Reported Earnings • Apr 29
Full year 2026 earnings: EPS misses analyst expectations Full year 2026 results: JP¥174 loss per share (down from JP¥70.96 profit in FY 2025). Revenue: JP¥64.7b (up 6.2% from FY 2025). Net loss: JP¥14.3b (down 337% from profit in FY 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Announcement • Apr 29
SMS Co., Ltd., Annual General Meeting, Jun 19, 2026 SMS Co., Ltd., Annual General Meeting, Jun 19, 2026. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥29.50 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 23 June 2026. Payout ratio is a comfortable 35% but the company is paying out more than the cash it is generating. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.5%). Declared Dividend • Mar 07
Dividend increased to JP¥29.50 Dividend of JP¥29.50 is 3.5% higher than last year. Ex-date: 30th March 2026 Payment date: 23rd June 2026 Dividend yield will be 1.7%, which is higher than the industry average of 1.2%. Sustainability & Growth Dividend is covered by earnings (35% earnings payout ratio) but not covered by cash flows (117% cash payout ratio). The dividend has increased by an average of 24% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 46% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 31
Third quarter 2026 earnings: EPS misses analyst expectations Third quarter 2026 results: JP¥4.05 loss per share (down from JP¥2.07 profit in 3Q 2025). Revenue: JP¥13.9b (up 6.3% from 3Q 2025). Net loss: JP¥332.0m (down 289% from profit in 3Q 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Professional Services 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 fallen by 22% per year, which means it is significantly lagging earnings. Announcement • Jan 31
Sms Co., Ltd. Revises Dividend Guidance for the Fiscal Year-Ending March 31, 2026 SMS Co., Ltd. revised dividend guidance for the fiscal year-ending March 31, 2026. For the period, the company expects revised dividend guidance of JPY 29.50 per share compared to JPY 28.50 per share from a year ago. Announcement • Jan 30
SMS Co., Ltd. Provides Year-End Cash Dividend Guidance for the Fiscal Year Ending March 31, 2026 SMS Co., Ltd. provided year-end cash dividend guidance of JPY 29.50 per share for the fiscal year ending March 31, 2026 against JPY 28.50 per share paid last year. Valuation Update With 7 Day Price Move • Jan 23
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥1,675, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 14x in the Professional Services industry in Japan. Total loss to shareholders of 49% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,814 per share. Reported Earnings • Oct 30
Second quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2026 results: EPS: JP¥12.82 (up from JP¥5.95 in 2Q 2025). Revenue: JP¥14.8b (up 2.7% from 2Q 2025). Net income: JP¥1.05b (up 108% from 2Q 2025). Profit margin: 7.1% (up from 3.5% in 2Q 2025). The increase in margin was primarily driven by higher revenue. Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) exceeded analyst estimates by 139%. Revenue is forecast to grow 9.7% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Professional Services 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 fallen by 27% per year, which means it is significantly lagging earnings. New Risk • Oct 29
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (135% cash payout ratio). Share price has been volatile over the past 3 months (6.1% average weekly change). Valuation Update With 7 Day Price Move • Oct 29
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,310, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 14x in the Professional Services industry in Japan. Total loss to shareholders of 61% over the past three years. Reported Earnings • Jul 31
First quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2026 results: EPS: JP¥47.16 (up from JP¥36.70 in 1Q 2025). Revenue: JP¥18.7b (up 7.2% from 1Q 2025). Net income: JP¥3.94b (up 25% from 1Q 2025). Profit margin: 21% (up from 18% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) exceeded analyst estimates significantly. Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Professional Services 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 fallen by 24% per year, which means it is significantly lagging earnings. Board Change • Jul 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. 3 experienced directors. 3 highly experienced directors. Independent Outside Director Nobuko Takagi was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Jun 25
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: JP¥70.96 (down from JP¥82.96 in FY 2024). Revenue: JP¥61.0b (up 13% from FY 2024). Net income: JP¥6.05b (down 16% from FY 2024). Profit margin: 9.9% (down from 13% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Professional Services 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 fallen by 18% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 29
