Valuation Update With 7 Day Price Move • Aug 14
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥2,349, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 16x in the Machinery industry in Japan. Total returns to shareholders of 143% over the past three years. Reported Earnings • Aug 08
First quarter 2027 earnings released: EPS: JP¥73.33 (vs JP¥96.69 in 1Q 2026) First quarter 2027 results: EPS: JP¥73.33 (down from JP¥96.69 in 1Q 2026). Revenue: JP¥7.85b (up 8.2% from 1Q 2026). Net income: JP¥301.0m (down 24% from 1Q 2026). Profit margin: 3.8% (down from 5.5% in 1Q 2026). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 38% per year whereas the company’s share price has increased by 42% per year. Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,549, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 16x in the Machinery industry in Japan. Total returns to shareholders of 178% over the past three years. New Risk • May 24
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 9.7% 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 Debt is not well covered by operating cash flow (15% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (9.7% average weekly change). Minor Risk Market cap is less than US$100m (JP¥9.20b market cap, or US$57.8m). Valuation Update With 7 Day Price Move • May 22
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to JP¥2,243, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 16x in the Machinery industry in Japan. Total returns to shareholders of 135% over the past three years. Reported Earnings • May 20
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥250 (up from JP¥153 loss in FY 2025). Revenue: JP¥29.7b (up 4.0% from FY 2025). Net income: JP¥1.03b (up JP¥1.66b from FY 2025). Profit margin: 3.5% (up from net loss in FY 2025). The move to profitability was primarily driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 47%. Revenue is forecast to grow 1.9% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year whereas the company’s share price has increased by 22% per year. Announcement • May 15
Advanex Inc., Annual General Meeting, Jun 25, 2026 Advanex Inc., Annual General Meeting, Jun 25, 2026. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 27 June 2026. Payout ratio is a comfortable 26% but the company is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). New Risk • Mar 20
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.1% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.6% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (JP¥6.95b market cap, or US$43.6m). Valuation Update With 7 Day Price Move • Mar 06
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to JP¥1,856, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 16x in the Machinery industry in Japan. Total returns to shareholders of 69% over the past three years. Reported Earnings • Feb 16
Third quarter 2026 earnings released: EPS: JP¥55.78 (vs JP¥143 in 3Q 2025) Third quarter 2026 results: EPS: JP¥55.78 (down from JP¥143 in 3Q 2025). Revenue: JP¥7.28b (flat on 3Q 2025). Net income: JP¥229.0m (down 61% from 3Q 2025). Profit margin: 3.1% (down from 8.1% in 3Q 2025). Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 24% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,233, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 17x in the Machinery industry in Japan. Total returns to shareholders of 125% over the past three years. Declared Dividend • Jan 08
Dividend of JP¥20.00 announced Dividend of JP¥20.00 is the same as last year. Ex-date: 30th March 2026 Payment date: 27th June 2026 Dividend yield will be 1.1%, which is lower than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (12% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 78% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jan 07
Advanex Inc. announces Annual dividend, payable on June 27, 2026 Advanex Inc. announced Annual dividend of JPY 20.0000 per share payable on June 27, 2026, ex-date on March 30, 2026 and record date on March 31, 2026. Valuation Update With 7 Day Price Move • Dec 03
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,581, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 15x in the Machinery industry in Japan. Total returns to shareholders of 48% over the past three years. Reported Earnings • Aug 11
First quarter 2026 earnings released: EPS: JP¥96.69 (vs JP¥16.07 in 1Q 2025) First quarter 2026 results: EPS: JP¥96.69 (up from JP¥16.07 in 1Q 2025). Revenue: JP¥7.26b (up 6.2% from 1Q 2025). Net income: JP¥397.0m (up JP¥331.0m from 1Q 2025). Profit margin: 5.5% (up from 1.0% in 1Q 2025). Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 62 percentage points per year, which is a significant difference in performance. Reported Earnings • May 19
Full year 2025 earnings released: JP¥153 loss per share (vs JP¥65.25 profit in FY 2024) Full year 2025 results: JP¥153 loss per share (down from JP¥65.25 profit in FY 2024). Revenue: JP¥28.5b (up 7.5% from FY 2024). Net loss: JP¥628.0m (down 334% from profit in FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 44 percentage points per year, which is a significant difference in performance. Announcement • May 15
Advanex Inc., Annual General Meeting, Jun 26, 2025 Advanex Inc., Annual General Meeting, Jun 26, 2025. Reported Earnings • Feb 12
Third quarter 2025 earnings released: EPS: JP¥143 (vs JP¥46.75 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥143 (up from JP¥46.75 loss in 3Q 2024). Revenue: JP¥7.25b (up 8.3% from 3Q 2024). Net income: JP¥589.0m (up JP¥781.0m from 3Q 2024). Profit margin: 8.1% (up from net loss in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Declared Dividend • Jan 06
Dividend of JP¥20.00 announced Dividend of JP¥20.00 is the same as last year. Ex-date: 28th March 2025 Payment date: 1st January 1970 Dividend yield will be 2.1%, which is about the same as the industry average. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. However, the dividend is well covered by cash flows (35% cash payout ratio). The dividend has increased by an average of 2.9% per year over the past 10 years. However, payments have been volatile during that time. Reported Earnings • Nov 13
Second quarter 2025 earnings released: JP¥241 loss per share (vs JP¥15.83 loss in 2Q 2024) Second quarter 2025 results: JP¥241 loss per share (further deteriorated from JP¥15.83 loss in 2Q 2024). Revenue: JP¥7.00b (up 1.1% from 2Q 2024). Net loss: JP¥990.0m (loss widened JP¥925.0m from 2Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 61 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 14
First quarter 2025 earnings released: EPS: JP¥16.07 (vs JP¥103 in 1Q 2024) First quarter 2025 results: EPS: JP¥16.07 (down from JP¥103 in 1Q 2024). Revenue: JP¥6.83b (up 8.3% from 1Q 2024). Net income: JP¥66.0m (down 84% from 1Q 2024). Profit margin: 1.0% (down from 6.7% in 1Q 2024). 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 10% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 27% After last week's 27% share price decline to JP¥750, the stock trades at a trailing P/E ratio of 11.5x. Average trailing P/E is 11x in the Machinery industry in Japan. Total loss to shareholders of 39% over the past three years. Reported Earnings • May 13
Full year 2024 earnings released: EPS: JP¥65.25 (vs JP¥14.61 in FY 2023) Full year 2024 results: EPS: JP¥65.25 (up from JP¥14.61 in FY 2023). Revenue: JP¥26.5b (up 7.8% from FY 2023). Net income: JP¥268.0m (up 347% from FY 2023). Profit margin: 1.0% (up from 0.2% in FY 2023). Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Announcement • May 12
Advanex Inc., Annual General Meeting, Jun 27, 2024 Advanex Inc., Annual General Meeting, Jun 27, 2024. Valuation Update With 7 Day Price Move • Apr 12
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,478, the stock trades at a trailing P/E ratio of 22.9x. Average trailing P/E is 13x in the Machinery industry in Japan. Total returns to shareholders of 1.1% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (1.9%). Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to JP¥1,347, the stock trades at a trailing P/E ratio of 20.9x. Average trailing P/E is 13x in the Machinery industry in Japan. Total loss to shareholders of 9.8% over the past three years. Reported Earnings • Feb 11
Third quarter 2024 earnings released: JP¥46.75 loss per share (vs JP¥64.51 loss in 3Q 2023) Third quarter 2024 results: JP¥46.75 loss per share (improved from JP¥64.51 loss in 3Q 2023). Revenue: JP¥6.70b (up 6.2% from 3Q 2023). Net loss: JP¥192.0m (loss narrowed 28% from 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 47% 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. Reported Earnings • Nov 12
Second quarter 2024 earnings released: JP¥15.83 loss per share (vs JP¥49.90 profit in 2Q 2023) Second quarter 2024 results: JP¥15.83 loss per share (down from JP¥49.90 profit in 2Q 2023). Revenue: JP¥6.93b (up 11% from 2Q 2023). Net loss: JP¥65.0m (down 132% from profit in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥103 (vs JP¥5.11 in 1Q 2023) First quarter 2024 results: EPS: JP¥103 (up from JP¥5.11 in 1Q 2023). Revenue: JP¥6.31b (up 12% from 1Q 2023). Net income: JP¥423.0m (up JP¥402.0m from 1Q 2023). Profit margin: 6.7% (up from 0.4% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Reported Earnings • May 17
Full year 2023 earnings released: EPS: JP¥14.61 (vs JP¥19.97 loss in FY 2022) Full year 2023 results: EPS: JP¥14.61 (up from JP¥19.97 loss in FY 2022). Revenue: JP¥24.6b (up 13% from FY 2022). Net income: JP¥60.0m (up JP¥142.0m from FY 2022). Profit margin: 0.2% (up from net loss in FY 2022). Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥10.00 per share at 0.8% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 29 June 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.4%). Reported Earnings • Feb 15
