Buy Or Sell Opportunity • May 29
Now 20% overvalued Over the last 90 days, the stock has fallen 1.7% to JP¥4,088. The fair value is estimated to be JP¥3,405, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.2% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 3.5% per annum. Earnings are also forecast to grow by 6.7% per annum over the same time period. Reported Earnings • May 20
Full year 2026 earnings released: EPS: JP¥285 (vs JP¥288 in FY 2025) Full year 2026 results: EPS: JP¥285 (down from JP¥288 in FY 2025). Revenue: JP¥339.6b (down 8.0% from FY 2025). Net income: JP¥15.4b (down 4.1% from FY 2025). Profit margin: 4.5% (up from 4.4% in FY 2025). The increase in margin was driven by lower expenses. Revenue is forecast to grow 3.6% 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 25% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Live News • May 17
Glory Lifts Dividend Target and Signals 2027 Earnings Recovery After 2026 Profit Drop Glory reported a 29.2% decline in operating profit and a 37.2% decline in net profit attributable to owners for fiscal 2026.
The company raised its annual dividend and lifted its dividend-on-equity target from at least 3% to 4%, indicating a stronger emphasis on shareholder returns.
Management cited expanding overseas retail-focused operations as a key earnings driver and projected 6.0% revenue growth and a 30% profit increase for fiscal 2027.
The combination of weaker 2026 profitability, a higher dividend target, and projections for earnings recovery in 2027 suggests management confidence in the underlying business, particularly in overseas retail operations.
Investors may want to weigh that confidence and the increased focus on capital efficiency against the recent profit declines and the execution risk around the 2027 targets. Announcement • Apr 04
Glory Ltd. to Report Fiscal Year 2026 Results on May 15, 2026 Glory Ltd. announced that they will report fiscal year 2026 results at 3:00 PM, Tokyo Standard Time on May 15, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥56.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 23 June 2026. Payout ratio is on the higher end at 83%, however this is supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Reported Earnings • Feb 07
Third quarter 2026 earnings released: EPS: JP¥19.10 (vs JP¥93.08 in 3Q 2025) Third quarter 2026 results: EPS: JP¥19.10 (down from JP¥93.08 in 3Q 2025). Revenue: JP¥88.5b (down 6.8% from 3Q 2025). Net income: JP¥1.02b (down 80% from 3Q 2025). Profit margin: 1.2% (down from 5.5% in 3Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 4.3% p.a. on average during the next 3 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 41% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Jan 26
Now 21% undervalued Over the last 90 days, the stock has risen 8.4% to JP¥4,001. The fair value is estimated to be JP¥5,066, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 3.5% per annum. Earnings are also forecast to grow by 15% per annum over the same time period. Announcement • Dec 26
Glory Ltd. to Report Q3, 2026 Results on Feb 06, 2026 Glory Ltd. announced that they will report Q3, 2026 results at 3:00 PM, Tokyo Standard Time on Feb 06, 2026 Buy Or Sell Opportunity • Dec 10
Now 20% undervalued Over the last 90 days, the stock has risen 4.2% to JP¥4,031. The fair value is estimated to be JP¥5,061, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 3.5% per annum. Earnings are also forecast to grow by 15% per annum over the same time period. Declared Dividend • Dec 06
First half dividend of JP¥56.00 announced Shareholders will receive a dividend of JP¥56.00. Ex-date: 30th March 2026 Payment date: 23rd June 2026 Dividend yield will be 2.8%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by both earnings (51% earnings payout ratio) and cash flows (15% cash payout ratio). The dividend has increased by an average of 7.6% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 51% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Dec 05
