New Risk • May 13
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.1% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (3.1% operating cash flow to total debt). Minor Risk Paying a dividend despite having no free cash flows. New Risk • May 12
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 17% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. This is currently the only risk that has been identified for the company. Reported Earnings • May 12
Full year 2026 earnings released: EPS: JP¥111 (vs JP¥105 in FY 2025) Full year 2026 results: EPS: JP¥111 (up from JP¥105 in FY 2025). Revenue: JP¥135.5b (up 1.4% from FY 2025). Net income: JP¥2.13b (up 2.6% from FY 2025). Profit margin: 1.6% (in line with FY 2025). Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Annonce • May 11
Watahan & Co.,Ltd., Annual General Meeting, Jun 26, 2026 Watahan & Co.,Ltd., Annual General Meeting, Jun 26, 2026. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 08 June 2026. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Reported Earnings • Jan 31
Third quarter 2026 earnings released: EPS: JP¥47.71 (vs JP¥45.39 in 3Q 2025) Third quarter 2026 results: EPS: JP¥47.71 (up from JP¥45.39 in 3Q 2025). Revenue: JP¥37.2b (up 4.2% from 3Q 2025). Net income: JP¥925.0m (up 2.1% from 3Q 2025). Profit margin: 2.5% (in line with 3Q 2025). Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Annonce • Jan 31
Watahan & Co.,Ltd. (TSE:3199) announces an Equity Buyback for 700,000 shares, representing 3.61% for ¥989.8 million. Watahan & Co.,Ltd. (TSE:3199) announces a share repurchase program. Under the program, the company will repurchase up to 700,000 shares, representing 3.61% of its issued share capital (excluding treasury stock) for ¥989 million. The shares will be repurchased at ¥1,414 per share. The purpose of the program is to implement a flexible capital policy that responds to changes in the business environment. As of December 31, 2025, the company had 19,388,015 issued shares (excluding treasury stock) and 570,925 treasury shares. Declared Dividend • Oct 29
Dividend of JP¥30.00 announced Shareholders will receive a dividend of JP¥30.00. Ex-date: 30th March 2026 Payment date: 8th June 2026 Dividend yield will be 2.1%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is covered by earnings (24% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 15% 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. The company's earnings per share (EPS) would need to decline by 74% to shift the payout ratio to a potentially unsustainable range, which is more than the 4.3% EPS decline seen over the last 5 years. Reported Earnings • Oct 28
Second quarter 2026 earnings released: EPS: JP¥25.28 (vs JP¥31.28 in 2Q 2025) Second quarter 2026 results: EPS: JP¥25.28 (down from JP¥31.28 in 2Q 2025). Revenue: JP¥33.0b (down 1.2% from 2Q 2025). Net income: JP¥490.0m (down 22% from 2Q 2025). Profit margin: 1.5% (down from 1.9% in 2Q 2025). Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 25
First quarter 2026 earnings released: EPS: JP¥33.32 (vs JP¥30.91 in 1Q 2025) First quarter 2026 results: EPS: JP¥33.32 (up from JP¥30.91 in 1Q 2025). Revenue: JP¥32.4b (up 1.9% from 1Q 2025). Net income: JP¥645.0m (up 4.7% from 1Q 2025). Profit margin: 2.0% (up from 1.9% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 4% per year. Reported Earnings • May 13
Full year 2025 earnings released: EPS: JP¥105 (vs JP¥93.08 in FY 2024) Full year 2025 results: EPS: JP¥105 (up from JP¥93.08 in FY 2024). Revenue: JP¥133.6b (up 4.3% from FY 2024). Net income: JP¥2.08b (up 12% from FY 2024). Profit margin: 1.6% (up from 1.4% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 7% per year. New Risk • Mar 31
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.8% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risk Paying a dividend despite having no free cash flows. Annonce • Mar 28
Watahan & Co.,Ltd. to Report Fiscal Year 2025 Results on May 12, 2025 Watahan & Co.,Ltd. announced that they will report fiscal year 2025 results on May 12, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥29.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 09 June 2025. Payout ratio is a comfortable 19% but the company is not cash flow positive. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (1.7%). Reported Earnings • Jan 31
Third quarter 2025 earnings released: EPS: JP¥45.39 (vs JP¥37.93 in 3Q 2024) Third quarter 2025 results: EPS: JP¥45.39 (up from JP¥37.93 in 3Q 2024). Revenue: JP¥35.7b (up 4.5% from 3Q 2024). Net income: JP¥906.0m (up 20% from 3Q 2024). Profit margin: 2.5% (up from 2.2% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 9% per year. Annonce • Jan 30
