New Risk • May 21
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 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (33% increase in shares outstanding). Minor Risks Share price has been volatile over the past 3 months (7.1% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (JP¥11.8b market cap, or US$73.9m). Reported Earnings • Mar 19
First quarter 2026 earnings released: JP¥0.06 loss per share (vs JP¥0.073 profit in 1Q 2025) First quarter 2026 results: JP¥0.06 loss per share (down from JP¥0.073 profit in 1Q 2025). Revenue: JP¥1.51b (up 16% from 1Q 2025). Net loss: JP¥9.00m (down 190% from profit in 1Q 2025). Over the last 3 years on average, earnings per share has increased by 111% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. New Risk • Feb 19
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 33% This is considered a major 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 Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Shareholders have been substantially diluted in the past year (33% increase in shares outstanding). Minor Risk Large one-off items impacting financial results. New Risk • Feb 07
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 24% 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 Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (24% increase in shares outstanding). Aankondiging • Feb 07
CAICA DIGITAL Inc. (TSE:2315) completed the acquisition of 89.73% stake in Zenko Research Institute Co., Ltd. for ¥2.7 billion. CAICA DIGITAL Inc. (TSE:2315) agreed to acquire 50.02% stake in Zenko Research Institute Co., Ltd. for ¥1.5 billion on December 23, 2025. The consideration consists of issue of 16.18 million common equity of CAICA DIGITAL Inc. at a ratio of 12048 per common equity of Zenko Research Institute Co., Ltd. CAICA DIGITAL Inc will acquire minimum of 1,343 shares in Zenko Research Institute. If CAICA DIGITAL Inc acquires all of Zenko Research Institute's common shares, the number of common shares to be allocated and delivered will be 32,348,880. However, the actual number of shares acquired by CAICA DIGITAL Inc may change.
For the period ending May 31, 2025, Zenko Research Institute Co., Ltd. reported total revenue of ¥504 million, operating income of ¥197 million and net loss of ¥163 million. As of May 31, 2025, Zenko Research Institute Co., Ltd. reported total assets of ¥775 million and net assets of ¥535 million.
The transaction is subject to approval of offer by acquirer shareholders. The transaction has received approval from the CAICA DIGITAL Inc. shareholders.
SPaRK Co., Ltd., acted as accountant to CAICA DIGITAL Inc.
CAICA DIGITAL Inc. (TSE:2315) completed the acquisition of 89.73% stake in Zenko Research Institute Co., Ltd. for ¥2.7 billion on February 6, 2026. CAICA DIGITAL Inc. has acquired Zenko Research Institute common shares through a Stock Issuance Plan. Initially, the plan set a minimum acquisition target of 1,443 shares. However, the actual number of shares acquired exceeded this target, reaching 2,463 shares. CAICA DIGITAL Inc. has issued a total of 29,674,224 shares of its common stock to the transferor of Zenko Research Institute common shares as consideration. Reported Earnings • Dec 20
Full year 2025 earnings released: EPS: JP¥1.21 (vs JP¥0.22 in FY 2024) Full year 2025 results: EPS: JP¥1.21 (up from JP¥0.22 in FY 2024). Revenue: JP¥5.20b (down 7.3% from FY 2024). Net income: JP¥166.0m (up 453% from FY 2024). Profit margin: 3.2% (up from 0.5% in FY 2024). Over the last 3 years on average, earnings per share has increased by 97% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Aankondiging • Dec 19
CAICA DIGITAL Inc., Annual General Meeting, Jan 29, 2026 CAICA DIGITAL Inc., Annual General Meeting, Jan 29, 2026. Valuation Update With 7 Day Price Move • Nov 24
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥101, the stock trades at a trailing P/E ratio of 21.9x. Average trailing P/E is 17x in the IT industry in Japan. Total loss to shareholders of 9.0% over the past three years. Aankondiging • Oct 25
CAICA DIGITAL Inc. to Report Fiscal Year 2025 Results on Dec 19, 2025 CAICA DIGITAL Inc. announced that they will report fiscal year 2025 results on Dec 19, 2025 New Risk • Sep 26
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.6b (US$97.4m) 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: Major Risk Share price has been highly volatile over the past 3 months (23% average weekly change). Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (JP¥14.6b market cap, or US$97.4m). Valuation Update With 7 Day Price Move • Sep 19
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to JP¥113, the stock trades at a trailing P/E ratio of 24.5x. Average trailing P/E is 18x in the IT industry in Japan. Total loss to shareholders of 1.7% over the past three years. Reported Earnings • Sep 15
Third quarter 2025 earnings released: EPS: JP¥0.27 (vs JP¥0.18 in 3Q 2024) Third quarter 2025 results: EPS: JP¥0.27 (up from JP¥0.18 in 3Q 2024). Revenue: JP¥1.30b (down 4.6% from 3Q 2024). Net income: JP¥37.0m (up 54% from 3Q 2024). Profit margin: 2.9% (up from 1.8% in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 03
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to JP¥141, the stock trades at a trailing P/E ratio of 31.2x. Average trailing P/E is 17x in the IT industry in Japan. Total returns to shareholders of 6.8% over the past three years. Valuation Update With 7 Day Price Move • Aug 20
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥75.00, the stock trades at a trailing P/E ratio of 16.6x. Average trailing P/E is 17x in the IT industry in Japan. Total loss to shareholders of 44% over the past three years. Aankondiging • Jul 26
CAICA DIGITAL Inc. to Report Q3, 2025 Results on Sep 12, 2025 CAICA DIGITAL Inc. announced that they will report Q3, 2025 results on Sep 12, 2025 Aankondiging • Jul 09
CAICA DIGITAL Inc. (TSE:2315) agreed to acquire remaining minority stake in NCXX Inc. from NCXX Group Inc. (TSE:6634) for approximately ¥910 million. CAICA DIGITAL Inc. (TSE:2315) share exchange agreement to acquire remaining minority stake in NCXX Inc. from NCXX Group Inc. (TSE:6634) for approximately ¥910 million on July 8, 2025. The consideration consists of 14.85 million CAICA DIGITAL's common equity at a ratio of 571 common shares of CAICA DIGITAL will be allocated for each NX share. The above share exchange ratio may be changed by agreement after consultation between NX and the Company if there is a significant change in the conditions on which the calculation is based. Following the transaction, NCXX Inc will become wholly owned subsidiary of CAICA DIGITAL.
The transaction is subject to approval of the Share Exchange Agreement by resolutions at the Company's extraordinary general meeting of shareholders and the extraordinary general meeting of shareholders of NCXX scheduled for October 9, 2025 and expected completion of the transaction is October 16, 2025. New Risk • Jun 19
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 38% 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 Share price has been highly volatile over the past 3 months (9.5% average weekly change). High level of non-cash earnings (38% accrual ratio). Minor Risk Market cap is less than US$100m (JP¥9.28b market cap, or US$63.7m). Reported Earnings • Jun 16
Second quarter 2025 earnings released: EPS: JP¥3.97 (vs JP¥0.40 in 2Q 2024) Second quarter 2025 results: EPS: JP¥3.97 (up from JP¥0.40 in 2Q 2024). Revenue: JP¥1.24b (down 12% from 2Q 2024). Net income: JP¥541.0m (up JP¥487.0m from 2Q 2024). Profit margin: 44% (up from 3.8% in 2Q 2024). Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings. Aankondiging • Apr 26
CAICA DIGITAL Inc. to Report Q2, 2025 Results on Jun 13, 2025 CAICA DIGITAL Inc. announced that they will report Q2, 2025 results on Jun 13, 2025 Reported Earnings • Mar 15
First quarter 2025 earnings released: EPS: JP¥0.073 (vs JP¥1.67 loss in 1Q 2024) First quarter 2025 results: EPS: JP¥0.073 (up from JP¥1.67 loss in 1Q 2024). Revenue: JP¥1.30b (down 4.0% from 1Q 2024). Net income: JP¥10.0m (up JP¥238.0m from 1Q 2024). Profit margin: 0.8% (up from net loss in 1Q 2024). The move to profitability was driven by lower 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 24% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Feb 28
Now 24% undervalued The stock has been flat over the last 90 days, currently trading at JP¥56.00. The fair value is estimated to be JP¥73.54, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.1% over the last 3 years. Earnings per share has declined by 8.2%. Buy Or Sell Opportunity • Feb 06
Now 25% undervalued Over the last 90 days, the stock has risen 23% to JP¥58.00. The fair value is estimated to be JP¥77.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.1% over the last 3 years. Earnings per share has declined by 8.2%. Aankondiging • Jan 25
CAICA DIGITAL Inc. to Report Q1, 2025 Results on Mar 14, 2025 CAICA DIGITAL Inc. announced that they will report Q1, 2025 results on Mar 14, 2025 Reported Earnings • Dec 24
Full year 2024 earnings released: JP¥2.63 loss per share (vs JP¥31.57 loss in FY 2023) Full year 2024 results: JP¥2.63 loss per share (improved from JP¥31.57 loss in FY 2023). Revenue: JP¥5.61b (up 3.7% from FY 2023). Net loss: JP¥359.0m (loss narrowed 91% from FY 2023). Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has fallen by 27% per year, which means it is performing significantly worse than earnings. Aankondiging • Dec 20
CAICA DIGITAL Inc., Annual General Meeting, Jan 30, 2025 CAICA DIGITAL Inc., Annual General Meeting, Jan 30, 2025. Aankondiging • Oct 26
CAICA DIGITAL Inc. to Report Fiscal Year 2024 Results on Dec 20, 2024 CAICA DIGITAL Inc. announced that they will report fiscal year 2024 results on Dec 20, 2024 Reported Earnings • Sep 17
Third quarter 2024 earnings released: EPS: JP¥0.17 (vs JP¥4.33 loss in 3Q 2023) Third quarter 2024 results: EPS: JP¥0.17 (up from JP¥4.33 loss in 3Q 2023). Revenue: JP¥1.36b (down 6.7% from 3Q 2023). Net income: JP¥23.0m (up JP¥577.0m from 3Q 2023). Profit margin: 1.7% (up from net loss in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 32% per year whereas the company’s share price has fallen by 36% per year. Aankondiging • Jul 26
CAICA DIGITAL Inc. to Report Q3, 2024 Results on Sep 13, 2024 CAICA DIGITAL Inc. announced that they will report Q3, 2024 results on Sep 13, 2024 Reported Earnings • Jun 16
Second quarter 2024 earnings released: JP¥1.44 loss per share (vs JP¥5.07 loss in 2Q 2023) Second quarter 2024 results: JP¥1.44 loss per share (improved from JP¥5.07 loss in 2Q 2023). Revenue: JP¥1.51b (up 16% from 2Q 2023). Net loss: JP¥197.0m (loss narrowed 68% from 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has only fallen by 33% per year, which means it has not declined as severely as earnings. Aankondiging • Apr 28
CAICA DIGITAL Inc. to Report Q2, 2024 Results on Jun 14, 2024 CAICA DIGITAL Inc. announced that they will report Q2, 2024 results on Jun 14, 2024 Reported Earnings • Mar 17
First quarter 2024 earnings released: JP¥1.67 loss per share (vs JP¥6.50 loss in 1Q 2023) First quarter 2024 results: JP¥1.67 loss per share (improved from JP¥6.50 loss in 1Q 2023). Revenue: JP¥1.35b (up 14% from 1Q 2023). Net loss: JP¥228.0m (loss narrowed 69% from 1Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 19 percentage points per year, which is a significant difference in performance. Aankondiging • Mar 07
CAICA DIGITAL Inc. (TSE:2315) and CAICA Technologies Inc. agreed to acquire 10.89% stake in FISCO Ltd. (TSE:3807) from Sequedge Investment International Limited for ¥590 million. CAICA DIGITAL Inc. (TSE:2315) and CAICA Technologies Inc. agreed to acquire 10.89% stake in FISCO Ltd. (TSE:3807) from Sequedge Investment International Limited for ¥590 million on March 7, 2024. New Risk • Feb 26
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 8.9% 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 Risks Less than 1 year of cash runway based on free cash flow trend (-JP¥1.8b free cash flow). Share price has been highly volatile over the past 3 months (8.9% average weekly change). Earnings have declined by 56% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (18% increase in shares outstanding). Market cap is less than US$100m (JP¥6.96b market cap, or US$46.2m). Reported Earnings • Feb 03
Full year 2023 earnings released: JP¥31.57 loss per share (vs JP¥54.69 loss in FY 2022) Full year 2023 results: JP¥31.57 loss per share (improved from JP¥54.69 loss in FY 2022). Revenue: JP¥5.41b (down 16% from FY 2022). Net loss: JP¥3.89b (loss narrowed 38% from FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 27 percentage points per year, which is a significant difference in performance. Aankondiging • Jan 27
CAICA DIGITAL Inc. to Report Q1, 2024 Results on Mar 15, 2024 CAICA DIGITAL Inc. announced that they will report Q1, 2024 results on Mar 15, 2024 New Risk • Dec 22
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -JP¥1.7b This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-JP¥1.7b free cash flow). Earnings have declined by 56% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.4% average weekly change). Shareholders have been diluted in the past year (20% increase in shares outstanding). Market cap is less than US$100m (JP¥5.59b market cap, or US$39.3m). New Risk • Dec 04
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 5.9% 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 Earnings have declined by 63% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (5.9% average weekly change). Shareholders have been diluted in the past year (20% increase in shares outstanding). Market cap is less than US$100m (JP¥6.55b market cap, or US$44.7m). Aankondiging • Oct 27
CAICA DIGITAL Inc. to Report Fiscal Year 2023 Results on Dec 20, 2023 CAICA DIGITAL Inc. announced that they will report fiscal year 2023 results on Dec 20, 2023 Aankondiging • Oct 11
CAICA DIGITAL Inc. announced that it has received ¥350.0016 million in funding from Kushim, Inc. On October 10, 2023, CAICA DIGITAL Inc. clsoed the transaction. New Risk • Sep 18
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -JP¥2.0b This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-JP¥2.0b free cash flow). Earnings have declined by 63% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (5.9% average weekly change). Shareholders have been diluted in the past year (12% increase in shares outstanding). Market cap is less than US$100m (JP¥6.77b market cap, or US$45.8m). Reported Earnings • Sep 18
Third quarter 2023 earnings released: JP¥4.33 loss per share (vs JP¥4.63 loss in 3Q 2022) Third quarter 2023 results: JP¥4.33 loss per share. Revenue: JP¥1.46b (up 6.0% from 3Q 2022). Net loss: JP¥554.0m (loss widened 4.9% from 3Q 2022). Aankondiging • Jul 28
CAICA DIGITAL Inc. to Report Q3, 2023 Results on Sep 14, 2023 CAICA DIGITAL Inc. announced that they will report Q3, 2023 results on Sep 14, 2023 Reported Earnings • Jun 16
Second quarter 2023 earnings released: JP¥5.07 loss per share (vs JP¥1.31 profit in 2Q 2022) Second quarter 2023 results: JP¥5.07 loss per share (down from JP¥1.31 profit in 2Q 2022). Revenue: JP¥1.31b (down 32% from 2Q 2022). Net loss: JP¥607.0m (down JP¥757.0m from profit in 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has fallen by 44% per year, which means it is performing significantly worse than earnings. Reported Earnings • Mar 18
First quarter 2023 earnings released: JP¥6.50 loss per share (vs JP¥3.20 profit in 1Q 2022) First quarter 2023 results: JP¥6.50 loss per share (down from JP¥3.20 profit in 1Q 2022). Revenue: JP¥1.19b (down 32% from 1Q 2022). Net loss: JP¥743.0m (down 304% from profit in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 26% per year, which means it is significantly lagging earnings. Reported Earnings • Feb 02
Full year 2022 earnings released: JP¥54.69 loss per share (vs JP¥10.86 loss in FY 2021) Full year 2022 results: JP¥54.69 loss per share (further deteriorated from JP¥10.86 loss in FY 2021). Revenue: JP¥6.44b (up 8.3% from FY 2021). Net loss: JP¥6.24b (loss widened JP¥5.45b from FY 2021). Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has fallen by 32% per year, which means it is significantly lagging earnings. Aankondiging • Jan 27
CAICA DIGITAL Inc. to Report Q1, 2023 Results on Mar 17, 2023 CAICA DIGITAL Inc. announced that they will report Q1, 2023 results on Mar 17, 2023 Aankondiging • Jan 11
CAICA DIGITAL Inc. announced that it has received ¥1.335 million in funding from Evolution Capital Management, LLC On January 10, 2023, CAICA DIGITAL Inc. closed the transaction. Aankondiging • Dec 22
CAICA DIGITAL Inc., Annual General Meeting, Jan 27, 2023 CAICA DIGITAL Inc., Annual General Meeting, Jan 27, 2023. Reported Earnings • Dec 21
Full year 2022 earnings released: JP¥54.69 loss per share (vs JP¥10.86 loss in FY 2021) Full year 2022 results: JP¥54.69 loss per share (further deteriorated from JP¥10.86 loss in FY 2021). Revenue: JP¥6.44b (up 8.3% from FY 2021). Net loss: JP¥6.24b (loss widened JP¥5.45b from FY 2021). Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has fallen by 31% per year, which means it is significantly lagging earnings. Board Change • Nov 16
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. 5 non-independent directors. Independent Outside Director Yusaku Ikeda was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Sep 16
Third quarter 2022 earnings released: JP¥4.63 loss per share (vs JP¥4.84 loss in 3Q 2021) Third quarter 2022 results: JP¥4.63 loss per share. Revenue: JP¥1.37b (down 14% from 3Q 2021). Net loss: JP¥528.0m (loss widened 63% from 3Q 2021). Reported Earnings • Jun 17
Second quarter 2022 earnings released: EPS: JP¥1.31 (vs JP¥6.00 in 2Q 2021) Second quarter 2022 results: EPS: JP¥1.31 (down from JP¥6.00 in 2Q 2021). Revenue: JP¥1.91b (up 36% from 2Q 2021). Net income: JP¥150.0m (down 61% from 2Q 2021). Profit margin: 7.9% (down from 27% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Board Change • Apr 27
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. 5 non-independent directors. Independent Outside Director Yusaku Ikeda was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 03
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: JP¥10.86 loss per share (up from JP¥13.77 loss in FY 2020). Revenue: JP¥5.95b (flat on FY 2020). Net loss: JP¥799.0m (loss widened 43% from FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 21% per year, which means it is performing significantly worse than earnings. Reported Earnings • Dec 22
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: JP¥10.86 loss per share (up from JP¥13.77 loss in FY 2020). Revenue: JP¥5.95b (flat on FY 2020). Net loss: JP¥799.0m (loss widened 43% from FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 21% per year, which means it is performing significantly worse than earnings. Reported Earnings • Sep 16
Third quarter 2021 earnings released: JP¥4.84 loss per share (vs JP¥8.54 profit in 3Q 2020) The company reported a soft third quarter result with weaker earnings and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: JP¥1.60b (up 25% from 3Q 2020). Net loss: JP¥325.0m (down 206% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 29% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Aug 26
Investor sentiment improved over the past week After last week's 31% share price gain to JP¥205, the stock trades at a trailing P/E ratio of 43x. Average trailing P/E is 21x in the IT industry in Japan. Total loss to shareholders of 58% over the past three years. Reported Earnings • Jun 16
Second quarter 2021 earnings released: EPS JP¥0.32 (vs JP¥9.18 loss in 2Q 2020) The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker. Second quarter 2021 results: Revenue: JP¥1.41b (down 4.6% from 2Q 2020). Net income: JP¥381.0m (up JP¥712.0m from 2Q 2020). Profit margin: 27% (up from net loss in 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 35 percentage points per year, which is a significant difference in performance. Reported Earnings • Mar 14
First quarter 2021 earnings released: JP¥0.28 loss per share (vs JP¥0.77 loss in 1Q 2020) The company reported a decent first quarter result with reduced losses and improved control over expenses, although revenues were weaker. First quarter 2021 results: Revenue: JP¥1.27b (down 24% from 1Q 2020). Net loss: JP¥176.0m (loss narrowed 37% from 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 90% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Reported Earnings • Feb 02
Full year 2020 earnings released: JP¥1.38 loss per share (vs JP¥4.86 loss in FY 2019) The company reported a decent full year result with reduced losses and improved control over expenses, although revenues were weaker. Full year 2020 results: Revenue: JP¥6.00b (down 21% from FY 2019). Net loss: JP¥557.0m (loss narrowed 68% from FY 2019). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 80 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Feb 01
New 90-day high: JP¥23.00 The company is up 21% from its price of JP¥19.00 on 02 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 12% over the same period. Is New 90 Day High Low • Dec 29
New 90-day low: JP¥14.00 The company is down 26% from its price of JP¥19.00 on 30 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is down 3.0% over the same period. Reported Earnings • Dec 19
Full year 2020 earnings released: JP¥1.38 loss per share The company reported a decent full year result with reduced losses and improved control over expenses, although revenues were weaker. Full year 2020 results: Revenue: JP¥6.00b (down 21% from FY 2019). Net loss: JP¥557.0m (loss narrowed 68% from FY 2019). Over the last 3 years on average, earnings per share has fallen by 102% per year but the company’s share price has only fallen by 37% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Dec 10
New 90-day low: JP¥17.00 The company is down 15% from its price of JP¥20.00 on 11 September 2020. The Japanese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 7.0% over the same period.