Valuation Update With 7 Day Price Move • 14h
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥3,300, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 15x in the Chemicals industry in Japan. Total returns to shareholders of 140% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,521 per share. Declared Dividend • Jul 25
Final dividend of JP¥14.00 announced Shareholders will receive a dividend of JP¥14.00. Ex-date: 29th September 2026 Payment date: 10th December 2026 Dividend yield will be 0.7%, which is lower than the industry average of 2.2%. Payout Ratios Payout ratio: 61%. Cash payout ratio: 20%. Valuation Update With 7 Day Price Move • Jun 19
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥4,585, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 15x in the Chemicals industry in Japan. Total returns to shareholders of 244% over the past three years. Major Estimate Revision • Jun 18
Consensus EPS estimates increase by 25% The consensus outlook for fiscal year 2027 has been updated. 2027 EPS estimate increased from JP¥163 to JP¥203. Revenue forecast steady at JP¥88.4b. Net income forecast to grow 51% next year vs 5.3% growth forecast for Chemicals industry in Japan. Consensus price target up from JP¥4,750 to JP¥5,200. Share price rose 14% to JP¥4,410 over the past week. Price Target Changed • May 25
Price target increased by 10% to JP¥4,750 Up from JP¥4,300, the current price target is an average from 2 analysts. New target price is 5.2% above last closing price of JP¥4,515. Stock is up 269% over the past year. The company is forecast to post earnings per share of JP¥163 for next year compared to JP¥406 last year. Board Change • May 25
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Outside Director Kei Takeuchi was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Aankondiging • May 11
Fuso Chemical Co.,Ltd., Annual General Meeting, Jun 23, 2026 Fuso Chemical Co.,Ltd., Annual General Meeting, Jun 23, 2026. Aankondiging • May 09
Fuso Chemical Co.,Ltd. to Report Fiscal Year 2026 Results on May 11, 2026 Fuso Chemical Co.,Ltd. announced that they will report fiscal year 2026 results on May 11, 2026 Reported Earnings • Feb 07
Third quarter 2026 earnings released: EPS: JP¥108 (vs JP¥101 in 3Q 2025) Third quarter 2026 results: EPS: JP¥108 (up from JP¥101 in 3Q 2025). Revenue: JP¥20.2b (up 14% from 3Q 2025). Net income: JP¥3.81b (up 7.0% from 3Q 2025). Profit margin: 19% (down from 20% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Chemicals 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 29% per year, which means it is well ahead of earnings. Price Target Changed • Jan 20
Price target increased by 12% to JP¥6,650 Up from JP¥5,950, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of JP¥6,810. Stock is up 100% over the past year. The company is forecast to post earnings per share of JP¥350 for next year compared to JP¥330 last year. New Risk • Dec 16
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 5.6% 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. This is currently the only risk that has been identified for the company. Aankondiging • Dec 13
Fuso Chemical Co.,Ltd. to Report Q3, 2026 Results on Feb 06, 2026 Fuso Chemical Co.,Ltd. announced that they will report Q3, 2026 results on Feb 06, 2026 Declared Dividend • Dec 11
First half dividend of JP¥41.00 announced Shareholders will receive a dividend of JP¥41.00. Ex-date: 30th March 2026 Payment date: 23rd June 2026 Dividend yield will be 1.3%, which is lower than the industry average of 2.2%. Sustainability & Growth Dividend is covered by both earnings (22% earnings payout ratio) and cash flows (56% cash payout ratio). The dividend has increased by an average of 18% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 19% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 01
Second quarter 2026 earnings released: EPS: JP¥107 (vs JP¥77.25 in 2Q 2025) Second quarter 2026 results: EPS: JP¥107 (up from JP¥77.25 in 2Q 2025). Revenue: JP¥19.0b (up 9.9% from 2Q 2025). Net income: JP¥3.77b (up 39% from 2Q 2025). Profit margin: 20% (up from 16% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Aankondiging • Sep 23
Fuso Chemical Co.,Ltd. to Report Q2, 2026 Results on Oct 31, 2025 Fuso Chemical Co.,Ltd. announced that they will report Q2, 2026 results on Oct 31, 2025 Aankondiging • Sep 16
Fuso Chemical Co.,Ltd. Announces New Position of Norikazu Miyamoto as the Board Director, Division Manager of Production Division, Effective from October 1, 2025 FUSO CHEMICAL CO., LTD. announced a personnel change following a Board of Directors meeting held on September 16, 2025, the Company resolved to implement the following personnel change. Norikazu Miyamoto, currently serving as Board Director, Division Manager of Production Division, and Department Manager of Osaka Production Department, General Manager of Kyoto Planthas been appointed to new position as the Board Director, Division Manager of Production Division. Effective Date: October 1, 2025. Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: JP¥88.07 (vs JP¥81.83 in 1Q 2025) First quarter 2026 results: EPS: JP¥88.07 (up from JP¥81.83 in 1Q 2025). Revenue: JP¥18.7b (up 7.0% from 1Q 2025). Net income: JP¥3.11b (up 7.6% from 1Q 2025). Profit margin: 17% (in line with 1Q 2025). Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Price Target Changed • Jul 29
Price target increased by 26% to JP¥5,067 Up from JP¥4,033, the current price target is an average from 3 analysts. New target price is 19% above last closing price of JP¥4,250. Stock is up 13% over the past year. The company is forecast to post earnings per share of JP¥296 for next year compared to JP¥330 last year. Declared Dividend • Jul 09
Final dividend of JP¥38.00 announced Shareholders will receive a dividend of JP¥38.00. Ex-date: 29th September 2025 Payment date: 10th December 2025 Dividend yield will be 1.9%, which is lower than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (21% earnings payout ratio) but not covered by cash flows (102% cash payout ratio). 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 16% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Aankondiging • Jun 24
Fuso Chemical Co.,Ltd. to Report Q1, 2026 Results on Aug 08, 2025 Fuso Chemical Co.,Ltd. announced that they will report Q1, 2026 results on Aug 08, 2025 Reported Earnings • Jun 24
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: JP¥330 (up from JP¥237 in FY 2024). Revenue: JP¥69.5b (up 18% from FY 2024). Net income: JP¥11.6b (up 39% from FY 2024). Profit margin: 17% (up from 14% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Reported Earnings • May 13
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: JP¥330 (up from JP¥237 in FY 2024). Revenue: JP¥69.5b (up 18% from FY 2024). Net income: JP¥11.6b (up 39% from FY 2024). Profit margin: 17% (up from 14% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 7.2% p.a. on average during the next 2 years, compared to a 4.5% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥38.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 24 June 2025. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (2.6%). Major Estimate Revision • Mar 12
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥68.3b to JP¥70.1b. EPS estimate increased from JP¥296 to JP¥329 per share. Net income forecast to shrink 4.5% next year vs 8.3% growth forecast for Chemicals industry in Japan . Consensus price target of JP¥4,300 unchanged from last update. Share price rose 2.4% to JP¥3,460 over the past week. Aankondiging • Mar 04
Fuso Chemical Co.,Ltd. to Report Fiscal Year 2025 Results on May 12, 2025 Fuso Chemical Co.,Ltd. announced that they will report fiscal year 2025 results on May 12, 2025 Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥101 (vs JP¥51.60 in 3Q 2024) Third quarter 2025 results: EPS: JP¥101 (up from JP¥51.60 in 3Q 2024). Revenue: JP¥17.7b (up 10% from 3Q 2024). Net income: JP¥3.56b (up 96% from 3Q 2024). Profit margin: 20% (up from 11% in 3Q 2024). Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Chemicals industry in Japan. 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. Aankondiging • Jan 03
Fuso Chemical Co.,Ltd. to Report Q3, 2025 Results on Feb 07, 2025 Fuso Chemical Co.,Ltd. announced that they will report Q3, 2025 results on Feb 07, 2025 Declared Dividend • Dec 11
First half dividend of JP¥35.00 announced Shareholders will receive a dividend of JP¥35.00. Ex-date: 28th March 2025 Payment date: 24th June 2025 Dividend yield will be 2.0%, which is lower than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (25% earnings payout ratio) and cash flows (46% cash payout ratio). The dividend has increased by an average of 28% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 23% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Nov 06
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.8% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 02
Second quarter 2025 earnings released: EPS: JP¥77.25 (vs JP¥52.01 in 2Q 2024) Second quarter 2025 results: EPS: JP¥77.25 (up from JP¥52.01 in 2Q 2024). Revenue: JP¥17.3b (up 28% from 2Q 2024). Net income: JP¥2.72b (up 49% from 2Q 2024). Profit margin: 16% (up from 14% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Chemicals industry in Japan. 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 9% per year. Aankondiging • Sep 17
Fuso Chemical Co.,Ltd. Increases Dividends Forecast for the Second Quarter and Fiscal Year Ending March 2025 FUSO CHEMICAL CO., LTD. announced increased dividends forecast for the second quarter end and year-end of fiscal year ending March 2025. For the end of second quarter, the company now expects to pay ¥35 against ¥33 as previously forecasted.
For the year ending 2025, the company now expects to pay ¥35 against ¥33 as previously forecasted. Reason for Revision: As reported in the "First Quarter Financial Results for the Fiscal Year Ending March 2025" announced on August 7, 2024, the company have revised earnings forecast for this consolidated accounting year. The company revised consolidated net sales forecast upward from ¥65 billion to ¥68 billion, and operating profit upward from ¥11.15 billion to ¥13.5 billion. Considering this, as well as the need to maintain internal reserves for future group business expansion and to ensure stable profit returns for shareholders, the company have decided to revise the interim dividend forecast for the fiscal year ending March 2025, announced on May 10, 2025, from ¥33 per share to an increase of ¥2 to ¥35 per share. Similarly, the company revised the year-end dividend forecast from the initial forecast of ¥33 per share to an increase of ¥2 to ¥35 per share. As a result, the annual dividends forecast for the fiscal year ending March 2025 will be ¥70 per share. Aankondiging • Sep 03
Fuso Chemical Co.,Ltd. to Report Q2, 2025 Results on Oct 31, 2024 Fuso Chemical Co.,Ltd. announced that they will report Q2, 2025 results on Oct 31, 2024 Declared Dividend • Aug 13
Dividend of JP¥33.00 announced Dividend of JP¥33.00 is the same as last year. Ex-date: 27th September 2024 Payment date: 9th December 2024 Dividend yield will be 1.7%, which is lower than the industry average of 2.2%. Sustainability & Growth Dividend is covered by both earnings (27% earnings payout ratio) and cash flows (59% cash payout ratio). The dividend has increased by an average of 27% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 22% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 12
First quarter 2025 earnings released: EPS: JP¥81.83 (vs JP¥69.63 in 1Q 2024) First quarter 2025 results: EPS: JP¥81.83 (up from JP¥69.63 in 1Q 2024). Revenue: JP¥17.4b (up 28% from 1Q 2024). Net income: JP¥2.88b (up 18% from 1Q 2024). Profit margin: 17% (down from 18% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Chemicals 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 fallen by 4% per year, which means it is significantly lagging earnings. Major Estimate Revision • Aug 09
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥67.4b to JP¥70.0b. EPS estimate increased from JP¥263 to JP¥290 per share. Net income forecast to grow 23% next year vs 8.7% growth forecast for Chemicals industry in Japan. Consensus price target down from JP¥4,500 to JP¥4,333. Share price rose 4.0% to JP¥3,790 over the past week. Reported Earnings • Jun 28
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥237 (down from JP¥401 in FY 2023). Revenue: JP¥59.0b (down 14% from FY 2023). Net income: JP¥8.34b (down 41% from FY 2023). Profit margin: 14% (down from 21% in FY 2023). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.7%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Aankondiging • Jun 14
Fuso Chemical Co.,Ltd. to Report Q1, 2025 Results on Aug 07, 2024 Fuso Chemical Co.,Ltd. announced that they will report Q1, 2025 results on Aug 07, 2024 Reported Earnings • May 12