Watahan & Co.,Ltd. (TSE:3199) announces an Equity Buyback for 600,000 shares, representing 3.01% for ¥978 million. Watahan & Co.,Ltd. (TSE:3199) announces a share repurchase program. Under the program, the company will repurchase up to 600,000 shares, representing 3.01% of its issued share capital (excluding treasury stock) for ¥978 million. The shares will be repurchased at ¥1,630 per share. The purpose of the program is to implement a flexible capital policy that responds to changes in the business environment. As of December 31, 2024, the company had 19,958,605 issued shares (excluding treasury stock) and 335 treasury shares. New Risk • Nov 01
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (21% accrual ratio). Declared Dividend • Oct 30
Dividend of JP¥24.00 announced Shareholders will receive a dividend of JP¥24.00. Ex-date: 28th March 2025 Payment date: 9th June 2025 Dividend yield will be 1.5%, which is lower than the industry average of 1.6%. Sustainability & Growth Dividend is well covered by both earnings (20% earnings payout ratio) and cash flows (4% cash payout ratio). The dividend has increased by an average of 14% per year over the past 9 years and payments have been stable during that time. Earnings per share has grown by 8.9% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 29
Second quarter 2025 earnings released: EPS: JP¥31.28 (vs JP¥27.01 in 2Q 2024) Second quarter 2025 results: EPS: JP¥31.28 (up from JP¥27.01 in 2Q 2024). Revenue: JP¥33.4b (up 3.8% from 2Q 2024). Net income: JP¥624.0m (up 16% from 2Q 2024). Profit margin: 1.9% (up from 1.7% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 10% per year. Reported Earnings • Jul 27
First quarter 2025 earnings released: EPS: JP¥30.91 (vs JP¥11.46 in 1Q 2024) First quarter 2025 results: EPS: JP¥30.91 (up from JP¥11.46 in 1Q 2024). Revenue: JP¥31.8b (up 6.9% from 1Q 2024). Net income: JP¥616.0m (up 170% from 1Q 2024). Profit margin: 1.9% (up from 0.8% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 13% per year. Board Change • May 14
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 Kazuyuki Nakajima was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • May 13
Full year 2024 earnings released: EPS: JP¥93.07 (vs JP¥83.14 in FY 2023) Full year 2024 results: EPS: JP¥93.07 (up from JP¥83.14 in FY 2023). Revenue: JP¥128.1b (down 4.6% from FY 2023). Net income: JP¥1.85b (up 12% from FY 2023). Profit margin: 1.4% (up from 1.2% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 8% per year. Annonce • May 12
Watahan & Co.,Ltd., Annual General Meeting, Jun 28, 2024 Watahan & Co.,Ltd., Annual General Meeting, Jun 28, 2024. Annonce • Mar 28
Watahan & Co.,Ltd. to Report Fiscal Year 2024 Results on May 10, 2024 Watahan & Co.,Ltd. announced that they will report fiscal year 2024 results on May 10, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥23.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.2%). In line with average of industry peers (1.5%). Reported Earnings • Feb 02
Third quarter 2024 earnings released: EPS: JP¥37.93 (vs JP¥34.53 in 3Q 2023) Third quarter 2024 results: EPS: JP¥37.93 (up from JP¥34.53 in 3Q 2023). Revenue: JP¥34.2b (down 5.9% from 3Q 2023). Net income: JP¥756.0m (up 10.0% from 3Q 2023). Profit margin: 2.2% (up from 1.9% in 3Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has increased by 3% per year. Reported Earnings • Nov 02
Second quarter 2024 earnings released: EPS: JP¥27.00 (vs JP¥18.66 in 2Q 2023) Second quarter 2024 results: EPS: JP¥27.00 (up from JP¥18.66 in 2Q 2023). Revenue: JP¥32.2b (down 3.3% from 2Q 2023). Net income: JP¥538.0m (up 45% from 2Q 2023). Profit margin: 1.7% (up from 1.1% in 2Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 1% per year. Reported Earnings • Jul 28
First quarter 2024 earnings released: EPS: JP¥11.46 (vs JP¥16.72 in 1Q 2023) First quarter 2024 results: EPS: JP¥11.46 (down from JP¥16.72 in 1Q 2023). Revenue: JP¥29.8b (down 3.9% from 1Q 2023). Net income: JP¥228.0m (down 31% from 1Q 2023). Profit margin: 0.8% (down from 1.1% in 1Q 2023). 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 8% per year, which means it is well ahead of earnings. Reported Earnings • May 17
Full year 2023 earnings released: EPS: JP¥83.14 (vs JP¥111 in FY 2022) Full year 2023 results: EPS: JP¥83.14 (down from JP¥111 in FY 2022). Revenue: JP¥134.3b (up 17% from FY 2022). Net income: JP¥1.65b (down 25% from FY 2022). Profit margin: 1.2% (down from 1.9% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Annonce • May 13
Watahan & Co.,Ltd., Annual General Meeting, Jun 23, 2023 Watahan & Co.,Ltd., Annual General Meeting, Jun 23, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥22.00 per share at 1.6% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. Payout ratio is a comfortable 21% but the company is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.7%). Reported Earnings • Feb 01
