Buy Or Sell Opportunity • 3h
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.1% to JP¥543. The fair value is estimated to be JP¥688, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.1% over the last 3 years. Earnings per share has grown by 3.8%. New Risk • Mar 26
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 6.9% 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: Minor Risks Share price has been volatile over the past 3 months (6.9% average weekly change). Market cap is less than US$100m (JP¥11.5b market cap, or US$71.9m). Reported Earnings • Mar 17
First quarter 2026 earnings released: EPS: JP¥16.53 (vs JP¥15.14 in 1Q 2025) First quarter 2026 results: EPS: JP¥16.53 (up from JP¥15.14 in 1Q 2025). Revenue: JP¥1.06b (up 6.0% from 1Q 2025). Net income: JP¥106.0m (up 9.3% from 1Q 2025). Profit margin: 10.0% (in line with 1Q 2025). 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 3% per year. Buy Or Sell Opportunity • Mar 17
Now 25% undervalued after recent price drop Over the last 90 days, the stock has fallen 20% to JP¥1,524. The fair value is estimated to be JP¥2,030, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.1% over the last 3 years. Earnings per share has grown by 3.8%. Reported Earnings • Dec 16
Full year 2025 earnings released: EPS: JP¥97.78 (vs JP¥86.64 in FY 2024) Full year 2025 results: EPS: JP¥97.78 (up from JP¥86.64 in FY 2024). Revenue: JP¥5.03b (up 8.7% from FY 2024). Net income: JP¥627.0m (up 13% from FY 2024). Profit margin: 13% (in line with FY 2024). Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Dec 15
System D Inc., Annual General Meeting, Jan 29, 2026 System D Inc., Annual General Meeting, Jan 29, 2026. Annonce • Nov 01
System D Inc. to Report Fiscal Year 2025 Results on Dec 15, 2025 System D Inc. announced that they will report fiscal year 2025 results on Dec 15, 2025 Upcoming Dividend • Oct 23
Upcoming dividend of JP¥27.00 per share Eligible shareholders must have bought the stock before 30 October 2025. Payment date: 02 February 2026. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (1.6%). Valuation Update With 7 Day Price Move • Sep 23
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,031, the stock trades at a trailing P/E ratio of 18.6x. Average trailing P/E is 22x in the Software industry in Japan. Total returns to shareholders of 60% over the past three years. Reported Earnings • Sep 17
Third quarter 2025 earnings released: EPS: JP¥6.70 (vs JP¥0.31 in 3Q 2024) Third quarter 2025 results: EPS: JP¥6.70 (up from JP¥0.31 in 3Q 2024). Revenue: JP¥946.0m (up 6.1% from 3Q 2024). Net income: JP¥43.0m (up JP¥41.0m from 3Q 2024). Profit margin: 4.5% (up from 0.2% 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 2% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Aug 01
System D Inc. to Report Q3, 2025 Results on Sep 16, 2025 System D Inc. announced that they will report Q3, 2025 results on Sep 16, 2025 Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥2,030, the stock trades at a trailing P/E ratio of 19.7x. Average trailing P/E is 20x in the Software industry in Japan. Total returns to shareholders of 76% over the past three years. New Risk • Jul 13
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 5.2% 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: Minor Risks Share price has been volatile over the past 3 months (5.2% average weekly change). Market cap is less than US$100m (JP¥13.3b market cap, or US$90.2m). Reported Earnings • Jun 21
Second quarter 2025 earnings released: EPS: JP¥54.44 (vs JP¥42.77 in 2Q 2024) Second quarter 2025 results: EPS: JP¥54.44 (up from JP¥42.77 in 2Q 2024). Revenue: JP¥1.80b (up 23% from 2Q 2024). Net income: JP¥349.0m (up 27% from 2Q 2024). Profit margin: 19% (in line with 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • May 28
Now 21% undervalued Over the last 90 days, the stock has risen 8.8% to JP¥1,763. The fair value is estimated to be JP¥2,230, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.8% over the last 3 years, while earnings per share has been flat. Buy Or Sell Opportunity • May 09
Now 20% undervalued Over the last 90 days, the stock has risen 26% to JP¥1,794. The fair value is estimated to be JP¥2,245, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.8% over the last 3 years, while earnings per share has been flat. Annonce • May 01