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥237 (down from JP¥401 in FY 2023). Revenue: JP¥59.0b (down 14% from FY 2023). Net income: JP¥8.34b (down 41% from FY 2023). Profit margin: 14% (down from 21% in FY 2023). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.7%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. New Risk • Apr 16
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.6% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (25% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. New Risk • Mar 26
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 5.8% 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 (25% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (5.8% average weekly change). Upcoming Dividend • Mar 21
Upcoming dividend of JP¥33.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 25% but the company is not cash flow positive. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (2.1%). Aankondiging • Mar 16
Fuso Chemical Co.,Ltd., Annual General Meeting, Jun 21, 2024 Fuso Chemical Co.,Ltd., Annual General Meeting, Jun 21, 2024. Agenda: To approve the appointment of External Board Director. Aankondiging • Mar 03
Fuso Chemical Co.,Ltd. to Report Fiscal Year 2024 Results on May 10, 2024 Fuso Chemical Co.,Ltd. announced that they will report fiscal year 2024 results on May 10, 2024 Buy Or Sell Opportunity • Feb 15
Now 21% undervalued Over the last 90 days, the stock has risen 12% to JP¥4,655. The fair value is estimated to be JP¥5,888, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 18%. Revenue is forecast to grow by 25% in 2 years. Earnings are forecast to grow by 23% in the next 2 years. Reported Earnings • Feb 02
Third quarter 2024 earnings released: EPS: JP¥51.60 (vs JP¥99.08 in 3Q 2023) Third quarter 2024 results: EPS: JP¥51.60 (down from JP¥99.08 in 3Q 2023). Revenue: JP¥16.0b (down 7.4% from 3Q 2023). Net income: JP¥1.82b (down 48% from 3Q 2023). Profit margin: 11% (down from 20% in 3Q 2023). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Chemicals 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 only increased by 8% per year, which means it is significantly lagging earnings growth. Aankondiging • Dec 07
Fuso Chemical Co.,Ltd. to Report Q3, 2024 Results on Jan 31, 2024 Fuso Chemical Co.,Ltd. announced that they will report Q3, 2024 results on Jan 31, 2024 Reported Earnings • Nov 02
Second quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2024 results: EPS: JP¥52.01 (down from JP¥109 in 2Q 2023). Revenue: JP¥13.5b (down 24% from 2Q 2023). Net income: JP¥1.83b (down 52% from 2Q 2023). Profit margin: 14% (down from 22% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) exceeded analyst estimates by 4.7%. Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Chemicals industry in Japan. 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. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥33.00 per share at 1.7% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 11 December 2023. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (2.5%). Major Estimate Revision • Sep 19
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥61.6b to JP¥59.5b. EPS estimate also fell from JP¥257 per share to JP¥227 per share. Net income forecast to shrink 34% next year vs 6.5% growth forecast for Chemicals industry in Japan . Consensus price target broadly unchanged at JP¥5,167. Share price fell 2.2% to JP¥3,990 over the past week. Aankondiging • Sep 06
Fuso Chemical Co.,Ltd. to Report Q2, 2024 Results on Oct 31, 2023 Fuso Chemical Co.,Ltd. announced that they will report Q2, 2024 results on Oct 31, 2023 New Risk • Aug 03
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 30% 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 Risks Earnings are forecast to decline by an average of 1.4% per year for the foreseeable future. High level of non-cash earnings (30% accrual ratio). Reported Earnings • Aug 01
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: JP¥69.63 (down from JP¥104 in 1Q 2023). Revenue: JP¥13.6b (down 22% from 1Q 2023). Net income: JP¥2.45b (down 33% from 1Q 2023). Profit margin: 18% (down from 21% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 18%. Earnings per share (EPS) also missed analyst estimates by 2.6%. Revenue is forecast to grow 8.3% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Aankondiging • Jun 07
Fuso Chemical Co.,Ltd. to Report Q1, 2024 Results on Jul 31, 2023 Fuso Chemical Co.,Ltd. announced that they will report Q1, 2024 results on Jul 31, 2023 Major Estimate Revision • May 23
Consensus EPS estimates fall by 18% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from JP¥347 to JP¥284 per share. Revenue forecast steady at JP¥70.0b. Net income forecast to shrink 29% next year vs 5.4% growth forecast for Chemicals industry in Japan . Consensus price target down from JP¥5,167 to JP¥4,833. Share price rose 10% to JP¥3,950 over the past week. Reported Earnings • May 13
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥401 (up from JP¥308 in FY 2022). Revenue: JP¥68.5b (up 23% from FY 2022). Net income: JP¥14.1b (up 30% from FY 2022). Profit margin: 21% (up from 20% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.8%. Revenue is forecast to grow 5.0% p.a. on average during the next 2 years, compared to a 3.8% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Aankondiging • May 13
Fuso Chemical Co.,Ltd., Annual General Meeting, Jun 23, 2023 Fuso Chemical Co.,Ltd., Annual General Meeting, Jun 23, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥30.00 per share at 1.6% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. Payout ratio is a comfortable 7.3% but the company is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.8%). Reported Earnings • Feb 01
Third quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2023 results: EPS: JP¥99.08 (up from JP¥80.64 in 3Q 2022). Revenue: JP¥17.3b (up 19% from 3Q 2022). Net income: JP¥3.49b (up 23% from 3Q 2022). Profit margin: 20% (in line with 3Q 2022). Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) exceeded analyst estimates by 10%. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Aankondiging • Dec 30
Fuso Chemical Co.,Ltd. to Report Q3, 2023 Results on Jan 31, 2023 Fuso Chemical Co.,Ltd. announced that they will report Q3, 2023 results on Jan 31, 2023 Reported Earnings • Nov 17
Second quarter 2023 earnings: EPS exceeds analyst expectations Second quarter 2023 results: EPS: JP¥109 (up from JP¥63.59 in 2Q 2022). Revenue: JP¥17.8b (up 44% from 2Q 2022). Net income: JP¥3.85b (up 71% from 2Q 2022). Profit margin: 22% (up from 18% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.6%. Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. 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 4% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 10 non-independent directors. Director Sayaka Eguro was the last director to join the board, commencing their role in 2022. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 02
Second quarter 2023 earnings: EPS exceeds analyst expectations Second quarter 2023 results: EPS: JP¥109 (up from JP¥63.59 in 2Q 2022). Revenue: JP¥17.8b (up 44% from 2Q 2022). Net income: JP¥3.85b (up 71% from 2Q 2022). Profit margin: 22% (up from 18% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.6%. Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Chemicals industry in Japan. 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 2% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 12 December 2022. Payout ratio is a comfortable 16% but the company is not cash flow positive. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (2.9%). Aankondiging • Aug 31
Fuso Chemical Co.,Ltd. to Report Q2, 2023 Results on Oct 31, 2022 Fuso Chemical Co.,Ltd. announced that they will report Q2, 2023 results on Oct 31, 2022 Reported Earnings • Jul 31
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: EPS: JP¥104 (up from JP¥63.01 in 1Q 2022). Revenue: JP¥17.5b (up 37% from 1Q 2022). Net income: JP¥3.66b (up 64% from 1Q 2022). Profit margin: 21% (up from 17% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.0%. Earnings per share (EPS) also surpassed analyst estimates by 30%. Over the next year, revenue is forecast to grow 12%, compared to a 9.9% 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 15% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jul 26
Price target decreased to JP¥5,083 Down from JP¥5,733, the current price target is an average from 4 analysts. New target price is 47% above last closing price of JP¥3,450. Stock is down 13% over the past year. The company is forecast to post earnings per share of JP¥329 for next year compared to JP¥308 last year.