Valuation Update With 7 Day Price Move • May 20
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to JP¥1,024, the stock trades at a trailing P/E ratio of 58.3x. Average trailing P/E is 17x in the Software industry in Japan. Total returns to shareholders of 144% over the past three years. Reported Earnings • May 15
First quarter 2026 earnings released: EPS: JP¥5.97 (vs JP¥2.19 in 1Q 2025) First quarter 2026 results: EPS: JP¥5.97 (up from JP¥2.19 in 1Q 2025). Revenue: JP¥5.52b (up 16% from 1Q 2025). Net income: JP¥539.0m (up 175% from 1Q 2025). Profit margin: 9.8% (up from 4.1% 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 116% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Declared Dividend • Apr 11
Final dividend of JP¥7.50 announced Shareholders will receive a dividend of JP¥7.50. Ex-date: 29th June 2026 Payment date: 11th September 2026 Dividend yield will be 1.2%, which is lower than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (44% earnings payout ratio) and cash flows (55% cash payout ratio). The dividend has increased by an average of 9.1% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 52% to shift the payout ratio to a potentially unsustainable range, which is more than the 13% EPS decline seen over the last 5 years. New Risk • Apr 01
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 25% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (6.7% average weekly change). Annonce • Mar 29
Broadleaf Co., Ltd. to Report Q1, 2026 Results on May 13, 2026 Broadleaf Co., Ltd. announced that they will report Q1, 2026 results on May 13, 2026 Reported Earnings • Mar 28
Full year 2025 earnings released: EPS: JP¥13.79 (vs JP¥3.85 in FY 2024) Full year 2025 results: EPS: JP¥13.79 (up from JP¥3.85 in FY 2024). Revenue: JP¥20.8b (up 15% from FY 2024). Net income: JP¥1.24b (up 262% from FY 2024). Profit margin: 6.0% (up from 1.9% 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 109% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 06
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥836, the stock trades at a trailing P/E ratio of 60.7x. Average trailing P/E is 18x in the Software industry in Japan. Total returns to shareholders of 94% over the past three years. Annonce • Feb 21
Broadleaf Co., Ltd. Proposes Year-End Dividend for the Fiscal Year Ended December 31, 2025, Payable on March 25, 2026 Broadleaf Co., Ltd. at its board of directors' meeting held to be held on March 24, 2026 proposed to pay a year-end dividend of JPY 3.50 per share for the fiscal year ended December 31, 2025 (annual dividend of 6.00 yen per share) compared to previous dividend JPY 2.00 paid a year ago. Record date is December 31, 2025. Effective date is March 25, 2026. Reported Earnings • Feb 16
Full year 2025 earnings released: EPS: JP¥13.79 (vs JP¥3.85 in FY 2024) Full year 2025 results: EPS: JP¥13.79 (up from JP¥3.85 in FY 2024). Revenue: JP¥20.8b (up 15% from FY 2024). Net income: JP¥1.24b (up 262% from FY 2024). Profit margin: 6.0% (up from 1.9% 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 109% 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 16
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.4% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. 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 Earnings have declined by 25% per year over the past 5 years. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Annonce • Feb 12
Broadleaf Co., Ltd., Annual General Meeting, Mar 24, 2026 Broadleaf Co., Ltd., Annual General Meeting, Mar 24, 2026. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥2.50 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 24 March 2026. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 0.7%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (1.7%). Annonce • Dec 11
Broadleaf Co., Ltd. to Report Fiscal Year 2025 Results on Feb 12, 2026 Broadleaf Co., Ltd. announced that they will report fiscal year 2025 results on Feb 12, 2026 Reported Earnings • Nov 15
