Reported Earnings • May 13
Full year 2026 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2026 results: JP¥0.82 loss per share (down from JP¥52.65 profit in FY 2025). Revenue: JP¥62.0b (down 2.1% from FY 2025). Net loss: JP¥21.0m (down 101% from profit in FY 2025). Profit margin: 0% (down from 2.8% in FY 2025). Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 1.2% p.a. on average during the next 2 years, compared to a 3.7% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • May 12
PIOLAX, Inc., Annual General Meeting, Jun 25, 2026 PIOLAX, Inc., Annual General Meeting, Jun 25, 2026. Announcement • May 10
PIOLAX, Inc. to Report Fiscal Year 2026 Results on May 11, 2026 PIOLAX, Inc. announced that they will report fiscal year 2026 results on May 11, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥53.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 25 June 2026. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 5.7%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.8%). Reported Earnings • Feb 15
Third quarter 2026 earnings released: EPS: JP¥8.64 (vs JP¥19.15 in 3Q 2025) Third quarter 2026 results: EPS: JP¥8.64 (down from JP¥19.15 in 3Q 2025). Revenue: JP¥16.0b (flat on 3Q 2025). Net income: JP¥213.0m (down 67% from 3Q 2025). Profit margin: 1.3% (down from 4.0% in 3Q 2025). Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Feb 12
PIOLAX, Inc. (TSE:5988) announces an Equity Buyback for 800,000 shares, representing 3.25% for ¥1,000 million. PIOLAX, Inc. (TSE:5988) announces a share repurchase program. Under the program, the company will repurchase up to 800,000 shares, representing 3.25% of its issued share capital (excluding treasury stock), for a total purchase price of ¥1,000 million. The purpose of the program is to improving capital efficiency and increasing corporate value. The program will continue through December 31, 2026. As of January 31, 2026, the company had 24,585,487 issued shares (excluding treasury stock) and 12,468,613 treasury shares. Major Estimate Revision • Jan 17
Consensus EPS estimates increase by 30% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from JP¥38.50 to JP¥50.00. Revenue forecast unchanged at JP¥61.0b. Net income forecast to grow 24% next year vs 6.9% growth forecast for Auto Components industry in Japan. Consensus price target up from JP¥1,800 to JP¥1,900. Share price rose 2.7% to JP¥1,812 over the past week. Announcement • Dec 04
PIOLAX, Inc. to Report Q3, 2026 Results on Feb 12, 2026 PIOLAX, Inc. announced that they will report Q3, 2026 results on Feb 12, 2026 Declared Dividend • Dec 02
First half dividend of JP¥53.00 announced Dividend of JP¥53.00 is the same as last year. Ex-date: 30th March 2026 Payment date: 25th June 2026 Dividend yield will be 5.4%, which is higher than the industry average of 2.7%. Sustainability & Growth Dividend is not covered by earnings (277% earnings payout ratio) and 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 18% 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 grow by 208% to bring the payout ratio under control. EPS is expected to grow by 132% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Nov 15
Second quarter 2026 earnings released: EPS: JP¥12.15 (vs JP¥14.80 in 2Q 2025) Second quarter 2026 results: EPS: JP¥12.15 (down from JP¥14.80 in 2Q 2025). Revenue: JP¥15.0b (down 7.7% from 2Q 2025). Net income: JP¥307.0m (down 39% from 2Q 2025). Profit margin: 2.1% (down from 3.1% in 2Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to stay flat during the next 3 years compared to a 2.9% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Nov 12
PIOLAX, Inc. Announces Dividend for the Second Quarter-Ended September 30, 2025, Payable on December 1, 2025 PIOLAX, Inc. announced dividend for the second quarter-ended September 30, 2025. For the second quarter-end, the company announced a dividend of JPY 39.00 per share against JPY 39.00 per share paid a year ago. Scheduled date to commence dividend payments: December 1, 2025. Announcement • Oct 01
PIOLAX, Inc. to Report Q2, 2026 Results on Nov 12, 2025 PIOLAX, Inc. announced that they will report Q2, 2026 results on Nov 12, 2025 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥39.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 02 December 2025. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 4.9%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (3.0%). Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥4.64 (vs JP¥21.18 in 1Q 2025) First quarter 2026 results: EPS: JP¥4.64 (down from JP¥21.18 in 1Q 2025). Revenue: JP¥15.1b (down 4.1% from 1Q 2025). Net income: JP¥128.0m (down 82% from 1Q 2025). Profit margin: 0.8% (down from 4.6% in 1Q 2025). Revenue is forecast to stay flat during the next 3 years compared to a 2.7% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 18% 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. Declared Dividend • Jul 09
Final dividend of JP¥39.00 announced Dividend of JP¥39.00 is the same as last year. Ex-date: 29th September 2025 Payment date: 2nd December 2025 Dividend yield will be 5.3%, which is higher than the industry average of 2.7%. Sustainability & Growth Dividend is not covered by earnings (168% earnings payout ratio) nor is it adequately covered by cash flows (92% 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. The company's earnings per share (EPS) would need to grow by 87% to bring the payout ratio under control. EPS is expected to grow by 50% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Jul 01
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥52.65 (down from JP¥118 in FY 2024). Revenue: JP¥63.4b (down 1.9% from FY 2024). Net income: JP¥1.79b (down 55% from FY 2024). Profit margin: 2.8% (down from 6.2% in FY 2024). The decrease in margin was primarily driven by lower revenue. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) missed analyst estimates by 42%. Revenue is forecast to stay flat during the next 3 years compared to a 2.7% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Jun 17
PIOLAX, Inc. to Report Q1, 2026 Results on Aug 07, 2025 PIOLAX, Inc. announced that they will report Q1, 2026 results on Aug 07, 2025 Major Estimate Revision • Jun 14
Consensus EPS estimates fall by 67% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from JP¥63.0b to JP¥61.0b. EPS estimate also fell from JP¥118 per share to JP¥38.50 per share. Net income forecast to shrink 29% next year vs 2.5% growth forecast for Auto Components industry in Japan . Consensus price target down from JP¥2,420 to JP¥1,800. Share price fell 2.4% to JP¥1,803 over the past week. Price Target Changed • Jun 13
Price target decreased by 27% to JP¥1,800 Down from JP¥2,450, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of JP¥1,803. Stock is down 20% over the past year. The company is forecast to post earnings per share of JP¥38.50 for next year compared to JP¥52.65 last year. Reported Earnings • May 13
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥52.65 (down from JP¥118 in FY 2024). Revenue: JP¥63.4b (down 1.9% from FY 2024). Net income: JP¥1.79b (down 55% from FY 2024). Profit margin: 2.8% (down from 6.2% in FY 2024). The decrease in margin was primarily driven by lower revenue. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) missed analyst estimates by 42%. Revenue is forecast to grow 2.1% p.a. on average during the next 2 years, compared to a 2.9% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥2,018, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 8x in the Auto Components industry in Japan. Total returns to shareholders of 59% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥53.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 26 June 2025. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 3.7%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (3.3%). Announcement • Mar 05
PIOLAX, Inc. to Report Fiscal Year 2025 Results on May 12, 2025 PIOLAX, Inc. announced that they will report fiscal year 2025 results on May 12, 2025 Announcement • Feb 14
Tokiwa Shoji Co. Ltd completed the acquisition of an unknown minority stake in Saga Tekkohsho Co. Ltd from PIOLAX, Inc. (TSE:5988). Tokiwa Shoji Co. Ltd acquired an unknown minority stake in Saga Tekkohsho Co. Ltd from PIOLAX, Inc. (TSE:5988) on November 7, 2024.
Tokiwa Shoji Co. Ltd completed the acquisition of an unknown minority stake in Saga Tekkohsho Co. Ltd from PIOLAX, Inc. (TSE:5988) on February 12, 2025. Announcement • Feb 12
PIOLAX, Inc. (TSE:5988) announces an Equity Buyback for 8,810,700 shares, representing 25.57% for ¥22,000.32 million. PIOLAX, Inc. (TSE:5988) announces a share repurchase program. Under the program, the company will repurchase up to 8,810,700 shares, representing 16.93% of its issued share capital (excluding treasury stock), for a total purchase price of ¥22,000.32 million. The shares will be purchased at price of ¥2,497 per share. The purpose of the program is to improving capital efficiency and increasing corporate value. The program will continue through March 13, 2025. As of February 10, 2025, the company had 34,457,485 issued shares (excluding treasury stock) and 2,596,615 or more treasury shares. Major Estimate Revision • Jan 18
Consensus EPS estimates fall by 22% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥66.3b to JP¥62.0b. EPS estimate also fell from JP¥118 per share to JP¥91.20 per share. Net income forecast to shrink 3.1% next year vs 14% growth forecast for Auto Components industry in Japan . Consensus price target broadly unchanged at JP¥2,420. Share price fell 2.7% to JP¥2,303 over the past week. Announcement • Dec 13
PIOLAX, Inc. to Report Q3, 2025 Results on Feb 12, 2025 PIOLAX, Inc. announced that they will report Q3, 2025 results on Feb 12, 2025 Declared Dividend • Dec 03
First half dividend of JP¥53.00 announced Shareholders will receive a dividend of JP¥53.00. Ex-date: 28th March 2025 Payment date: 26th June 2025 Dividend yield will be 3.7%, which is higher than the industry average of 2.7%. Sustainability & Growth Dividend is not covered by earnings (102% earnings payout ratio) nor is it covered by cash flows (191% cash payout ratio). The dividend has increased by an average of 20% 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 grow by 14% to bring the payout ratio under control. EPS is expected to grow by 41% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. New Risk • Nov 12
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.7% 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: Minor Risks Dividend is not well covered by cash flows (198% cash payout ratio). Shareholders have been diluted in the past year (3.7% increase in shares outstanding). Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: JP¥14.80 (vs JP¥28.82 in 2Q 2024) Second quarter 2025 results: EPS: JP¥14.80 (down from JP¥28.82 in 2Q 2024). Revenue: JP¥16.2b (up 2.2% from 2Q 2024). Net income: JP¥504.0m (down 49% from 2Q 2024). Profit margin: 3.1% (down from 6.2% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Announcement • Nov 07
PIOLAX, Inc. (TSE:5988) announces an Equity Buyback for 6,000,000 shares, representing 16.94% for ¥10,000 million. PIOLAX, Inc. (TSE:5988) announces a share repurchase program. Under the program, the company will repurchase up to 6,000,000 shares, representing 16.93% of its issued share capital (excluding treasury stock), for a total purchase price of ¥10,000 million. The purpose of the program is to to further accelerate the increase in corporate value. The program will continue through November 7, 2025. As of September 30, 2024, the company had 35,429,285 issued shares (excluding treasury stock) and 1,624,815 or more treasury shares. Announcement • Oct 01
PIOLAX, Inc. to Report Q2, 2025 Results on Nov 07, 2024 PIOLAX, Inc. announced that they will report Q2, 2025 results on Nov 07, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥39.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (3.5%). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to JP¥1,931, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 8x in the Auto Components industry in Japan. Total returns to shareholders of 44% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,605 per share. New Risk • Jul 17
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 6.7% 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: Minor Risks Dividend is not well covered by cash flows (402% cash payout ratio). Share price has been volatile over the past 3 months (6.1% average weekly change). Shareholders have been diluted in the past year (6.7% increase in shares outstanding). Declared Dividend • Jul 11
Final dividend of JP¥39.00 announced Shareholders will receive a dividend of JP¥39.00. Ex-date: 27th September 2024 Payment date: 2nd December 2024 Dividend yield will be 4.0%, which is higher than the industry average of 2.7%. Sustainability & Growth Dividend is covered by earnings (89.5% earnings payout ratio) but not covered by cash flows (376% cash payout ratio). The dividend has increased by an average of 20% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share is expected to grow by 37% over the next 2 years, which should maintain adequate earnings cover for the dividend. Announcement • Jun 23
PIOLAX, Inc. to Report Q1, 2025 Results on Aug 07, 2024 PIOLAX, Inc. announced that they will report Q1, 2025 results on Aug 07, 2024 Major Estimate Revision • Jun 06
Consensus EPS estimates fall by 13% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥145 to JP¥126 per share. Revenue forecast steady at JP¥65.5b. Net income forecast to grow 4.7% next year vs 3.6% growth forecast for Auto Components industry in Japan. Consensus price target of JP¥2,365 unchanged from last update. Share price was steady at JP¥2,210 over the past week. New Risk • Jun 01
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 100% Cash payout ratio: 376% Dividend yield: 4.1% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 100% Cash payout ratio: 376% Minor Risk Share price has been volatile over the past 3 months (6.2% average weekly change). Valuation Update With 7 Day Price Move • May 17
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,198, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 9x in the Auto Components industry in Japan. Total returns to shareholders of 69% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,726 per share. New Risk • May 13
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 6.2% 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 Dividend is not well covered by cash flows (170% cash payout ratio). Share price has been volatile over the past 3 months (6.2% average weekly change). Reported Earnings • May 12
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥118 (up from JP¥99.14 in FY 2023). Revenue: JP¥64.6b (up 11% from FY 2023). Net income: JP¥4.01b (up 19% from FY 2023). Profit margin: 6.2% (up from 5.8% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 5.6%. Revenue is forecast to grow 2.8% p.a. on average during the next 2 years, compared to a 3.8% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 21% per year, which means it is well ahead of earnings. Announcement • Apr 04
PIOLAX, Inc., Annual General Meeting, Jun 25, 2024 PIOLAX, Inc., Annual General Meeting, Jun 25, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥59.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 28 June 2024. Payout ratio and cash payout ratio are on the higher end at 90% and 98% respectively. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.6%). Major Estimate Revision • Mar 08
Consensus EPS estimates increase by 10% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥117 to JP¥129. Revenue forecast steady at JP¥64.4b. Net income forecast to grow 17% next year vs 8.9% growth forecast for Auto Components industry in Japan. Consensus price target of JP¥2,210 unchanged from last update. Share price fell 2.9% to JP¥2,709 over the past week. Announcement • Mar 02
PIOLAX, Inc. to Report Fiscal Year 2024 Results on May 10, 2024 PIOLAX, Inc. announced that they will report fiscal year 2024 results on May 10, 2024 Reported Earnings • Feb 09
Third quarter 2024 earnings released: EPS: JP¥56.49 (vs JP¥41.98 in 3Q 2023) Third quarter 2024 results: EPS: JP¥56.49 (up from JP¥41.98 in 3Q 2023). Revenue: JP¥17.2b (up 8.0% from 3Q 2023). Net income: JP¥1.92b (up 35% from 3Q 2023). Profit margin: 11% (up from 9.0% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Announcement • Nov 29
PIOLAX, Inc. to Report Q3, 2024 Results on Feb 07, 2024 PIOLAX, Inc. announced that they will report Q3, 2024 results on Feb 07, 2024 Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥28.82 (vs JP¥11.05 in 2Q 2023) Second quarter 2024 results: EPS: JP¥28.82 (up from JP¥11.05 in 2Q 2023). Revenue: JP¥15.9b (up 15% from 2Q 2023). Net income: JP¥981.0m (up 161% from 2Q 2023). Profit margin: 6.2% (up from 2.7% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Announcement • Sep 28
PIOLAX, Inc. to Report Q2, 2024 Results on Nov 08, 2023 PIOLAX, Inc. announced that they will report Q2, 2024 results on Nov 08, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥55.00 per share at 3.8% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 01 December 2023. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.5%). Reported Earnings • Aug 09
First quarter 2024 earnings released: EPS: JP¥29.35 (vs JP¥31.23 in 1Q 2023) First quarter 2024 results: EPS: JP¥29.35 (down from JP¥31.23 in 1Q 2023). Revenue: JP¥15.1b (up 8.5% from 1Q 2023). Net income: JP¥999.0m (down 6.0% from 1Q 2023). Profit margin: 6.6% (down from 7.6% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.8% p.a. on average during the next 2 years, compared to a 4.1% growth forecast for the Auto Components 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 10% per year, which means it is well ahead of earnings. Announcement • Jun 29
PIOLAX, Inc. to Report Q1, 2024 Results on Aug 08, 2023 PIOLAX, Inc. announced that they will report Q1, 2024 results on Aug 08, 2023 New Risk • Jun 18
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 101% Cash payout ratio: 183% Dividend yield: 4.4% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain 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 • May 18
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥99.14 (down from JP¥122 in FY 2022). Revenue: JP¥58.4b (up 5.9% from FY 2022). Net income: JP¥3.38b (down 20% from FY 2022). Profit margin: 5.8% (down from 7.7% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 4.7%. Revenue is forecast to grow 8.8% p.a. on average during the next 2 years, compared to a 4.3% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • May 14
PIOLAX, Inc., Annual General Meeting, Jun 27, 2023 PIOLAX, Inc., Annual General Meeting, Jun 27, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥54.00 per share at 5.7% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. Payout ratio is a comfortable 65% but the company is paying out more than the cash it is generating. Trailing yield: 5.7%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (3.2%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥41.98 (vs JP¥31.88 in 3Q 2022) Third quarter 2023 results: EPS: JP¥41.98 (up from JP¥31.88 in 3Q 2022). Revenue: JP¥15.9b (up 18% from 3Q 2022). Net income: JP¥1.43b (up 29% from 3Q 2022). Profit margin: 9.0% (up from 8.2% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.6% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Dec 26
PIOLAX, Inc. to Report Q3, 2023 Results on Feb 09, 2023 PIOLAX, Inc. announced that they will report Q3, 2023 results on Feb 09, 2023 Board Change • Nov 16
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 4 independent directors. 6 non-independent directors. Independent Outside Director Hiroyuki Ochiai was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Nov 11
Second quarter 2023 earnings released: EPS: JP¥11.05 (vs JP¥28.47 in 2Q 2022) Second quarter 2023 results: EPS: JP¥11.05 (down from JP¥28.47 in 2Q 2022). Revenue: JP¥13.8b (up 1.0% from 2Q 2022). Net income: JP¥376.0m (down 62% from 2Q 2022). Profit margin: 2.7% (down from 7.3% in 2Q 2022). Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 9% per year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 01 December 2022. Payout ratio is a comfortable 41% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (3.1%). Announcement • Sep 14
PIOLAX, Inc. to Report Q2, 2023 Results on Nov 09, 2022 PIOLAX, Inc. announced that they will report Q2, 2023 results on Nov 09, 2022 Reported Earnings • Aug 11
First quarter 2023 earnings released: EPS: JP¥31.23 (vs JP¥43.85 in 1Q 2022) First quarter 2023 results: EPS: JP¥31.23 (down from JP¥43.85 in 1Q 2022). Revenue: JP¥13.9b (down 3.0% from 1Q 2022). Net income: JP¥1.06b (down 31% from 1Q 2022). Profit margin: 7.6% (down from 11% in 1Q 2022). Over the next year, revenue is forecast to grow 14%, compared to a 13% growth forecast for the 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 5% per year, which means it is well ahead of earnings. Buying Opportunity • Jul 29
Now 21% undervalued Over the last 90 days, the stock is up 31%. The fair value is estimated to be JP¥2,504, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.4% over the last 3 years. Earnings per share has declined by 13%. For the next 3 years, revenue is forecast to grow by 8.6% per annum. Earnings is also forecast to grow by 14% per annum over the same time period. Announcement • Jun 30
PIOLAX, Inc. to Report Q1, 2023 Results on Aug 09, 2022 PIOLAX, Inc. announced that they will report Q1, 2023 results on Aug 09, 2022 Price Target Changed • Jun 28
Price target increased to JP¥2,100 Up from JP¥1,800, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of JP¥2,038. Stock is up 34% over the past year. The company is forecast to post earnings per share of JP¥138 for next year compared to JP¥122 last year. Major Estimate Revision • Jun 08
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 consensus EPS estimate fell from JP¥153 to JP¥129. Revenue forecast reaffirmed at JP¥61.5b. Net income forecast to grow 4.2% next year vs 12% growth forecast for Auto Components industry in Japan. Consensus price target of JP¥1,690 unchanged from last update. Share price rose 9.0% to JP¥2,021 over the past week. Valuation Update With 7 Day Price Move • May 30
Investor sentiment improved over the past week After last week's 21% share price gain to JP¥1,680, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 8x in the Auto Components industry in Japan. Total returns to shareholders of 3.3% over the past three years. Reported Earnings • May 16
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: JP¥122 (up from JP¥113 in FY 2021). Revenue: JP¥55.1b (up 10.0% from FY 2021). Net income: JP¥4.22b (up 6.6% from FY 2021). Profit margin: 7.7% (down from 7.9% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 1.8%. Over the next year, revenue is forecast to grow 12%, compared to a 11% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 10% per year. Announcement • May 14
PIOLAX, Inc., Annual General Meeting, Jun 24, 2022 PIOLAX, Inc., Annual General Meeting, Jun 24, 2022. 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. 6 non-independent directors. Independent Outside Director Sakae Komiyama was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 08
PIOLAX, Inc. to Report Fiscal Year 2022 Results on May 12, 2022 PIOLAX, Inc. announced that they will report fiscal year 2022 results on May 12, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥22.50 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 23 June 2022. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.4%). In line with average of industry peers (3.0%). Reported Earnings • Feb 10
Third quarter 2022 earnings: EPS exceeds analyst expectations Third quarter 2022 results: EPS: JP¥31.88 (down from JP¥52.87 in 3Q 2021). Revenue: JP¥13.5b (down 7.5% from 3Q 2021). Net income: JP¥1.11b (down 40% from 3Q 2021). Profit margin: 8.2% (down from 13% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 13%. Over the next year, revenue is forecast to grow 9.0%, compared to a 9.0% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Reported Earnings • Nov 10
Second quarter 2022 earnings released: EPS JP¥28.47 (vs JP¥0.34 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥13.7b (up 36% from 2Q 2021). Net income: JP¥994.0m (up JP¥982.0m from 2Q 2021). Profit margin: 7.3% (up from 0.1% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥22.50 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 01 December 2021. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (2.5%). Reported Earnings • Aug 06
First quarter 2022 earnings released: EPS JP¥43.85 (vs JP¥13.49 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥14.3b (up 38% from 1Q 2021). Net income: JP¥1.53b (up 225% from 1Q 2021). Profit margin: 11% (up from 4.5% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Reported Earnings • Jun 27
Full year 2021 earnings released: EPS JP¥113 (vs JP¥147 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥50.2b (down 20% from FY 2020). Net income: JP¥3.96b (down 24% from FY 2020). Profit margin: 7.9% (down from 8.4% in FY 2020). The decrease in margin was driven by lower revenue. 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 17% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jun 12
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from JP¥143 to JP¥158. Revenue forecast unchanged at JP¥60.0b. Net income forecast to grow 39% next year vs 41% growth forecast for Auto Components industry in Japan. Consensus price target of JP¥1,600 unchanged from last update. Share price fell 3.0% to JP¥1,505 over the past week. Reported Earnings • May 14
Full year 2021 earnings released: EPS JP¥113 (vs JP¥147 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥50.2b (down 20% from FY 2020). Net income: JP¥3.96b (down 24% from FY 2020). Profit margin: 7.9% (down from 8.4% in FY 2020). The decrease in margin was driven by lower revenue. 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 22% per year, which means it has not declined as severely as earnings. Price Target Changed • Apr 29
Price target decreased to JP¥1,600 Down from JP¥1,800, the current price target is an average from 2 analysts. New target price is 5.5% above last closing price of JP¥1,516. Stock is down 3.3% over the past year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 25 June 2021. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (2.7%). Lower than average of industry peers (1.9%). Reported Earnings • Feb 10
Third quarter 2021 earnings released: EPS JP¥52.87 (vs JP¥47.10 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: JP¥14.6b (down 6.3% from 3Q 2020). Net income: JP¥1.85b (up 11% from 3Q 2020). Profit margin: 13% (up from 11% in 3Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. 