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: JP¥70.96 (down from JP¥82.96 in FY 2024). Revenue: JP¥61.0b (up 13% from FY 2024). Net income: JP¥6.05b (down 16% from FY 2024). Profit margin: 9.9% (down from 13% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 9.7% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Professional Services 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 fallen by 28% per year, which means it is significantly lagging earnings. Price Target Changed • Mar 28
Price target decreased by 14% to JP¥1,777 Down from JP¥2,060, the current price target is an average from 6 analysts. New target price is 51% above last closing price of JP¥1,179. Stock is down 54% over the past year. The company is forecast to post earnings per share of JP¥71.01 for next year compared to JP¥82.96 last year. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥28.50 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 24 June 2025. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.1%). Price Target Changed • Mar 08
Price target decreased by 9.8% to JP¥2,075 Down from JP¥2,300, the current price target is an average from 6 analysts. New target price is 75% above last closing price of JP¥1,184. Stock is down 52% over the past year. The company is forecast to post earnings per share of JP¥71.36 for next year compared to JP¥82.96 last year. Announcement • Mar 01
SMS Co., Ltd. to Report Fiscal Year 2025 Results on Apr 28, 2025 SMS Co., Ltd. announced that they will report fiscal year 2025 results on Apr 28, 2025 Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to JP¥1,263, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 14x in the Professional Services industry in Japan. Total loss to shareholders of 63% over the past three years. Major Estimate Revision • Feb 07
Consensus EPS estimates fall by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥64.1b to JP¥62.0b. EPS estimate also fell from JP¥92.96 per share to JP¥77.36 per share. Net income forecast to grow 11% next year vs 14% growth forecast for Professional Services industry in Japan. Consensus price target down from JP¥3,167 to JP¥2,325. Share price fell 24% to JP¥1,263 over the past week. Declared Dividend • Feb 03
Dividend increased to JP¥28.50 Dividend of JP¥28.50 is 43% higher than last year. Ex-date: 28th March 2025 Payment date: 24th June 2025 Dividend yield will be 2.2%, which is higher than the industry average of 1.2%. Sustainability & Growth Dividend is well covered by both earnings (26% earnings payout ratio) and cash flows (32% cash payout ratio). The dividend has increased by an average of 23% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 55% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 01
Third quarter 2025 earnings: EPS and revenues miss analyst expectations Third quarter 2025 results: EPS: JP¥2.07 (down from JP¥2.30 in 3Q 2024). Revenue: JP¥13.0b (up 9.8% from 3Q 2024). Net income: JP¥176.0m (down 12% from 3Q 2024). Profit margin: 1.3% (down from 1.7% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 8.7%. Earnings per share (EPS) also missed analyst estimates by 69%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Professional Services 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 fallen by 19% per year, which means it is significantly lagging earnings. Announcement • Jan 31
SMS Co., Ltd. Amends Year-End Dividend Forecast for the Fiscal Year Ending March 31, 2025 Board of Directors of SMS Co., Ltd. has resolved to amend the dividend forecast for the fiscal year ending March 31, 2025 (the Fiscal 2024), as follows. For the period, the company expects to pay year-end dividend of JPY 28.50 per share compared to JPY 20.00 per share paid a year ago. Reason for Revision of Forecast: The Company s basic policy for profit distribution is to pay dividends in line with business results for each fiscal year, with a target consolidated dividend payout ratio of 30%, while prioritizing growth investment and considering the financial conditions. (However, this does not apply in the event of major investment opportunities such as M&A.) Based on this policy, the Company has decided to return profits to shareholders in the form of dividend for this fiscal year. Price Target Changed • Jan 06
Price target decreased by 7.8% to JP¥3,167 Down from JP¥3,433, the current price target is an average from 6 analysts. New target price is 102% above last closing price of JP¥1,565. Stock is down 44% over the past year. The company is forecast to post earnings per share of JP¥92.87 for next year compared to JP¥82.96 last year. Announcement • Nov 30
SMS Co., Ltd. to Report Q3, 2025 Results on Jan 31, 2025 SMS Co., Ltd. announced that they will report Q3, 2025 results on Jan 31, 2025 New Risk • Nov 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Nov 05