Third quarter 2025 earnings released: EPS: JP¥5.06 (vs JP¥1.96 in 3Q 2024) Third quarter 2025 results: EPS: JP¥5.06 (up from JP¥1.96 in 3Q 2024). Revenue: JP¥5.41b (up 19% from 3Q 2024). Net income: JP¥456.0m (up 162% from 3Q 2024). Profit margin: 8.4% (up from 3.8% 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 90% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Annonce • Sep 26
Broadleaf Co., Ltd. to Report Q3, 2025 Results on Nov 12, 2025 Broadleaf Co., Ltd. announced that they will report Q3, 2025 results on Nov 12, 2025 Declared Dividend • Sep 12
First half dividend of JP¥2.50 announced Shareholders will receive a dividend of JP¥2.50. Ex-date: 29th December 2025 Payment date: 24th March 2026 Dividend yield will be 0.7%, which is lower than the industry average of 1.4%. Payout Ratios Payout ratio: 52%. Cash payout ratio: 22%. Reported Earnings • Aug 07
Second quarter 2025 earnings released: EPS: JP¥2.44 (vs JP¥0.24 in 2Q 2024) Second quarter 2025 results: EPS: JP¥2.44 (up from JP¥0.24 in 2Q 2024). Revenue: JP¥5.06b (up 15% from 2Q 2024). Net income: JP¥219.8m (up JP¥198.8m from 2Q 2024). Profit margin: 4.3% (up from 0.5% 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 58% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Annonce • Jun 27
Broadleaf Co., Ltd. to Report Q2, 2025 Results on Aug 06, 2025 Broadleaf Co., Ltd. announced that they will report Q2, 2025 results on Aug 06, 2025 Reported Earnings • Mar 27
Full year 2024 earnings released: EPS: JP¥3.85 (vs JP¥16.76 loss in FY 2023) Full year 2024 results: EPS: JP¥3.85 (up from JP¥16.76 loss in FY 2023). Revenue: JP¥18.0b (up 17% from FY 2023). Net income: JP¥343.0m (up JP¥1.83b from FY 2023). Profit margin: 1.9% (up from net loss in FY 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 24% per year, which means it is well ahead of earnings. New Risk • Mar 21
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. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 57% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (5.5% average weekly change). Annonce • Mar 08
Broadleaf Co., Ltd. to Report Q1, 2025 Results on May 14, 2025 Broadleaf Co., Ltd. announced that they will report Q1, 2025 results on May 14, 2025 Reported Earnings • Feb 08
Full year 2024 earnings released: EPS: JP¥3.85 (vs JP¥16.76 loss in FY 2023) Full year 2024 results: EPS: JP¥3.85 (up from JP¥16.76 loss in FY 2023). Revenue: JP¥18.0b (up 17% from FY 2023). Net income: JP¥343.0m (up JP¥1.83b from FY 2023). Profit margin: 1.9% (up from net loss in FY 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 26% per year, which means it is well ahead of earnings. Annonce • Feb 07
Broadleaf Co., Ltd., Annual General Meeting, Mar 21, 2025 Broadleaf Co., Ltd., Annual General Meeting, Mar 21, 2025. Annonce • Jan 17
Broadleaf Co., Ltd. to Report Fiscal Year 2024 Results on Feb 07, 2025 Broadleaf Co., Ltd. announced that they will report fiscal year 2024 results on Feb 07, 2025 Upcoming Dividend • Dec 20
Upcoming dividend of JP¥2.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 27 March 2025. The company is not currently making a profit but it is cash flow positive. Trailing yield: 0.3%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (1.3%). Reported Earnings • Nov 15
Third quarter 2024 earnings released: EPS: JP¥1.94 (vs JP¥2.26 loss in 3Q 2023) Third quarter 2024 results: EPS: JP¥1.94 (up from JP¥2.26 loss in 3Q 2023). Revenue: JP¥4.54b (up 18% from 3Q 2023). Net income: JP¥173.0m (up JP¥374.0m from 3Q 2023). Profit margin: 3.8% (up from net loss in 3Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 74 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • Nov 13
Now 25% overvalued Over the last 90 days, the stock has fallen 12% to JP¥623. The fair value is estimated to be JP¥498, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Meanwhile, the company became loss making. 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 5.9% 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 have declined by 59% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (5.9% average weekly change). Buy Or Sell Opportunity • Oct 09
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 7.3% to JP¥643. The fair value is estimated to be JP¥513, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Meanwhile, the company became loss making. Annonce • Oct 04
Broadleaf Co., Ltd. to Report Q3, 2024 Results on Nov 12, 2024 Broadleaf Co., Ltd. announced that they will report Q3, 2024 results on Nov 12, 2024 Reported Earnings • Aug 14
Second quarter 2024 earnings released: EPS: JP¥0.24 (vs JP¥4.75 loss in 2Q 2023) Second quarter 2024 results: EPS: JP¥0.24 (up from JP¥4.75 loss in 2Q 2023). Revenue: JP¥4.41b (up 17% from 2Q 2023). Net income: JP¥21.4m (up JP¥442.4m from 2Q 2023). Profit margin: 0.5% (up from net loss in 2Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 99 percentage points per year, which is a significant difference in performance. Declared Dividend • Aug 10
Dividend increased to JP¥2.00 Dividend of JP¥2.00 is 100% higher than last year. Ex-date: 27th December 2024 Payment date: 27th March 2025 Dividend yield will be 0.3%, which is lower than the industry average of 1.4%. Annonce • Aug 08
Broadleaf Co., Ltd. Provides Dividend Guidance for the Fiscal Year 2024 Broadleaf Co., Ltd. provided dividend guidance for the fiscal year 2024. For the year, the company expects to pay a dividend of ¥2 against ¥1 paid last year. Annonce • Jul 17
Broadleaf Co., Ltd. Revises Consolidated Earnings Guidance for the First Half Ending June 30, 2024 Broadleaf Co., Ltd. revised consolidated earnings guidance for the first half ending June 30, 2024. For the first half of fiscal 2024, the company now expects revenue of JPY 8,400 million compared to revenue of JPY 8,150 million forecasted earlier, operating loss of JPY 100 million compared to operating loss of JPY 500 million forecasted earlier, loss attributable to owners of parent of JPY 60 million compared to JPY 400 million forecasted earlier, loss per share of JPY 0.67 compared to JPY 4.49 forecasted earlier. During the first six months of the fiscal year ending December 31, 2024 (from January 1, 2024 to June 30, 2024), demand for hardware such as PCs, printers, and change dispensers was captured early. In other areas, sales of packaged software for machinery tool, mobile phone shops, and travel services progressed steadily. In addition, the switch to cloud software by customers belonging to the Mobility sector, including auto maintenance shops, progressed as planned. As a result, revenues were expected to exceed the previously announced forecast. The Company also worked to reduce costs related to management operations by promoting greater efficiency in business processes. Other than that, expenditures were expected to be lower than planned, partly due to the deferral of a portion of advertising and sales activity expenses to the Second Half (from July 1, 2024 to December 31, 2024). As a result of the above, profits are also expected to exceed the previously announced forecast. Annonce • Jun 27
Broadleaf Co., Ltd. to Report Q2, 2024 Results on Aug 08, 2024 Broadleaf Co., Ltd. announced that they will report Q2, 2024 results on Aug 08, 2024 Reported Earnings • May 11
First quarter 2024 earnings released: JP¥0.39 loss per share (vs JP¥4.58 loss in 1Q 2023) First quarter 2024 results: JP¥0.39 loss per share (improved from JP¥4.58 loss in 1Q 2023). Revenue: JP¥4.01b (up 11% from 1Q 2023). Net loss: JP¥35.0m (loss narrowed 91% from 1Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 100 percentage points per year, which is a significant difference in performance. Board Change • Apr 08
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. 3 non-independent directors. Independent Outside Director Hiroshi Takada 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. Annonce • Mar 27
Broadleaf Co., Ltd. Appoints Unemi Yamaguchi as Director Broadleaf Co., Ltd. at the AGM, the shareholders approved Unemi Yamaguchi approved as director. Annonce • Mar 21
Broadleaf Co., Ltd. to Report Q1, 2024 Results on May 09, 2024 Broadleaf Co., Ltd. announced that they will report Q1, 2024 results on May 09, 2024 Reported Earnings • Feb 10
Full year 2023 earnings released: JP¥16.76 loss per share (vs JP¥27.53 loss in FY 2022) Full year 2023 results: JP¥16.76 loss per share (improved from JP¥27.53 loss in FY 2022). Revenue: JP¥15.4b (up 11% from FY 2022). Net loss: JP¥1.49b (loss narrowed 39% from FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 104 percentage points per year, which is a significant difference in performance. Annonce • Feb 09
Broadleaf Co., Ltd., Annual General Meeting, Mar 26, 2024 Broadleaf Co., Ltd., Annual General Meeting, Mar 26, 2024. Annonce • Dec 27
Broadleaf Co., Ltd. to Report Fiscal Year 2023 Results on Feb 09, 2024 Broadleaf Co., Ltd. announced that they will report fiscal year 2023 results on Feb 09, 2024 Upcoming Dividend • Dec 21
Upcoming dividend of JP¥1.00 per share at 0.2% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 27 March 2024. The company is not currently making a profit and is not cash flow positive. Trailing yield: 0.2%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (1.5%). 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. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 49% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (5.5% average weekly change). Reported Earnings • Nov 10
Third quarter 2023 earnings released: JP¥2.28 loss per share (vs JP¥3.67 loss in 3Q 2022) Third quarter 2023 results: JP¥2.28 loss per share (improved from JP¥3.67 loss in 3Q 2022). Revenue: JP¥3.86b (up 8.8% from 3Q 2022). Net loss: JP¥202.2m (loss narrowed 38% from 3Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 97 percentage points per year, which is a significant difference in performance. Annonce • Sep 28
Broadleaf Co., Ltd. to Report Q3, 2023 Results on Nov 09, 2023 Broadleaf Co., Ltd. announced that they will report Q3, 2023 results on Nov 09, 2023 Reported Earnings • Aug 11
Second quarter 2023 earnings released: JP¥4.75 loss per share (vs JP¥6.09 loss in 2Q 2022) Second quarter 2023 results: JP¥4.75 loss per share (improved from JP¥6.09 loss in 2Q 2022). Revenue: JP¥3.76b (up 15% from 2Q 2022). Net loss: JP¥421.4m (loss narrowed 22% from 2Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 91 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 11
Second quarter 2023 earnings released: JP¥4.75 loss per share (vs JP¥6.09 loss in 2Q 2022) Second quarter 2023 results: JP¥4.75 loss per share (improved from JP¥6.09 loss in 2Q 2022). Revenue: JP¥3.76b (up 15% from 2Q 2022). Net loss: JP¥421.4m (loss narrowed 22% from 2Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 91 percentage points per year, which is a significant difference in performance. Annonce • Aug 10
Broadleaf Co., Ltd. Provides Dividend Guidance for the Fiscal Year 2023 Broadleaf Co., Ltd. provided dividend guidance for the fiscal year 2023. For the year, the company expects to pay a dividend of ¥1 against ¥1 paid last year. Annonce • Jun 26
Broadleaf Co., Ltd. to Report Q2, 2023 Results on Aug 10, 2023 Broadleaf Co., Ltd. announced that they will report Q2, 2023 results on Aug 10, 2023 Reported Earnings • May 12
First quarter 2023 earnings released: JP¥4.58 loss per share (vs JP¥6.47 loss in 1Q 2022) First quarter 2023 results: JP¥4.58 loss per share (improved from JP¥6.47 loss in 1Q 2022). Revenue: JP¥3.63b (up 12% from 1Q 2022). Net loss: JP¥405.0m (loss narrowed 29% from 1Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Reported Earnings • Mar 31
Full year 2022 earnings released: JP¥27.53 loss per share (vs JP¥24.71 profit in FY 2021) Full year 2022 results: JP¥27.53 loss per share (down from JP¥24.71 profit in FY 2021). Revenue: JP¥13.8b (down 33% from FY 2021). Net loss: JP¥2.43b (down 212% from profit in FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Reported Earnings • Feb 12
Full year 2022 earnings released: JP¥27.53 loss per share (vs JP¥24.71 profit in FY 2021) Full year 2022 results: JP¥27.53 loss per share (down from JP¥24.71 profit in FY 2021). Revenue: JP¥13.8b (down 33% from FY 2021). Net loss: JP¥2.43b (down 212% from profit in FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Annonce • Feb 12
Broadleaf Co., Ltd., Annual General Meeting, Mar 24, 2023 Broadleaf Co., Ltd., Annual General Meeting, Mar 24, 2023. Annonce • Dec 24
