공고 • Mar 25
OS Co., Ltd. to Delist from Standard Section of Tokyo Stock Exchange, Effective April 05, 2024 OS Co., Ltd. will be delisted from Standard Section of Tokyo Stock Exchange effective from April 05, 2024. Delisting is due to Reverse stock split. New Risk • Mar 14
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 16% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Earnings have declined by 11% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.9% net profit margin). Reported Earnings • Mar 13
Full year 2024 earnings released: EPS: JP¥22.00 (vs JP¥102 in FY 2023) Full year 2024 results: EPS: JP¥22.00 (down from JP¥102 in FY 2023). Revenue: JP¥7.41b (flat on FY 2023). Net income: JP¥70.0m (down 78% from FY 2023). Profit margin: 0.9% (down from 4.3% in FY 2023). Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. 공고 • Jan 26
Hankyu Hanshin Holdings, Inc. (TSE:9042) completed the acquisition of additional 65.654531% stake in OS Co., Ltd. (TSE:9637) for ¥10.5 billion. Hankyu Hanshin Holdings, Inc. (TSE:9042) made an offer to acquire additional 77.447813% stake in OS Co., Ltd. (TSE:9637) for ¥12.3 billion on December 6, 2023. SMBC Nikko Securities Inc. and KPMG AZSA LLC, Financial Advisory Arm acted as Financial Advisor, Mori Hamada & Matsumoto LPC acted as legal advisor and KPMG Tax Corporation as Accountant to Hankyu Hanshin Holdings, Inc. Daiwa Securities Co. Ltd. acted as Financial advisor and TMI Associates as legal advisor to OS Co., Ltd.Hankyu Hanshin Holdings, Inc. (TSE:9042) completed the acquisition of additional 65.654531% stake in OS Co., Ltd. (TSE:9637) for ¥10.5 billion on January 24, 2024. Following the transaction, Hankyu Hanshin holds 88.15% stake in OS Co., Ltd. Reported Earnings • Dec 15
Third quarter 2024 earnings released: EPS: JP¥6.91 (vs JP¥10.38 in 3Q 2023) Third quarter 2024 results: EPS: JP¥6.91 (down from JP¥10.38 in 3Q 2023). Revenue: JP¥1.71b (down 2.6% from 3Q 2023). Net income: JP¥22.0m (down 33% from 3Q 2023). Profit margin: 1.3% (down from 1.9% in 3Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. New Risk • Dec 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 5.6% per year over the past 5 years. Minor Risks High level of debt (70% net debt to equity). Share price has been volatile over the past 3 months (6.1% average weekly change). Profit margins are more than 30% lower than last year (2.5% net profit margin). Market cap is less than US$100m (JP¥13.1b market cap, or US$90.6m). Valuation Update With 7 Day Price Move • Dec 07
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥4,125, the stock trades at a trailing P/E ratio of 73.8x. Average trailing P/E is 14x in the Industrials industry in Japan. Total returns to shareholders of 41% over the past three years. 공고 • Oct 01
OS Co., Ltd. to Report Q3, 2024 Results on Dec 13, 2023 OS Co., Ltd. announced that they will report Q3, 2024 results on Dec 13, 2023 Reported Earnings • Sep 18
Second quarter 2024 earnings released: EPS: JP¥22.30 (vs JP¥37.12 in 2Q 2023) Second quarter 2024 results: EPS: JP¥22.30 (down from JP¥37.12 in 2Q 2023). Revenue: JP¥1.99b (down 24% from 2Q 2023). Net income: JP¥71.0m (down 40% from 2Q 2023). Profit margin: 3.6% (down from 4.5% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 21
Upcoming dividend of JP¥12.50 per share at 0.7% yield Eligible shareholders must have bought the stock before 28 July 2023. Payment date: 10 October 2023. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 0.7%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (1.8%). Reported Earnings • Jun 16
First quarter 2024 earnings released: EPS: JP¥13.21 (vs JP¥44.41 in 1Q 2023) First quarter 2024 results: EPS: JP¥13.21 (down from JP¥44.41 in 1Q 2023). Revenue: JP¥1.80b (up 31% from 1Q 2023). Net income: JP¥42.0m (down 70% from 1Q 2023). Profit margin: 2.3% (down from 10% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 17
Full year 2023 earnings released: EPS: JP¥102 (vs JP¥155 in FY 2022) Full year 2023 results: EPS: JP¥102 (down from JP¥155 in FY 2022). Revenue: JP¥7.46b (up 34% from FY 2022). Net income: JP¥324.0m (down 34% from FY 2022). Profit margin: 4.3% (down from 8.8% in FY 2022). Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jan 23
Upcoming dividend of JP¥12.50 per share Eligible shareholders must have bought the stock before 30 January 2023. Payment date: 24 April 2023. Payout ratio is a comfortable 24% but the company is not cash flow positive. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (3.0%). 공고 • Jan 06
OS Co., Ltd. to Report Fiscal Year 2023 Results on Mar 16, 2023 OS Co., Ltd. announced that they will report fiscal year 2023 results on Mar 16, 2023 Reported Earnings • Dec 16
Third quarter 2023 earnings released: EPS: JP¥10.38 (vs JP¥134 in 3Q 2022) Third quarter 2023 results: EPS: JP¥10.38 (down from JP¥134 in 3Q 2022). Revenue: JP¥1.76b (up 31% from 3Q 2022). Net income: JP¥33.0m (down 92% from 3Q 2022). Profit margin: 1.9% (down from 32% in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. 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. 7 experienced directors. 3 highly experienced directors. No independent directors (6 non-independent directors). President & Representative Director Shuichiro Takahashi was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. 공고 • Oct 05
OS Co., Ltd. to Report Q3, 2023 Results on Dec 15, 2022 OS Co., Ltd. announced that they will report Q3, 2023 results on Dec 15, 2022 Reported Earnings • Sep 15
Second quarter 2023 earnings released: EPS: JP¥37.12 (vs JP¥7.56 in 2Q 2022) Second quarter 2023 results: EPS: JP¥37.12 (up from JP¥7.56 in 2Q 2022). Revenue: JP¥2.61b (up 115% from 2Q 2022). Net income: JP¥118.0m (up 392% from 2Q 2022). Profit margin: 4.5% (up from 2.0% in 2Q 2022). 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 4% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 21
Upcoming dividend of JP¥12.50 per share Eligible shareholders must have bought the stock before 28 July 2022. Payment date: 04 October 2022. Payout ratio is a comfortable 13% but the company is not cash flow positive. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.7%). 공고 • Jun 29
OS Co., Ltd. to Report Q2, 2023 Results on Sep 12, 2022 OS Co., Ltd. announced that they will report Q2, 2023 results on Sep 12, 2022 Reported Earnings • Jun 14
First quarter 2023 earnings released: EPS: JP¥44.41 (vs JP¥1.89 in 1Q 2022) First quarter 2023 results: EPS: JP¥44.41 (up from JP¥1.89 in 1Q 2022). Revenue: JP¥1.37b (up 2.0% from 1Q 2022). Net income: JP¥141.0m (up JP¥135.0m from 1Q 2022). Profit margin: 10% (up from 0.4% in 1Q 2022). Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. 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. 6 experienced directors. 3 highly experienced directors. No independent directors (5 non-independent directors). President & Representative Director Shuichiro Takahashi was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. 공고 • Apr 08
OS Co., Ltd., Annual General Meeting, Apr 21, 2022 OS Co., Ltd., Annual General Meeting, Apr 21, 2022. Reported Earnings • Mar 18
Full year 2022 earnings: Revenues and EPS in line with analyst expectations Full year 2022 results: EPS: JP¥155 (up from JP¥10.41 loss in FY 2021). Revenue: JP¥5.57b (down 9.1% from FY 2021). Net income: JP¥493.0m (up JP¥526.0m from FY 2021). Profit margin: 8.8% (up from net loss in FY 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jan 21
Upcoming dividend of JP¥12.50 per share Eligible shareholders must have bought the stock before 28 January 2022. Payment date: 23 April 2022. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (1.8%). Reported Earnings • Dec 13
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥134 (up from JP¥10.09 in 3Q 2021). Revenue: JP¥1.34b (down 13% from 3Q 2021). Net income: JP¥425.0m (up JP¥393.0m from 3Q 2021). Profit margin: 32% (up from 2.1% in 3Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Reported Earnings • Sep 15
Second quarter 2022 earnings released: EPS JP¥7.56 (vs JP¥36.59 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¥1.22b (up 26% from 2Q 2021). Net income: JP¥24.0m (up JP¥140.0m from 2Q 2021). Profit margin: 2.0% (up from net loss in 2Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jul 22
Upcoming dividend of JP¥12.50 per share Eligible shareholders must have bought the stock before 29 July 2021. Payment date: 02 October 2021. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.0%). Lower than average of industry peers (1.7%). Reported Earnings • Jun 13
First quarter 2022 earnings released: EPS JP¥1.89 (vs JP¥9.79 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¥1.35b (up 14% from 1Q 2021). Net income: JP¥6.00m (up JP¥37.0m from 1Q 2021). Profit margin: 0.4% (up from net loss in 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. 공고 • Mar 19
OS Co., Ltd., Annual General Meeting, Apr 22, 2021 OS Co., Ltd., Annual General Meeting, Apr 22, 2021. Reported Earnings • Mar 19
Full year 2021 earnings released: JP¥10.41 loss per share (vs JP¥174 profit in FY 2020) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2021 results: Revenue: JP¥6.13b (down 31% from FY 2020). Net loss: JP¥33.0m (down 106% from profit in FY 2020). Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. 공고 • Jan 21
OS Co., Ltd. to Report Fiscal Year 2020 Results on Mar 17, 2021 OS Co., Ltd. announced that they will report fiscal year 2020 results on Mar 17, 2021 Is New 90 Day High Low • Jan 05
New 90-day high: JP¥3,050 The company is up 6.0% from its price of JP¥2,869 on 07 October 2020. The Japanese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Industrials industry, which is also up 6.0% over the same period. Reported Earnings • Dec 14
Third quarter 2021 earnings released: EPS JP¥10.09 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥1.54b (down 19% from 3Q 2020). Net income: JP¥32.0m (down 79% from 3Q 2020). Profit margin: 2.1% (down from 8.1% in 3Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. 공고 • Oct 10
OS Co., Ltd. to Report Q3, 2021 Results on Dec 11, 2020 OS Co., Ltd. announced that they will report Q3, 2021 results on Dec 11, 2020 공고 • Jul 18
OS Co., Ltd. to Report Q2, 2021 Results on Sep 11, 2020 OS Co., Ltd. announced that they will report Q2, 2021 results on Sep 11, 2020