New Risk • May 27
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.6% 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 1.6% 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 • May 09
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥323 (up from JP¥195 in FY 2025). Revenue: JP¥448.3b (up 81% from FY 2025). Net income: JP¥16.2b (up 62% from FY 2025). Profit margin: 3.6% (down from 4.1% in FY 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.8%. Earnings per share (EPS) also surpassed analyst estimates by 2.5%. Revenue is forecast to grow 1.4% p.a. on average during the next 2 years, compared to a 7.9% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 15% per year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 29 June 2026. Payout ratio is a comfortable 21% and the cash payout ratio is 80%. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). New Risk • Mar 03
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 2.5% 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 2.5% 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. Major Estimate Revision • Mar 03
Consensus EPS estimates increase by 27% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from JP¥247 to JP¥313. Revenue forecast steady at JP¥440.7b. Net income forecast to shrink 7.4% next year vs 14% growth forecast for Electronic industry in Japan . Consensus price target of JP¥3,450 unchanged from last update. Share price was steady at JP¥2,875 over the past week. Reported Earnings • Feb 07
Third quarter 2026 earnings released: EPS: JP¥163 (vs JP¥78.66 in 3Q 2025) Third quarter 2026 results: EPS: JP¥163 (up from JP¥78.66 in 3Q 2025). Revenue: JP¥129.6b (up 104% from 3Q 2025). Net income: JP¥8.12b (up 100% from 3Q 2025). Profit margin: 6.3% (down from 6.4% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Electronic industry in Japan. 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 18% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Dec 09
Hosiden Corporation to Report Q3, 2026 Results on Feb 06, 2026 Hosiden Corporation announced that they will report Q3, 2026 results on Feb 06, 2026 Declared Dividend • Dec 05
First half dividend of JP¥25.00 announced Shareholders will receive a dividend of JP¥25.00. Ex-date: 30th March 2026 Payment date: 29th June 2026 Dividend yield will be 2.0%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by earnings (28% 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 17% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 11% over the next year, which should provide support to the dividend and adequate earnings cover. Annonce • Nov 10
Hosiden Corporation (TSE:6804) announces an Equity Buyback for 2,000,000 shares, representing 3.93% for ¥4,200 million. Hosiden Corporation (TSE:6804) announces a share repurchase program. Under the program, the company will repurchase 2,000,000 shares, representing 3.93% of the outstanding shares for ¥4,200 million. The Company will cancel treasury shares for execution of flexible capital policies in
response to changes in the management environment as well as enhancing shareholder returns and capital efficiency. The program will run until January 30, 2026. As of October 31, 2025, the company had 50,895,236 shares outstanding (excluding treasury stock) and 9,269,548 shares in treasury. Reported Earnings • Nov 08
Second quarter 2026 earnings released: EPS: JP¥94.21 (vs JP¥14.60 in 2Q 2025) Second quarter 2026 results: EPS: JP¥94.21 (up from JP¥14.60 in 2Q 2025). Revenue: JP¥129.1b (up 121% from 2Q 2025). Net income: JP¥4.80b (up JP¥4.04b from 2Q 2025). Profit margin: 3.7% (up from 1.3% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 6.7% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 04 December 2025. Payout ratio is a comfortable 39% but the company is not cash flow positive. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Annonce • Sep 06
Hosiden Corporation to Report Q2, 2026 Results on Nov 07, 2025 Hosiden Corporation announced that they will report Q2, 2026 results on Nov 07, 2025 New Risk • Aug 09
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.5% Last year net profit margin: 5.3% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (2.5% net profit margin). Declared Dividend • Jul 09
Final dividend of JP¥25.00 announced Shareholders will receive a dividend of JP¥25.00. Ex-date: 29th September 2025 Payment date: 4th December 2025 Dividend yield will be 2.9%, which is higher than the industry average of 1.4%. 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 17% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 27% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 01
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥195 (down from JP¥224 in FY 2024). Revenue: JP¥247.6b (up 13% from FY 2024). Net income: JP¥10.0b (down 14% from FY 2024). Profit margin: 4.1% (down from 5.3% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.7%. Earnings per share (EPS) also surpassed analyst estimates by 5.0%. Revenue is forecast to grow 23% p.a. on average during the next 2 years, compared to a 6.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 21% per year, which means it is well ahead of earnings. Annonce • Jun 27
Hosiden Corporation to Report Q1, 2026 Results on Aug 08, 2025 Hosiden Corporation announced that they will report Q1, 2026 results on Aug 08, 2025 Reported Earnings • May 10
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥195 (down from JP¥224 in FY 2024). Revenue: JP¥247.6b (up 13% from FY 2024). Net income: JP¥10.0b (down 14% from FY 2024). Profit margin: 4.1% (down from 5.3% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.7%. Earnings per share (EPS) also surpassed analyst estimates by 5.0%. Revenue is forecast to grow 6.5% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Annonce • May 09
Hosiden Corporation, Annual General Meeting, Jun 26, 2025 Hosiden Corporation, Annual General Meeting, Jun 26, 2025. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,686, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 10x in the Electronic industry in Japan. Total returns to shareholders of 65% over the past three years. Annonce • Apr 01
Hosiden Corporation to Report Fiscal Year 2025 Results on May 09, 2025 Hosiden Corporation announced that they will report fiscal year 2025 results on May 09, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥19.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 27 June 2025. Payout ratio is a comfortable 24% but the company is not cash flow positive. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (1.7%). Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥78.66 (vs JP¥63.55 in 3Q 2024) Third quarter 2025 results: EPS: JP¥78.66 (up from JP¥63.55 in 3Q 2024). Revenue: JP¥63.6b (up 21% from 3Q 2024). Net income: JP¥4.07b (up 24% from 3Q 2024). Profit margin: 6.4% (up from 6.3% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Annonce • Dec 10
Hosiden Corporation to Report Q3, 2025 Results on Feb 07, 2025 Hosiden Corporation announced that they will report Q3, 2025 results on Feb 07, 2025 Annonce • Dec 03
Hosiden Corporation (TSE:6804) announces an Equity Buyback for 1,500,000 shares, representing 2.88% for ¥3,000 million. Hosiden Corporation (TSE:6804) announces a share repurchase program. Under the program, the company will repurchase 1,500,000 shares, representing 2.88% of the outstanding shares for ¥3,000 million. The purpose of the program is to improve shareholder returns and capital efficiency, as well as to mitigate the short-term impact on the supply and demand of the Company's shares resulting from the issuance of Euro-yen convertible bonds with stock acquisition rights due in 2031 (the "Stock Acquisition Rights Bonds"), and to facilitate smooth fund raising. The program will run until January 31, 2025. As of October 31, 2024, the company had 52,133,331 shares outstanding (excluding treasury stock) and 9,276,753 shares in treasury. Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: JP¥14.60 (vs JP¥70.74 in 2Q 2024) Second quarter 2025 results: EPS: JP¥14.60 (down from JP¥70.74 in 2Q 2024). Revenue: JP¥58.3b (down 15% from 2Q 2024). Net income: JP¥757.0m (down 79% from 2Q 2024). Profit margin: 1.3% (down from 5.3% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Electronic industry in Japan. 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 21% per year, which means it is well ahead of earnings. Annonce • Sep 27
Hosiden Corporation to Report Q2, 2025 Results on Nov 08, 2024 Hosiden Corporation announced that they will report Q2, 2025 results on Nov 08, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥19.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. Payout ratio is a comfortable 30% 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 (1.5%). New Risk • Aug 31
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.2% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (3.2% increase in shares outstanding). Reported Earnings • Aug 11
First quarter 2025 earnings released: EPS: JP¥70.98 (vs JP¥69.78 in 1Q 2024) First quarter 2025 results: EPS: JP¥70.98 (up from JP¥69.78 in 1Q 2024). Revenue: JP¥57.9b (up 2.8% from 1Q 2024). Net income: JP¥3.67b (flat on 1Q 2024). Profit margin: 6.3% (down from 6.5% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. 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 25% per year, which means it is well ahead of earnings. Annonce • Jul 04
Hosiden Corporation to Report Q1, 2025 Results on Aug 09, 2024 Hosiden Corporation announced that they will report Q1, 2025 results on Aug 09, 2024 Reported Earnings • May 13
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: JP¥224 (down from JP¥233 in FY 2023). Revenue: JP¥218.9b (down 21% from FY 2023). Net income: JP¥11.6b (down 8.0% from FY 2023). Profit margin: 5.3% (up from 4.6% in FY 2023). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 1.8%. Earnings per share (EPS) missed analyst estimates by 3.4%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Annonce • May 12
Hosiden Corporation, Annual General Meeting, Jun 26, 2024 Hosiden Corporation, Annual General Meeting, Jun 26, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥24.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 3.7%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.4%). Annonce • Mar 02
Hosiden Corporation to Report Fiscal Year 2024 Results on May 10, 2024 Hosiden Corporation announced that they will report fiscal year 2024 results on May 10, 2024 Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥63.55 (vs JP¥1.34 loss in 3Q 2023) Third quarter 2024 results: EPS: JP¥63.55 (up from JP¥1.34 loss in 3Q 2023). Revenue: JP¥52.6b (down 38% from 3Q 2023). Net income: JP¥3.29b (up JP¥3.36b from 3Q 2023). Profit margin: 6.3% (up from net loss in 3Q 2023). The move to profitability was driven by lower expenses. Revenue is expected to decline by 6.8% p.a. on average during the next 2 years, while revenues in the Electronic industry in Japan are expected to grow by 7.0%. Over the last 3 years on average, earnings per share has increased by 6% 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 • Dec 10
Hosiden Corporation to Report Q3, 2024 Results on Feb 09, 2024 Hosiden Corporation announced that they will report Q3, 2024 results on Feb 09, 2024 Reported Earnings • Nov 11
Second quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2024 results: EPS: JP¥70.74 (up from JP¥63.99 in 2Q 2023). Revenue: JP¥68.6b (up 39% from 2Q 2023). Net income: JP¥3.66b (up 4.0% from 2Q 2023). Profit margin: 5.3% (down from 7.1% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) exceeded analyst estimates by 23%. Revenue is forecast to stay flat during the next 2 years compared to a 7.1% growth forecast for the Electronic industry in Japan. 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 27% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Sep 28
Hosiden Corporation to Report Q2, 2024 Results on Nov 10, 2023 Hosiden Corporation announced that they will report Q2, 2024 results on Nov 10, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥24.00 per share at 2.5% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 04 December 2023. Payout ratio is a comfortable 43% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.4%). New Risk • Aug 11
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.4% Last year net profit margin: 7.5% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (3.4% net profit margin). Reported Earnings • Aug 10
First quarter 2024 earnings released: EPS: JP¥69.78 (vs JP¥135 in 1Q 2023) First quarter 2024 results: EPS: JP¥69.78 (down from JP¥135 in 1Q 2023). Revenue: JP¥56.3b (down 21% from 1Q 2023). Net income: JP¥3.66b (down 51% from 1Q 2023). Profit margin: 6.5% (down from 10% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 3.5% p.a. on average during the next 2 years, compared to a 6.7% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Annonce • May 17
Hosiden Corporation, Annual General Meeting, Jun 29, 2023 Hosiden Corporation, Annual General Meeting, Jun 29, 2023. Reported Earnings • May 15
Full year 2023 earnings: EPS in line with analyst expectations despite revenue beat Full year 2023 results: EPS: JP¥233 (up from JP¥212 in FY 2022). Revenue: JP¥277.2b (up 34% from FY 2022). Net income: JP¥12.6b (up 6.2% from FY 2022). Profit margin: 4.6% (down from 5.7% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.6%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is expected to decline by 8.1% p.a. on average during the next 2 years, while revenues in the Electronic industry in Japan are expected to grow by 6.7%. 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 29% per year, which means it is tracking significantly ahead of earnings growth. Annonce • May 14
Hosiden Corporation (TSE:6804) announces an Equity Buyback for 1,600,000 shares, representing 3% for ¥3,000 million. Hosiden Corporation (TSE:6804) announces a share repurchase program. Under the program, the company will repurchase 1,600,000 shares, representing 3% of the outstanding shares for ¥3,000 million. The purpose of the program is to implement a flexible capital policy that responds to changes in the business environment, and to improve shareholder returns and capital efficiency. Repurchased shares will be cancelled. The program will run until July 14, 2023. As of April 30, 2023, the company had 53,278,306 shares outstanding (excluding treasury stock) and 9,731,778 shares in treasury. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥44.00 per share at 5.1% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 5.1%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: JP¥1.34 loss per share (vs JP¥50.31 profit in 3Q 2022) Third quarter 2023 results: JP¥1.34 loss per share (down from JP¥50.31 profit in 3Q 2022). Revenue: JP¥85.3b (up 45% from 3Q 2022). Net loss: JP¥72.0m (down 102% from profit in 3Q 2022). Revenue is expected to decline by 9.8% p.a. on average during the next 2 years, while revenues in the Electronic industry in Japan are expected to grow by 6.8%. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Annonce • Dec 16
Hosiden Corporation to Report Q3, 2023 Results on Feb 10, 2023 Hosiden Corporation announced that they will report Q3, 2023 results on Feb 10, 2023 Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 5 new directors. 2 experienced directors. 2 highly experienced directors. 2 independent directors (4 non-independent directors). President, CEO & Representative Director Kenji Furuhashi is the most experienced director on the board, commencing their role in 1991. Independent Outside Director Susumu Maruno was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 13
Second quarter 2023 earnings: EPS in line with expectations, revenues disappoint Second quarter 2023 results: EPS: JP¥63.99 (down from JP¥66.87 in 2Q 2022). Revenue: JP¥49.4b (up 8.2% from 2Q 2022). Net income: JP¥3.52b (down 6.8% from 2Q 2022). Profit margin: 7.1% (down from 8.3% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is expected to decline by 1.4% p.a. on average during the next 2 years, while revenues in the Electronic industry in Japan are expected to grow by 6.5%. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Sep 30
Now 21% undervalued Over the last 90 days, the stock is up 19%. The fair value is estimated to be JP¥1,864, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 22%. Revenue is forecast to decline by 14% in 2 years. Earnings is forecast to decline by 58% in the next 2 years. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥23.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 02 December 2022. Payout ratio is a comfortable 21% but the company is paying out more than the cash it is generating. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.6%). Major Estimate Revision • Sep 06
Consensus EPS estimates increase by 27% The consensus outlook for earnings per share (EPS) in 2023 has improved. 2023 revenue forecast increased from JP¥215.0b to JP¥230.0b. EPS estimate increased from JP¥191 to JP¥242 per share. Net income forecast to shrink 31% next year vs 6.7% growth forecast for Electronic industry in Japan . Consensus price target of JP¥1,650 unchanged from last update. Share price was steady at JP¥1,570 over the past week. Major Estimate Revision • Aug 24
Consensus EPS estimates increase by 37% The consensus outlook for earnings per share (EPS) in 2023 has improved. 2023 revenue forecast increased from JP¥207.5b to JP¥215.0b. EPS estimate increased from JP¥139 to JP¥191 per share. Net income forecast to shrink 43% next year vs 6.1% growth forecast for Electronic industry in Japan . Consensus price target up from JP¥1,150 to JP¥1,325. Share price rose 4.3% to JP¥1,601 over the past week. Price Target Changed • Aug 23
Price target increased to JP¥1,325 Up from JP¥1,190, the current price target is an average from 2 analysts. New target price is 15% below last closing price of JP¥1,558. Stock is up 72% over the past year. The company is forecast to post earnings per share of JP¥191 for next year compared to JP¥212 last year. Reported Earnings • Aug 07
First quarter 2023 earnings released: EPS: JP¥135 (vs JP¥39.31 in 1Q 2022) First quarter 2023 results: EPS: JP¥135 (up from JP¥39.31 in 1Q 2022). Revenue: JP¥71.2b (up 39% from 1Q 2022). Net income: JP¥7.42b (up 235% from 1Q 2022). Profit margin: 10% (up from 4.3% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is expected to shrink by 10% compared to a 9.5% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • May 31
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in 2023 has deteriorated. 2023 revenue forecast decreased from JP¥226.0b to JP¥215.5b. EPS estimate also fell from JP¥155 per share to JP¥139 per share. Net income forecast to shrink 36% next year vs 6.8% growth forecast for Electronic industry in Japan . Consensus price target down from JP¥1,190 to JP¥1,150. Share price rose 2.3% to JP¥1,223 over the past week. Reported Earnings • May 17
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: JP¥212 (up from JP¥179 in FY 2021). Revenue: JP¥207.6b (down 11% from FY 2021). Net income: JP¥11.9b (up 15% from FY 2021). Profit margin: 5.7% (up from 4.4% in FY 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) exceeded analyst estimates by 1.6%. Over the next year, revenue is forecast to grow 8.9%, compared to a 8.0% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 5 new directors. 2 experienced directors. 2 highly experienced directors. 2 independent directors (4 non-independent directors). President & Representative Director Kenji Furuhashi is the most experienced director on the board, commencing their role in 1991. Independent Outside Director Susumu Maruno was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 30 June 2022. Payout ratio is a comfortable 9.2% but the company is not cash flow positive. Trailing yield: 4.6%. Within top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.3%). Reported Earnings • Feb 07
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: JP¥50.30 (down from JP¥58.25 in 3Q 2021). Revenue: JP¥58.9b (down 18% from 3Q 2021). Net income: JP¥2.84b (down 16% from 3Q 2021). Profit margin: 4.8% (up from 4.7% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 76%. Over the next year, revenue is forecast to grow 7.5%, compared to a 7.8% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 16% per year. Price Target Changed • Nov 27
Price target increased to JP¥1,175 Up from JP¥1,000, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of JP¥1,203. Stock is up 34% over the past year. The company is forecast to post earnings per share of JP¥184 for next year compared to JP¥179 last year. Major Estimate Revision • Nov 27
Consensus EPS estimates increase to JP¥184 The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from JP¥202.5b to JP¥213.0b. EPS estimate increased from JP¥130 to JP¥184 per share. Net income forecast to shrink 30% next year vs 11% growth forecast for Electronic industry in Japan . Consensus price target up from JP¥1,000 to JP¥1,175. Share price fell 7.4% to JP¥1,203 over the past week. Reported Earnings • Nov 07
Second quarter 2022 earnings released: EPS JP¥66.87 (vs JP¥41.16 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¥45.7b (down 32% from 2Q 2021). Net income: JP¥3.78b (up 57% from 2Q 2021). Profit margin: 8.3% (up from 3.6% 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 6% per year whereas the company’s share price has increased by 9% per year. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment improved over the past week After last week's 24% share price gain to JP¥1,202, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 13x in the Electronic industry in Japan. Total returns to shareholders of 25% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,099 per share. Price Target Changed • Oct 21
Price target decreased to JP¥1,000 Down from JP¥1,150, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of JP¥969. Stock is up 2.5% over the past year. The company is forecast to post earnings per share of JP¥130 for next year compared to JP¥179 last year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 02 December 2021. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.0%). Price Target Changed • Aug 19
Price target decreased to JP¥1,150 Down from JP¥1,250, the current price target is an average from 3 analysts. New target price is 27% above last closing price of JP¥904. Stock is down 0.2% over the past year. Reported Earnings • Aug 09
First quarter 2022 earnings released: EPS JP¥39.31 (vs JP¥19.04 in 1Q 2021) The company reported a solid first quarter result with improved earnings and profit margins, although revenues were flat. First quarter 2022 results: Revenue: JP¥51.1b (flat on 1Q 2021). Net income: JP¥2.22b (up 99% from 1Q 2021). Profit margin: 4.3% (up from 2.2% in 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has increased by 2% per year. Reported Earnings • May 10
Full year 2021 earnings released: EPS JP¥179 (vs JP¥161 in FY 2020) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2021 results: Revenue: JP¥233.9b (up 10% from FY 2020). Net income: JP¥10.3b (up 9.6% from FY 2020). Profit margin: 4.4% (down from 4.5% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 3% per year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 29 June 2021. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.1%). Price Target Changed • Feb 20
Price target raised to JP¥1,185 Up from JP¥1,050, the current price target is an average from 3 analysts. The new target price is 11% above the current share price of JP¥1,071. As of last close, the stock is down 0.7% over the past year. Reported Earnings • Feb 07
Third quarter 2021 earnings released: EPS JP¥58.25 (vs JP¥60.95 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: JP¥71.5b (up 8.8% from 3Q 2020). Net income: JP¥3.38b (down 5.1% from 3Q 2020). Profit margin: 4.7% (down from 5.4% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 11% per year. Analyst Estimate Surprise Post Earnings • Feb 07
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) also surpassed analyst estimates by 3.5%. Over the next year, revenue is expected to shrink by 2.2% compared to a 9.0% growth forecast for the Electronic industry in Japan. Is New 90 Day High Low • Feb 04
New 90-day high: JP¥1,028 The company is up 7.0% from its price of JP¥960 on 06 November 2020. The Japanese market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 18% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥3,342 per share. Is New 90 Day High Low • Dec 18
New 90-day high: JP¥1,011 The company is up 2.0% from its price of JP¥991 on 18 September 2020. The Japanese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 18% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥3,253 per share.