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥1,699, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 15x in the Professional Services industry in Japan. Total loss to shareholders of 62% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,326 per share. Reported Earnings • Oct 31
Second quarter 2025 earnings: EPS misses analyst expectations Second quarter 2025 results: EPS: JP¥5.95 (down from JP¥8.99 in 2Q 2024). Revenue: JP¥14.4b (up 17% from 2Q 2024). Net income: JP¥507.0m (down 36% from 2Q 2024). Profit margin: 3.5% (down from 6.4% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 46%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 28% per year, which means it is significantly lagging earnings. Announcement • Sep 23
SMS Co., Ltd.(TSE:2175) dropped from FTSE All-World Index (USD) SMS Co., Ltd.(TSE:2175) dropped from FTSE All-World Index (USD) Announcement • Aug 27
SMS Co., Ltd. to Report Q2, 2025 Results on Oct 29, 2024 SMS Co., Ltd. announced that they will report Q2, 2025 results on Oct 29, 2024 Reported Earnings • Jul 28
First quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2025 results: EPS: JP¥36.70 (down from JP¥38.89 in 1Q 2024). Revenue: JP¥17.4b (up 15% from 1Q 2024). Net income: JP¥3.16b (down 6.7% from 1Q 2024). Profit margin: 18% (down from 22% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 3.5%. Earnings per share (EPS) exceeded analyst estimates by 24%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Announcement • Jul 26
SMS Co., Ltd. (TSE:2175) announces an Equity Buyback for 995,500 shares, representing 1.16% for ¥2,000 million. SMS Co., Ltd. (TSE:2175) announces a share repurchase program. Under the program, the company will repurchase up to 995,500 shares, representing 1.16% of its share capital for ¥2,000 million. The shares will be repurchased in order to enable flexible implementation of capital policies in response to changes in the business environment. The program will be valid till September 30, 2024. As of June 30, 2024, the company had 85,917,568 shares (excluding treasury shares) and 1,644,03 shares in treasury. Reported Earnings • Jun 26
Full year 2024 earnings: Revenues and EPS in line with analyst expectations Full year 2024 results: EPS: JP¥82.96 (up from JP¥73.51 in FY 2023). Revenue: JP¥54.0b (up 18% from FY 2023). Net income: JP¥7.23b (up 13% from FY 2023). Profit margin: 13% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Professional Services 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 fallen by 15% per year, which means it is significantly lagging earnings. Announcement • Jun 08
SMS Co., Ltd. to Report Q1, 2025 Results on Jul 26, 2024 SMS Co., Ltd. announced that they will report Q1, 2025 results on Jul 26, 2024 Reported Earnings • Apr 28
Full year 2024 earnings: Revenues and EPS in line with analyst expectations Full year 2024 results: EPS: JP¥82.96 (up from JP¥73.51 in FY 2023). Revenue: JP¥54.0b (up 18% from FY 2023). Net income: JP¥7.23b (up 13% from FY 2023). Profit margin: 13% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Professional Services 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 fallen by 9% per year, which means it is significantly lagging earnings. Announcement • Apr 28
SMS Co., Ltd., Annual General Meeting, Jun 21, 2024 SMS Co., Ltd., Annual General Meeting, Jun 21, 2024. Announcement • Apr 27
SMS Co., Ltd. (TSE:2175) announces an Equity Buyback for 876,400 shares, representing 1.01% for ¥2,000 million. SMS Co., Ltd. (TSE:2175) announces a share repurchase program. Under the program, the company will repurchase up to 876,400 shares, representing 1.01% of its share capital for ¥2,000 million. The shares will be repurchased in order to enable flexible implementation of capital policies in response to changes in the business environment. The program will be valid till June 30, 2024. As of March 31, 2024, the company had 86,748,768 shares (excluding treasury shares) and 812,832 shares in treasury. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 0.6%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (1.1%). Announcement • Mar 02
SMS Co., Ltd. to Report Fiscal Year 2024 Results on Apr 26, 2024 SMS Co., Ltd. announced that they will report fiscal year 2024 results on Apr 26, 2024 Declared Dividend • Feb 02
Dividend increased to JP¥20.00 Dividend of JP¥20.00 is 33% higher than last year. Ex-date: 28th March 2024 Payment date: 26th June 2024 Dividend yield will be 0.8%, which is lower than the industry average of 1.2%. Payout Ratios Payout ratio: 21%. Cash payout ratio: 21%. Announcement • Feb 02
SMS Co., Ltd. Provides Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2024 SMS Co., Ltd. provided consolidated earnings guidance for the fiscal year ending March 31, 2024. For the year, the company expected net sales of JPY 54,799 million, operating income of JPY 8,375 million, profit attributable to owners of parent of JPY 7,127 million and earnings per share is expected to be JPY 81.70. Reported Earnings • Feb 02