Glory Ltd. to Report Fiscal Year 2026 Results on May 13, 2026 Glory Ltd. announced that they will report fiscal year 2026 results on May 13, 2026 Reported Earnings • Nov 12
Second quarter 2026 earnings released: EPS: JP¥55.68 (vs JP¥29.34 in 2Q 2025) Second quarter 2026 results: EPS: JP¥55.68 (up from JP¥29.34 in 2Q 2025). Revenue: JP¥81.6b (down 12% from 2Q 2025). Net income: JP¥3.03b (up 85% from 2Q 2025). Profit margin: 3.7% (up from 1.8% in 2Q 2025). The increase in margin was driven by lower expenses. Revenue is forecast to grow 3.5% 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 60% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Sep 27
Glory Ltd. to Report Q2, 2026 Results on Nov 10, 2025 Glory Ltd. announced that they will report Q2, 2026 results on Nov 10, 2025 Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥6.17 (vs JP¥103 in 1Q 2025) First quarter 2026 results: EPS: JP¥6.17 (down from JP¥103 in 1Q 2025). Revenue: JP¥72.3b (down 22% from 1Q 2025). Net income: JP¥342.0m (down 94% from 1Q 2025). Profit margin: 0.5% (down from 6.2% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 3.1% 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 69% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Declared Dividend • Jul 09
Final dividend of JP¥56.00 announced Shareholders will receive a dividend of JP¥56.00. Ex-date: 29th September 2025 Payment date: 5th December 2025 Dividend yield will be 3.0%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (38% earnings payout ratio) and cash flows (16% cash payout ratio). The dividend has increased by an average of 7.6% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 20% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jul 04
Glory Ltd. to Report Q1, 2026 Results on Aug 07, 2025 Glory Ltd. announced that they will report Q1, 2026 results at 3:00 PM, Tokyo Standard Time on Aug 07, 2025 Reported Earnings • Jun 24
Full year 2025 earnings: EPS in line with analyst expectations despite revenue beat Full year 2025 results: EPS: JP¥288 (down from JP¥534 in FY 2024). Revenue: JP¥369.0b (flat on FY 2024). Net income: JP¥16.1b (down 46% from FY 2024). Profit margin: 4.4% (down from 8.0% in FY 2024). Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 1.5% 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 76% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Price Target Changed • May 27
Price target increased by 13% to JP¥3,113 Up from JP¥2,765, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of JP¥3,000. Stock is up 9.2% over the past year. The company is forecast to post earnings per share of JP¥221 for next year compared to JP¥288 last year. Major Estimate Revision • May 23
Consensus EPS estimates increase by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥324.2b to JP¥342.1b. EPS estimate increased from JP¥191 to JP¥215 per share. Net income forecast to shrink 24% next year vs 4.3% growth forecast for Machinery industry in Japan . Consensus price target broadly unchanged at JP¥2,820. Share price was steady at JP¥2,945 over the past week. Announcement • May 16
Glory Ltd. Provides Consolidated Earnings Guidance for the Six Months Ending September 30, 2025 and for the Full Year Ending March 31, 2026 Glory Ltd. provided consolidated earnings guidance for the six months ending September 30, 2025 and for the full year ending March 31, 2026. For the six months, the company expects sales revenue to be JPY 156,000 million, Operating income of JPY 5,800 million, and net income attributable to owners of the parent of JPY 1,600 million and net income per share of JPY 28.68.
