May 13
Sankyo Co., Ltd., Annual General Meeting, Jun 26, 2026 Sankyo Co., Ltd., Annual General Meeting, Jun 26, 2026. Annonce • Apr 06
Sankyo Co., Ltd. to Report Fiscal Year 2026 Results on May 13, 2026 Sankyo Co., Ltd. announced that they will report fiscal year 2026 results at 11:30 AM, Tokyo Standard Time on May 13, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 30 June 2026. Payout ratio is a comfortable 41% and this is well supported by cash flows. Trailing yield: 4.5%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.3%). Reported Earnings • Feb 07
Third quarter 2026 earnings released: EPS: JP¥83.33 (vs JP¥87.76 in 3Q 2025) Third quarter 2026 results: EPS: JP¥83.33 (down from JP¥87.76 in 3Q 2025). Revenue: JP¥61.4b (down 2.5% from 3Q 2025). Net income: JP¥16.6b (down 14% from 3Q 2025). Profit margin: 27% (down from 31% in 3Q 2025). The decrease in margin was primarily driven by lower revenue. Revenue is expected to decline by 1.1% p.a. on average during the next 3 years, while revenues in the Leisure industry in Japan are expected to grow by 4.6%. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 30% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Jan 07
Sankyo Co., Ltd. to Report Q3, 2026 Results on Feb 05, 2026 Sankyo Co., Ltd. announced that they will report Q3, 2026 results During-Market on Feb 05, 2026 Declared Dividend • Dec 02
First half dividend of JP¥45.00 announced Shareholders will receive a dividend of JP¥45.00. Ex-date: 30th March 2026 Payment date: 30th June 2026 Dividend yield will be 3.4%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is covered by both earnings (40% earnings payout ratio) and cash flows (51% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 16% over the next 3 years. However, it would need to fall by 55% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Nov 08
Second quarter 2026 earnings released: EPS: JP¥54.67 (vs JP¥62.53 in 2Q 2025) Second quarter 2026 results: EPS: JP¥54.67 (down from JP¥62.53 in 2Q 2025). Revenue: JP¥45.2b (down 6.8% from 2Q 2025). Net income: JP¥11.3b (down 18% from 2Q 2025). Profit margin: 25% (down from 28% in 2Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to stay flat during the next 3 years compared to a 4.5% growth forecast for the Leisure 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 increased by 42% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Oct 01
Sankyo Co., Ltd. to Report Q2, 2026 Results on Nov 06, 2025 Sankyo Co., Ltd. announced that they will report Q2, 2026 results on Nov 06, 2025 Price Target Changed • Sep 12
Price target increased by 10% to JP¥2,795 Up from JP¥2,533, the current price target is an average from 4 analysts. New target price is 6.5% below last closing price of JP¥2,988. Stock is up 42% over the past year. The company is forecast to post earnings per share of JP¥216 for next year compared to JP¥246 last year. New Risk • Aug 10
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 5.3% 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 5.3% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥80.36 (vs JP¥57.00 in 1Q 2025) First quarter 2026 results: EPS: JP¥80.36 (up from JP¥57.00 in 1Q 2025). Revenue: JP¥55.2b (up 31% from 1Q 2025). Net income: JP¥17.4b (up 40% from 1Q 2025). Profit margin: 32% (up from 30% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Leisure industry in Japan. 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 54% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Jul 21
Final dividend of JP¥40.00 announced Shareholders will receive a dividend of JP¥40.00. Ex-date: 29th September 2025 Payment date: 2nd December 2025 Dividend yield will be 3.6%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is well covered by both earnings (41% earnings payout ratio) and cash flows (36% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 1.4% over the next 3 years. However, it would need to fall by 55% to increase the payout ratio to a potentially unsustainable range. Annonce • Jul 13
Sankyo Co., Ltd. to Report Q1, 2026 Results on Aug 07, 2025 Sankyo Co., Ltd. announced that they will report Q1, 2026 results at 11:30 AM, Tokyo Standard Time on Aug 07, 2025 Annonce • May 13
