Valuation Update With 7 Day Price Move • May 20
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥3,940, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 11x in the Auto Components industry in Japan. Total returns to shareholders of 91% over the past three years. Announcement • May 14
KYB Corporation, Annual General Meeting, Jun 24, 2026 KYB Corporation, Annual General Meeting, Jun 24, 2026. Reported Earnings • May 14
Full year 2026 earnings: EPS misses analyst expectations Full year 2026 results: EPS: JP¥653 (up from JP¥281 in FY 2025). Revenue: JP¥481.5b (up 9.9% from FY 2025). Net income: JP¥29.0b (up 108% from FY 2025). Profit margin: 6.0% (up from 3.2% in FY 2025). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.9%. Revenue is forecast to grow 3.8% p.a. on average during the next 2 years, compared to a 3.6% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 10
KYB Corporation to Report Fiscal Year 2026 Results on May 13, 2026 KYB Corporation announced that they will report fiscal year 2026 results on May 13, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 25 June 2026. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 3.5%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.8%). Price Target Changed • Mar 20
Price target increased by 22% to JP¥5,400 Up from JP¥4,410, the current price target is provided by 1 analyst. New target price is 26% above last closing price of JP¥4,290. Stock is up 40% over the past year. The company is forecast to post earnings per share of JP¥644 for next year compared to JP¥281 last year. Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: JP¥183 (vs JP¥71.64 in 3Q 2025) Third quarter 2026 results: EPS: JP¥183 (up from JP¥71.64 in 3Q 2025). Revenue: JP¥123.2b (up 13% from 3Q 2025). Net income: JP¥7.96b (up 78% from 3Q 2025). Profit margin: 6.5% (up from 4.1% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.9% 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 increased by 4% per year but the company’s share price has increased by 40% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 12
KYB Corporation (TSE:7242) announces an Equity Buyback for 3,240,000 shares, representing 7.51% for ¥13,410.36 million. KYB Corporation (TSE:7242) announces a share repurchase program. Under the program, the company will repurchase up to 3,240,000 shares, representing 7.51% of its share capital, for ¥13,410.36 million. The shares will be repurchased at ¥4,139 per share. The company will repurchase 2,938,834 shares from Toyota Motor Corporation (TSE:7203). The company will repurchase its shares in order to implement flexible capital and dividend policies. The purpose of the offer is flexible implementation of dividend and capital policies. If the offer is oversubscribed the company may repurchase up to additional 100 shares. The offer will be valid till March 16, 2026. As of December 31, 2025, the company had 43,169,665 shares outstanding (excluding treasury shares) and 7,298,997 shares in treasury. Major Estimate Revision • Jan 24
Consensus EPS estimates increase by 29% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥450.0b to JP¥470.0b. EPS estimate increased from JP¥467 to JP¥602 per share. Net income forecast to shrink 7.8% next year vs 7.2% growth forecast for Auto Components industry in Japan . Consensus price target up from JP¥4,410 to JP¥4,680. Share price was steady at JP¥4,630 over the past week. Announcement • Dec 27
KYB Corporation to Report Q3, 2026 Results on Feb 12, 2026 KYB Corporation announced that they will report Q3, 2026 results on Feb 12, 2026 New Risk • Nov 17
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 5.4% 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 are forecast to decline by an average of 7.5% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (5.4% average weekly change). Reported Earnings • Nov 14
Second quarter 2026 earnings released: EPS: JP¥114 (vs JP¥20.77 in 2Q 2025) Second quarter 2026 results: EPS: JP¥114 (up from JP¥20.77 in 2Q 2025). Revenue: JP¥116.9b (up 12% from 2Q 2025). Net income: JP¥5.00b (up 381% from 2Q 2025). Profit margin: 4.3% (up from 1.0% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.3% p.a. on average 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 8% per year but the company’s share price has increased by 38% per year, which means it is well ahead of earnings. Price Target Changed • Oct 09
Price target increased by 39% to JP¥4,410 Up from JP¥3,180, the current price target is provided by 1 analyst. New target price is 12% above last closing price of JP¥3,945. Stock is up 62% over the past year. The company is forecast to post earnings per share of JP¥467 for next year compared to JP¥281 last year. Announcement • Oct 01
KYB Corporation to Report Q2, 2026 Results on Nov 12, 2025 KYB Corporation announced that they will report Q2, 2026 results on Nov 12, 2025 Announcement • Sep 26
KYB Corporation (TSE:7242) announces an Equity Buyback for 740,030 shares, representing 1.64% for ¥2,989.72 million. KYB Corporation (TSE:7242) announces a share repurchase program. Under the program, the company will repurchase up to 740,030 shares, representing 1.64% of its issued share capital, for ¥2,989.72 million. The shares will be purchased on September 26, 2025. As of August 31, 2025, the company 50,468,662 outstanding shares (excluding treasury stock) and 5,364,377 treasury shares. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 09 December 2025. Payout ratio is a comfortable 11% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (3.0%). Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥262 (vs JP¥73.32 in 1Q 2025) First quarter 2026 results: EPS: JP¥262 (up from JP¥73.32 in 1Q 2025). Revenue: JP¥113.9b (up 4.8% from 1Q 2025). Net income: JP¥12.1b (up 230% from 1Q 2025). Profit margin: 11% (up from 3.4% in 1Q 2025). The increase in margin was primarily driven by higher revenue. Revenue is forecast to grow 2.8% p.a. on average 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 16% per year but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Aug 04
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 14% to JP¥3,350. The fair value is estimated to be JP¥2,781, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.7% over the last 3 years. Earnings per share has declined by 21%. For the next 3 years, revenue is forecast to grow by 3.0% per annum. Earnings are also forecast to grow by 11% per annum over the same time period. Board Change • Jul 22
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Director & Senior Managing Executive Officer Tomoki Takaoka was the last director to join the board, commencing their role in 2025. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Jul 07
KYB Corporation to Report Q1, 2026 Results on Aug 07, 2025 KYB Corporation announced that they will report Q1, 2026 results on Aug 07, 2025 Reported Earnings • Jun 27
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥281 (down from JP¥295 in FY 2024). Revenue: JP¥438.3b (down 1.0% from FY 2024). Net income: JP¥14.0b (down 6.2% from FY 2024). Profit margin: 3.2% (down from 3.4% in FY 2024). Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) also missed analyst estimates by 32%. Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 26% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • May 27
Now 24% undervalued Over the last 90 days, the stock has risen 5.5% to JP¥3,040. The fair value is estimated to be JP¥4,021, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.7% over the last 3 years. Earnings per share has declined by 20%. Revenue is forecast to grow by 21% in 2 years. Earnings are forecast to grow by 43% in the next 2 years. Reported Earnings • May 13
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥300 (up from JP¥295 in FY 2024). Revenue: JP¥438.3b (down 1.0% from FY 2024). Net income: JP¥14.9b (flat on FY 2024). Profit margin: 3.4% (in line with FY 2024). Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) also missed analyst estimates by 32%. Revenue is forecast to grow 9.4% 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 20% per year but the company’s share price has increased by 29% per year, which means it is well ahead of earnings. Announcement • May 12
KYB Corporation, Annual General Meeting, Jun 24, 2025 KYB Corporation, Annual General Meeting, Jun 24, 2025. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 26 June 2025. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (3.3%). Reported Earnings • Feb 13
Third quarter 2025 earnings released: EPS: JP¥89.61 (vs JP¥50.91 in 3Q 2024) Third quarter 2025 results: EPS: JP¥89.61 (up from JP¥50.91 in 3Q 2024). Revenue: JP¥109.4b (down 1.3% from 3Q 2024). Net income: JP¥4.47b (up 75% from 3Q 2024). Profit margin: 4.1% (up from 2.3% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 8.8% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 24% per year, which means it is well ahead of earnings. Price Target Changed • Jan 27
Price target increased by 16% to JP¥3,080 Up from JP¥2,665, the current price target is provided by 1 analyst. New target price is 5.7% above last closing price of JP¥2,913. Stock is up 13% over the past year. The company is forecast to post earnings per share of JP¥411 for next year compared to JP¥295 last year. Announcement • Jan 09
KYB Corporation to Report Q3, 2025 Results on Feb 12, 2025 KYB Corporation announced that they will report Q3, 2025 results on Feb 12, 2025 New Risk • Dec 16
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Nov 13
Second quarter 2025 earnings released: EPS: JP¥60.30 (vs JP¥113 in 2Q 2024) Second quarter 2025 results: EPS: JP¥60.30 (down from JP¥113 in 2Q 2024). Revenue: JP¥104.7b (down 5.4% from 2Q 2024). Net income: JP¥1.51b (down 47% from 2Q 2024). Profit margin: 1.4% (down from 2.6% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 3.6% 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 21% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Announcement • Nov 12
KYB Corporation (TSE:7242) announces an Equity Buyback for 4,600,000 shares, representing 18.37% for ¥20,000 million. KYB Corporation (TSE:7242) announces a share repurchase program. Under the program, the company will repurchase up to 4,600,000 shares, representing 18.37% of its issued share capital, for ¥20,000 million. The purpose of the program is to strengthen shareholder returns and respond to changes in the business environment. The program is valid till November 28, 2025. As of September 30, 2024, the company 25,042,705 outstanding shares (excluding treasury stock) and 191,626 treasury shares.
On November 11, 2024, the company announced that it plans to split its common shares at a ratio of 2 shares for every 1 share on December 3, 2024, and after the effective date of the stock split, the total number of shares that may be acquired will be 9,200,000 shares. Announcement • Nov 11
KYB Corporation (TSE:7242) proposed to acquire an additional 88.4% stake in Chita Kogyo Co., Ltd. (NSE:5993) from group of sellers for ¥17.0 billion in a tender offer transaction. KYB Corporation (TSE:7242) proposed to acquire an additional 88.4% stake in Chita Kogyo Co., Ltd. (NSE:5993) from group of sellers for ¥17.0 billion in a tender offer transaction on November 11, 2024. A cash consideration valued at ¥2010 per share will be paid by KYB Corporation.
The Board of Directors of Chita Kogyo Co., Ltd. formed a special committee for the transaction.
Mizuho Securities Co., Ltd. acted as financial advisor for KYB Corporation. Nishimura & Asahi acted as legal advisor for KYB Corporation. PwC Advisory LLC acted as financial advisor for KYB Corporation. PwC Tax Japan acted as accountant for KYB Corporation. SMBC Nikko Securities Inc. acted as financial advisor for Chita Kogyo Co., Ltd. Mori Hamada & Matsumoto LPC acted as legal advisor for Chita Kogyo Co., Ltd. Tokyo Kyodo Accounting Office Co., Ltd. acted as accountant for Chita Kogyo Co., Ltd. Announcement • Sep 27
KYB Corporation to Report Q2, 2025 Results on Nov 11, 2024 KYB Corporation announced that they will report Q2, 2025 results on Nov 11, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥100.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 09 December 2024. Payout ratio is a comfortable 36% and the cash payout ratio is 85%. Trailing yield: 4.1%. 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 16% After last week's 16% share price decline to JP¥4,305, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 8x in the Auto Components industry in Japan. Total returns to shareholders of 49% over the past three years. Announcement • Jul 05
KYB Corporation to Report Q1, 2025 Results on Aug 08, 2024 KYB Corporation announced that they will report Q1, 2025 results on Aug 08, 2024 Announcement • May 15
KYB Corporation, Annual General Meeting, Jun 25, 2024 KYB Corporation, Annual General Meeting, Jun 25, 2024. Reported Earnings • May 12
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥627 (down from JP¥1,028 in FY 2023). Revenue: JP¥442.8b (up 2.7% from FY 2023). Net income: JP¥15.8b (down 40% from FY 2023). Profit margin: 3.6% (down from 6.1% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.3%. Revenue is forecast to grow 8.1% 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 5% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Major Estimate Revision • Apr 17
Consensus EPS estimates fall by 23% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥470.0b to JP¥440.0b. EPS estimate also fell from JP¥815 per share to JP¥630 per share. Net income forecast to shrink 14% next year vs 8.6% growth forecast for Auto Components industry in Japan . Consensus price target up from JP¥5,330 to JP¥5,500. Share price was steady at JP¥5,150 over the past week. Announcement • Mar 28
KYB Corporation to Report Fiscal Year 2024 Results on May 10, 2024 KYB Corporation announced that they will report fiscal year 2024 results on May 10, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥100.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (2.6%). Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥130 (vs JP¥162 in 3Q 2023) Third quarter 2024 results: EPS: JP¥130 (down from JP¥162 in 3Q 2023). Revenue: JP¥110.8b (up 3.6% from 3Q 2023). Net income: JP¥3.26b (down 21% from 3Q 2023). Profit margin: 2.9% (down from 3.9% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.3% 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 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. Announcement • Jan 11
KYB Corporation to Report Q3, 2024 Results on Feb 08, 2024 KYB Corporation announced that they will report Q3, 2024 results on Feb 08, 2024 Reported Earnings • Nov 08
Second quarter 2024 earnings released: EPS: JP¥123 (vs JP¥210 in 2Q 2023) Second quarter 2024 results: EPS: JP¥123 (down from JP¥210 in 2Q 2023). Revenue: JP¥110.6b (up 1.1% from 2Q 2023). Net income: JP¥3.10b (down 42% from 2Q 2023). Profit margin: 2.8% (down from 4.9% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.1% 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 increased by 69% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Announcement • Sep 30
KYB Corporation to Report Q2, 2024 Results on Nov 07, 2023 KYB Corporation announced that they will report Q2, 2024 results on Nov 07, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥100.00 per share at 4.0% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 06 December 2023. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 4.0%. 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¥198 (vs JP¥187 in 1Q 2023) First quarter 2024 results: EPS: JP¥198 (up from JP¥187 in 1Q 2023). Revenue: JP¥107.3b (up 6.8% from 1Q 2023). Net income: JP¥5.07b (up 6.1% from 1Q 2023). Profit margin: 4.7% (down from 4.8% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.6% p.a. on average during the next 3 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 increased by 88% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jul 26
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from JP¥911 to JP¥815. Revenue forecast unchanged from JP¥470.0b at last update. Net income forecast to shrink 17% next year vs 26% growth forecast for Auto Components industry in Japan . Consensus price target up from JP¥4,830 to JP¥5,330. Share price was steady at JP¥4,990 over the past week. Price Target Changed • Jul 25
Price target increased by 16% to JP¥5,330 Up from JP¥4,580, the current price target is provided by 1 analyst. New target price is 5.5% above last closing price of JP¥5,050. Stock is up 59% over the past year. The company is forecast to post earnings per share of JP¥815 for next year compared to JP¥1,028 last year. Board Change • Jul 23
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Senior Managing Executive Officer, CFO & Director Takashi Saito was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Jun 30
KYB Corporation to Report Q1, 2024 Results on Aug 04, 2023 KYB Corporation announced that they will report Q1, 2024 results on Aug 04, 2023 Reported Earnings • May 13
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: JP¥1,065 (up from JP¥883 in FY 2022). Revenue: JP¥431.2b (up 11% from FY 2022). Net income: JP¥27.2b (up 21% from FY 2022). Profit margin: 6.3% (up from 5.8% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 4.2%. Earnings per share (EPS) exceeded analyst estimates by 25%. Revenue is forecast to grow 6.3% p.a. on average during the next 2 years, compared to a 4.5% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥70.00 per share at 3.7% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 26 June 2023. Payout ratio is a comfortable 17% and this is well supported by cash flows. Trailing yield: 3.7%. 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¥171 (vs JP¥299 in 3Q 2022) Third quarter 2023 results: EPS: JP¥171 (down from JP¥299 in 3Q 2022). Revenue: JP¥106.9b (up 6.7% from 3Q 2022). Net income: JP¥4.37b (down 43% from 3Q 2022). Profit margin: 4.1% (down from 7.6% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.1% 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 increased by 91% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Jan 22
KYB Corporation to Report Q3, 2023 Results on Feb 08, 2023 KYB Corporation announced that they will report Q3, 2023 results on Feb 08, 2023 Major Estimate Revision • Jan 20
Consensus EPS estimates increase by 17% The consensus outlook for earnings per share (EPS) in 2023 has improved. 2023 revenue forecast increased from JP¥430.0b to JP¥450.0b. EPS estimate increased from JP¥707 to JP¥824 per share. Net income forecast to shrink 1.4% next year vs 19% growth forecast for Auto Components industry in Japan . Consensus price target up from JP¥4,580 to JP¥4,830. Share price rose 5.2% to JP¥3,535 over the past week. Price Target Changed • Jan 19
Price target increased to JP¥4,830 Up from JP¥4,450, the current price target is provided by 1 analyst. New target price is 38% above last closing price of JP¥3,490. Stock is up 12% over the past year. The company is forecast to post earnings per share of JP¥824 for next year compared to JP¥883 last year. Board Change • Nov 16
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 independent directors. 6 non-independent directors. Independent External Director Akemi Sunaga 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 06
Second quarter 2023 earnings released: EPS: JP¥228 (vs JP¥180 in 2Q 2022) Second quarter 2023 results: EPS: JP¥228 (up from JP¥180 in 2Q 2022). Revenue: JP¥109.5b (up 20% from 2Q 2022). Net income: JP¥5.83b (up 27% from 2Q 2022). Profit margin: 5.3% (up from 5.0% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. 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: 09 December 2022. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (3.1%). Reported Earnings • Aug 07
First quarter 2023 earnings released: EPS: JP¥196 (vs JP¥183 in 1Q 2022) First quarter 2023 results: EPS: JP¥196 (up from JP¥183 in 1Q 2022). Revenue: JP¥100.4b (up 5.8% from 1Q 2022). Net income: JP¥5.01b (up 7.3% from 1Q 2022). Profit margin: 5.0% (up from 4.9% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 10%, compared to a 13% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 16
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: JP¥883 (up from JP¥669 in FY 2021). Revenue: JP¥388.4b (up 18% from FY 2021). Net income: JP¥22.5b (up 32% from FY 2021). Profit margin: 5.8% (up from 5.2% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.5%. Earnings per share (EPS) also surpassed analyst estimates by 3.5%. Over the next year, revenue is forecast to grow 1.8%, compared to a 11% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent External Director Masakazu Sakata was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 28 June 2022. Payout ratio is a comfortable 9.9% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.4%). In line with average of industry peers (3.0%). Reported Earnings • Feb 09
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: JP¥308 (up from JP¥270 in 3Q 2021). Revenue: JP¥100.3b (up 10% from 3Q 2021). Net income: JP¥7.87b (up 14% from 3Q 2021). Profit margin: 7.9% (up from 7.6% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.2%. Earnings per share (EPS) also surpassed analyst estimates by 3,318%. Over the next year, revenue is forecast to grow 2.8%, compared to a 8.9% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 07
Second quarter 2022 earnings released: EPS JP¥189 (vs JP¥2.74 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥91.0b (up 16% from 2Q 2021). Net income: JP¥4.82b (up JP¥4.75b from 2Q 2021). Profit margin: 5.3% (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 increased by 22% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 06
First quarter 2022 earnings released: EPS JP¥183 (vs JP¥150 loss in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥94.9b (up 57% from 1Q 2021). Net income: JP¥4.68b (up JP¥8.51b from 1Q 2021). Profit margin: 4.9% (up from net loss in 1Q 2021). The move to profitability was driven by higher revenue. 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 11% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • May 20
Investor sentiment improved over the past week After last week's 18% share price gain to JP¥3,755, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 10x in the Auto Components industry in Japan. Total loss to shareholders of 30% over the past three years. Reported Earnings • May 16
Full year 2021 earnings released: EPS JP¥669 (vs JP¥2,423 loss in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: JP¥328.0b (down 14% from FY 2020). Net income: JP¥17.1b (up JP¥79.0b from FY 2020). Profit margin: 5.2% (up from net loss in FY 2020). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Price Target Changed • May 14
Price target increased to JP¥4,300 Up from JP¥2,400, the current price target is provided by 1 analyst. New target price is 16% above last closing price of JP¥3,710. Stock is up 73% over the past year. Is New 90 Day High Low • Mar 16
New 90-day high: JP¥3,255 The company is up 26% from a price of JP¥2,576 on 16 December 2020. Outperformed the Japanese market which is up 10.0% over the last 90 days. Exceeded the Auto Components industry, which is up 21% over the same period. Reported Earnings • Feb 11
Third quarter 2021 earnings released: EPS JP¥270 (vs JP¥349 loss 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¥91.0b (down 1.0% from 3Q 2020). Net income: JP¥6.89b (up JP¥15.8b from 3Q 2020). Profit margin: 7.6% (up from net loss in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 97% 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. Analyst Estimate Surprise Post Earnings • Feb 11
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 7.0%. Earnings per share (EPS) also surpassed analyst estimates by 360%. Over the next year, revenue is forecast to stay flat compared to a 8.7% growth forecast for the Auto Components industry in Japan. Is New 90 Day High Low • Feb 10
New 90-day high: JP¥3,110 The company is up 24% from its price of JP¥2,514 on 12 November 2020. The Japanese market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Auto Components industry, which is up 19% over the same period. Price Target Changed • Dec 01
Price target raised to JP¥2,350 Up from JP¥1,900, the current price target is provided by 1 analyst. The new target price is 8.1% below the current share price of JP¥2,558. As of last close, the stock is down 23% over the past year. Announcement • Oct 16
KYB Corporation to Report Q2, 2021 Results on Nov 06, 2020 KYB Corporation announced that they will report Q2, 2021 results on Nov 06, 2020 