For the year, the company expects sales revenue to be JPY 340,000 million, Operating income of JPY 21,500 million, and net income attributable to owners of the parent of JPY 10,000 million and net income per share of JPY 179.24. Announcement • May 14
Glory Ltd. (TSE:6457) announces an Equity Buyback for 6,000,000 shares, representing 10.38% for ¥15,000 million. Glory Ltd. (TSE:6457) announces a share repurchase program. Under the program, the company will repurchase up to 6,000,000 shares, representing 10.38% of its share capital, for ¥15,000 million. The company will repurchase its shares as part of its shareholder returns policy in order to improve capital efficiency and implement a flexible capital policy. The repurchased shares will be cancelled. The share repurchase program will run until May 13, 2026. As of April 30, 2025, the company had 57,796,560 shares outstanding (excluding treasury shares) and 1,141,650 shares in treasury. Reported Earnings • May 14
Full year 2025 earnings: EPS in line with analyst expectations despite revenue beat Full year 2025 results: EPS: JP¥288 (down from JP¥534 in FY 2024). Revenue: JP¥369.0b (flat on FY 2024). Net income: JP¥16.1b (down 46% from FY 2024). Profit margin: 4.4% (down from 8.0% in FY 2024). Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to stay flat 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 76% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. New Risk • May 14
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: 4.4% Last year net profit margin: 8.0% 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 (4.4% net profit margin). Announcement • May 09
Eisai Co., Ltd. (TSE:4523) completed the acquisition of EcoNaviSta, Inc. (TSE:5585) from a group of shareholders. Eisai Co., Ltd. (TSE:4523) proposed to acquire EcoNaviSta, Inc. (TSE:5585) from a group of shareholders for ¥17 billion on March 14, 2025. As part of transaction ¥2190 per share is paid towards the common equity of EcoNaviSta, Inc. whereas ¥21,150 yen per Second Series Share Acquisition Right, ¥18,400 yen per Third Series Share Acquisition Right, ¥18,230 yen per Fourth Series Share Acquisition Right and ¥12,460 yen per Fifth Series Share Acquisition Right is paid. The transaction is subject to minimum tender. Nomura Securities Co., Ltd. acted as financial and TMI Associates acted as legal advisor to Eisai Co., Ltd. whereas Trustees Advisory K.K. acted as financial and City-Yuwa Partners acted as legal advisor to EcoNaviSta, Inc.
Eisai Co., Ltd. (TSE:4523) completed the acquisition of EcoNaviSta, Inc. (TSE:5585) from a group of shareholders on May 7, 2025. 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¥2,178, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 11x in the Machinery industry in Japan. Total returns to shareholders of 21% over the past three years. Announcement • Apr 03
Glory Ltd. to Report Fiscal Year 2025 Results on May 13, 2025 Glory Ltd. announced that they will report fiscal year 2025 results at 3:00 PM, Tokyo Standard Time on May 13, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥54.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 24 June 2025. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.1%). Major Estimate Revision • Feb 20
Consensus EPS estimates increase by 10% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from JP¥262 to JP¥289. Revenue forecast steady at JP¥363.1b. Net income forecast to shrink 33% next year vs 9.8% growth forecast for Machinery industry in Japan . Consensus price target broadly unchanged at JP¥2,765. Share price fell 2.6% to JP¥2,603 over the past week. Reported Earnings • Feb 07
Third quarter 2025 earnings released: EPS: JP¥93.08 (vs JP¥227 in 3Q 2024) Third quarter 2025 results: EPS: JP¥93.08 (down from JP¥227 in 3Q 2024). Revenue: JP¥94.9b (down 6.8% from 3Q 2024). Net income: JP¥5.20b (down 59% from 3Q 2024). Profit margin: 5.5% (down from 12% in 3Q 2024). Revenue is expected to decline by 1.4% p.a. on average during the next 3 years, while revenues in the Machinery industry in Japan are expected to grow by 4.7%. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Jan 06
Glory Ltd. to Report Q3, 2025 Results on Feb 06, 2025 Glory Ltd. announced that they will report Q3, 2025 results at 3:00 PM, Tokyo Standard Time on Feb 06, 2025 Declared Dividend • Dec 06
First half dividend of JP¥54.00 announced Shareholders will receive a dividend of JP¥54.00. Ex-date: 28th March 2025 Payment date: 24th June 2025 Dividend yield will be 4.3%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (23% earnings payout ratio) and cash flows (14% cash payout ratio). The dividend has increased by an average of 8.2% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 37% over the next 3 years. However, it would need to fall by 74% to increase the payout ratio to a potentially unsustainable range. Major Estimate Revision • Nov 21
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥356.2b to JP¥361.1b. EPS estimate increased from JP¥262 to JP¥291 per share. Net income forecast to shrink 50% next year vs 12% growth forecast for Machinery industry in Japan . Consensus price target broadly unchanged at JP¥2,793. Share price fell 2.1% to JP¥2,586 over the past week. Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: JP¥29.34 (vs JP¥113 in 2Q 2024) Second quarter 2025 results: EPS: JP¥29.34 (down from JP¥113 in 2Q 2024). Revenue: JP¥92.3b (up 4.7% from 2Q 2024). Net income: JP¥1.64b (down 74% from 2Q 2024). Profit margin: 1.8% (down from 7.1% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 2.5% p.a. on average during the next 3 years, while revenues in the Machinery industry in Japan are expected to grow by 4.8%. Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 05
Price target decreased by 11% to JP¥2,830 Down from JP¥3,173, the current price target is an average from 3 analysts. New target price is 15% above last closing price of JP¥2,463. Stock is down 16% over the past year. The company is forecast to post earnings per share of JP¥236 for next year compared to JP¥534 last year. Announcement • Oct 08
Glory Ltd. to Report Q2, 2025 Results on Nov 07, 2024 Glory Ltd. announced that they will report Q2, 2025 results at 3:00 PM, Tokyo Standard Time on Nov 07, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥54.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 05 December 2024. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.9%). Reported Earnings • Aug 08
First quarter 2025 earnings released: EPS: JP¥103 (vs JP¥36.06 in 1Q 2024) First quarter 2025 results: EPS: JP¥103 (up from JP¥36.06 in 1Q 2024). Revenue: JP¥92.8b (up 33% from 1Q 2024). Net income: JP¥5.74b (up 186% from 1Q 2024). Profit margin: 6.2% (up from 2.9% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is expected to decline by 1.5% p.a. on average during the next 3 years, while revenues in the Machinery industry in Japan are expected to grow by 4.9%. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,266, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Machinery industry in Japan. Total returns to shareholders of 2.5% over the past three years. Declared Dividend • Jul 11
Final dividend of JP¥54.00 announced Shareholders will receive a dividend of JP¥54.00. Ex-date: 27th September 2024 Payment date: 5th December 2024 Dividend yield will be 4.3%, 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 (18% cash payout ratio). The dividend has increased by an average of 9.4% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 40% over the next 3 years. However, it would need to fall by 58% to increase the payout ratio to a potentially unsustainable range. Announcement • Jul 02
Glory Ltd. to Report Q1, 2025 Results on Aug 06, 2024 Glory Ltd. announced that they will report Q1, 2025 results at 3:00 PM, Tokyo Standard Time on Aug 06, 2024 Reported Earnings • Jun 28
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥534 (up from JP¥167 loss in FY 2023). Revenue: JP¥372.5b (up 46% from FY 2023). Net income: JP¥29.7b (up JP¥39.2b from FY 2023). Profit margin: 8.0% (up from net loss in FY 2023). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) also surpassed analyst estimates by 2.2%. Revenue is forecast to stay flat 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 increased by 25% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • May 29
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.6% to JP¥2,641. The fair value is estimated to be JP¥3,335, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 1.9% per annum. Earnings are also forecast to decline by 25% per annum over the same time period. Price Target Changed • May 28
Price target decreased by 14% to JP¥3,223 Down from JP¥3,758, the current price target is an average from 4 analysts. New target price is 17% above last closing price of JP¥2,747. Stock is up 4.6% over the past year. The company is forecast to post earnings per share of JP¥223 for next year compared to JP¥534 last year. Buy Or Sell Opportunity • May 13
