Declared Dividend • 22h
Dividend of JP¥12.06 announced Shareholders will receive a dividend of JP¥12.06. Ex-date: 29th December 2026 Payment date: 26th March 2027 Dividend yield will be 3.2%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is covered by earnings (56% 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 11% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 38% to shift the payout ratio to a potentially unsustainable range, which is more than the 20% EPS decline seen over the last 5 years. Valuation Update With 7 Day Price Move • Aug 13
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥386, the stock trades at a trailing P/E ratio of 33.4x. Average trailing P/E is 14x in the Media industry in Japan. Total loss to shareholders of 33% over the past three years. Aankondiging • Jun 18
Adways Inc. to Report Q2, 2026 Results on Aug 12, 2026 Adways Inc. announced that they will report Q2, 2026 results on Aug 12, 2026 Board Change • Jun 17
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 External Director Ken Kogo was the last independent director to join the board, commencing their role in 2026. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • May 08
First quarter 2026 earnings released: EPS: JP¥10.24 (vs JP¥5.13 in 1Q 2025) First quarter 2026 results: EPS: JP¥10.24 (up from JP¥5.13 in 1Q 2025). Revenue: JP¥3.28b (up 4.6% from 1Q 2025). Net income: JP¥400.0m (up 100% from 1Q 2025). Profit margin: 12% (up from 6.4% in 1Q 2025). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 70 percentage points per year, which is a significant difference in performance. Aankondiging • May 07
Adways Inc. to Report Q1, 2026 Results on May 07, 2026 Adways Inc. announced that they will report Q1, 2026 results on May 07, 2026 Reported Earnings • Mar 30
Full year 2025 earnings released: EPS: JP¥6.45 (vs JP¥12.10 loss in FY 2024) Full year 2025 results: EPS: JP¥6.45 (up from JP¥12.10 loss in FY 2024). Revenue: JP¥12.2b (down 3.7% from FY 2024). Net income: JP¥252.0m (up JP¥725.0m from FY 2024). Profit margin: 2.1% (up from net loss in FY 2024). The move to profitability was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 75 percentage points per year, which is a significant difference in performance. Reported Earnings • Feb 11
Full year 2025 earnings released: EPS: JP¥6.45 (vs JP¥12.10 loss in FY 2024) Full year 2025 results: EPS: JP¥6.45 (up from JP¥12.10 loss in FY 2024). Revenue: JP¥12.2b (down 3.7% from FY 2024). Net income: JP¥252.0m (up JP¥725.0m from FY 2024). Profit margin: 2.1% (up from net loss in FY 2024). The move to profitability was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 82 percentage points per year, which is a significant difference in performance. Aankondiging • Feb 10
Adways Inc., Annual General Meeting, Mar 25, 2026 Adways Inc., Annual General Meeting, Mar 25, 2026. Aankondiging • Dec 24
Adways Inc. to Report Fiscal Year 2025 Results on Feb 10, 2026 Adways Inc. announced that they will report fiscal year 2025 results on Feb 10, 2026 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥6.35 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 27 March 2026. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). New Risk • Dec 15
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. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 33% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (5.6% average weekly change). Market cap is less than US$100m (JP¥11.3b market cap, or US$72.9m). Reported Earnings • Nov 08
Third quarter 2025 earnings released: EPS: JP¥4.43 (vs JP¥0.82 in 3Q 2024) Third quarter 2025 results: EPS: JP¥4.43 (up from JP¥0.82 in 3Q 2024). Revenue: JP¥2.96b (down 2.8% from 3Q 2024). Net income: JP¥173.0m (up 441% from 3Q 2024). Profit margin: 5.8% (up from 1.0% in 3Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 94 percentage points per year, which is a significant difference in performance. Aankondiging • Sep 21
Adways Inc. to Report Q3, 2025 Results on Nov 06, 2025 Adways Inc. announced that they will report Q3, 2025 results on Nov 06, 2025 Declared Dividend • Aug 08
Dividend of JP¥6.35 announced Shareholders will receive a dividend of JP¥6.35. Ex-date: 29th December 2025 Payment date: 27th March 2026 Dividend yield will be 2.2%, which is lower than the industry average of 2.3%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having 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 14% per year over the past 10 years. However, payments have been volatile during that time. Aankondiging • Jun 30
Adways Inc. Appoints Daisuke Naka as Executive Officer, Agency Business, Effective July 1, 2025 Adways Inc. hereby announces the following appointment of a new Executive Officer. Name: Daisuke Naka; Current Position: Senior General Manager, Advertising Business Group; New Position: Executive Officer, Agency Business. (Effective July 1, 2025). Aankondiging • Jun 17
Adways Inc. to Report Q2, 2025 Results on Aug 06, 2025 Adways Inc. announced that they will report Q2, 2025 results on Aug 06, 2025 New Risk • May 09
New major risk - Revenue and earnings growth Earnings have declined by 11% 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 Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 11% per year over the past 5 years. Minor Risk Market cap is less than US$100m (JP¥10.2b market cap, or US$69.8m). Reported Earnings • May 09
First quarter 2025 earnings released: EPS: JP¥5.12 (vs JP¥7.93 in 1Q 2024) First quarter 2025 results: EPS: JP¥5.12 (down from JP¥7.93 in 1Q 2024). Revenue: JP¥3.14b (down 4.9% from 1Q 2024). Net income: JP¥200.0m (down 36% from 1Q 2024). Profit margin: 6.4% (down from 9.4% in 1Q 2024). Aankondiging • Mar 19
Adways Inc. to Report Q1, 2025 Results on May 08, 2025 Adways Inc. announced that they will report Q1, 2025 results on May 08, 2025 New Risk • Feb 26
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: 2.3% 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: Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (JP¥10.9b market cap, or US$73.5m). Reported Earnings • Feb 12
Full year 2024 earnings released: JP¥12.10 loss per share (vs JP¥25.07 profit in FY 2023) Full year 2024 results: JP¥12.10 loss per share (down from JP¥25.07 profit in FY 2023). Revenue: JP¥12.7b (down 6.2% from FY 2023). Net loss: JP¥473.0m (down 149% from profit in FY 2023). Over the last 3 years on average, earnings per share has fallen by 62% per year but the company’s share price has only fallen by 26% per year, which means it has not declined as severely as earnings. Aankondiging • Feb 10
Adways Inc., Annual General Meeting, Mar 26, 2025 Adways Inc., Annual General Meeting, Mar 26, 2025. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥3.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 27 March 2025. Payout ratio is a comfortable 44% but the company is paying out more than the cash it is generating. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.3%). Aankondiging • Dec 18
Adways Inc. to Report Fiscal Year 2024 Results on Feb 10, 2025 Adways Inc. announced that they will report fiscal year 2024 results on Feb 10, 2025 Reported Earnings • Nov 02
Third quarter 2024 earnings released: EPS: JP¥0.82 (vs JP¥0.54 loss in 3Q 2023) Third quarter 2024 results: EPS: JP¥0.82 (up from JP¥0.54 loss in 3Q 2023). Revenue: JP¥3.05b (down 7.0% from 3Q 2023). Net income: JP¥32.0m (up JP¥53.0m from 3Q 2023). Profit margin: 1.0% (up from net loss in 3Q 2023). Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has fallen by 29% per year whereas the company’s share price has fallen by 27% per year. Aankondiging • Sep 19
Adways Inc. to Report Q3, 2024 Results on Oct 31, 2024 Adways Inc. announced that they will report Q3, 2024 results on Oct 31, 2024 Valuation Update With 7 Day Price Move • Aug 07
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥318, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 12x in the Media industry in Japan. Total loss to shareholders of 51% over the past three years. New Risk • Aug 05
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 6.0% 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 (6.0% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.5% net profit margin). Shareholders have been diluted in the past year (6.5% increase in shares outstanding). Market cap is less than US$100m (JP¥11.0b market cap, or US$77.4m). Reported Earnings • Aug 02
Second quarter 2024 earnings released: JP¥3.38 loss per share (vs JP¥1.95 profit in 2Q 2023) Second quarter 2024 results: JP¥3.38 loss per share (down from JP¥1.95 profit in 2Q 2023). Revenue: JP¥3.10b (down 8.6% from 2Q 2023). Net loss: JP¥132.0m (down 283% from profit in 2Q 2023). Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has fallen by 22% per year, which means it is performing significantly worse than earnings. Aankondiging • Jun 19
Adways Inc. to Report Q2, 2024 Results on Jul 31, 2024 Adways Inc. announced that they will report Q2, 2024 results on Jul 31, 2024 New Risk • May 14
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.6b (US$99.9m) 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 Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.9% net profit margin). Shareholders have been diluted in the past year (4.7% increase in shares outstanding). Market cap is less than US$100m (JP¥15.6b market cap, or US$99.9m). Reported Earnings • May 01
First quarter 2024 earnings released: EPS: JP¥7.93 (vs JP¥15.83 in 1Q 2023) First quarter 2024 results: EPS: JP¥7.93 (down from JP¥15.83 in 1Q 2023). Revenue: JP¥3.30b (down 4.5% from 1Q 2023). Net income: JP¥310.0m (down 50% from 1Q 2023). Profit margin: 9.4% (down from 18% in 1Q 2023). Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. New Risk • Apr 03
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.4% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (26% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (7.1% net profit margin). Shareholders have been diluted in the past year (3.4% increase in shares outstanding). Aankondiging • Mar 20
Adways Inc. to Report Q1, 2024 Results on Apr 30, 2024 Adways Inc. announced that they will report Q1, 2024 results on Apr 30, 2024 New Risk • Feb 14
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 26% 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 (26% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (7.1% net profit margin). Aankondiging • Feb 11
Adways Inc., Annual General Meeting, Mar 26, 2024 Adways Inc., Annual General Meeting, Mar 26, 2024. Reported Earnings • Feb 10
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥25.07 (down from JP¥63.46 in FY 2022). Revenue: JP¥13.5b (flat on FY 2022). Net income: JP¥966.0m (down 62% from FY 2022). Profit margin: 7.1% (down from 19% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 28%. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥4.50 per share at 1.5% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 25 March 2024. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (2.7%). Aankondiging • Dec 20
Adways Inc. to Report Fiscal Year 2023 Results on Feb 09, 2024 Adways Inc. announced that they will report fiscal year 2023 results on Feb 09, 2024 Reported Earnings • Nov 02
Third quarter 2023 earnings released: JP¥0.54 loss per share (vs JP¥28.46 profit in 3Q 2022) Third quarter 2023 results: JP¥0.54 loss per share (down from JP¥28.46 profit in 3Q 2022). Revenue: JP¥3.28b (down 5.5% from 3Q 2022). Net loss: JP¥21.0m (down 102% from profit in 3Q 2022). Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Aankondiging • Sep 21
Adways Inc. to Report Q3, 2023 Results on Oct 31, 2023 Adways Inc. announced that they will report Q3, 2023 results on Oct 31, 2023 New Risk • Aug 09
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 104% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 04
Second quarter 2023 earnings released Second quarter 2023 results: EPS: JP¥1.95. Net income: JP¥72.0m (up JP¥72.0m from 2Q 2022). Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Aankondiging • Jun 18
Adways Inc. to Report Q2, 2023 Results on Aug 03, 2023 Adways Inc. announced that they will report Q2, 2023 results on Aug 03, 2023 Reported Earnings • May 04
First quarter 2023 earnings released First quarter 2023 results: EPS: JP¥15.83. Net income: JP¥618.0m (up JP¥618.0m from 1Q 2022). Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 29
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: JP¥63.46 (up from JP¥39.42 in FY 2021). Revenue: JP¥13.4b (down 47% from FY 2021). Net income: JP¥2.54b (up 64% from FY 2021). Profit margin: 19% (up from 6.1% in FY 2021). Revenue missed analyst estimates by 4.2%. Earnings per share (EPS) exceeded analyst estimates by 83%. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has only increased by 47% per year, which means it is significantly lagging earnings growth. Aankondiging • Feb 17
Adways Inc. (TSE:2489) announces an Equity Buyback for 5,700,000 shares, representing 13.57% for ¥2,000 million. Adways Inc. (TSE:2489) announces a share repurchase program. Under the program, the company will repurchase up to 5,700,000 shares, representing 13.57% of its issued share capital (excluding treasury stock), for ¥2,000 million. The purpose of the program is to return profits to shareholders and implement a flexible capital policy that responds to changes in the business environment. The program will run until July 31, 2023. As of February 16, 2023, the company had 42,003,700 shares in issue (excluding treasury stock) and 2,394,980 shares in treasury. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to JP¥647, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 14x in the Media industry in Japan. Total returns to shareholders of 96% over the past three years. Reported Earnings • Feb 12
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: JP¥63.46 (up from JP¥39.42 in FY 2021). Revenue: JP¥13.4b (down 47% from FY 2021). Net income: JP¥2.54b (up 64% from FY 2021). Profit margin: 19% (up from 6.1% in FY 2021). Revenue missed analyst estimates by 4.2%. Earnings per share (EPS) exceeded analyst estimates by 83%. Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Aankondiging • Feb 12
Adways Inc., Annual General Meeting, Mar 23, 2023 Adways Inc., Annual General Meeting, Mar 23, 2023. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥7.46 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 25 March 2023. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.7%). Aankondiging • Dec 21
Adways Inc. to Report Fiscal Year 2022 Results on Feb 10, 2023 Adways Inc. announced that they will report fiscal year 2022 results on Feb 10, 2023 Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 6 non-independent directors. Independent External Director Shota Umemoto was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • May 06
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥913, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 16x in the Media industry in Japan. Total returns to shareholders of 134% over the past three years. Board Change • Apr 27
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. 7 non-independent directors. External Director Shota Umemoto 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 • Feb 12
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: JP¥8.22 (up from JP¥7.60 in 3Q 2021). Revenue: JP¥3.93b (down 67% from 3Q 2021). Net income: JP¥326.0m (up 3.2% from 3Q 2021). Profit margin: 8.3% (up from 2.6% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 100%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is expected to shrink by 42% compared to a 2.6% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥5.21 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 25 June 2022. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (1.9%). Reported Earnings • Nov 05
Second quarter 2022 earnings released: EPS JP¥11.84 (vs JP¥9.93 in 2Q 2021) The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker. Second quarter 2022 results: Revenue: JP¥3.01b (down 74% from 2Q 2021). Net income: JP¥454.0m (up 9.9% from 2Q 2021). Profit margin: 15% (up from 3.6% in 2Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 10
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥787, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 18x in the Media industry in Japan. Total loss to shareholders of 3.3% over the past three years. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment deteriorated over the past week After last week's 17% share price decline to JP¥653, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 17x in the Media industry in Japan. Total returns to shareholders of 11% over the past three years. Reported Earnings • May 16
Full year 2021 earnings released: EPS JP¥34.45 (vs JP¥4.14 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥49.0b (up 31% from FY 2020). Net income: JP¥1.42b (up JP¥1.26b from FY 2020). Profit margin: 2.9% (up from 0.4% 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 58% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 13
Investor sentiment deteriorated over the past week After last week's 16% share price decline to JP¥732, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 18x in the Media industry in Japan. Total returns to shareholders of 52% over the past three years. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥5.33 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 24 June 2021. Trailing yield: 0.4%. Lower than top quartile of Japanese dividend payers (2.7%). Lower than average of industry peers (1.5%). Valuation Update With 7 Day Price Move • Mar 05
Investor sentiment deteriorated over the past week After last week's 15% share price decline to JP¥708, the stock is trading at a trailing P/E ratio of 24.2x, down from the previous P/E ratio of 28.5x. This compares to an average P/E of 22x in the Media industry in Japan. Total returns to shareholders over the past three years are 44%. Valuation Update With 7 Day Price Move • Feb 19
Investor sentiment improved over the past week After last week's 24% share price gain to JP¥896, the stock is trading at a trailing P/E ratio of 30.7x, up from the previous P/E ratio of 24.8x. This compares to an average P/E of 23x in the Media industry in Japan. Total returns to shareholders over the past three years are 84%. Is New 90 Day High Low • Feb 18
New 90-day high: JP¥896 The company is up 82% from its price of JP¥492 on 20 November 2020. The Japanese market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Media industry, which is up 13% over the same period. Reported Earnings • Feb 12
Third quarter 2021 earnings released: EPS JP¥7.60 (vs JP¥2.10 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥12.0b (up 31% from 3Q 2020). Net income: JP¥316.0m (up 281% from 3Q 2020). Profit margin: 2.6% (up from 0.9% 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 66% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Jan 20
New 90-day high: JP¥724 The company is up 67% from its price of JP¥433 on 22 October 2020. The Japanese market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Media industry, which is up 3.0% over the same period. Is New 90 Day High Low • Dec 30
New 90-day high: JP¥660 The company is up 52% from its price of JP¥435 on 30 September 2020. The Japanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Media industry, which is up 5.0% over the same period. Is New 90 Day High Low • Dec 01
New 90-day high: JP¥631 The company is up 76% from its price of JP¥358 on 02 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Media industry, which is up 12% over the same period. Valuation Update With 7 Day Price Move • Dec 01
Market bids up stock over the past week After last week's 25% share price gain to JP¥631, the stock is trading at a trailing P/E ratio of 26.4x, up from the previous P/E ratio of 21.1x. This compares to an average P/E of 26x in the Media industry in Japan. Total returns to shareholders over the past three years are 2.8%.