Broadleaf Co., Ltd. to Report Fiscal Year 2022 Results on Feb 10, 2023 Broadleaf Co., Ltd. announced that they will report fiscal year 2022 results on Feb 10, 2023 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥1.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 28 March 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 0.2%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (1.9%). Reported Earnings • Nov 16
Third quarter 2022 earnings released: JP¥3.67 loss per share (vs JP¥8.00 profit in 3Q 2021) Third quarter 2022 results: JP¥3.67 loss per share (down from JP¥8.00 profit in 3Q 2021). Revenue: JP¥3.55b (down 32% from 3Q 2021). Net loss: JP¥324.0m (down 146% from profit in 3Q 2021). 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. Board Change • Nov 16
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. 3 highly experienced directors. President, CEO & Representative Director Kenji Oyama is the most experienced director on the board, commencing their role in 2006. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 11
Third quarter 2022 earnings released: JP¥3.67 loss per share (vs JP¥8.00 profit in 3Q 2021) Third quarter 2022 results: JP¥3.67 loss per share (down from JP¥8.00 profit in 3Q 2021). Revenue: JP¥3.55b (down 32% from 3Q 2021). Net loss: JP¥324.0m (down 146% from profit in 3Q 2021). 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. Reported Earnings • Aug 12
Second quarter 2022 earnings released: JP¥6.09 loss per share (vs JP¥4.20 profit in 2Q 2021) Second quarter 2022 results: JP¥6.09 loss per share (down from JP¥4.20 profit in 2Q 2021). Revenue: JP¥3.27b (down 31% from 2Q 2021). Net loss: JP¥538.2m (down 246% from profit in 2Q 2021). Over the next year, revenue is expected to shrink by 25% compared to a 14% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Reported Earnings • May 13
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: JP¥6.48 loss per share (down from JP¥4.85 profit in 1Q 2021). Revenue: JP¥3.25b (down 37% from 1Q 2021). Net loss: JP¥570.5m (down 234% from profit in 1Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Over the next year, revenue is expected to shrink by 31% compared to a 13% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Board Change • Apr 27
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. 3 highly experienced directors. President, CEO & Representative Director Kenji Oyama is the most experienced director on the board, commencing their role in 2006. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Buying Opportunity • Apr 06
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 6.1%. The fair value is estimated to be JP¥478, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.5% over the last 3 years. Earnings per share has declined by 11%. For the next 3 years, revenue is forecast to decline by 11% per annum. Earnings is also forecast to decline by 9.7% per annum over the same time period. Reported Earnings • Apr 02
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: JP¥24.72 (down from JP¥28.15 in FY 2020). Revenue: JP¥20.7b (down 2.4% from FY 2020). Net income: JP¥2.17b (down 12% from FY 2020). Profit margin: 11% (down from 12% in FY 2020). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 29%. Over the next year, revenue is expected to shrink by 37% compared to a 14% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 13% per year. Price Target Changed • Feb 11
Price target decreased to JP¥330 Down from JP¥540, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of JP¥323. Stock is down 50% over the past year. The company is forecast to post a net loss per share of JP¥51.14 compared to earnings per share of JP¥24.71 last year. Reported Earnings • Feb 10
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: JP¥24.71 (down from JP¥28.15 in FY 2020). Revenue: JP¥20.7b (down 2.4% from FY 2020). Net income: JP¥2.17b (down 12% from FY 2020). Profit margin: 11% (down from 12% in FY 2020). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 29%. Over the next year, revenue is expected to shrink by 37% compared to a 16% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 16% per year. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥4.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 29 March 2022. Payout ratio is a comfortable 44% and the cash payout ratio is 90%. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.5%). Reported Earnings • Nov 09