Sankyo Co., Ltd. (TSE:6417) announces an Equity Buyback for 30,000,000 shares, representing 13.66% for ¥60,000 million. Sankyo Co., Ltd. (TSE:6417) announces a share repurchase program. Under the program, the company will repurchase up to 30,000,000 shares, representing 13.66% of its issued share capital (excluding treasury stock), for a total purchase price of ¥60,000 million. The purpose of the program is to improve capital efficiency, to implement a flexible capital policy in response to changes in the business environment, and to further return profits to shareholders. The program will be valid till March 31, 2026. As of March 31, 2025, the company had 219,608,929 issued shares (excluding treasury stock) and 40,391,071 treasury shares. Reported Earnings • May 13
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥246 (up from JP¥204 in FY 2024). Revenue: JP¥191.8b (down 3.7% from FY 2024). Net income: JP¥54.0b (flat on FY 2024). Profit margin: 28% (up from 27% in FY 2024). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 9.3%. Revenue is forecast to stay flat during the next 3 years compared to a 4.3% growth forecast for the Leisure industry in Japan. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has increased by 42% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Apr 09
Sankyo Co., Ltd. to Report Fiscal Year 2025 Results on May 12, 2025 Sankyo Co., Ltd. announced that they will report fiscal year 2025 results on May 12, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.8%). Reported Earnings • Feb 05
Third quarter 2025 earnings released: EPS: JP¥87.76 (vs JP¥61.82 in 3Q 2024) Third quarter 2025 results: EPS: JP¥87.76 (up from JP¥61.82 in 3Q 2024). Revenue: JP¥63.0b (up 16% from 3Q 2024). Net income: JP¥19.3b (up 25% from 3Q 2024). Profit margin: 31% (up from 28% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is expected to decline by 1.5% p.a. on average during the next 3 years, while revenues in the Leisure industry in Japan are expected to grow by 4.2%. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has increased by 52% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Jan 10
Sankyo Co., Ltd. to Report Q3, 2025 Results on Feb 04, 2025 Sankyo Co., Ltd. announced that they will report Q3, 2025 results at 11:30 AM, Tokyo Standard Time on Feb 04, 2025 Declared Dividend • Dec 03
First half dividend of JP¥40.00 announced Shareholders will receive a dividend of JP¥40.00. Ex-date: 28th March 2025 Payment date: 30th June 2025 Dividend yield will be 3.7%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is well covered by both earnings (24% earnings payout ratio) and cash flows (34% cash payout ratio). The dividend has increased by an average of 10% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 6.0% over the next 3 years. However, it would need to fall by 73% to increase the payout ratio to a potentially unsustainable range. Price Target Changed • Nov 16
Price target increased by 11% to JP¥2,395 Up from JP¥2,167, the current price target is an average from 4 analysts. New target price is 13% above last closing price of JP¥2,128. Stock is up 75% over the past year. The company is forecast to post earnings per share of JP¥226 for next year compared to JP¥204 last year. Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: JP¥62.53 (vs JP¥64.66 in 2Q 2024) Second quarter 2025 results: EPS: JP¥62.53 (down from JP¥64.66 in 2Q 2024). Revenue: JP¥48.5b (down 26% from 2Q 2024). Net income: JP¥13.7b (down 27% from 2Q 2024). Profit margin: 28% (in line with 2Q 2024). Revenue is forecast to stay flat during the next 3 years compared to a 4.7% growth forecast for the Leisure industry in Japan. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has increased by 51% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Nov 07
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 5.8% 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 Earnings are forecast to decline by an average of 7.7% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.8% average weekly change). Annonce • Oct 04
Sankyo Co., Ltd. to Report Q2, 2025 Results on Nov 07, 2024 Sankyo Co., Ltd. announced that they will report Q2, 2025 results at 11:30 AM, Tokyo Standard Time on Nov 07, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.5%). Annonce • Sep 19
Sankyo Co., Ltd. Provides Earnings Guidance for the First Six Months of the Fiscal Year Ending March 31, 2025 Sankyo Co., Ltd. provided earnings guidance for the first six months of the fiscal year ending March 31, 2025. For the six months, the company expected net sales of JPY 90,000 million, Operating income of JPY 35,000 million, Profit attributable to owners of parent of JPY 25,000 million and Net income per share of JPY 113.91 per share. Reported Earnings • Aug 13
First quarter 2025 earnings released: EPS: JP¥57.00 (vs JP¥48.48 in 1Q 2024) First quarter 2025 results: EPS: JP¥57.00. Revenue: JP¥42.2b (down 17% from 1Q 2024). Net income: JP¥12.5b (down 11% from 1Q 2024). Profit margin: 30% (up from 28% in 1Q 2024). The increase in margin was driven by lower expenses. Revenue is expected to decline by 1.4% p.a. on average during the next 3 years, while revenues in the Leisure industry in Japan are expected to grow by 5.6%. Price Target Changed • Aug 10
Price target increased by 8.5% to JP¥2,038 Up from JP¥1,878, the current price target is an average from 4 analysts. New target price is 17% above last closing price of JP¥1,737. Stock is up 39% over the past year. The company is forecast to post earnings per share of JP¥231 for next year compared to JP¥204 last year. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,359, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 11x in the Leisure industry in Japan. Total returns to shareholders of 173% over the past three years. Declared Dividend • Jul 17
Final dividend of JP¥40.00 announced Shareholders will receive a dividend of JP¥40.00. Ex-date: 27th September 2024 Payment date: 2nd December 2024 Dividend yield will be 5.1%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is well covered by both earnings (24% earnings payout ratio) and cash flows (49% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 16% over the next 3 years. However, it would need to fall by 74% to increase the payout ratio to a potentially unsustainable range. Annonce • Jul 05
Sankyo Co., Ltd. to Report Q1, 2025 Results on Aug 07, 2024 Sankyo Co., Ltd. announced that they will report Q1, 2025 results at 3:00 PM, Tokyo Standard Time on Aug 07, 2024 Reported Earnings • May 11
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥204 (up from JP¥162 in FY 2023). Revenue: JP¥199.1b (up 27% from FY 2023). Net income: JP¥53.8b (up 15% from FY 2023). Profit margin: 27% (down from 30% 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 6.6%. Revenue is expected to decline by 4.6% p.a. on average during the next 3 years, while revenues in the Leisure industry in Japan are expected to grow by 5.0%. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 43% per year, which means it is significantly lagging earnings growth. Annonce • Apr 09
Sankyo Co., Ltd. to Report Fiscal Year 2024 Results on May 09, 2024 Sankyo Co., Ltd. announced that they will report fiscal year 2024 results at 3:00 PM, Tokyo Standard Time on May 09, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 5.9%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.8%). Reported Earnings • Feb 09
Third quarter 2024 earnings released: EPS: JP¥309 (vs JP¥299 in 3Q 2023) Third quarter 2024 results: EPS: JP¥309. Revenue: JP¥54.4b (down 6.4% from 3Q 2023). Net income: JP¥15.5b (down 11% from 3Q 2023). Profit margin: 28% (down from 30% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is expected to decline by 6.5% p.a. on average during the next 3 years, while revenues in the Leisure industry in Japan are expected to grow by 3.4%. Annonce • Jan 10
Sankyo Co., Ltd. to Report Nine Months, 2024 Results on Feb 07, 2024 Sankyo Co., Ltd. announced that they will report nine months, 2024 results on Feb 07, 2024 Major Estimate Revision • Dec 14
Consensus EPS estimates increase by 11% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥892 to JP¥986. Revenue forecast steady at JP¥195.9b. Net income forecast to shrink 14% next year vs 6.7% growth forecast for Leisure industry in Japan . Consensus price target up from JP¥7,325 to JP¥8,850. Share price rose 12% to JP¥7,615 over the past week. Price Target Changed • Dec 13
Price target increased by 16% to JP¥8,350 Up from JP¥7,225, the current price target is an average from 4 analysts. New target price is 18% above last closing price of JP¥7,062. Stock is up 34% over the past year. The company is forecast to post earnings per share of JP¥964 for next year compared to JP¥808 last year. Major Estimate Revision • Nov 20
Consensus EPS estimates increase by 11% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥806 to JP¥892. Revenue forecast steady at JP¥194.9b. Net income forecast to shrink 15% next year vs 1.2% growth forecast for Leisure industry in Japan . Consensus price target broadly unchanged at JP¥7,325. Share price fell 5.0% to JP¥6,068 over the past week. Reported Earnings • Nov 08
Second quarter 2024 earnings released: EPS: JP¥323 (vs JP¥230 in 2Q 2023) Second quarter 2024 results: EPS: JP¥323 (up from JP¥230 in 2Q 2023). Revenue: JP¥65.4b (up 55% from 2Q 2023). Net income: JP¥18.7b (up 40% from 2Q 2023). Profit margin: 29% (down from 32% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 5.8% p.a. on average during the next 3 years, while revenues in the Leisure industry in Japan are expected to grow by 4.6%. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Annonce • Oct 20
Sankyo Co., Ltd. to Report Q2, 2024 Results on Nov 07, 2023 Sankyo Co., Ltd. announced that they will report Q2, 2024 results on Nov 07, 2023 Annonce • Sep 23
Sankyo Co., Ltd. (TSE:6417) announces an Equity Buyback for 10,000,000 shares, representing 17.21% for ¥65,730 million. Sankyo Co., Ltd. (TSE:6417) announces a share repurchase program. Under the program, the company will repurchase up to 10,000,000 shares, representing 17.21% of its share capital, for ¥65,730 million. The purpose of the repurchase program is to repurchase its own shares in order to enhance capital efficiency, implement a flexible capital policy in response to the changing business environment, and return profits to shareholders. The share repurchase program will run until September 22, 2023. As of August 31, 2023, the company had 58,092,708 shares outstanding excluding treasury shares and had 8,246,392 shares in treasury. Valuation Update With 7 Day Price Move • Sep 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥7,573, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 14x in the Leisure industry in Japan. Total returns to shareholders of 194% over the past three years. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥75.00 per share at 2.3% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 01 December 2023. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.4%). Reported Earnings • Aug 08
First quarter 2024 earnings released: EPS: JP¥242 (vs JP¥137 in 1Q 2023) First quarter 2024 results: EPS: JP¥242 (up from JP¥137 in 1Q 2023). Revenue: JP¥50.8b (up 83% from 1Q 2023). Net income: JP¥14.1b (up 78% from 1Q 2023). Profit margin: 28% (in line with 1Q 2023). Revenue is expected to decline by 2.7% p.a. on average during the next 3 years, while revenues in the Leisure industry in Japan are expected to grow by 4.0%. Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Annonce • Jul 06
Sankyo Co., Ltd. to Report Q1, 2024 Results on Aug 07, 2023 Sankyo Co., Ltd. announced that they will report Q1, 2024 results on Aug 07, 2023 Price Target Changed • May 30
Price target increased by 7.4% to JP¥6,525 Up from JP¥6,075, the current price target is an average from 4 analysts. New target price is 17% above last closing price of JP¥5,570. Stock is up 30% over the past year. The company is forecast to post earnings per share of JP¥774 for next year compared to JP¥808 last year. Reported Earnings • May 14
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: JP¥808 (up from JP¥305 in FY 2022). Revenue: JP¥157.3b (up 85% from FY 2022). Net income: JP¥46.9b (up 154% from FY 2022). Profit margin: 30% (up from 22% in FY 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) also surpassed analyst estimates by 8.0%. Revenue is expected to decline by 3.5% p.a. on average during the next 3 years, while revenues in the Leisure industry in Japan are expected to grow by 5.1%. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Annonce • May 11
Sankyo Co., Ltd., Annual General Meeting, Jun 29, 2023 Sankyo Co., Ltd., Annual General Meeting, Jun 29, 2023. Agenda: Annual General Meeting. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥90.00 per share at 3.3% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.4%). Reported Earnings • Feb 09
Third quarter 2023 earnings released: EPS: JP¥299 (vs JP¥204 in 3Q 2022) Third quarter 2023 results: EPS: JP¥299 (up from JP¥204 in 3Q 2022). Revenue: JP¥58.1b (up 37% from 3Q 2022). Net income: JP¥17.4b (up 40% from 3Q 2022). Profit margin: 30% (in line with 3Q 2022). Revenue is expected to decline by 2.2% p.a. on average during the next 3 years, while revenues in the Leisure industry in Japan are expected to grow by 4.2%. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Annonce • Jan 24
Sankyo Co., Ltd. to Report Q3, 2023 Results on Feb 08, 2023 Sankyo Co., Ltd. announced that they will report Q3, 2023 results on Feb 08, 2023 Price Target Changed • Dec 01
Price target increased to JP¥5,400 Up from JP¥4,667, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of JP¥5,310. Stock is up 76% over the past year. The company is forecast to post earnings per share of JP¥532 for next year compared to JP¥305 last year. Major Estimate Revision • Nov 25
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 revenue forecast increased from JP¥104.6b to JP¥115.3b. EPS estimate fell from JP¥369 to JP¥360. Net income forecast to shrink 33% next year vs 4.1% decline forecast for Leisure industry in Japan. Consensus price target up from JP¥4,667 to JP¥4,867. Share price rose 12% to JP¥5,290 over the past week. Board Change • Nov 16
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. 4 experienced directors. 6 highly experienced directors. 2 independent directors (3 non-independent directors). Independent Outside Director Hiroyuki Yamasaki was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 09
Second quarter 2023 earnings released: EPS: JP¥230 (vs JP¥59.23 in 2Q 2022) Second quarter 2023 results: EPS: JP¥230 (up from JP¥59.23 in 2Q 2022). Revenue: JP¥42.2b (up 146% from 2Q 2022). Net income: JP¥13.4b (up 268% from 2Q 2022). Profit margin: 32% (up from 21% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is expected to decline by 10% p.a. on average during the next 3 years, while revenues in the Leisure industry in Japan are expected to grow by 4.3%. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Oct 12
Now 20% undervalued Over the last 90 days, the stock is up 7.9%. The fair value is estimated to be JP¥5,651, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.9% over the last 3 years. Earnings per share has grown by 24%. For the next 3 years, revenue is forecast to decline by 6.9% per annum. Earnings is also forecast to decline by 20% per annum over the same time period. Major Estimate Revision • Sep 30
Consensus EPS estimates increase by 13% The consensus outlook for earnings per share (EPS) in 2023 has improved. 2023 revenue forecast increased from JP¥96.3b to JP¥101.8b. EPS estimate increased from JP¥314 to JP¥353 per share. Net income forecast to shrink 20% next year vs 7.1% decline forecast for Leisure industry in Japan. Consensus price target of JP¥4,750 unchanged from last update. Share price rose 8.1% to JP¥4,385 over the past week. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 01 December 2022. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.2%). Reported Earnings • Aug 05
First quarter 2023 earnings released: EPS: JP¥137 (vs JP¥15.42 in 1Q 2022) First quarter 2023 results: EPS: JP¥137 (up from JP¥15.42 in 1Q 2022). Revenue: JP¥27.8b (up 154% from 1Q 2022). Net income: JP¥7.93b (up JP¥6.99b from 1Q 2022). Profit margin: 29% (up from 8.6% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is expected to shrink by 4.3% compared to a 5.2% 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 5% per year, which means it is significantly lagging earnings growth.