Third quarter 2023 earnings released: EPS: JP¥34.53 (vs JP¥40.49 in 3Q 2022) Third quarter 2023 results: EPS: JP¥34.53 (down from JP¥40.49 in 3Q 2022). Revenue: JP¥36.3b (up 17% from 3Q 2022). Net income: JP¥687.0m (down 15% from 3Q 2022). Profit margin: 1.9% (down from 2.6% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. 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 Junko Sakamoto was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 28
Second quarter 2023 earnings released: EPS: JP¥18.66 (vs JP¥28.72 in 2Q 2022) Second quarter 2023 results: EPS: JP¥18.66 (down from JP¥28.72 in 2Q 2022). Revenue: JP¥33.3b (up 20% from 2Q 2022). Net income: JP¥371.0m (down 35% from 2Q 2022). Profit margin: 1.1% (down from 2.0% in 2Q 2022). The decrease in margin was driven by higher expenses. 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 10% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Jul 31
First quarter 2023 earnings released: EPS: JP¥16.72 (vs JP¥11.96 in 1Q 2022) First quarter 2023 results: EPS: JP¥16.72 (up from JP¥11.96 in 1Q 2022). Revenue: JP¥31.0b (up 19% from 1Q 2022). Net income: JP¥332.0m (up 40% from 1Q 2022). Profit margin: 1.1% (up from 0.9% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 8% per year. Reported Earnings • May 19
Full year 2022 earnings released: EPS: JP¥111 (vs JP¥96.92 in FY 2021) Full year 2022 results: EPS: JP¥111 (up from JP¥96.92 in FY 2021). Revenue: JP¥114.5b (flat on FY 2021). Net income: JP¥2.20b (up 15% from FY 2021). Profit margin: 1.9% (up from 1.7% in FY 2021). Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 3% per year. Annonce • May 13
Watahan & Co.,Ltd., Annual General Meeting, Jun 24, 2022 Watahan & Co.,Ltd., Annual General Meeting, Jun 24, 2022. 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 Junko Sakamoto 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. Annonce • Apr 08
Watahan & Co.,Ltd. to Report Fiscal Year 2022 Results on May 13, 2022 Watahan & Co.,Ltd. announced that they will report fiscal year 2022 results on May 13, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥21.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 25 June 2022. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.4%). In line with average of industry peers (1.6%). Reported Earnings • Jan 28
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥40.49 (up from JP¥29.93 in 3Q 2021). Revenue: JP¥31.1b (up 4.0% from 3Q 2021). Net income: JP¥804.0m (up 36% from 3Q 2021). Profit margin: 2.6% (up from 2.0% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Reported Earnings • Oct 29
Second quarter 2022 earnings released: EPS JP¥28.72 (vs JP¥28.18 in 2Q 2021) The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker. Second quarter 2022 results: Revenue: JP¥27.8b (down 3.1% from 2Q 2021). Net income: JP¥570.0m (up 2.2% from 2Q 2021). Profit margin: 2.0% (up from 1.9% in 2Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 1% per year. Reported Earnings • Jun 29
Full year 2021 earnings released: EPS JP¥96.92 (vs JP¥76.92 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¥114.8b (down 4.5% from FY 2020). Net income: JP¥1.92b (up 26% from FY 2020). Profit margin: 1.7% (up from 1.3% in FY 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Annonce • Jun 11
Watahan & Co.,Ltd. (TSE:3199) agreed to acquire Yume House, K.K. from Yusuke Akatsuka for ¥2.7 billion. Watahan & Co.,Ltd. (TSE:3199) agreed to acquire Yume House, K.K. from Yusuke Akatsuka for ¥2.7 billion on June 10, 2021. Yume House, K.K. reported sales of ¥13.7 billion, total assets of ¥9.9 billion, EBIT of ¥346 million, net profit of ¥255 million and net worth of ¥2.9 billion as of September 30, 2020. The transaction is expected to complete on July 15, 2021. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 30 June 2021. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (2.7%). In line with average of industry peers (1.4%). Is New 90 Day High Low • Feb 18
New 90-day low: JP¥1,262 The company is down 13% from its price of JP¥1,450 on 20 November 2020. The Japanese market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Retailing industry, which is up 7.0% over the same period. Reported Earnings • Feb 02
Third quarter 2021 earnings released: EPS JP¥29.92 (vs JP¥36.18 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥29.9b (down 4.0% from 3Q 2020). Net income: JP¥593.0m (down 17% from 3Q 2020). Profit margin: 2.0% (down from 2.3% in 3Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Dec 22
New 90-day low: JP¥1,284 The company is down 21% from its price of JP¥1,623 on 23 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Retailing industry, which is flat over the same period.