Third quarter 2021 earnings released: EPS JP¥8.01 (vs JP¥9.15 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥5.24b (down 1.3% from 3Q 2020). Net income: JP¥704.8m (down 12% from 3Q 2020). Profit margin: 13% (down from 15% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 3% per year. Reported Earnings • Aug 11
Second quarter 2021 earnings released: EPS JP¥4.20 (vs JP¥7.45 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: JP¥4.74b (down 4.2% from 2Q 2020). Net income: JP¥369.2m (down 43% from 2Q 2020). Profit margin: 7.8% (down from 13% in 2Q 2020). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 10% per year, which means it is performing significantly worse than earnings. Upcoming Dividend • Jun 23
Upcoming dividend of JP¥3.50 per share Eligible shareholders must have bought the stock before 29 June 2021. Payment date: 18 September 2021. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.0%). In line with average of industry peers (1.4%). Reported Earnings • May 12
First quarter 2021 earnings released: EPS JP¥4.85 (vs JP¥4.71 in 1Q 2020) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: JP¥5.19b (down 1.6% from 1Q 2020). Net income: JP¥425.0m (up 3.2% from 1Q 2020). Profit margin: 8.2% (up from 7.8% in 1Q 2020). 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 but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 03
Full year 2020 earnings released: EPS JP¥28.15 (vs JP¥35.38 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥21.2b (down 6.3% from FY 2019). Net income: JP¥2.46b (down 20% from FY 2019). Profit margin: 12% (down from 14% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 9% 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 • Feb 22
Analysts update estimates The 2021 consensus earning per share (EPS) estimate was lowered from JP¥31.51 to JP¥17.81. No change was made to the revenue estimate which at the last update was JP¥20.2b. Net income is expected to shrink by 37% next year compared to 9.2% growth forecast for the Software industry in Japan . The consensus price target was lowered from JP¥650 to JP¥570. Share price is down by 8.1% to JP¥513 over the past week. Is New 90 Day High Low • Feb 15
New 90-day low: JP¥558 The company is down 9.0% from its price of JP¥613 on 17 November 2020. The Japanese market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 5.0% over the same period. Analyst Estimate Surprise Post Earnings • Feb 14
Revenue and earnings miss expectations Revenue missed analyst estimates by 0.6%. Earnings per share (EPS) also missed analyst estimates by 2.9%. Over the next year, revenue is forecast to grow 4.3%, compared to a 13% growth forecast for the Software industry in Japan. Reported Earnings • Feb 14
Full year 2020 earnings released: EPS JP¥28.15 (vs JP¥35.38 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥21.2b (down 6.3% from FY 2019). Net income: JP¥2.46b (down 20% from FY 2019). Profit margin: 12% (down from 14% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 22
Upcoming Dividend of JP¥6.60 Per Share Will be paid on the 25th of March to those who are registered shareholders by the 29th of December. The trailing yield of 1.9% is below the top quartile of Japanese dividend payers (3.0%), but it is higher than industry peers (1.3%). Is New 90 Day High Low • Dec 17
New 90-day high: JP¥727 The company is up 33% from its price of JP¥548 on 18 September 2020. The Japanese market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 1.0% over the same period. Is New 90 Day High Low • Dec 01
New 90-day high: JP¥660 The company is up 28% from its price of JP¥517 on 02 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 2.0% over the same period. Price Target Changed • Dec 01
Price target raised to JP¥650 Up from JP¥600, the current price target is provided by 1 analyst. The new target price is close to the current share price of JP¥660. As of last close, the stock is down 4.8% over the past year.