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.6% to JP¥2,740. The fair value is estimated to be JP¥3,433, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 3.0% per annum. Earnings are also forecast to decline by 27% per annum over the same time period. Reported Earnings • May 12
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥534 (up from JP¥167 loss in FY 2023). Revenue: JP¥372.5b (up 46% from FY 2023). Net income: JP¥29.7b (up JP¥39.2b from FY 2023). Profit margin: 8.0% (up from net loss in FY 2023). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) also surpassed analyst estimates by 2.2%. Revenue is expected to decline by 3.0% p.a. on average during the next 3 years, while revenues in the Machinery industry in Japan are expected to grow by 4.7%. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • May 12
Glory Ltd., Annual General Meeting, Jun 21, 2024 Glory Ltd., Annual General Meeting, Jun 21, 2024. Buy Or Sell Opportunity • Apr 16
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.1% to JP¥2,775. The fair value is estimated to be JP¥3,474, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 1.1% per annum. Earnings are also forecast to decline by 15% per annum over the same time period. Announcement • Apr 02
Glory Appoints Joseph Gnorski as President of Americas Glory, announced the appointment of Joseph Gnorski as President of Glory Americas. In his new role, Gnorski will oversee the Americas region strategy and operations, building upon his successful tenure as the company’s Executive Vice President of Retail Markets, Americas. Gnorski brings a wealth of expertise and a proven track record of leadership to his role as President. In his over 17 years of experience at Glory, he has been pivotal in driving significant revenue growth, improving operations and expanding the company’s footprint in key markets. Gnorski’s background in leveraging technological advances and fostering innovative thinking, along with his foundation working with customers, positions the Americas for continued growth. Today, Glory works with customers in financial services and all sectors of retail, serving customers like JPMorgan Chase, McDonald’s, Walmart, and OXXO. Gnorski’s appointment comes at a pivotal moment for Glory Americas, following a period of significant growth and transformation, including several recent acquisitions of retail technology solutions like Revolution Retail Systems and Flooid, a leading unified commerce platform. Announcement • Mar 28
Glory Ltd. to Report Fiscal Year 2024 Results on May 10, 2024 Glory Ltd. announced that they will report fiscal year 2024 results on May 10, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 37% but the company is not cash flow positive. Trailing yield: 4.1%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.9%). Major Estimate Revision • Mar 16
Consensus EPS estimates increase by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from JP¥360.3b to JP¥364.2b. EPS estimate increased from JP¥492 to JP¥541 per share. Net income forecast to grow 11% next year vs 4.8% growth forecast for Machinery industry in Japan. Consensus price target of JP¥4,207 unchanged from last update. Share price was steady at JP¥2,805 over the past week. New Risk • Feb 08
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 12% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 are forecast to decline by an average of 12% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Feb 08
Third quarter 2024 earnings released: EPS: JP¥227 (vs JP¥26.94 in 3Q 2023) Third quarter 2024 results: EPS: JP¥227 (up from JP¥26.94 in 3Q 2023). Revenue: JP¥101.9b (up 54% from 3Q 2023). Net income: JP¥12.6b (up JP¥11.1b from 3Q 2023). Profit margin: 12% (up from 2.3% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is expected to decline by 1.9% p.a. on average during the next 3 years, while revenues in the Machinery industry in Japan are expected to grow by 4.2%. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Announcement • Jan 05
Glory Ltd. to Report Q3, 2024 Results on Feb 06, 2024 Glory Ltd. announced that they will report Q3, 2024 results at 3:00 PM, Tokyo Standard Time on Feb 06, 2024 Buying Opportunity • Dec 21
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 9.7%. The fair value is estimated to be JP¥3,511, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 0.3% per annum. Earnings is also forecast to grow by 5.4% per annum over the same time period. Price Target Changed • Dec 15
Price target increased by 12% to JP¥4,207 Up from JP¥3,758, the current price target is an average from 3 analysts. New target price is 47% above last closing price of JP¥2,857. Stock is up 31% over the past year. The company is forecast to post earnings per share of JP¥475 next year compared to a net loss per share of JP¥167 last year. Announcement • Dec 14
Glory Ltd. (TSE:6457) acquired an additional unknown minority stake in Unified Financial Limited. Glory Ltd. (TSE:6457) acquired an additional unknown minority stake in Unified Financial Limited on December 14, 2023. Post to the transaction, Glory owned 91.99% stake in Unified Financial. The majority acquisition of OneBanx's shares was completed with additional investment in July 2023.Glory Ltd. (TSE:6457) completed the acquisition of an additional unknown minority stake in Unified Financial Limited on December 14, 2023. Announcement • Nov 29
Glory Launches Glr-200 Teller Cash Recyclers in North America Glory announced the latest solution in its new GLR series of Teller Cash Recyclers (TCRs), the GLR-200. Building upon the successful launch of GLR-100 in August last year, this TCR features speed, efficiency and cash automation for financial institutions, and is capable of handling both paper and polymer currency in the US and Canada. With multiple storage configurations, GLR-200 supports customer dispense and deposit transactions of any value or denomination, as well as foreign exchange. A choice of storage configurations and options means GLR-200 can meet any cash handling requirement unique to the financial institution, while complying with cash handling regulations for unfit and counterfeit notes. As new branch concepts evolve, both GLR-100 and GLR-200 are designed to fit into locations where space is at a premium. By automating cash handling at the teller position, tellers can fully focus on customers and help with self-operated cash transactions. At financial institutions with TCRs installed, the operation achieves positive outcomes: optimizing staff activities, ensuring accuracy, increasing speed of cash management and realizing efficiency gains. The new GLR series connects seamlessly to Glory's secure cloud-based UBIQULAR™? solution, which delivers enhanced business intelligence, remote monitoring, and device management across the enterprise branch network. The combined capabilities of Glory TCRs and UBIQULAR provide a comprehensive cash management solution achieving peak operational efficiency across the enterprise. Buying Opportunity • Nov 08
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 8.8%. The fair value is estimated to be JP¥3,602, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 1.0% per annum. Earnings is also forecast to grow by 9.0% per annum over the same time period. Announcement • Nov 07
Glory Ltd. Announces Interim Dividend for the Fiscal Year Ending March 31, 2024; Provides Dividend Guidance for the Year-End of Fiscal Year Ending March 31, 2024 Glory Ltd. announced interim dividend of JPY 40.00 per share compared to JPY 34.00 per share paid a year ago. Effective date is December 5, 2023. record date is September 30, 2023.For the fiscal year ending March 31, 2024, the company now expects to pay year-end dividend of JPY 40.00 per share compared to JPY 36.00 per share paid a year ago. Announcement • Oct 06
Glory Ltd. Announces the North America Launch of Their Market-Leading CASHINFINITY Recycling Solution Glory Ltd. announces the North America launch of their market-leading CASHINFINITY™ recycling solution. The CI-500X brings unmatched speed, efficiency, and capacity to cash automation processes. Developed specifically for cash-intensive retailers like big box retailers, casinos and cannabis dispensaries, the CI-500X brings together Glory’s proven manufacturing quality and retail expertise to reduce the ever-increasing cost of handling cash. This solution automates and accelerates start and end of day cash processes as well as preparation for CIT cash collections. As part of the CASHINFINITY cash solutions platform, Glory provides closed loop cash automation, greatly reducing the risk of errors and cash shrinkage by removing the need for staff to handle cash. The speed and volume of this cash recycler introduces a new level of efficiency gains for retail businesses. Harrah’s Cherokee Casinos in Cherokee and Murphy, North Carolina is no stranger to the challenges of managing volumes of cash and are the first casinos to pilot and install the CI-500X. As a result, they’ve been able to reduce the number of employees that handle, manage and count cash, and to stay focused on the customer experience. Cash recycling has reduced the list of manual exceptions, the amount of paperwork, balancing and counting errors. Buying Opportunity • Sep 29
Now 21% undervalued Over the last 90 days, the stock is up 3.4%. The fair value is estimated to be JP¥3,755, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.8% over the last 3 years. Meanwhile, the company became loss making. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥36.00 per share at 2.3% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 05 December 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.3%). In line with average of industry peers (2.1%). Announcement • Aug 27
Glory Ltd. to Report Q2, 2024 Results on Nov 07, 2023 Glory Ltd. announced that they will report Q2, 2024 results on Nov 07, 2023 Reported Earnings • Aug 09
First quarter 2024 earnings released: EPS: JP¥36.06 (vs JP¥31.98 loss in 1Q 2023) First quarter 2024 results: EPS: JP¥36.06 (up from JP¥31.98 loss in 1Q 2023). Revenue: JP¥69.7b (up 32% from 1Q 2023). Net income: JP¥2.01b (up JP¥3.90b from 1Q 2023). Profit margin: 2.9% (up from net loss in 1Q 2023). Revenue is forecast to grow 1.4% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 83 percentage points per year, which is a significant difference in performance. Announcement • Jul 06
Glory Ltd. to Report Q1, 2024 Results on Aug 04, 2023 Glory Ltd. announced that they will report Q1, 2024 results on Aug 04, 2023 Announcement • Jun 10
AI,Inc. (TSE:4388) completed the acquisition of approximately 40.53% stake in FueTrek Co., Ltd. (TSE : 2468) from Glory Ltd. (TSE:6457). AI,Inc. (TSE:4388) agreed to acquire approximately 40.53% stake in FueTrek Co., Ltd. (TSE:2468) from Glory Ltd. (TSE:6457) for approximately ¥860 million on May 11, 2023. The offer price per share is ¥226. AI,Inc. has set the maximum and minimum number of shares to be tendered at 3,793,200. The Tender Offer Period will start on May 12, 2023 and ends on June 8, 2023. FueTrek board has expressed its opinion in favor of tender offer. Ey Strategy Consulting acted as a financial advisor to Glory Ltd. SBI Securities Co., Ltd. acted as a financial advisor, Mori Hamada & Matsumoto LPC acted as a legal advisor to AI,Inc. Tokai Tokyo Securities Co., Ltd. acted as a financial advisor and Hibiya-Nakata acted as a legal advisor to FueTrek Co., Ltd.
AI,Inc. (TSE:4388) completed the acquisition of approximately 40.53% stake in FueTrek Co., Ltd. (TSE : 2468) from Glory Ltd. (TSE:6457) on June 8, 2023. Price Target Changed • Jun 07
Price target increased by 12% to JP¥3,466 Up from JP¥3,108, the current price target is an average from 5 analysts. New target price is 25% above last closing price of JP¥2,782. Stock is up 32% over the past year. The company is forecast to post earnings per share of JP¥350 next year compared to a net loss per share of JP¥167 last year. Reported Earnings • May 13
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: JP¥167 loss per share (down from JP¥108 profit in FY 2022). Revenue: JP¥255.9b (up 13% from FY 2022). Net loss: JP¥9.54b (down 247% from profit in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 137%. Revenue is forecast to grow 2.6% 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, the company's share price growth rate has exceeded its earnings growth rate by 70 percentage points per year, which is a significant difference in performance. Announcement • May 11
Glory Ltd., Annual General Meeting, Jun 23, 2023 Glory Ltd., Annual General Meeting, Jun 23, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥34.00 per share at 2.4% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.4%). Price Target Changed • Mar 21
Price target increased by 12% to JP¥3,108 Up from JP¥2,775, the current price target is an average from 5 analysts. New target price is 11% above last closing price of JP¥2,789. Stock is up 33% over the past year. The company is forecast to post a net loss per share of JP¥55.08 compared to earnings per share of JP¥108 last year. Price Target Changed • Feb 22
Price target increased by 8.8% to JP¥2,775 Up from JP¥2,550, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of JP¥2,743. Stock is up 34% over the past year. The company is forecast to post a net loss per share of JP¥74.77 compared to earnings per share of JP¥108 last year. Reported Earnings • Feb 10
Third quarter 2023 earnings released: EPS: JP¥26.94 (vs JP¥70.20 in 3Q 2022) Third quarter 2023 results: EPS: JP¥26.94 (down from JP¥70.20 in 3Q 2022). Revenue: JP¥66.4b (up 20% from 3Q 2022). Net income: JP¥1.51b (down 65% from 3Q 2022). Profit margin: 2.3% (down from 7.6% in 3Q 2022). Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings.