Reported Earnings • May 18
First quarter 2026 earnings released: EPS: JP¥25.91 (vs JP¥6.36 in 1Q 2025) First quarter 2026 results: EPS: JP¥25.91 (up from JP¥6.36 in 1Q 2025). Revenue: JP¥9.18b (up 84% from 1Q 2025). Net income: JP¥882.0m (up 338% from 1Q 2025). Profit margin: 9.6% (up from 4.0% in 1Q 2025). The increase in margin was driven by higher revenue. 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 17% per year. New Risk • May 14
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 7.9% 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: Major Risk High level of non-cash earnings (118% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.9% average weekly change). Valuation Update With 7 Day Price Move • May 13
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to JP¥640, the stock trades at a trailing P/E ratio of 19.5x. Average trailing P/E is 15x in the IT industry in Japan. Total returns to shareholders of 99% over the past three years. Board Change • Apr 21
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Ryutaro Takada was the last independent director to join the board, commencing their role in 2025. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Declared Dividend • Apr 11
Final dividend of JP¥9.00 announced Shareholders will receive a dividend of JP¥9.00. Ex-date: 29th June 2026 Payment date: 11th September 2026 Dividend yield will be 3.1%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by earnings (35% 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 40% per year over the past 7 years and payments have been stable during that time. Earnings per share has grown by 12% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 16
Full year 2025 earnings released: EPS: JP¥37.57 (vs JP¥15.71 in FY 2024) Full year 2025 results: EPS: JP¥37.57 (up from JP¥15.71 in FY 2024). Revenue: JP¥25.1b (up 34% from FY 2024). Net income: JP¥1.19b (up 135% from FY 2024). Profit margin: 4.7% (up from 2.7% in FY 2024). 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 increased by 26% per year, which means it is well ahead of earnings. 공시 • Feb 16
Segue Group Co., Ltd., Annual General Meeting, Mar 25, 2026 Segue Group Co., Ltd., Annual General Meeting, Mar 25, 2026. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥531, the stock trades at a trailing P/E ratio of 20.1x. Average trailing P/E is 18x in the IT industry in Japan. Total returns to shareholders of 101% over the past three years. 공시 • Dec 30
Segue Group Co., Ltd. to Report Fiscal Year 2025 Results on Feb 13, 2026 Segue Group Co., Ltd. announced that they will report fiscal year 2025 results on Feb 13, 2026 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥7.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 27 March 2026. Payout ratio is a comfortable 45% but the company is not cash flow positive. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.2%). Valuation Update With 7 Day Price Move • Nov 20
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥762, the stock trades at a trailing P/E ratio of 28.8x. Average trailing P/E is 17x in the IT industry in Japan. Total returns to shareholders of 163% over the past three years. Reported Earnings • Nov 17
Third quarter 2025 earnings released: EPS: JP¥17.17 (vs JP¥5.63 in 3Q 2024) Third quarter 2025 results: EPS: JP¥17.17 (up from JP¥5.63 in 3Q 2024). Revenue: JP¥7.86b (up 43% from 3Q 2024). Net income: JP¥545.0m (up 203% from 3Q 2024). Profit margin: 6.9% (up from 3.3% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 32% per year, which means it is well ahead of earnings. 공시 • Sep 27
Segue Group Co., Ltd. to Report Q3, 2025 Results on Nov 13, 2025 Segue Group Co., Ltd. announced that they will report Q3, 2025 results on Nov 13, 2025 Declared Dividend • Sep 12
