Major Estimate Revision • May 23
Consensus EPS estimates increase by 33% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥48.0b to JP¥52.0b. EPS estimate increased from JP¥477 to JP¥632 per share. Net income forecast to grow 50% next year vs 8.8% growth forecast for Machinery industry in Japan. Consensus price target of JP¥18,200 unchanged from last update. Share price rose 4.8% to JP¥21,120 over the past week. Reported Earnings • May 14
First quarter 2026 earnings released: EPS: JP¥164 (vs JP¥92.10 in 1Q 2025) First quarter 2026 results: EPS: JP¥164 (up from JP¥92.10 in 1Q 2025). Revenue: JP¥12.6b (up 43% from 1Q 2025). Net income: JP¥2.85b (up 79% from 1Q 2025). Profit margin: 23% (up from 18% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.7% p.a. on average during the next 3 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 24% per year but the company’s share price has increased by 91% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥18,530, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 17x in the Machinery industry in Japan. Total returns to shareholders of 519% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥34,103 per share. Declared Dividend • Apr 11
Final dividend increased to JP¥65.00 Dividend of JP¥65.00 is 8.3% higher than last year. Ex-date: 29th June 2026 Payment date: 7th September 2026 Dividend yield will be 0.8%, which is lower than the industry average of 2.1%. Payout Ratios Payout ratio: 35%. Cash payout ratio: Approximately 29x free cash flows. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥16,390, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 16x in the Machinery industry in Japan. Total returns to shareholders of 445% over the past three years. Reported Earnings • Mar 29
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥354 (up from JP¥306 in FY 2024). Revenue: JP¥40.2b (up 23% from FY 2024). Net income: JP¥6.11b (up 16% from FY 2024). Profit margin: 15% (down from 16% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) missed analyst estimates by 3.0%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 63% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥16,450, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 17x in the Machinery industry in Japan. Total returns to shareholders of 425% over the past three years. Major Estimate Revision • Feb 27
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥44.0b to JP¥48.0b. EPS estimate increased from JP¥431 to JP¥477 per share. Net income forecast to grow 36% next year vs 10.0% growth forecast for Machinery industry in Japan. Consensus price target up from JP¥10,140 to JP¥18,200. Share price rose 12% to JP¥15,740 over the past week. Buy Or Sell Opportunity • Feb 25
Now 26% overvalued after recent price rise Over the last 90 days, the stock has risen 77% to JP¥15,980. The fair value is estimated to be JP¥12,689, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 17%. For the next 3 years, revenue is forecast to grow by 9.7% per annum. Earnings are also forecast to grow by 17% per annum over the same time period. Reported Earnings • Feb 14
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥354 (up from JP¥306 in FY 2024). Revenue: JP¥40.2b (up 23% from FY 2024). Net income: JP¥6.11b (up 16% from FY 2024). Profit margin: 15% (down from 16% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) missed analyst estimates by 3.0%. Revenue is forecast to grow 8.4% p.a. on average during the next 2 years, compared to a 5.1% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 55% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 12
Union Tool Co., Annual General Meeting, Mar 26, 2026 Union Tool Co., Annual General Meeting, Mar 26, 2026. Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥12,240, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 17x in the Machinery industry in Japan. Total returns to shareholders of 277% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥12,671 per share. Buy Or Sell Opportunity • Jan 26
Now 20% undervalued Over the last 90 days, the stock has risen 26% to JP¥9,950. The fair value is estimated to be JP¥12,494, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.6% over the last 3 years. Earnings per share has grown by 11%. Revenue is forecast to grow by 23% in 2 years. Earnings are forecast to grow by 23% in the next 2 years. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥10,170, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 16x in the Machinery industry in Japan. Total returns to shareholders of 232% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥12,454 per share. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥65.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 30 March 2026. Payout ratio is a comfortable 33% but the company is paying out more than the cash it is generating. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (1.9%). Valuation Update With 7 Day Price Move • Nov 26
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥8,540, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 14x in the Machinery industry in Japan. Total returns to shareholders of 161% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥12,545 per share. Reported Earnings • Nov 13
Third quarter 2025 earnings released: EPS: JP¥104 (vs JP¥59.91 in 3Q 2024) Third quarter 2025 results: EPS: JP¥104 (up from JP¥59.91 in 3Q 2024). Revenue: JP¥9.77b (up 39% from 3Q 2024). Net income: JP¥1.80b (up 74% from 3Q 2024). Profit margin: 18% (up from 15% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 31% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥7,640, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 15x in the Machinery industry in Japan. Total returns to shareholders of 133% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥12,763 per share. Announcement • Oct 21
Union Tool Co. to Report Q3, 2025 Results on Nov 11, 2025 Union Tool Co. announced that they will report Q3, 2025 results on Nov 11, 2025 New Risk • Oct 03
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 7.9% 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. This is currently the only risk that has been identified for the company. Declared Dividend • Sep 06
First half dividend increased to JP¥65.00 Dividend of JP¥65.00 is 8.3% higher than last year. Ex-date: 29th December 2025 Payment date: 30th March 2026 Dividend yield will be 1.4%, which is lower than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (37% earnings payout ratio) but not covered by cash flows (128% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 47% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Aug 19
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥7,450, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 14x in the Machinery industry in Japan. Total returns to shareholders of 126% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥5,423 per share. Reported Earnings • Aug 08
Second quarter 2025 earnings released: EPS: JP¥73.23 (vs JP¥76.93 in 2Q 2024) Second quarter 2025 results: EPS: JP¥73.23 (down from JP¥76.93 in 2Q 2024). Revenue: JP¥9.45b (up 13% from 2Q 2024). Net income: JP¥1.27b (down 4.8% from 2Q 2024). Profit margin: 13% (down from 16% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.5% 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 increased by 5% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Aug 05
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 79% to JP¥6,570. The fair value is estimated to be JP¥5,395, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue is forecast to grow by 18% in 2 years. Earnings are forecast to grow by 21% in the next 2 years. Announcement • Jul 08
Union Tool Co. to Report Q2, 2025 Results on Aug 07, 2025 Union Tool Co. announced that they will report Q2, 2025 results on Aug 07, 2025 Upcoming Dividend • Jun 20
Upcoming dividend of JP¥55.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 05 September 2025. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (4.0%). In line with average of industry peers (2.2%). 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¥4,480, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Machinery industry in Japan. Total returns to shareholders of 31% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥5,455 per share. Reported Earnings • May 15
First quarter 2025 earnings released: EPS: JP¥92.10 (vs JP¥69.35 in 1Q 2024) First quarter 2025 results: EPS: JP¥92.10 (up from JP¥69.35 in 1Q 2024). Revenue: JP¥8.80b (up 19% from 1Q 2024). Net income: JP¥1.59b (up 33% from 1Q 2024). Profit margin: 18% (up from 16% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.7% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year and the company’s share price has also increased by 2% per year. New Risk • May 13
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 9.4% 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 (9.4% average weekly change). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Valuation Update With 7 Day Price Move • May 13
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥4,305, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 12x in the Machinery industry in Japan. Total returns to shareholders of 24% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,891 per share. Buy Or Sell Opportunity • Apr 25
Now 20% overvalued Over the last 90 days, the stock has fallen 26% to JP¥3,615. The fair value is estimated to be JP¥3,011, however this is not to be taken as a sell recommendation but rather should be used as a guide only. For the next 3 years, revenue is forecast to grow by 7.3% per annum. Earnings are also forecast to grow by 7.7% per annum over the same time period. Announcement • Apr 23
Union Tool Co. to Report Q1, 2025 Results on May 13, 2025 Union Tool Co. announced that they will report Q1, 2025 results on May 13, 2025 Declared Dividend • Apr 11
Final dividend of JP¥55.00 announced Shareholders will receive a dividend of JP¥55.00. Ex-date: 27th June 2025 Payment date: 5th September 2025 Dividend yield will be 3.4%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by both earnings (35% earnings payout ratio) and cash flows (60% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 25% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥3,150, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 11x in the Machinery industry in Japan. Total loss to shareholders of 8.3% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,024 per share. Price Target Changed • Mar 12
Price target decreased by 13% to JP¥5,700 Down from JP¥6,570, the current price target is provided by 1 analyst. New target price is 31% above last closing price of JP¥4,335. Stock is up 0.1% over the past year. The company is forecast to post earnings per share of JP¥318 for next year compared to JP¥306 last year. Major Estimate Revision • Feb 27
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥336 to JP¥295. Revenue forecast unchanged from JP¥34.0b at last update. Net income forecast to shrink 3.5% next year vs 9.5% growth forecast for Machinery industry in Japan . Consensus price target of JP¥6,570 unchanged from last update. Share price was steady at JP¥4,525 over the past week. Announcement • Feb 25
Union Tool Co. Proposes Dividend for the Year Ended December 31, 2024, Payable on March 28, 2024 UNION TOOL CO. proposed dividend for the year ended December 31, 2024. For the year, the company announced dividend of JPY 60.00 per share compared to JPY 45.00 per share. Record date: December 31, 2024. Total amount of dividends: JPY 1,036 million. Source of dividends: Retained earnings. Effective date: March 28, 2025. Reasons: The Company believes in the importance of generating profits through its business activities and allocating funds by carefully balancing shareholder returns, growth investments, and management stability. As for the basic policy for shareholder returns, the Company makes decisions based on consolidated performance and the status of free cash flows. Under this basic policy, since the consolidated performance for the fiscal year ended December 2024 exceeded the expectations, the Company has decided to provide shareholder returns through dividends of JPY 60 per share. Reported Earnings • Feb 16
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥306 (up from JP¥178 in FY 2023). Revenue: JP¥32.6b (up 29% from FY 2023). Net income: JP¥5.28b (up 72% from FY 2023). Profit margin: 16% (up from 12% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.2%. Earnings per share (EPS) also surpassed analyst estimates by 5.7%. Revenue is forecast to grow 4.6% p.a. on average during the next 2 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 2% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Feb 14
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥5,280, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 13x in the Machinery industry in Japan. Total returns to shareholders of 56% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥7,418 per share. Announcement • Jan 21
Union Tool Co. to Report Fiscal Year 2024 Results on Feb 14, 2025 Union Tool Co. announced that they will report fiscal year 2024 results on Feb 14, 2025 Upcoming Dividend • Dec 20
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 31 March 2025. Payout ratio is a comfortable 35% and the cash payout ratio is 75%. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.3%). Major Estimate Revision • Nov 22
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥31.8b to JP¥31.0b. EPS estimate also fell from JP¥313 per share to JP¥272 per share. Net income forecast to grow 35% next year vs 12% growth forecast for Machinery industry in Japan. Consensus price target of JP¥7,270 unchanged from last update. Share price fell 14% to JP¥5,260 over the past week. Reported Earnings • Nov 13
Third quarter 2024 earnings released: EPS: JP¥59.91 (vs JP¥42.55 in 3Q 2023) Third quarter 2024 results: EPS: JP¥59.91 (up from JP¥42.55 in 3Q 2023). Revenue: JP¥7.03b (up 5.6% from 3Q 2023). Net income: JP¥1.04b (up 41% from 3Q 2023). Profit margin: 15% (up from 11% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Nov 12
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥5,510, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 12x in the Machinery industry in Japan. Total returns to shareholders of 47% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥7,827 per share. Buy Or Sell Opportunity • Nov 11
Now 26% undervalued Over the last 90 days, the stock has risen 7.6% to JP¥5,820. The fair value is estimated to be JP¥7,836, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue is forecast to grow by 22% in 2 years. Earnings are forecast to grow by 74% in the next 2 years. Announcement • Oct 29
Union Tool Co. to Report Q3, 2024 Results on Nov 11, 2024 Union Tool Co. announced that they will report Q3, 2024 results on Nov 11, 2024 Buy Or Sell Opportunity • Sep 30
Now 22% undervalued The stock has been flat over the last 90 days, currently trading at JP¥6,150. The fair value is estimated to be JP¥7,924, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue is forecast to grow by 22% in 2 years. Earnings are forecast to grow by 74% in the next 2 years. Valuation Update With 7 Day Price Move • Sep 02
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥6,230, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 12x in the Machinery industry in Japan. Total returns to shareholders of 65% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥7,926 per share. Major Estimate Revision • Aug 30
Consensus EPS estimates increase by 16% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥269 to JP¥313. Revenue forecast steady at JP¥31.8b. Net income forecast to grow 51% next year vs 11% growth forecast for Machinery industry in Japan. Consensus price target up from JP¥5,040 to JP¥6,885. Share price rose 6.9% to JP¥5,890 over the past week. Declared Dividend • Aug 09
Dividend of JP¥45.00 announced Shareholders will receive a dividend of JP¥45.00. Ex-date: 27th December 2024 Payment date: 31st March 2025 Dividend yield will be 1.7%, which is lower than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (41% earnings payout ratio) but not covered by cash flows (dividend approximately 6x free cash flows). The dividend has increased by an average of 10% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 40% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to JP¥4,340, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 12x in the Machinery industry in Japan. Total returns to shareholders of 13% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥6,254 per share. Buy Or Sell Opportunity • Aug 05
Now 31% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.3% to JP¥4,340. The fair value is estimated to be JP¥6,254, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 37% in the next 2 years. New Risk • Aug 01
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 5.6% 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. This is currently the only risk that has been identified for the company. Announcement • Jul 23
Union Tool Co. to Report Q2, 2024 Results on Aug 07, 2024 Union Tool Co. announced that they will report Q2, 2024 results on Aug 07, 2024 Buy Or Sell Opportunity • Jul 01
Now 17% overvalued after recent price rise Over the last 90 days, the stock has risen 45% to JP¥6,300. The fair value is estimated to be JP¥5,402, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 37% in the next 2 years. Buy Or Sell Opportunity • Jun 24
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 32% to JP¥5,910. The fair value is estimated to be JP¥4,920, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 37% in the next 2 years. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥42.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 05 September 2024. Payout ratio is a comfortable 41% but the company is paying out more than the cash it is generating. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (2.1%). Buy Or Sell Opportunity • Jun 03
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 42% to JP¥5,760. The fair value is estimated to be JP¥4,787, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 37% in the next 2 years. Major Estimate Revision • May 29
Consensus revenue estimates increase by 12% The consensus outlook for revenues in fiscal year 2024 has improved. 2024 revenue forecast increased from JP¥28.2b to JP¥31.5b. EPS estimate increased from JP¥208 to JP¥269 per share. Net income forecast to grow 33% next year vs 10.0% growth forecast for Machinery industry in Japan. Consensus price target up from JP¥4,540 to JP¥5,040. Share price was steady at JP¥5,490 over the past week. Reported Earnings • May 16
First quarter 2024 earnings released: EPS: JP¥69.35 (vs JP¥44.17 in 1Q 2023) First quarter 2024 results: EPS: JP¥69.35 (up from JP¥44.17 in 1Q 2023). Revenue: JP¥7.42b (up 28% from 1Q 2023). Net income: JP¥1.20b (up 57% from 1Q 2023). Profit margin: 16% (up from 13% in 1Q 2023). 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 4.7% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥5,110, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 13x in the Machinery industry in Japan. Total returns to shareholders of 51% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,885 per share. Buy Or Sell Opportunity • May 14
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 44% to JP¥4,875. The fair value is estimated to be JP¥3,890, 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 grown by 7.4%. For the next 3 years, revenue is forecast to grow by 7.1% per annum. Earnings are also forecast to grow by 12% per annum over the same time period. Announcement • Apr 27
Union Tool Co. to Report Q1, 2024 Results on May 13, 2024 Union Tool Co. announced that they will report Q1, 2024 results on May 13, 2024 Declared Dividend • Apr 11
Final dividend of JP¥42.00 announced Dividend of JP¥42.00 is the same as last year. Ex-date: 27th June 2024 Payment date: 5th September 2024 Dividend yield will be 1.8%, which is lower than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (46% earnings payout ratio) but not covered by cash flows (dividend approximately 6x free cash flows). The dividend has increased by an average of 10% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 41% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥4,425, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 13x in the Machinery industry in Japan. Total returns to shareholders of 37% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,992 per share. Price Target Changed • Mar 07
Price target increased by 17% to JP¥4,540 Up from JP¥3,875, the current price target is an average from 2 analysts. New target price is 6.4% above last closing price of JP¥4,265. Stock is up 26% over the past year. The company is forecast to post earnings per share of JP¥208 for next year compared to JP¥178 last year. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥3,925, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 13x in the Machinery industry in Japan. Total returns to shareholders of 22% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,498 per share. Reported Earnings • Feb 16
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: JP¥178 (down from JP¥289 in FY 2022). Revenue: JP¥25.3b (down 13% from FY 2022). Net income: JP¥3.08b (down 38% from FY 2022). Profit margin: 12% (down from 17% in FY 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 1.8%. Earnings per share (EPS) also surpassed analyst estimates by 3.4%. Revenue is forecast to grow 6.7% p.a. on average during the next 2 years, compared to a 4.4% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Feb 14
Union Tool Co., Annual General Meeting, Mar 28, 2024 Union Tool Co., Annual General Meeting, Mar 28, 2024. Announcement • Jan 18
Union Tool Co. to Report Fiscal Year 2023 Results on Feb 14, 2024 Union Tool Co. announced that they will report fiscal year 2023 results on Feb 14, 2024 Upcoming Dividend • Dec 21
Upcoming dividend of JP¥42.00 per share at 2.5% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 01 April 2024. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (2.2%).