Third quarter 2024 earnings: EPS misses analyst expectations Third quarter 2024 results: EPS: JP¥2.30 (down from JP¥4.97 in 3Q 2023). Revenue: JP¥11.9b (up 18% from 3Q 2023). Net income: JP¥200.0m (down 54% from 3Q 2023). Profit margin: 1.7% (down from 4.3% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 55%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Jan 31
SMS Co., Ltd. Revises Year-End Dividend Guidance for the Fiscal Year Ending March 31, 2024 SMS Co., Ltd. revised year-end dividend guidance for the fiscal year ending March 31, 2024 (the “Fiscal 2023”). The year-end cash dividend per share for the Fiscal 2023 is projected to be increased by JPY 5.00 compared with the previous fiscal year to JPY 20.00. Actual dividend for fiscal year 2022 is JPY 15.00 per share. Price Target Changed • Dec 16
Price target decreased by 7.7% to JP¥3,860 Down from JP¥4,183, the current price target is an average from 5 analysts. New target price is 39% above last closing price of JP¥2,785. Stock is down 17% over the past year. The company is forecast to post earnings per share of JP¥83.68 for next year compared to JP¥73.51 last year. Announcement • Nov 26
SMS Co., Ltd. to Report Q3, 2024 Results on Jan 31, 2024 SMS Co., Ltd. announced that they will report Q3, 2024 results on Jan 31, 2024 Reported Earnings • Oct 29
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: JP¥8.99 (down from JP¥13.24 in 2Q 2023). Revenue: JP¥12.3b (up 14% from 2Q 2023). Net income: JP¥787.0m (down 32% from 2Q 2023). Profit margin: 6.4% (down from 11% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 5.1%. Earnings per share (EPS) also missed analyst estimates by 41%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Professional Services 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 fallen by 8% per year, which means it is significantly lagging earnings. Announcement • Oct 28
SMS Co., Ltd. (TSE:2175) announces an Equity Buyback for 883,100 shares, representing 1.01% for ¥2,000 million. SMS Co., Ltd. (TSE:2175) announces a share repurchase program. Under the program, the company will repurchase up to 883,100 shares, representing 1.01% of its share capital for ¥2,000 million. The shares will be repurchased in order to enable flexible implementation of capital policies in response to changes in the business environment. The program will be valid till December 31, 2023. As of September 30, 2023, the company had 87,560,915 shares (excluding treasury shares) and 685 shares in treasury. New Risk • Oct 20
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 5.3% 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 • Sep 28
SMS Co., Ltd. to Report Q2, 2024 Results on Oct 27, 2023 SMS Co., Ltd. announced that they will report Q2, 2024 results on Oct 27, 2023 Reported Earnings • Jul 29
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: JP¥38.89 (up from JP¥34.14 in 1Q 2023). Revenue: JP¥15.2b (up 21% from 1Q 2023). Net income: JP¥3.39b (up 14% from 1Q 2023). Profit margin: 22% (down from 24% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 35%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Jun 04
SMS Co., Ltd. to Report Q1, 2024 Results on Jul 28, 2023 SMS Co., Ltd. announced that they will report Q1, 2024 results on Jul 28, 2023 Announcement • May 25
SMS Co., Ltd., Annual General Meeting, Jun 23, 2023 SMS Co., Ltd., Annual General Meeting, Jun 23, 2023. Agenda: To consider distribution of dividends from surplus. Reported Earnings • Apr 29
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥73.51 (up from JP¥62.07 in FY 2022). Revenue: JP¥45.7b (up 17% from FY 2022). Net income: JP¥6.41b (up 19% from FY 2022). Profit margin: 14% (in line with FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.7%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 8.8% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 11% per year. Reported Earnings • Feb 01
Third quarter 2023 earnings: EPS in line with expectations, revenues disappoint Third quarter 2023 results: EPS: JP¥4.97 (up from JP¥2.81 in 3Q 2022). Revenue: JP¥10.1b (up 20% from 3Q 2022). Net income: JP¥433.0m (up 77% from 3Q 2022). Profit margin: 4.3% (up from 2.9% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 14% per year. Announcement • Dec 29
SMS Co., Ltd. to Report Q3, 2023 Results on Jan 31, 2023 SMS Co., Ltd. announced that they will report Q3, 2023 results on Jan 31, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: JP¥13.24 (up from JP¥10.65 in 2Q 2022). Revenue: JP¥10.8b (up 19% from 2Q 2022). Net income: JP¥1.15b (up 24% from 2Q 2022). Profit margin: 11% (in line with 2Q 2022). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 9.7%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 9% per year. Reported Earnings • Oct 30
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: JP¥13.24 (up from JP¥10.65 in 2Q 2022). Revenue: JP¥10.8b (up 19% from 2Q 2022). