Announcement • Jun 06
Odawara Engineering Co., Ltd. to Report Q2, 2026 Results on Aug 10, 2026 Odawara Engineering Co., Ltd. announced that they will report Q2, 2026 results on Aug 10, 2026 Reported Earnings • May 19
First quarter 2026 earnings released: EPS: JP¥45.44 (vs JP¥10.34 loss in 1Q 2025) First quarter 2026 results: EPS: JP¥45.44 (up from JP¥10.34 loss in 1Q 2025). Revenue: JP¥3.12b (up 40% from 1Q 2025). Net income: JP¥260.0m (up JP¥319.0m from 1Q 2025). Profit margin: 8.3% (up from net loss in 1Q 2025). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 21% 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 • Mar 29
Full year 2025 earnings released: EPS: JP¥405 (vs JP¥152 in FY 2024) Full year 2025 results: EPS: JP¥405 (up from JP¥152 in FY 2024). Revenue: JP¥18.2b (up 38% from FY 2024). Net income: JP¥2.32b (up 168% from FY 2024). Profit margin: 13% (up from 6.6% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 16
Full year 2025 earnings released: EPS: JP¥405 (vs JP¥152 in FY 2024) Full year 2025 results: EPS: JP¥405 (up from JP¥152 in FY 2024). Revenue: JP¥18.2b (up 38% from FY 2024). Net income: JP¥2.32b (up 168% from FY 2024). Profit margin: 13% (up from 6.6% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Feb 13
Odawara Engineering Co., Ltd., Annual General Meeting, Mar 27, 2026 Odawara Engineering Co., Ltd., Annual General Meeting, Mar 27, 2026. Announcement • Dec 23
Odawara Engineering Co., Ltd. to Report Fiscal Year 2025 Results on Feb 13, 2026 Odawara Engineering Co., Ltd. announced that they will report fiscal year 2025 results on Feb 13, 2026 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥70.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 31 March 2026. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.9%). Reported Earnings • Nov 17
Third quarter 2025 earnings released: JP¥11.88 loss per share (vs JP¥11.04 profit in 3Q 2024) Third quarter 2025 results: JP¥11.88 loss per share (down from JP¥11.04 profit in 3Q 2024). Revenue: JP¥1.86b (down 65% from 3Q 2024). Net loss: JP¥68.0m (down 208% from profit in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 16% per year. New Risk • Oct 10
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.7b (US$96.3m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.5% average weekly change). Market cap is less than US$100m (JP¥14.7b market cap, or US$96.3m). Announcement • Sep 02
Odawara Engineering Co., Ltd. to Report Q3, 2025 Results on Nov 13, 2025 Odawara Engineering Co., Ltd. announced that they will report Q3, 2025 results on Nov 13, 2025 Reported Earnings • Aug 16
Second quarter 2025 earnings released: EPS: JP¥260 (vs JP¥25.09 in 2Q 2024) Second quarter 2025 results: EPS: JP¥260 (up from JP¥25.09 in 2Q 2024). Revenue: JP¥8.14b (up 287% from 2Q 2024). Net income: JP¥1.49b (up JP¥1.34b from 2Q 2024). Profit margin: 18% (up from 6.8% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 12% per year. Valuation Update With 7 Day Price Move • Aug 13
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥2,319, the stock trades at a trailing P/E ratio of 23.8x. Average trailing P/E is 13x in the Machinery industry in Japan. Total returns to shareholders of 52% over the past three years. Announcement • Jun 03
Odawara Engineering Co., Ltd. to Report Q2, 2025 Results on Aug 12, 2025 Odawara Engineering Co., Ltd. announced that they will report Q2, 2025 results on Aug 12, 2025 Reported Earnings • May 19
First quarter 2025 earnings released: JP¥10.34 loss per share (vs JP¥43.75 profit in 1Q 2024) First quarter 2025 results: JP¥10.34 loss per share (down from JP¥43.75 profit in 1Q 2024). Revenue: JP¥2.22b (down 12% from 1Q 2024). Net loss: JP¥59.0m (down 124% from profit in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has increased by 2% per year. New Risk • May 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 7.7% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.7% average weekly change). Profit margins are more than 30% lower than last year (6.6% net profit margin). Market cap is less than US$100m (JP¥10.1b market cap, or US$69.3m). New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.0% average weekly change). Profit margins are more than 30% lower than last year (6.6% net profit margin). Market cap is less than US$100m (JP¥8.73b market cap, or US$59.7m). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,530, the stock trades at a trailing P/E ratio of 10.1x. Average trailing P/E is 11x in the Machinery industry in Japan. Total loss to shareholders of 6.9% over the past three years. Announcement • Mar 05
Odawara Engineering Co., Ltd. to Report Q1, 2025 Results on May 14, 2025 Odawara Engineering Co., Ltd. announced that they will report Q1, 2025 results on May 14, 2025 Reported Earnings • Feb 17
Full year 2024 earnings released: EPS: JP¥152 (vs JP¥269 in FY 2023) Full year 2024 results: EPS: JP¥152 (down from JP¥269 in FY 2023). Revenue: JP¥13.2b (down 10% from FY 2023). Net income: JP¥865.0m (down 43% from FY 2023). Profit margin: 6.6% (down from 10% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Feb 14
Odawara Engineering Co., Ltd., Annual General Meeting, Mar 28, 2025 Odawara Engineering Co., Ltd., Annual General Meeting, Mar 28, 2025. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 31 March 2025. Payout ratio is a comfortable 10% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.3%). Announcement • Dec 03
Odawara Engineering Co., Ltd. to Report Fiscal Year 2024 Results on Feb 14, 2025 Odawara Engineering Co., Ltd. announced that they will report fiscal year 2024 results on Feb 14, 2025 New Risk • Nov 20
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 5.9% Last year net profit margin: 9.2% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.6% average weekly change). Profit margins are more than 30% lower than last year (5.9% net profit margin). Market cap is less than US$100m (JP¥9.71b market cap, or US$62.8m). New Risk • Nov 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.5% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.5% average weekly change). Market cap is less than US$100m (JP¥9.53b market cap, or US$61.0m). Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to JP¥1,917, the stock trades at a trailing P/E ratio of 11.8x. Average trailing P/E is 12x in the Machinery industry in Japan. Total loss to shareholders of 27% over the past three years. Announcement • Sep 04
Odawara Engineering Co., Ltd. to Report Q3, 2024 Results on Nov 13, 2024 Odawara Engineering Co., Ltd. announced that they will report Q3, 2024 results on Nov 13, 2024 Reported Earnings • Aug 18
Second quarter 2024 earnings released: EPS: JP¥25.08 (vs JP¥115 in 2Q 2023) Second quarter 2024 results: EPS: JP¥25.08 (down from JP¥115 in 2Q 2023). Revenue: JP¥2.10b (down 52% from 2Q 2023). Net income: JP¥143.0m (down 78% from 2Q 2023). Profit margin: 6.8% (down from 15% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,418, the stock trades at a trailing P/E ratio of 5.6x. Average trailing P/E is 11x in the Machinery industry in Japan. Total loss to shareholders of 36% over the past three years. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: JP¥43.75 (vs JP¥59.70 in 1Q 2023) First quarter 2024 results: EPS: JP¥43.75 (down from JP¥59.70 in 1Q 2023). Revenue: JP¥2.53b (down 28% from 1Q 2023). Net income: JP¥249.0m (down 27% from 1Q 2023). Profit margin: 9.8% (in line with 1Q 2023). Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Announcement • Mar 11
Odawara Engineering Co., Ltd. to Report Q1, 2024 Results on May 14, 2024 Odawara Engineering Co., Ltd. announced that they will report Q1, 2024 results on May 14, 2024 Reported Earnings • Feb 17
Full year 2023 earnings released: EPS: JP¥269 (vs JP¥141 in FY 2022) Full year 2023 results: EPS: JP¥269 (up from JP¥141 in FY 2022). Revenue: JP¥14.7b (up 4.4% from FY 2022). Net income: JP¥1.53b (up 91% from FY 2022). Profit margin: 10% (up from 5.7% in FY 2022). Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Announcement • Feb 16
Odawara Engineering Co., Ltd., Annual General Meeting, Mar 28, 2024 Odawara Engineering Co., Ltd., Annual General Meeting, Mar 28, 2024. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥40.00 per share at 1.3% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 01 April 2024. Payout ratio is a comfortable 6.0% but the company is not cash flow positive. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (2.2%). Announcement • Dec 18
Odawara Engineering Co., Ltd. to Report Fiscal Year 2023 Results on Feb 14, 2024 Odawara Engineering Co., Ltd. announced that they will report fiscal year 2023 results on Feb 14, 2024 Reported Earnings • Nov 16
Third quarter 2023 earnings released: EPS: JP¥26.53 (vs JP¥33.64 in 3Q 2022) Third quarter 2023 results: EPS: JP¥26.53 (down from JP¥33.64 in 3Q 2022). Revenue: JP¥2.42b (down 37% from 3Q 2022). Net income: JP¥151.0m (down 21% from 3Q 2022). Profit margin: 6.2% (up from 5.0% in 3Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Announcement • Sep 02
Odawara Engineering Co., Ltd. to Report Q3, 2023 Results on Nov 13, 2023 Odawara Engineering Co., Ltd. announced that they will report Q3, 2023 results on Nov 13, 2023 New Risk • Aug 17
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 26% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (26% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (6.4% average weekly change). Market cap is less than US$100m (JP¥12.8b market cap, or US$87.5m). Reported Earnings • Aug 12
Second quarter 2023 earnings released: EPS: JP¥115 (vs JP¥46.87 in 2Q 2022) Second quarter 2023 results: EPS: JP¥115 (up from JP¥46.87 in 2Q 2022). Revenue: JP¥4.40b (up 48% from 2Q 2022). Net income: JP¥654.0m (up 146% from 2Q 2022). Profit margin: 15% (up from 9.0% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. New Risk • Aug 11
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 6.4% 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 have declined by 9.8% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.4% average weekly change). Market cap is less than US$100m (JP¥13.2b market cap, or US$90.9m). Valuation Update With 7 Day Price Move • Aug 10
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,320, the stock trades at a trailing P/E ratio of 12.2x. Average trailing P/E is 12x in the Machinery industry in Japan. Total returns to shareholders of 4.6% over the past three years. Announcement • Jun 28
Odawara Engineering Co., Ltd. to Report Q2, 2023 Results on Aug 10, 2023 Odawara Engineering Co., Ltd. announced that they will report Q2, 2023 results on Aug 10, 2023 Reported Earnings • May 17
First quarter 2023 earnings released: EPS: JP¥59.70 (vs JP¥10.76 in 1Q 2022) First quarter 2023 results: EPS: JP¥59.70 (up from JP¥10.76 in 1Q 2022). Revenue: JP¥3.53b (up 64% from 1Q 2022). Net income: JP¥339.0m (up 456% from 1Q 2022). Profit margin: 9.6% (up from 2.8% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 5% per year. Reported Earnings • Feb 18
Full year 2022 earnings released: EPS: JP¥141 (vs JP¥158 in FY 2021) Full year 2022 results: EPS: JP¥141 (down from JP¥158 in FY 2021). Revenue: JP¥14.1b (up 3.9% from FY 2021). Net income: JP¥801.0m (down 13% from FY 2021). Profit margin: 5.7% (down from 6.8% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 31 March 2023. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.6%). Announcement • Dec 06
Odawara Engineering Co., Ltd. to Report Fiscal Year 2022 Results on Feb 14, 2023 Odawara Engineering Co., Ltd. announced that they will report fiscal year 2022 results on Feb 14, 2023 Board Change • Nov 16
No independent directors There are 6 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 6 new directors. 3 experienced directors. 2 highly experienced directors. No independent directors (7 non-independent directors). President & Representative Director Masahiko Hoshina is the most experienced director on the board, commencing their role in 2003. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: JP¥33.63 (vs JP¥86.20 in 3Q 2021) Third quarter 2022 results: EPS: JP¥33.63 (down from JP¥86.20 in 3Q 2021). Revenue: JP¥3.82b (up 13% from 3Q 2021). Net income: JP¥191.0m (down 62% from 3Q 2021). Profit margin: 5.0% (down from 15% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Announcement • Sep 02
Odawara Engineering Co., Ltd. to Report Q3, 2022 Results on Nov 11, 2022 Odawara Engineering Co., Ltd. announced that they will report Q3, 2022 results on Nov 11, 2022 Reported Earnings • Aug 14
Second quarter 2022 earnings released: EPS: JP¥46.87 (vs JP¥36.85 in 2Q 2021) Second quarter 2022 results: EPS: JP¥46.87 (up from JP¥36.85 in 2Q 2021). Revenue: JP¥2.97b (flat on 2Q 2021). Net income: JP¥266.0m (up 23% from 2Q 2021). Profit margin: 9.0% (up from 7.3% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment improved over the past week After last week's 18% share price gain to JP¥1,775, the stock trades at a trailing P/E ratio of 11x. Average trailing P/E is 11x in the Machinery industry in Japan. Total loss to shareholders of 15% over the past three years. Announcement • Jun 04
Odawara Engineering Co., Ltd. to Report Q2, 2022 Results on Aug 12, 2022 Odawara Engineering Co., Ltd. announced that they will report Q2, 2022 results on Aug 12, 2022 Reported Earnings • May 15
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: JP¥10.76 (down from JP¥11.56 in 1Q 2021). Revenue: JP¥2.16b (down 31% from 1Q 2021). Net income: JP¥61.0m (down 10% from 1Q 2021). Profit margin: 2.8% (up from 2.2% in 1Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 9.6%. Earnings per share (EPS) exceeded analyst estimates by 133%. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Board Change • Apr 27
No independent directors There are 6 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 6 new directors. 3 experienced directors. 2 highly experienced directors. No independent directors (7 non-independent directors). President & Representative Director Masahiko Hoshina is the most experienced director on the board, commencing their role in 2003. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Lack of experienced directors. Announcement • Apr 08
Odawara Engineering Co., Ltd. to Report Q1, 2022 Results on May 12, 2022 Odawara Engineering Co., Ltd. announced that they will report Q1, 2022 results on May 12, 2022 Reported Earnings • Feb 17
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: JP¥158 (up from JP¥76.71 in FY 2020). Revenue: JP¥13.6b (up 21% from FY 2020). Net income: JP¥925.0m (up 105% from FY 2020). Profit margin: 6.8% (up from 4.0% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 9.6%. Earnings per share (EPS) exceeded analyst estimates by 133%. Over the next year, revenue is forecast to grow 3.3%, compared to a 7.6% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 5% per year. Announcement • Feb 16
Odawara Engineering Co., Ltd., Annual General Meeting, Mar 30, 2022 Odawara Engineering Co., Ltd., Annual General Meeting, Mar 30, 2022. Valuation Update With 7 Day Price Move • Jan 04
Investor sentiment improved over the past week After last week's 20% share price gain to JP¥2,968, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 13x in the Machinery industry in Japan. Total returns to shareholders of 102% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 31 March 2022. Payout ratio is a comfortable 8.5% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (1.8%). Reported Earnings • Nov 13
Third quarter 2021 earnings released: EPS JP¥86.19 (vs JP¥31.26 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥3.38b (up 17% from 3Q 2020). Net income: JP¥508.0m (up 176% from 3Q 2020). Profit margin: 15% (up from 6.3% in 3Q 2020). The increase in margin was driven by higher revenue. 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 13% per year, which means it is well ahead of earnings. Reported Earnings • May 15
First quarter 2021 earnings released: EPS JP¥11.55 (vs JP¥31.88 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: JP¥3.14b (up 99% from 1Q 2020). Net income: JP¥68.0m (up JP¥255.0m from 1Q 2020). Profit margin: 2.2% (up from net loss in 1Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Reported Earnings • Apr 03
Full year 2020 earnings released The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥11.2b (down 16% from FY 2019). Net income: JP¥451.0m (down 55% from FY 2019). Profit margin: 4.0% (down from 7.6% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Announcement • Mar 05
Odawara Engineering Co., Ltd. to Report Q1, 2021 Results on May 13, 2021 Odawara Engineering Co., Ltd. announced that they will report Q1, 2021 results on May 13, 2021 Is New 90 Day High Low • Feb 24
New 90-day low: JP¥3,075 The company is down 7.0% from its price of JP¥3,315 on 26 November 2020. The Japanese market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 10.0% over the same period. Analyst Estimate Surprise Post Earnings • Feb 14
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 12%. Earnings per share (EPS) exceeded analyst estimates by 26%. Over the next year, revenue is forecast to grow 29%, compared to a 9.7% growth forecast for the Machinery industry in Japan. Reported Earnings • Feb 14
Full year 2020 earnings released: EPS JP¥76.71 (vs JP¥172 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥11.2b (down 16% from FY 2019). Net income: JP¥451.0m (down 55% from FY 2019). Profit margin: 4.0% (down from 7.6% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Upcoming Dividend • Dec 22
Upcoming Dividend of JP¥15.00 Per Share Will be paid on the 30th of March to those who are registered shareholders by the 29th of December. The trailing yield of 0.6% is below the top quartile of Japanese dividend payers (3.0%), and is lower than industry peers (1.2%). Valuation Update With 7 Day Price Move • Dec 03
Market bids up stock over the past week After last week's 15% share price gain to JP¥3,825, the stock is trading at a trailing P/E ratio of 24.3x, up from the previous P/E ratio of 21.1x. This compares to an average P/E of 16x in the Machinery industry in Japan. Total returns to shareholders over the past three years are 18%. Valuation Update With 7 Day Price Move • Nov 24
Market bids up stock over the past week After last week's 17% share price gain to JP¥3,290, the stock is trading at a trailing P/E ratio of 20.9x, up from the previous P/E ratio of 17.9x. This compares to an average P/E of 15x in the Machinery industry in Japan. Total return to shareholders over the past three years is a loss of 1.3%. Is New 90 Day High Low • Nov 17
New 90-day high: JP¥2,824 The company is up 23% from its price of JP¥2,292 on 19 August 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 12% over the same period. Reported Earnings • Nov 15
Third quarter 2020 earnings released: EPS JP¥31.26 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: JP¥2.90b (up 45% from 3Q 2019). Net income: JP¥184.0m (up JP¥203.0m from 3Q 2019). Profit margin: 6.3% (up from net loss in 3Q 2019). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Nov 15
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 12%. Earnings per share (EPS) exceeded analyst estimates by 19%. Over the next year, revenue is expected to shrink by 1.7% compared to a 5.4% growth forecast for the Machinery industry in Japan. Is New 90 Day High Low • Nov 02
New 90-day high: JP¥2,512 The company is up 7.0% from its price of JP¥2,350 on 04 August 2020. The Japanese market is up 4.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Machinery industry, which is up 9.0% over the same period. Valuation Update With 7 Day Price Move • Nov 02
Market bids up stock over the past week After last week's 22% share price gain to JP¥2,512, the stock is trading at a trailing P/E ratio of 20.4x, up from the previous P/E ratio of 16.7x. This compares to an average P/E of 14x in the Machinery industry in Japan. Total return to shareholders over the past three years is a loss of 14%. Valuation Update With 7 Day Price Move • Oct 29
Market bids up stock over the past week After last week's 17% share price gain to JP¥2,378, the stock is trading at a trailing P/E ratio of 19.3x, up from the previous P/E ratio of 16.5x. This compares to an average P/E of 14x in the Machinery industry in Japan. Total return to shareholders over the past three years is a loss of 20%. Announcement • Sep 03
Odawara Engineering Co., Ltd. to Report Q3, 2020 Results on Nov 12, 2020 Odawara Engineering Co., Ltd. announced that they will report Q3, 2020 results on Nov 12, 2020