공시 • Dec 02
Seiko PMC Corporation to Delist from Prime Section of Tokyo Stock Exchange Seiko PMC Corporation will be delisted from prime section of Tokyo Stock Exchange effective from December 28, 2023. Delisting is due to Reverse stock split. New Risk • Nov 15
New major risk - Revenue and earnings growth Earnings have declined by 0.3% per year over the past 5 years. 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 declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. 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 Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Earnings have declined by 0.3% per year over the past 5 years. Minor Risk Profit margins are more than 30% lower than last year (4.2% net profit margin). Reported Earnings • Nov 15
Third quarter 2023 earnings released: EPS: JP¥17.32 (vs JP¥14.97 in 3Q 2022) Third quarter 2023 results: EPS: JP¥17.32 (up from JP¥14.97 in 3Q 2022). Revenue: JP¥8.60b (up 4.6% from 3Q 2022). Net income: JP¥525.0m (up 16% from 3Q 2022). Profit margin: 6.1% (up from 5.5% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. 공시 • Oct 12
Seiko PMC Corporation to Report Q3, 2023 Results on Nov 13, 2023 Seiko PMC Corporation announced that they will report Q3, 2023 results on Nov 13, 2023 Valuation Update With 7 Day Price Move • Sep 08
Investor sentiment improves as stock rises 88% After last week's 88% share price gain to JP¥1,066, the stock trades at a trailing P/E ratio of 25.2x. Average trailing P/E is 14x in the Chemicals industry in Japan. Total returns to shareholders of 70% over the past three years. Reported Earnings • Aug 10
Second quarter 2023 earnings released: EPS: JP¥20.98 (vs JP¥22.59 in 2Q 2022) Second quarter 2023 results: EPS: JP¥20.98 (down from JP¥22.59 in 2Q 2022). Revenue: JP¥7.87b (down 6.4% from 2Q 2022). Net income: JP¥636.0m (down 7.2% from 2Q 2022). Profit margin: 8.1% (in line with 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 5% per year. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥8.00 per share at 2.7% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 06 September 2023. Payout ratio is a comfortable 36% but the company is not cash flow positive. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.5%). In line with average of industry peers (2.5%). 공시 • May 28
Seiko PMC Corporation to Report Q2, 2023 Results on Aug 08, 2023 Seiko PMC Corporation announced that they will report Q2, 2023 results on Aug 08, 2023 Reported Earnings • May 14
First quarter 2023 earnings released: EPS: JP¥10.06 (vs JP¥20.48 in 1Q 2022) First quarter 2023 results: EPS: JP¥10.06 (down from JP¥20.48 in 1Q 2022). Revenue: JP¥7.46b (down 1.0% from 1Q 2022). Net income: JP¥305.0m (down 51% from 1Q 2022). Profit margin: 4.1% (down from 8.2% in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 4% per year. Reported Earnings • Apr 01
Full year 2022 earnings released: EPS: JP¥54.32 (vs JP¥68.67 in FY 2021) Full year 2022 results: EPS: JP¥54.32 (down from JP¥68.67 in FY 2021). Revenue: JP¥32.4b (up 4.5% from FY 2021). Net income: JP¥1.65b (down 21% from FY 2021). Profit margin: 5.1% (down from 6.7% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. 공시 • Feb 15
Seiko PMC Corporation, Annual General Meeting, Mar 28, 2023 Seiko PMC Corporation, Annual General Meeting, Mar 28, 2023. Reported Earnings • Feb 15
Full year 2022 earnings released: EPS: JP¥54.32 (vs JP¥68.67 in FY 2021) Full year 2022 results: EPS: JP¥54.32 (down from JP¥68.67 in FY 2021). Revenue: JP¥32.4b (up 4.5% from FY 2021). Net income: JP¥1.65b (down 21% from FY 2021). Profit margin: 5.1% (down from 6.7% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 28 March 2023. Payout ratio is a comfortable 22% but the company is not cash flow positive. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (3.0%). 공시 • Dec 06
Seiko PMC Corporation to Report Fiscal Year 2022 Results on Feb 13, 2023 Seiko PMC Corporation announced that they will report fiscal year 2022 results on Feb 13, 2023 Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: JP¥14.97 (vs JP¥19.06 in 3Q 2021) Third quarter 2022 results: EPS: JP¥14.97 (down from JP¥19.06 in 3Q 2021). Revenue: JP¥8.22b (up 2.4% from 3Q 2021). Net income: JP¥454.0m (down 22% from 3Q 2021). Profit margin: 5.5% (down from 7.2% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 7 highly experienced directors. 1 independent director (8 non-independent directors). Director Naoyoshi Furuta was the last director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: JP¥14.97 (vs JP¥19.06 in 3Q 2021) Third quarter 2022 results: EPS: JP¥14.97 (down from JP¥19.06 in 3Q 2021). Revenue: JP¥8.22b (up 2.4% from 3Q 2021). Net income: JP¥454.0m (down 22% from 3Q 2021). Profit margin: 5.5% (down from 7.2% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 11
Second quarter 2022 earnings released: EPS: JP¥22.59 (vs JP¥11.97 in 2Q 2021) Second quarter 2022 results: EPS: JP¥22.59 (up from JP¥11.97 in 2Q 2021). Revenue: JP¥8.41b (up 13% from 2Q 2021). Net income: JP¥685.0m (up 89% from 2Q 2021). Profit margin: 8.1% (up from 4.9% in 2Q 2021). 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 fallen by 8% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 07 September 2022. Payout ratio is a comfortable 24% but the company is not cash flow positive. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (3.0%). Reported Earnings • May 18
First quarter 2022 earnings released: EPS: JP¥20.48 (vs JP¥23.09 in 1Q 2021) First quarter 2022 results: EPS: JP¥20.48 (down from JP¥23.09 in 1Q 2021). Revenue: JP¥7.53b (flat on 1Q 2021). Net income: JP¥621.0m (down 11% from 1Q 2021). Profit margin: 8.2% (down from 9.3% in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 7 highly experienced directors. 1 independent director (9 non-independent directors). Director Naoyoshi Furuta was the last director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Apr 02
Full year 2021 earnings released: EPS: JP¥68.67 (vs JP¥55.57 in FY 2020) Full year 2021 results: EPS: JP¥68.67 (up from JP¥55.57 in FY 2020). Revenue: JP¥31.0b (up 19% from FY 2020). Net income: JP¥2.08b (up 24% from FY 2020). Profit margin: 6.7% (up from 6.5% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Reported Earnings • Feb 17
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: JP¥68.67 (up from JP¥55.57 in FY 2020). Revenue: JP¥31.0b (up 19% from FY 2020). Net income: JP¥2.08b (up 24% from FY 2020). Profit margin: 6.7% (up from 6.5% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Reported Earnings • Feb 17
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: JP¥68.67 (up from JP¥55.57 in FY 2020). Revenue: JP¥31.0b (up 19% from FY 2020). Net income: JP¥2.08b (up 24% from FY 2020). Profit margin: 6.7% (up from 6.5% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Buying Opportunity • Jan 14
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 17%. The fair value is estimated to be JP¥853, however is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 2.8% per annum over the last 3 years. Earnings per share has grown by 8.3% per annum over the last 3 years. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 29 March 2022. Payout ratio is a comfortable 21% but the company is paying out more than the cash it is generating. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.3%). In line with average of industry peers (2.2%). Reported Earnings • Nov 13
Third quarter 2021 earnings released: EPS JP¥19.06 (vs JP¥14.74 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥8.03b (up 27% from 3Q 2020). Net income: JP¥578.0m (up 29% from 3Q 2020). Profit margin: 7.2% (up from 7.1% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 12
Second quarter 2021 earnings released: EPS JP¥11.97 (vs JP¥7.55 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: JP¥7.47b (up 26% from 2Q 2020). Net income: JP¥363.0m (up 59% from 2Q 2020). Profit margin: 4.9% (up from 3.9% in 2Q 2020). 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 5% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jun 23
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 29 June 2021. Payment date: 08 September 2021. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.1%). In line with average of industry peers (2.1%). Reported Earnings • May 16
First quarter 2021 earnings released: EPS JP¥23.09 (vs JP¥12.86 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: JP¥7.51b (up 14% from 1Q 2020). Net income: JP¥700.0m (up 80% from 1Q 2020). Profit margin: 9.3% (up from 5.9% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Reported Earnings • Feb 14
Full year 2020 earnings released: EPS JP¥55.57 (vs JP¥64.68 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥26.0b (down 6.9% from FY 2019). Net income: JP¥1.69b (down 14% from FY 2019). Profit margin: 6.5% (down from 7.0% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 10% per year, which means it is performing significantly worse than earnings. Is New 90 Day High Low • Jan 08
New 90-day high: JP¥802 The company is up 20% from its price of JP¥670 on 09 October 2020. The Japanese market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 15% over the same period. Is New 90 Day High Low • Dec 04
New 90-day high: JP¥784 The company is up 24% from its price of JP¥631 on 04 September 2020. The Japanese market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 18% over the same period.