Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥2,544, the stock trades at a trailing P/E ratio of 43.5x. Average trailing P/E is 14x in the Machinery industry in Japan. Total returns to shareholders of 200% over the past three years. Announcement • May 09
Marumae Co., Ltd. to Report Q3, 2026 Results on Jul 03, 2026 Marumae Co., Ltd. announced that they will report Q3, 2026 results on Jul 03, 2026 Valuation Update With 7 Day Price Move • May 07
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥2,316, the stock trades at a trailing P/E ratio of 39.6x. Average trailing P/E is 15x in the Machinery industry in Japan. Total returns to shareholders of 201% over the past three years. Declared Dividend • Apr 17
Dividend of JP¥19.00 announced Shareholders will receive a dividend of JP¥19.00. Ex-date: 28th August 2026 Payment date: 30th November 2026 Dividend yield will be 2.1%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (34% earnings payout ratio) and cash flows (63% cash payout ratio). The dividend has increased by an average of 28% per year over the past 5 years. However, payments have been volatile during that time. Earnings per share has grown by 16% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,876, the stock trades at a trailing P/E ratio of 32.1x. Average trailing P/E is 15x in the Machinery industry in Japan. Total returns to shareholders of 145% over the past three years. Announcement • Apr 02
Marumae Co., Ltd. to Report Q2, 2026 Results on Apr 03, 2026 Marumae Co., Ltd. announced that they will report Q2, 2026 results on Apr 03, 2026 New Risk • Mar 17
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 9.0% 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 Share price has been highly volatile over the past 3 months (9.0% average weekly change). Earnings have declined by 7.4% per year over the past 5 years. Minor Risks High level of debt (110% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Upcoming Dividend • Feb 19
Upcoming dividend of JP¥28.00 per share Eligible shareholders must have bought the stock before 26 February 2026. Payment date: 17 April 2026. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.4%). In line with average of industry peers (1.5%). Valuation Update With 7 Day Price Move • Feb 18
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥3,600, the stock trades at a trailing P/E ratio of 30.8x. Average trailing P/E is 15x in the Machinery industry in Japan. Total returns to shareholders of 103% over the past three years. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥2,804, the stock trades at a trailing P/E ratio of 24x. Average trailing P/E is 13x in the Machinery industry in Japan. Total returns to shareholders of 77% over the past three years. Reported Earnings • Dec 31
First quarter 2026 earnings released: EPS: JP¥34.28 (vs JP¥24.35 in 1Q 2025) First quarter 2026 results: EPS: JP¥34.28 (up from JP¥24.35 in 1Q 2025). Revenue: JP¥4.24b (up 122% from 1Q 2025). Net income: JP¥434.0m (up 41% from 1Q 2025). Profit margin: 10% (down from 16% in 1Q 2025). The decrease in margin was driven by higher expenses. 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 16% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Dec 30
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥2,299, the stock trades at a trailing P/E ratio of 21.5x. Average trailing P/E is 13x in the Machinery industry in Japan. Total returns to shareholders of 58% over the past three years. Buy Or Sell Opportunity • Dec 23
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 3.0% to JP¥1,951. The fair value is estimated to be JP¥1,618, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 36%. Declared Dividend • Dec 11
Final dividend of JP¥28.00 announced Shareholders will receive a dividend of JP¥28.00. Ex-date: 26th February 2026 Payment date: 17th April 2026 Dividend yield will be 2.7%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (37% earnings payout ratio) and cash flows (46% cash payout ratio). The dividend has increased by an average of 21% per year over the past 5 years. However, payments have been volatile during that time. Earnings per share has grown by 15% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Dec 08
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 15% to JP¥1,978. The fair value is estimated to be JP¥1,619, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 36%. Buy Or Sell Opportunity • Nov 17
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 30% to JP¥2,020. The fair value is estimated to be JP¥1,630, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 36%. Announcement • Nov 07
Marumae Co., Ltd. to Report Q1, 2026 Results on Dec 26, 2025 Marumae Co., Ltd. announced that they will report Q1, 2026 results on Dec 26, 2025 New Risk • Oct 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 7.8% 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 Share price has been highly volatile over the past 3 months (7.8% average weekly change). Earnings have declined by 9.7% per year over the past 5 years. Minor Risks High level of debt (114% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Buy Or Sell Opportunity • Oct 16
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 29% to JP¥1,998. The fair value is estimated to be JP¥1,611, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 36%. Reported Earnings • Oct 11
Full year 2025 earnings released: EPS: JP¥107 (vs JP¥1.50 in FY 2024) Full year 2025 results: EPS: JP¥107 (up from JP¥1.50 in FY 2024). Revenue: JP¥11.4b (up 140% from FY 2024). Net income: JP¥1.36b (up JP¥1.34b from FY 2024). Profit margin: 12% (up from 0.4% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Announcement • Oct 10
Marumae Co., Ltd., Annual General Meeting, Nov 27, 2025 Marumae Co., Ltd., Annual General Meeting, Nov 27, 2025. Valuation Update With 7 Day Price Move • Sep 11
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,769, the stock trades at a trailing P/E ratio of 22.2x. Average trailing P/E is 13x in the Machinery industry in Japan. Total loss to shareholders of 7.4% over the past three years. Upcoming Dividend • Aug 21
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 28 August 2025. Payment date: 25 November 2025. Payout ratio is a comfortable 44% but the company is not cash flow positive. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.1%). Announcement • Aug 09
Marumae Co., Ltd. to Report Fiscal Year 2025 Results on Oct 10, 2025 Marumae Co., Ltd. announced that they will report fiscal year 2025 results on Oct 10, 2025 Reported Earnings • Jul 14
Third quarter 2025 earnings released: EPS: JP¥21.72 (vs JP¥3.95 in 3Q 2024) Third quarter 2025 results: EPS: JP¥21.72 (up from JP¥3.95 in 3Q 2024). Revenue: JP¥3.36b (up 158% from 3Q 2024). Net income: JP¥275.0m (up 450% from 3Q 2024). Profit margin: 8.2% (up from 3.8% in 3Q 2024). The increase in margin was driven by higher revenue. 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 6% per year, which means it has not declined as severely as earnings. New Risk • Jul 14
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 3.7% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (3.7% operating cash flow to total debt). Earnings have declined by 12% per year over the past 5 years. 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). Valuation Update With 7 Day Price Move • May 30
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,393, the stock trades at a trailing P/E ratio of 22.5x. Average trailing P/E is 12x in the Machinery industry in Japan. Total loss to shareholders of 30% over the past three years. Announcement • May 20
Marumae Co., Ltd. to Report Q3, 2025 Results on Jul 11, 2025 Marumae Co., Ltd. announced that they will report Q3, 2025 results on Jul 11, 2025 Declared Dividend • Apr 18
First half dividend of JP¥15.00 announced Shareholders will receive a dividend of JP¥15.00. Ex-date: 28th August 2025 Payment date: 25th November 2025 Dividend yield will be 2.8%, which is higher than the industry average of 2.1%. Sustainability & Growth The dividend has increased by an average of 8.1% per year over the past 4 years. However, payments have been volatile during that time. Announcement • Apr 09
Marumae Co., Ltd. (TSE:6264) completed the acquisition of KM Aluminum Co., Ltd. (TSE:6264) from a group of shareholders. Marumae Co., Ltd. (TSE:6264) agreed to acquire KM Aluminum Co., Ltd. (TSE:6264) from a group of shareholders for ¥9 billion on March 4, 2025. As of September 30, 2025, KM Aluminum Co., Ltd. generated total assets of ¥8.17 billion and net assets of ¥4.53 billion. The transaction is expected to close on April 8, 2025.
Marumae Co., Ltd. (TSE:6264) completed the acquisition of KM Aluminum Co., Ltd. (TSE:6264) from a group of shareholders on April 8, 2025. New Risk • Apr 07
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.6% 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 Share price has been highly volatile over the past 3 months (8.6% average weekly change). Earnings have declined by 11% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (JP¥11.4b market cap, or US$77.8m). New Risk • Apr 05
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.6b (US$99.1m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 11% per year over the past 5 years. 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 (6.6% average weekly change). Market cap is less than US$100m (JP¥14.6b market cap, or US$99.1m). Reported Earnings • Apr 05
Second quarter 2025 earnings released: EPS: JP¥28.11 (vs JP¥4.90 loss in 2Q 2024) Second quarter 2025 results: EPS: JP¥28.11 (up from JP¥4.90 loss in 2Q 2024). Revenue: JP¥2.00b (up 117% from 2Q 2024). Net income: JP¥355.8m (up JP¥417.8m from 2Q 2024). Profit margin: 18% (up from net loss in 2Q 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 48 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,148, the stock trades at a trailing P/E ratio of 39.6x. Average trailing P/E is 11x in the Machinery industry in Japan. Total loss to shareholders of 40% over the past three years. Upcoming Dividend • Feb 20
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 27 February 2025. Payment date: 18 April 2025. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.3%). Announcement • Feb 04
Marumae Co., Ltd. to Report Q2, 2025 Results on Apr 04, 2025 Marumae Co., Ltd. announced that they will report Q2, 2025 results on Apr 04, 2025 New Risk • Jan 07
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 7.3% 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 Share price has been highly volatile over the past 3 months (7.3% average weekly change). Earnings have declined by 7.6% per year over the past 5 years. Reported Earnings • Dec 28
First quarter 2025 earnings released: EPS: JP¥24.34 (vs JP¥3.09 loss in 1Q 2024) First quarter 2025 results: EPS: JP¥24.34 (up from JP¥3.09 loss in 1Q 2024). Revenue: JP¥1.91b (up 71% from 1Q 2024). Net income: JP¥308.0m (up JP¥347.0m from 1Q 2024). Profit margin: 16% (up from net loss in 1Q 2024). The move to profitability was driven by higher revenue. 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. Declared Dividend • Dec 19
Final dividend increased to JP¥15.00 Dividend of JP¥15.00 is 50% higher than last year. Ex-date: 27th February 2025 Payment date: 18th April 2025 Dividend yield will be 2.5%, which is higher than the industry average of 2.1%. Sustainability & Growth The dividend has increased by an average of 8.1% per year over the past 4 years. However, payments have been volatile during that time. Announcement • Nov 14
Marumae Co., Ltd. to Report Q1, 2025 Results on Dec 27, 2024 Marumae Co., Ltd. announced that they will report Q1, 2025 results on Dec 27, 2024 New Risk • Oct 14
New major risk - Revenue and earnings growth Earnings have declined by 1.9% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 1.9% per year over the past 5 years. 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 (9.6% average weekly change). Profit margins are more than 30% lower than last year (0.4% net profit margin). Reported Earnings • Oct 14
Full year 2024 earnings released: EPS: JP¥1.50 (vs JP¥55.87 in FY 2023) Full year 2024 results: EPS: JP¥1.50 (down from JP¥55.87 in FY 2023). Revenue: JP¥4.75b (down 31% from FY 2023). Net income: JP¥19.0m (down 97% from FY 2023). Profit margin: 0.4% (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 fallen by 53% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Announcement • Oct 11
Marumae Co., Ltd., Annual General Meeting, Nov 22, 2024 Marumae Co., Ltd., Annual General Meeting, Nov 22, 2024. Buy Or Sell Opportunity • Sep 27
Now 22% overvalued Over the last 90 days, the stock has fallen 21% to JP¥1,654. The fair value is estimated to be JP¥1,360, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 33%. Announcement • Sep 12
Marumae Co., Ltd. Revises Earnings Guidance for the Year Ending August 31, 2024 Marumae Co., Ltd. revised earnings guidance for the year ending August 31, 2024. For the year, company expects Net sales of JPY 4,749 million, Operating profit of JPY 155 million, Profit of JPY 29 million and earnings per share of JPY 2.29 compared to previously announced guidance as follows: Net sales of JPY 4,680 million, Operating profit of JPY 77 million, Loss of JPY 34 million and Loss per share of JPY 2.69. In terms of net sales, the Company did not receive orders for solar cell production equipment parts, which were anticipated to total approximately JPY 150 million in the other sectors. However, orders for consumables in the semiconductor sector increased due to progress in inventory clearance at customers, and orders for G8 OLED in the FPD sector also increased, resulting in an upward revision of JPY 69 million in net sales. Profitability is expected to improve as a result of an increase in inventory due to the rise in orders, as well as curbs on capital investment and headcount. Although it has not been undetermined at this time, as the closing process is still underway, the Company anticipates an increase of approximately JPY 40 million in the provision for loss on orders received and loss on valuation of inventories in this disclosed figure due to the factory utilization rate in August not increasing as much as anticipated because of Typhoon No. 9, which hit in the month of closing accounts. Upcoming Dividend • Aug 22
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 29 August 2024. Payment date: 25 November 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (2.7%). Buy Or Sell Opportunity • Aug 16
Now 21% overvalued Over the last 90 days, the stock has fallen 16% to JP¥1,646. The fair value is estimated to be JP¥1,357, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 33%. Announcement • Aug 02
Marumae Co., Ltd. to Report Fiscal Year 2024 Results on Oct 11, 2024 Marumae Co., Ltd. announced that they will report fiscal year 2024 results on Oct 11, 2024 Reported Earnings • Jun 30
Third quarter 2024 earnings released: EPS: JP¥3.95 (vs JP¥10.68 loss in 3Q 2023) Third quarter 2024 results: EPS: JP¥3.95 (up from JP¥10.68 loss in 3Q 2023). Revenue: JP¥1.30b (up 14% from 3Q 2023). Net income: JP¥50.0m (up JP¥185.0m from 3Q 2023). Profit margin: 3.8% (up from net loss in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • May 17
Marumae Co., Ltd. to Report Q3, 2024 Results on Jun 28, 2024 Marumae Co., Ltd. announced that they will report Q3, 2024 results on Jun 28, 2024 Reported Earnings • Mar 30
Second quarter 2024 earnings released: JP¥4.90 loss per share (vs JP¥14.01 profit in 2Q 2023) Second quarter 2024 results: JP¥4.90 loss per share (down from JP¥14.01 profit in 2Q 2023). Revenue: JP¥923.0m (down 47% from 2Q 2023). Net loss: JP¥62.0m (down 135% from profit in 2Q 2023). Revenue is forecast to grow 35% 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, earnings per share has fallen by 16% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Declared Dividend • Mar 30
First half dividend of JP¥20.00 announced Shareholders will receive a dividend of JP¥20.00. Ex-date: 29th August 2024 Payment date: 25th November 2024 Dividend yield will be 1.5%, which is lower than the industry average of 2.1%. Sustainability & Growth The dividend has increased by an average of 11% per year over the past 3 years. However, payments have been volatile during that time. New Risk • Mar 18
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.4% 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 Risk Share price has been highly volatile over the past 3 months (8.4% average weekly change). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.6% net profit margin). Upcoming Dividend • Feb 21
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 28 February 2024. Payment date: 22 April 2024. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (2.0%). Announcement • Feb 02
Marumae Co., Ltd. to Report Q2, 2024 Results on Mar 28, 2024 Marumae Co., Ltd. announced that they will report Q2, 2024 results on Mar 28, 2024 Reported Earnings • Dec 29
First quarter 2024 earnings released: JP¥3.09 loss per share (vs JP¥36.98 profit in 1Q 2023) First quarter 2024 results: JP¥3.09 loss per share (down from JP¥36.98 profit in 1Q 2023). Revenue: JP¥1.12b (down 55% from 1Q 2023). Net loss: JP¥39.0m (down 108% from profit in 1Q 2023). Revenue is forecast to grow 28% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Machinery 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 16% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 28
Marumae Co.,Ltd. Announces Earnings Guidance for the Six Months Ending February 29, 2024 and Year Ending August 31, 2024 Marumae Co.,Ltd. announced earnings guidance for the six months ending February 29, 2024 and year ending August 31, 2024. For the Six months ending February 29, 2024, the company expects sales of JPY 2,400 million, Operating loss of JPY 82 million, loss of JPY 113 million and net loss per share of JPY 8.94.For the Fiscal year ending August 31, 2024, the company expects sales of JPY 7,000 million, Operating Profit of JPY 680 million, Profit of JPY 400 million and net income per share of JPY 31.64. Board Change • Dec 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 2 highly experienced directors. Director Keiji Hokanishi was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Nov 17
Marumae Co., Ltd. to Report Q1, 2024 Results on Dec 28, 2023 Marumae Co., Ltd. announced that they will report Q1, 2024 results on Dec 28, 2023 New Risk • Nov 15
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 7.6% 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 Risk Share price has been highly volatile over the past 3 months (7.6% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (10% net profit margin). Reported Earnings • Oct 07
Full year 2023 earnings released: EPS: JP¥55.87 (vs JP¥143 in FY 2022) Full year 2023 results: EPS: JP¥55.87 (down from JP¥143 in FY 2022). Revenue: JP¥6.87b (down 20% from FY 2022). Net income: JP¥706.0m (down 61% from FY 2022). Profit margin: 10% (down from 21% in FY 2022). Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year and the company’s share price has also increased by 21% per year. Announcement • Oct 06
Marumae Co., Ltd., Annual General Meeting, Nov 22, 2023 Marumae Co., Ltd., Annual General Meeting, Nov 22, 2023. Upcoming Dividend • Aug 23
Upcoming dividend of JP¥18.00 per share at 2.0% yield Eligible shareholders must have bought the stock before 30 August 2023. Payment date: 28 November 2023. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (2.3%). Announcement • Aug 09
Marumae Co., Ltd. to Report Fiscal Year 2023 Results on Oct 06, 2023 Marumae Co., Ltd. announced that they will report fiscal year 2023 results on Oct 06, 2023 New Risk • Jul 03
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: 14% Last year net profit margin: 20% 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. Profit margins are more than 30% lower than last year (14% net profit margin). Reported Earnings • Jul 01
Third quarter 2023 earnings released: JP¥10.68 loss per share (vs JP¥32.26 profit in 3Q 2022) Third quarter 2023 results: JP¥10.68 loss per share (down from JP¥32.26 profit in 3Q 2022). Revenue: JP¥1.14b (down 47% from 3Q 2022). Net loss: JP¥135.0m (down 133% from profit in 3Q 2022). Revenue is forecast to grow 8.8% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • May 10
Marumae Co., Ltd. to Report Q3, 2023 Results on Jun 30, 2023 Marumae Co., Ltd. announced that they will report Q3, 2023 results on Jun 30, 2023 Price Target Changed • Apr 07
Price target increased by 28% to JP¥2,400 Up from JP¥1,870, the current price target is provided by 1 analyst. New target price is 50% above last closing price of JP¥1,600. Stock is down 21% over the past year. The company posted earnings per share of JP¥143 last year. Reported Earnings • Mar 31
Second quarter 2023 earnings released: EPS: JP¥14.01 (vs JP¥32.41 in 2Q 2022) Second quarter 2023 results: EPS: JP¥14.01 (down from JP¥32.41 in 2Q 2022). Revenue: JP¥1.75b (down 13% from 2Q 2022). Net income: JP¥177.0m (down 57% from 2Q 2022). Profit margin: 10% (down from 21% in 2Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 43% per year whereas the company’s share price has increased by 38% per year. Upcoming Dividend • Feb 20
Upcoming dividend of JP¥18.00 per share at 1.9% yield Eligible shareholders must have bought the stock before 27 February 2023. Payment date: 21 April 2023. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.4%). Announcement • Feb 04
Marumae Co., Ltd. to Report Q2, 2023 Results on Mar 30, 2023 Marumae Co., Ltd. announced that they will report Q2, 2023 results on Mar 30, 2023 Reported Earnings • Jan 18
First quarter 2023 earnings released: EPS: JP¥36.98 (vs JP¥32.96 in 1Q 2022) First quarter 2023 results: EPS: JP¥36.98 (up from JP¥32.96 in 1Q 2022). Revenue: JP¥2.49b (up 28% from 1Q 2022). Net income: JP¥467.0m (up 11% from 1Q 2022). Profit margin: 19% (down from 22% in 1Q 2022). The decrease in margin was driven by higher expenses. 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 20% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment deteriorated over the past week After last week's 15% share price decline to JP¥1,452, the stock trades at a trailing P/E ratio of 10.1x. Average trailing P/E is 10x in the Machinery industry in Japan. Total returns to shareholders of 44% over the past three years. Buying Opportunity • Dec 21
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 20%. The fair value is estimated to be JP¥1,955, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 49%. 
