Board Change • Dec 16
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 Koichi Fukuo was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 27
Second quarter 2023 earnings released: EPS: JP¥33.26 (vs JP¥19.36 in 2Q 2022) Second quarter 2023 results: EPS: JP¥33.26 (up from JP¥19.36 in 2Q 2022). Revenue: JP¥291.9b (up 27% from 2Q 2022). Net income: JP¥14.2b (up 72% from 2Q 2022). Profit margin: 4.9% (up from 3.6% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.4% p.a. on average during the next 3 years, compared to a 3.3% decline forecast for the Metals and Mining industry in Europe. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Board Change • Jul 31
High number of new directors Director Mamoru Morita was the last director to join the board, commencing their role in 2020. Reported Earnings • Jul 28
First quarter 2023 earnings released: EPS: JP¥35.24 (vs JP¥7.01 in 1Q 2022) First quarter 2023 results: EPS: JP¥35.24 (up from JP¥7.01 in 1Q 2022). Revenue: JP¥276.8b (up 22% from 1Q 2022). Net income: JP¥15.1b (up 403% from 1Q 2022). Profit margin: 5.4% (up from 1.3% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is expected to shrink by 5.6% compared to a 26% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jun 24
Full year 2022 earnings released Full year 2022 results: Revenue: JP¥942.7b (up 24% from FY 2021). Net income: JP¥12.0b (up JP¥54.3b from FY 2021). Profit margin: 1.3% (up from net loss in FY 2021). Over the next year, revenue is forecast to stay flat compared to a 34% growth forecast for the mining industry in Germany. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Reported Earnings • Apr 29
Full year 2022 earnings released: EPS: JP¥28.14 (vs JP¥98.90 loss in FY 2021) Full year 2022 results: EPS: JP¥28.14 (up from JP¥98.90 loss in FY 2021). Revenue: JP¥942.7b (up 24% from FY 2021). Net income: JP¥12.0b (up JP¥54.3b from FY 2021). Profit margin: 1.3% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Over the next year, revenue is forecast to stay flat compared to a 33% growth forecast for the mining industry in Germany. 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 13% per year, which means it is well ahead of earnings. Board Change • Apr 29
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. No highly experienced directors. Independent Outside Director Toshiko Oka is the most experienced director on the board, commencing their role in 2016. 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 • Feb 02
Third quarter 2022 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2022 results: EPS: JP¥5.31 (up from JP¥1.20 loss in 3Q 2021). Revenue: JP¥234.5b (up 17% from 3Q 2021). Net income: JP¥2.27b (up JP¥2.78b from 3Q 2021). Profit margin: 1.0% (up from net loss in 3Q 2021). Revenue exceeded analyst estimates by 7.7%. Over the next year, revenue is forecast to stay flat compared to a 16% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Board Change • Dec 06
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. No highly experienced directors. Independent Outside Director Toshiko Oka is the most experienced director on the board, commencing their role in 2016. 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 • Oct 27
Second quarter 2022 earnings released: EPS JP¥19.36 (vs JP¥69.86 loss in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥229.5b (up 23% from 2Q 2021). Net income: JP¥8.28b (up JP¥38.1b from 2Q 2021). Profit margin: 3.6% (up from net loss in 2Q 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 88 percentage points per year, which is a significant difference in performance. Reported Earnings • Jul 29
First quarter 2022 earnings released: EPS JP¥7.01 (vs JP¥7.81 loss in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥226.9b (up 47% from 1Q 2021). Net income: JP¥3.00b (up JP¥6.34b from 1Q 2021). Profit margin: 1.3% (up from net loss in 1Q 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 111 percentage points per year, which is a significant difference in performance. Reported Earnings • Apr 28
Full year 2021 earnings released: JP¥98.90 loss per share (vs JP¥88.05 loss in FY 2020) The company reported a poor full year result with increased losses, weaker revenues and weaker control over costs. Full year 2021 results: Revenue: JP¥761.6b (down 14% from FY 2020). Net loss: JP¥42.3b (loss widened 12% from FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 111 percentage points per year, which is a significant difference in performance. Executive Departure • Apr 02
Ex. Officer, GM - Magnetic Materials Busi. Unit & DGM - Advanced Components & Materials Div. has left the company On the 31st of March, Shigekazu Suwabe's tenure in the role of Ex. Officer, GM - Magnetic Materials Busi. Unit & DGM - Advanced Components & Materials Div. ended. As of December 2020, Shigekazu personally held 4.00k shares (€49k worth at the time). A total of 6 executives have left over the last 12 months. Is New 90 Day High Low • Mar 16
New 90-day high: €14.20 The company is up 16% from a price of €12.20 on 16 December 2020. Outperformed the German market which is up 9.0% over the last 90 days. Lagged the Metals and Mining industry, which is up 41% over the same period. Simply Wall St's valuation model estimates the intrinsic value at €6.39 per share. Reported Earnings • Jan 30
Third quarter 2021 earnings released: JP¥1.20 loss per share (vs JP¥4.81 profit in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and control over costs. Third quarter 2021 results: Revenue: JP¥200.6b (down 6.3% from 3Q 2020). Net loss: JP¥511.0m (down 125% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 98% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Jan 30
Revenue beats expectations Revenue exceeded analyst estimates by 7.5%. Over the next year, revenue is forecast to grow 7.9%, compared to a 14% growth forecast for the Metals and Mining industry in Germany. Is New 90 Day High Low • Jan 19
New 90-day high: €13.30 The company is up 2.0% from its price of €13.00 on 21 October 2020. The German market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 52% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €7.32 per share. Analyst Estimate Surprise Post Earnings • Nov 14
Revenue misses expectations Revenue missed analyst estimates by 2.1%. Over the next year, revenue is forecast to grow 1.1%, compared to a 714% growth forecast for the Metals and Mining industry in Germany. Reported Earnings • Nov 14
Second quarter 2021 earnings released: JP¥69.86 loss per share The company reported a decent second quarter result with reduced losses and improved control over expenses, although revenues were weaker. Second quarter 2021 results: Revenue: JP¥186.1b (down 17% from 2Q 2020). Net loss: JP¥29.9b (loss narrowed 33% from 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 96% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Oct 29
Semi-annual earnings released: Revenue misses expectations Semi-annual revenue missed analyst estimates by 2.1% at JP¥340.8b. Revenue is forecast to grow 1.7% over the next year, compared to a 8.2% growth forecast for the Metals and Mining industry in Germany. Reported Earnings • Oct 29
First half earnings released Over the last 12 months the company has reported total losses of JP¥29.9b, with losses narrowing by 21% from the prior year. Total revenue was JP¥765.3b over the last 12 months, down 20% from the prior year. Is New 90 Day High Low • Sep 29
New 90-day high: €13.70 The company is up 28% from its price of €10.70 on 01 July 2020. The German market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €5.71 per share.