System D Inc. to Report Q2, 2025 Results on Jun 16, 2025 System D Inc. announced that they will report Q2, 2025 results on Jun 16, 2025 Reported Earnings • Mar 18
First quarter 2025 earnings released: EPS: JP¥15.14 (vs JP¥10.62 in 1Q 2024) First quarter 2025 results: EPS: JP¥15.14 (up from JP¥10.62 in 1Q 2024). Revenue: JP¥1.00b (up 8.9% from 1Q 2024). Net income: JP¥97.0m (up 43% from 1Q 2024). Profit margin: 9.7% (up from 7.4% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Annonce • Feb 03
System D Inc. to Report Q1, 2025 Results on Mar 17, 2025 System D Inc. announced that they will report Q1, 2025 results on Mar 17, 2025 Reported Earnings • Dec 19
Full year 2024 earnings released: EPS: JP¥86.63 (vs JP¥98.72 in FY 2023) Full year 2024 results: EPS: JP¥86.63 (down from JP¥98.72 in FY 2023). Revenue: JP¥4.63b (down 2.2% from FY 2023). Net income: JP¥555.0m (down 12% from FY 2023). Profit margin: 12% (down from 13% in FY 2023). Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Annonce • Dec 16
System D Inc., Annual General Meeting, Jan 30, 2025 System D Inc., Annual General Meeting, Jan 30, 2025. Upcoming Dividend • Oct 23
Upcoming dividend of JP¥24.00 per share Eligible shareholders must have bought the stock before 30 October 2024. Payment date: 31 January 2025. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.3%). Reported Earnings • Sep 18
Third quarter 2024 earnings released: EPS: JP¥0.31 (vs JP¥2.03 in 3Q 2023) Third quarter 2024 results: EPS: JP¥0.31 (down from JP¥2.03 in 3Q 2023). Revenue: JP¥892.0m (flat on 3Q 2023). Net income: JP¥2.00m (down 85% from 3Q 2023). Profit margin: 0.2% (down from 1.5% in 3Q 2023). 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 • Aug 06
System D Inc. to Report Q3, 2024 Results on Sep 17, 2024 System D Inc. announced that they will report Q3, 2024 results on Sep 17, 2024 Valuation Update With 7 Day Price Move • Jun 17
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,424, the stock trades at a trailing P/E ratio of 15.2x. Average trailing P/E is 22x in the Software industry in Japan. Negligible returns to shareholders over past three years. Reported Earnings • Jun 11
Second quarter 2024 earnings released: EPS: JP¥42.77 (vs JP¥41.39 in 2Q 2023) Second quarter 2024 results: EPS: JP¥42.77 (up from JP¥41.39 in 2Q 2023). Revenue: JP¥1.47b (flat on 2Q 2023). Net income: JP¥274.0m (up 3.4% from 2Q 2023). Profit margin: 19% (in line with 2Q 2023). 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 5% per year, which means it is significantly lagging earnings. Annonce • May 03
System D Inc. to Report Q2, 2024 Results on Jun 10, 2024 System D Inc. announced that they will report Q2, 2024 results on Jun 10, 2024 Reported Earnings • Mar 21
First quarter 2024 earnings released: EPS: JP¥10.62 (vs JP¥17.34 in 1Q 2023) First quarter 2024 results: EPS: JP¥10.62 (down from JP¥17.34 in 1Q 2023). Revenue: JP¥921.0m (down 5.5% from 1Q 2023). Net income: JP¥68.0m (down 39% from 1Q 2023). Profit margin: 7.4% (down from 11% in 1Q 2023). The decrease in margin was driven by lower revenue. 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 5% per year, which means it is significantly lagging earnings. New Risk • Feb 07
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 27% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Shareholders have been diluted in the past year (27% increase in shares outstanding). Market cap is less than US$100m (JP¥10.1b market cap, or US$68.2m). Reported Earnings • Feb 03
Full year 2023 earnings released: EPS: JP¥98.72 (vs JP¥92.32 in FY 2022) Full year 2023 results: EPS: JP¥98.72 (up from JP¥92.32 in FY 2022). Revenue: JP¥4.74b (up 12% from FY 2022). Net income: JP¥632.0m (up 6.9% from FY 2022). Profit margin: 13% (in line with FY 2022). Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Annonce • Feb 02
System D Inc. to Report Q1, 2024 Results on Mar 18, 2024 System D Inc. announced that they will report Q1, 2024 results on Mar 18, 2024 Reported Earnings • Dec 14
Full year 2023 earnings released: EPS: JP¥98.71 (vs JP¥92.32 in FY 2022) Full year 2023 results: EPS: JP¥98.71 (up from JP¥92.32 in FY 2022). Revenue: JP¥4.74b (up 12% from FY 2022). Net income: JP¥632.0m (up 6.9% from FY 2022). Profit margin: 13% (in line with FY 2022). Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Annonce • Dec 13
System D Inc., Annual General Meeting, Jan 30, 2024 System D Inc., Annual General Meeting, Jan 30, 2024. Annonce • Nov 02
System D Inc. to Report Fiscal Year 2023 Results on Dec 11, 2023 System D Inc. announced that they will report fiscal year 2023 results on Dec 11, 2023 Upcoming Dividend • Oct 23
Upcoming dividend of JP¥22.00 per share at 1.5% yield Eligible shareholders must have bought the stock before 30 October 2023. Payment date: 30 January 2024. Payout ratio is a comfortable 24% but the company is not cash flow positive. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (1.7%). Reported Earnings • Sep 13
Third quarter 2023 earnings released Third quarter 2023 results: EPS: JP¥2.03. Revenue: JP¥887.0m (up 9.6% from 3Q 2022). Net income: JP¥13.0m (up JP¥13.0m from 3Q 2022). Profit margin: 1.5% (up from 0% in 3Q 2022). The increase in margin was driven by higher revenue. 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 7% per year, which means it is significantly lagging earnings. Annonce • Aug 03
System D Inc. to Report Q3, 2023 Results on Sep 11, 2023 System D Inc. announced that they will report Q3, 2023 results on Sep 11, 2023 New Risk • Jun 17
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 37% 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 Risk High level of non-cash earnings (37% accrual ratio). Minor Risk Market cap is less than US$100m (JP¥8.48b market cap, or US$59.8m). Reported Earnings • Jun 16
Second quarter 2023 earnings released: EPS: JP¥41.38 (vs JP¥59.51 in 2Q 2022) Second quarter 2023 results: EPS: JP¥41.38 (down from JP¥59.51 in 2Q 2022). Revenue: JP¥1.45b (down 3.1% from 2Q 2022). Net income: JP¥265.0m (down 30% from 2Q 2022). Profit margin: 18% (down from 25% in 2Q 2022). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 15
First quarter 2023 earnings released: EPS: JP¥17.34 (vs JP¥8.75 in 1Q 2022) First quarter 2023 results: EPS: JP¥17.34 (up from JP¥8.75 in 1Q 2022). Revenue: JP¥975.0m (up 23% from 1Q 2022). Net income: JP¥111.0m (up 98% from 1Q 2022). Profit margin: 11% (up from 7.0% 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 9% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Feb 02
System D Inc. to Report Q1, 2023 Results on Mar 13, 2023 System D Inc. announced that they will report Q1, 2023 results on Mar 13, 2023 Reported Earnings • Feb 02
Full year 2022 earnings released: EPS: JP¥92.32 (vs JP¥89.24 in FY 2021) Full year 2022 results: EPS: JP¥92.32 (up from JP¥89.24 in FY 2021). Revenue: JP¥4.23b (up 10% from FY 2021). Net income: JP¥591.0m (up 3.1% from FY 2021). Profit margin: 14% (in line with FY 2021). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Reported Earnings • Dec 15
Full year 2022 earnings released: EPS: JP¥92.30 (vs JP¥89.24 in FY 2021) Full year 2022 results: EPS: JP¥92.30 (up from JP¥89.24 in FY 2021). Revenue: JP¥4.23b (up 10% from FY 2021). Net income: JP¥591.0m (up 3.1% from FY 2021). Profit margin: 14% (in line with FY 2021). Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 10% per year. Annonce • Dec 14
System D Inc., Annual General Meeting, Jan 27, 2023 System D Inc., Annual General Meeting, Jan 27, 2023. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 8 highly experienced directors. No independent directors (7 non-independent directors). Chairman of the Board & President Michio Doyama was the last director to join the board, commencing their role in 2010. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Annonce • Nov 02
System D Inc. to Report Fiscal Year 2022 Results on Dec 12, 2022 System D Inc. announced that they will report fiscal year 2022 results on Dec 12, 2022 Upcoming Dividend • Oct 21
Upcoming dividend of JP¥19.00 per share Eligible shareholders must have bought the stock before 28 October 2022. Payment date: 31 January 2023. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (1.8%). Buying Opportunity • Oct 07
Now 20% undervalued Over the last 90 days, the stock is up 12%. The fair value is estimated to be JP¥1,724, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.3% over the last 3 years. Earnings per share has grown by 16%. Buying Opportunity • Sep 16
Now 22% undervalued Over the last 90 days, the stock is up 22%. The fair value is estimated to be JP¥1,743, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.3% over the last 3 years. Earnings per share has grown by 16%. Reported Earnings • Sep 15
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: JP¥809.0m (down 1.7% from 3Q 2021). Net income: JP¥0 (down JP¥43.0m from profit in 3Q 2021). Profit margin: 0% (down from 5.2% in 3Q 2021). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Buying Opportunity • Aug 24
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 6.0%. The fair value is estimated to be JP¥1,639, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.0% over the last 3 years. Earnings per share has grown by 19%. Revenue is forecast to grow by 17% in 2 years. Earnings is forecast to grow by 11% in the next 2 years. Buying Opportunity • Aug 01
Now 21% undervalued Over the last 90 days, the stock is up 13%. The fair value is estimated to be JP¥1,638, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.0% over the last 3 years. Earnings per share has grown by 19%. Revenue is forecast to grow by 17% in 2 years. Earnings is forecast to grow by 11% in the next 2 years. Annonce • Jul 31
System D Inc. to Report Q3, 2022 Results on Sep 12, 2022 System D Inc. announced that they will report Q3, 2022 results on Sep 12, 2022 Reported Earnings • Jun 14
Second quarter 2022 earnings released: EPS: JP¥59.50 (vs JP¥41.23 in 2Q 2021) Second quarter 2022 results: EPS: JP¥59.50 (up from JP¥41.23 in 2Q 2021). Revenue: JP¥1.50b (up 20% from 2Q 2021). Net income: JP¥381.0m (up 44% from 2Q 2021). Profit margin: 25% (up from 21% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 7.2%, compared to a 13% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 19% per year whereas the company’s share price has increased by 20% per year. Buying Opportunity • Jun 07
Now 20% undervalued Over the last 90 days, the stock is up 8.2%. The fair value is estimated to be JP¥1,590, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.1% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 22% in 2 years. Earnings is forecast to grow by 31% in the next 2 years. Buying Opportunity • May 18
Now 20% undervalued Over the last 90 days, the stock is up 13%. The fair value is estimated to be JP¥1,599, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.1% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 22% in 2 years. Earnings is forecast to grow by 31% in the next 2 years. Annonce • May 02
System D Inc. to Report Q2, 2022 Results on Jun 13, 2022 System D Inc. announced that they will report Q2, 2022 results on Jun 13, 2022 Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 8 highly experienced directors. No independent directors (7 non-independent directors). Chairman of the Board & President Michio Doyama was the last director to join the board, commencing their role in 2010. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Mar 15
First quarter 2022 earnings: EPS in line with expectations, revenues disappoint First quarter 2022 results: EPS: JP¥8.75 (down from JP¥10.81 in 1Q 2021). Revenue: JP¥796.0m (up 8.4% from 1Q 2021). Net income: JP¥56.0m (down 20% from 1Q 2021). Profit margin: 7.0% (down from 9.5% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 4.7%. Over the next year, revenue is forecast to grow 12%, compared to a 14% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 25% per year. Reported Earnings • Feb 03
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: JP¥89.24 (up from JP¥78.56 in FY 2020). Revenue: JP¥3.84b (flat on FY 2020). Net income: JP¥573.0m (up 12% from FY 2020). Profit margin: 15% (up from 13% in FY 2020). Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 11%, compared to a 16% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Feb 02
System D Inc. to Report Q1, 2022 Results on Mar 14, 2022 System D Inc. announced that they will report Q1, 2022 results on Mar 14, 2022 Valuation Update With 7 Day Price Move • Dec 20
Investor sentiment deteriorated over the past week After last week's 16% share price decline to JP¥1,183, the stock trades at a trailing P/E ratio of 13.2x. Average trailing P/E is 22x in the Software industry in Japan. Total returns to shareholders of 128% over the past three years. Reported Earnings • Dec 16
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: JP¥89.24 (up from JP¥78.56 in FY 2020). Revenue: JP¥3.84b (flat on FY 2020). Net income: JP¥573.0m (up 12% from FY 2020). Profit margin: 15% (up from 13% in FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Oct 21
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 28 October 2021. Payment date: 29 January 2022. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.0%). Lower than average of industry peers (1.3%). Reported Earnings • Sep 15
Third quarter 2021 earnings released: EPS JP¥6.72 (vs JP¥5.24 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥823.0m (up 18% from 3Q 2020). Net income: JP¥43.0m (up JP¥77.0m from 3Q 2020). Profit margin: 5.2% (up from net loss in 3Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year whereas the company’s share price has increased by 24% per year. Reported Earnings • Jun 17
Second quarter 2021 earnings released: EPS JP¥41.23 (vs JP¥60.69 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: JP¥1.25b (down 17% from 2Q 2020). Net income: JP¥264.0m (down 33% from 2Q 2020). Profit margin: 21% (down from 26% in 2Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 30% per year whereas the company’s share price has increased by 31% per year. Reported Earnings • Feb 02
Full year 2020 earnings released: EPS JP¥78.56 (vs JP¥58.84 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥3.85b (up 8.1% from FY 2019). Net income: JP¥510.0m (up 34% from FY 2019). Profit margin: 13% (up from 11% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has increased by 44% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Feb 02
Revenue and earnings miss expectations Revenue missed analyst estimates by 5.2%. Earnings per share (EPS) also missed analyst estimates by 12%. Over the next year, revenue is forecast to grow 12%, compared to a 12% growth forecast for the Software industry in Japan. Annonce • Jan 31
System D Inc. to Report Q1, 2021 Results on Mar 15, 2021 System D Inc. announced that they will report Q1, 2021 results on Mar 15, 2021 Is New 90 Day High Low • Jan 29
New 90-day low: JP¥1,529 The company is down 6.0% from its price of JP¥1,631 on 30 October 2020. The Japanese market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 6.0% over the same period. Is New 90 Day High Low • Dec 30
New 90-day low: JP¥1,563 The company is down 2.0% from its price of JP¥1,596 on 30 September 2020. The Japanese market is up 12% 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. Annonce • Dec 16
System D Inc., Annual General Meeting, Jan 28, 2021 System D Inc., Annual General Meeting, Jan 28, 2021. Reported Earnings • Dec 16
Full year 2020 earnings released: EPS JP¥78.55 The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥3.85b (up 8.1% from FY 2019). Net income: JP¥510.0m (up 34% from FY 2019). Profit margin: 13% (up from 11% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has increased by 53% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Dec 16
Revenue and earnings miss expectations Revenue missed analyst estimates by 5.2%. Earnings per share (EPS) also missed analyst estimates by 12%. Over the next year, revenue is forecast to grow 12%, compared to a 12% growth forecast for the Software industry in Japan. Valuation Update With 7 Day Price Move • Oct 26
Market pulls back on stock over the past week After last week's 17% share price decline to JP¥1,708, the stock is trading at a trailing P/E ratio of 19.7x, down from the previous P/E ratio of 23.7x. This compares to an average P/E of 38x in the Software industry in Japan. Total returns to shareholders over the past three years are 181%. Upcoming Dividend • Oct 22
Upcoming Dividend of JP¥10.00 Per Share Will be paid on the 31st of January to those who are registered shareholders by the 29th of October. The trailing yield of 0.5% is below the top quartile of Japanese dividend payers (3.2%), and is lower than industry peers (1.3%). Valuation Update With 7 Day Price Move • Oct 13
Market bids up stock over the past week After last week's 17% share price gain to JP¥2,184, the stock is trading at a trailing P/E ratio of 25.1x, up from the previous P/E ratio of 21.5x. This compares to an average P/E of 34x in the Software industry in Japan. Total returns to shareholders over the past three years are 286%. Is New 90 Day High Low • Oct 07
New 90-day high: JP¥1,892 The company is up 27% from its price of JP¥1,489 on 09 July 2020. The Japanese market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 4.0% over the same period. Reported Earnings • Sep 18
Third quarter earnings released Over the last 12 months the company has reported total profits of JP¥564.0m, up 73% from the prior year. Total revenue was JP¥4.03b over the last 12 months, up 20% from the prior year. Annonce • Aug 09
System D Inc. to Report Q3, 2020 Results on Sep 14, 2020 System D Inc. announced that they will report Q3, 2020 results on Sep 14, 2020