First half dividend of JP¥7.00 announced Shareholders will receive a dividend of JP¥7.00. Ex-date: 29th December 2025 Payment date: 27th March 2026 Dividend yield will be 2.0%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by earnings (80% 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 36% per year over the past 7 years and payments have been stable during that time. Earnings per share has grown by 2.9% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Aug 20
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to JP¥651, the stock trades at a trailing P/E ratio of 43.5x. Average trailing P/E is 17x in the IT industry in Japan. Total returns to shareholders of 241% over the past three years. Reported Earnings • Aug 15
First half 2025 earnings released: EPS: JP¥12.72 (vs JP¥13.30 in 1H 2024) First half 2025 results: EPS: JP¥12.72 (down from JP¥13.30 in 1H 2024). Revenue: JP¥10.0b (up 19% from 1H 2024). Net income: JP¥402.8m (down 7.2% from 1H 2024). Profit margin: 4.0% (down from 5.2% in 1H 2024). Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 46% per year, which means it is well ahead of earnings. 공시 • Jun 29
Segue Group Co., Ltd. to Report Q2, 2025 Results on Aug 13, 2025 Segue Group Co., Ltd. announced that they will report Q2, 2025 results on Aug 13, 2025 Upcoming Dividend • Jun 20
Upcoming dividend of JP¥6.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 12 September 2025. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (4.0%). Higher than average of industry peers (1.2%). Reported Earnings • May 19
First quarter 2025 earnings released: EPS: JP¥4.42 (vs JP¥16.15 in 1Q 2024) First quarter 2025 results: EPS: JP¥4.42 (down from JP¥16.15 in 1Q 2024). Revenue: JP¥4.79b (down 3.3% from 1Q 2024). Net income: JP¥140.0m (down 74% from 1Q 2024). Profit margin: 2.9% (down from 11% in 1Q 2024). The decrease in margin was primarily driven by higher expenses. 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 41% per year, which means it is well ahead of earnings. Declared Dividend • Apr 11
Final dividend of JP¥6.00 announced Shareholders will receive a dividend of JP¥6.00. Ex-date: 27th June 2025 Payment date: 12th September 2025 Dividend yield will be 2.6%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (48% earnings payout ratio) and cash flows (27% cash payout ratio). The dividend has increased by an average of 41% per year over the past 6 years and payments have been stable during that time. Earnings per share has grown by 5.1% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. 공시 • Apr 09
Segue Group Co., Ltd. to Report Q1, 2025 Results on May 13, 2025 Segue Group Co., Ltd. announced that they will report Q1, 2025 results on May 13, 2025 New Risk • Apr 07
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥13.7b (US$93.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.6% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (JP¥13.7b market cap, or US$93.8m). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥414, the stock trades at a trailing P/E ratio of 27.1x. Average trailing P/E is 15x in the IT industry in Japan. Total returns to shareholders of 124% over the past three years. New Risk • Mar 25
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.5% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (7.5% average weekly change). Minor Risk Large one-off items impacting financial results. 공시 • Feb 27
Segue Group Co., Ltd. Announces Cash Dividend for the Fiscal Year Ended December 31, 2024, Payable on March 27, 2025; Provides Dividend Guidance for the Second Quarter of Fiscal Year Ending December 31, 2025; Provides Dividend Guidance for the Year Ending December 31, 2025 Segue Group Co., Ltd. announced cash dividend for the fiscal year ended December 31, 2024. For the year, the company announced dividend of JPY 6.00 per share against JPY 15.00 per share a year ago. Scheduled date to commence dividend payments is March 27, 2025.
For the second quarter of fiscal year ending December 31, 2025, the company expects to pay dividend of JPY 6.00 per share against JPY 5.00 per share a year ago.
For the year ending December 31, 2025, the company expects to pay dividend of JPY 7.00 per share against JPY 6.00 per share a year ago. 공시 • Feb 25
Segue Group Co., Ltd. Provides Consolidated Earnings Guidance for the Year Ending December 31, 2025 Segue Group Co., Ltd. provided consolidated earnings guidance for the year ending December 31, 2025. For the year, the company expects net sales of JPY 22,500 million, operating profit of JPY 1,260 million, profit attributable to owners of parent of JPY 701 Million or JPY 22.15 basic earnings per share. Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment deteriorates as stock falls 28% After last week's 28% share price decline to JP¥479, the stock trades at a trailing P/E ratio of 30x. Average trailing P/E is 18x in the IT industry in Japan. Total returns to shareholders of 202% over the past three years. New Risk • Feb 19
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.8b (US$97.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.7% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (JP¥14.8b market cap, or US$97.8m). Reported Earnings • Feb 15
Full year 2024 earnings released: EPS: JP¥15.62 (vs JP¥19.62 in FY 2023) Full year 2024 results: EPS: JP¥15.62 (down from JP¥19.62 in FY 2023). Revenue: JP¥18.7b (up 7.3% from FY 2023). Net income: JP¥507.0m (down 23% from FY 2023). Profit margin: 2.7% (down from 3.8% in FY 2023). 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 47% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Feb 14
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 5.3% 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 (5.3% average weekly change). Large one-off items impacting financial results. 공시 • Feb 13
Segue Group Co., Ltd., Annual General Meeting, Mar 26, 2025 Segue Group Co., Ltd., Annual General Meeting, Mar 26, 2025. 공시 • Jan 03
Segue Group Co., Ltd. to Report Fiscal Year 2024 Results on Feb 13, 2025 Segue Group Co., Ltd. announced that they will report fiscal year 2024 results on Feb 13, 2025 Upcoming Dividend • Dec 20
Upcoming dividend of JP¥6.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 27 March 2025. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.4%). 공시 • Nov 14
Segue Group Co., Ltd. (TSE:3968) announces an Equity Buyback for 400,000 shares, representing 1.23% for ¥230 million. Segue Group Co., Ltd. (TSE:3968) announces a share repurchase program. Under the program, the company will repurchase up to 400,000 shares, representing 1.23% of its issued share capital (excluding treasury stocks) for ¥230 million. The purpose of the program is to enhance capital efficiency, shareholder returns and implement flexible capital policies that respond to changes in the business environment. The program will be valid till December 23, 2024. As of November 5, 2024, the company had 32,560,086 shares outstanding and no treasury shares. 공시 • Sep 26
Segue Group Co., Ltd. to Report Q3, 2024 Results on Nov 13, 2024 Segue Group Co., Ltd. announced that they will report Q3, 2024 results on Nov 13, 2024 공시 • Aug 21
Segue Group Co., Ltd. Provides Consolidated Earnings Guidance for the Year Ending December 31, 2024 Segue Group Co., Ltd. provided consolidated earnings guidance for the year ending December 31, 2024. For the year, the company expects net sales of JPY 18,800 million, operating profit of JPY 960 million, profit attributable to owners of parent of JPY 773 million and basic earnings per share of JPY 22.73. Declared Dividend • Aug 15
Dividend of JP¥6.00 announced Shareholders will receive a dividend of JP¥6.00. Ex-date: 27th December 2024 Payment date: 27th March 2025 Dividend yield will be 1.9%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (36% earnings payout ratio) and cash flows (27% cash payout ratio). The dividend has increased by an average of 37% per year over the past 6 years and payments have been stable during that time. Earnings per share has grown by 27% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥505, the stock trades at a trailing P/E ratio of 17.5x. Average trailing P/E is 17x in the IT industry in Japan. Total returns to shareholders of 61% over the past three years. Buy Or Sell Opportunity • Jul 25
Now 21% undervalued Over the last 90 days, the stock has risen 24% to JP¥620. The fair value is estimated to be JP¥785, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 15%. 공시 • Jun 27
Segue Group Co., Ltd. to Report Q2, 2024 Results on Aug 13, 2024 Segue Group Co., Ltd. announced that they will report Q2, 2024 results on Aug 13, 2024 Upcoming Dividend • Jun 20
Upcoming dividend of JP¥5.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 17 September 2024. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.6%). Buy Or Sell Opportunity • Jun 13
Now 20% undervalued Over the last 90 days, the stock has risen 5.2% to JP¥624. The fair value is estimated to be JP¥783, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 15%. New Risk • May 18
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 31% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (109% payout ratio). Share price has been volatile over the past 3 months (5.9% average weekly change). Large one-off items impacting financial results. Reported Earnings • May 18
First quarter 2024 earnings released: EPS: JP¥16.15 (vs JP¥8.24 in 1Q 2023) First quarter 2024 results: EPS: JP¥16.15 (up from JP¥8.24 in 1Q 2023). Revenue: JP¥4.95b (up 8.6% from 1Q 2023). Net income: JP¥539.0m (up 95% from 1Q 2023). Profit margin: 11% (up from 6.1% in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 11% per year. Declared Dividend • Apr 11
Final dividend of JP¥5.00 announced Shareholders will receive a dividend of JP¥5.00. Ex-date: 27th June 2024 Payment date: 17th September 2024 Dividend yield will be 3.9%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (49% earnings payout ratio) and cash flows (25% cash payout ratio). The dividend has increased by an average of 43% per year over the past 5 years and payments have been stable during that time. Earnings per share has grown by 13% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. 공시 • Mar 27
Segue Group Co., Ltd. to Report Q1, 2024 Results on May 14, 2024 Segue Group Co., Ltd. announced that they will report Q1, 2024 results on May 14, 2024 공시 • Mar 22
Segue Group Co., Ltd. (TSE:3968) announces an Equity Buyback for 1,800,000 shares, for ¥1,053 million. Segue Group Co.,Ltd. (TSE:3968) announces a share repurchase program. Under the program, the company will repurchase up to 1,800,000 shares, representing 5.29% of its issued share capital for ¥1,053 million. The shares will be repurchased at ¥585 per share. The purpose of the program is to comprehensively consider the company's stock price level, market environment, etc., and to be able to implement a flexible capital policy in response to changes in the business environment. As of February 29, 2024, the company had 34,036,293 shares issued (excluding treasury stock) and 0 shares in treasury. 공시 • Feb 15
Segue Group Co., Ltd., Annual General Meeting, Mar 26, 2024 Segue Group Co., Ltd., Annual General Meeting, Mar 26, 2024. Reported Earnings • Feb 15
Full year 2023 earnings released: EPS: JP¥58.85 (vs JP¥66.45 in FY 2022) Full year 2023 results: EPS: JP¥58.85 (down from JP¥66.45 in FY 2022). Revenue: JP¥17.4b (up 28% from FY 2022). Net income: JP¥660.0m (down 11% from FY 2022). Profit margin: 3.8% (down from 5.5% in FY 2022). The decrease in margin was driven by higher expenses. 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 3% per year, which means it is significantly lagging earnings growth. New Risk • Feb 14
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 5.5% 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 Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.5% average weekly change). Profit margins are more than 30% lower than last year (4.2% net profit margin). Market cap is less than US$100m (JP¥12.5b market cap, or US$82.9m). Valuation Update With 7 Day Price Move • Feb 14
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥1,112, the stock trades at a trailing P/E ratio of 16.5x. Average trailing P/E is 18x in the IT industry in Japan. Total loss to shareholders of 8.2% over the past three years. 공시 • Dec 27
Segue Group Co., Ltd. to Report Fiscal Year 2023 Results on Feb 13, 2024 Segue Group Co., Ltd. announced that they will report fiscal year 2023 results on Feb 13, 2024 Upcoming Dividend • Dec 21
Upcoming dividend of JP¥15.00 per share at 3.3% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 29 March 2024. Payout ratio is a comfortable 49% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.5%). Reported Earnings • Nov 16
Third quarter 2023 earnings released: EPS: JP¥16.85 (vs JP¥15.02 in 3Q 2022) Third quarter 2023 results: EPS: JP¥16.85 (up from JP¥15.02 in 3Q 2022). Revenue: JP¥4.35b (up 38% from 3Q 2022). Net income: JP¥189.0m (up 13% from 3Q 2022). Profit margin: 4.3% (down from 5.3% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. 공시 • Sep 27
Segue Group Co., Ltd. to Report Q3, 2023 Results on Nov 13, 2023 Segue Group Co., Ltd. announced that they will report Q3, 2023 results on Nov 13, 2023 New Risk • Aug 19
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 60% 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 (60% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.1% average weekly change). Market cap is less than US$100m (JP¥9.96b market cap, or US$68.5m). Reported Earnings • Aug 11
Second quarter 2023 earnings released: EPS: JP¥11.59 (vs JP¥21.01 in 2Q 2022) Second quarter 2023 results: EPS: JP¥11.59 (down from JP¥21.01 in 2Q 2022). Revenue: JP¥4.50b (up 69% from 2Q 2022). Net income: JP¥130.0m (down 45% from 2Q 2022). Profit margin: 2.9% (down from 8.8% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 10
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥908, the stock trades at a trailing P/E ratio of 12.1x. Average trailing P/E is 19x in the IT industry in Japan. Total returns to shareholders of 8.3% over the past three years. 공시 • Jun 26
Segue Group Co.,Ltd. to Report Q2, 2023 Results on Aug 09, 2023 Segue Group Co.,Ltd. announced that they will report Q2, 2023 results on Aug 09, 2023 New Risk • Jun 23
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.8% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (7.8% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (JP¥12.4b market cap, or US$86.7m). Reported Earnings • May 12
First quarter 2023 earnings released: EPS: JP¥24.71 (vs JP¥16.21 in 1Q 2022) First quarter 2023 results: EPS: JP¥24.71 (up from JP¥16.21 in 1Q 2022). Revenue: JP¥4.56b (up 37% from 1Q 2022). Net income: JP¥277.0m (up 53% from 1Q 2022). Profit margin: 6.1% (up from 5.4% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.3% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 11
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥957, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 18x in the IT industry in Japan. Total returns to shareholders of 16% over the past three years. Reported Earnings • Apr 01
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: JP¥66.45 (up from JP¥39.56 in FY 2021). Revenue: JP¥13.6b (up 13% from FY 2021). Net income: JP¥743.0m (up 64% from FY 2021). Profit margin: 5.5% (up from 3.8% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) missed analyst estimates by 13%. Revenue is forecast to grow 9.6% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Feb 15
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: JP¥66.45 (up from JP¥39.56 in FY 2021). Revenue: JP¥13.6b (up 13% from FY 2021). Net income: JP¥743.0m (up 64% from FY 2021). Profit margin: 5.5% (up from 3.8% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) missed analyst estimates by 13%. Revenue is forecast to grow 9.6% p.a. on average during the next 2 years, compared to a 6.6% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. 공시 • Feb 14
Segue Group Co.,Ltd., Annual General Meeting, Mar 28, 2023 Segue Group Co.,Ltd., Annual General Meeting, Mar 28, 2023. 공시 • Dec 26
Segue Group Co.,Ltd. to Report Q4, 2022 Results on Feb 13, 2023 Segue Group Co.,Ltd. announced that they will report Q4, 2022 results on Feb 13, 2023 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 27 March 2023. Payout ratio is a comfortable 37% but the company is not cash flow positive. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.7%). 공시 • Dec 13
Segue Group Co.,Ltd. Revises Year End Dividend Guidance for the Full Year 2022 Segue Group Co.,Ltd. revised year end dividend guidance for the full year 2022. For the period, the company expected dividend of JPY 18 per share compared to previous guidance of JPY 16 per share. 공시 • Dec 01
Segue Group Co.,Ltd. Provides Consolidated Earnings Guidance for the Full Year Ending December 31, 2022 Segue Group Co.,Ltd. provided consolidated earnings guidance for the full year ending December 31, 2022. For the period, the company expects net sales to be JPY 13,300 million, operating income to be JPY 760 million, net income attributable to owners of parent to be JPY 656 million and net income per share to be JPY 58.75.