Third quarter 2023 earnings released: JP¥64.51 loss per share (vs JP¥21.18 loss in 3Q 2022) Third quarter 2023 results: JP¥64.51 loss per share (further deteriorated from JP¥21.18 loss in 3Q 2022). Revenue: JP¥6.31b (up 17% from 3Q 2022). Net loss: JP¥265.0m (loss widened 205% from 3Q 2022). 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 12% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥49.90 (vs JP¥3.65 loss in 2Q 2022) Second quarter 2023 results: EPS: JP¥49.90 (up from JP¥3.65 loss in 2Q 2022). Revenue: JP¥6.24b (up 15% from 2Q 2022). Net income: JP¥205.0m (up JP¥220.0m from 2Q 2022). Profit margin: 3.3% (up from net loss in 2Q 2022). 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 12% 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 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent Outside Audit & Supervisory Board Member Yoshimi Nakamura was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 13
Second quarter 2023 earnings released: EPS: JP¥49.90 (vs JP¥3.65 loss in 2Q 2022) Second quarter 2023 results: EPS: JP¥49.90 (up from JP¥3.65 loss in 2Q 2022). Revenue: JP¥6.24b (up 15% from 2Q 2022). Net income: JP¥205.0m (up JP¥220.0m from 2Q 2022). Profit margin: 3.3% (up from net loss in 2Q 2022). 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 15% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥5.11 (vs JP¥9.76 in 1Q 2022) First quarter 2023 results: EPS: JP¥5.11 (down from JP¥9.76 in 1Q 2022). Revenue: JP¥5.65b (up 5.9% from 1Q 2022). Net income: JP¥21.0m (down 48% from 1Q 2022). Profit margin: 0.4% (down from 0.8% in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • Jul 02
Advanex Inc. to Report Q3, 2023 Results on Feb 13, 2023 Advanex Inc. announced that they will report Q3, 2023 results on Feb 13, 2023 Reported Earnings • May 19
Full year 2022 earnings released: EPS: JP¥4.14 (vs JP¥155 in FY 2021) Full year 2022 results: EPS: JP¥4.14 (down from JP¥155 in FY 2021). Revenue: JP¥21.7b (up 11% from FY 2021). Net income: JP¥17.0m (down 97% from FY 2021). Profit margin: 0.1% (down from 3.2% in FY 2021). Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
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: 7 new directors. 2 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). President, CEO & Representative Director Seiya Kato is the most experienced director on the board, commencing their role in 2012. Outside Independent Director Shigeru Yokono 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. Lack of experienced directors. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 30 June 2022. The company is not currently making a profit and is not cash flow positive. Trailing yield: 0.6%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (2.0%). Reported Earnings • Feb 12
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: JP¥21.18 loss per share (down from JP¥262 profit in 3Q 2021). Revenue: JP¥5.41b (flat on 3Q 2021). Net loss: JP¥87.0m (down 108% from profit in 3Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 12
Second quarter 2022 earnings released: JP¥3.65 loss per share (vs JP¥11.00 loss in 2Q 2021) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2022 results: Revenue: JP¥5.44b (up 16% from 2Q 2021). Net loss: JP¥15.0m (loss narrowed 67% from 2Q 2021). Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Oct 12
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥1,341, the stock trades at a trailing P/E ratio of 5.2x. Average trailing P/E is 14x in the Machinery industry in Japan. Total loss to shareholders of 25% over the past three years. Valuation Update With 7 Day Price Move • Sep 10
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥1,370, the stock trades at a trailing P/E ratio of 5.3x. Average trailing P/E is 14x in the Machinery industry in Japan. Total loss to shareholders of 29% over the past three years. Reported Earnings • May 17
Full year 2021 earnings released: EPS JP¥155 (vs JP¥145 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¥19.5b (down 8.2% from FY 2020). Net income: JP¥634.0m (up JP¥1.23b from FY 2020). Profit margin: 3.2% (up from net loss in FY 2020). Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has fallen by 19% per year, which means it is performing significantly worse than earnings. Is New 90 Day High Low • Feb 05
New 90-day high: JP¥1,508 The company is up 23% from its price of JP¥1,228 on 06 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 16% over the same period. Is New 90 Day High Low • Jan 20
New 90-day high: JP¥1,340 The company is up 2.0% from its price of JP¥1,309 on 22 October 2020. The Japanese market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 18% over the same period.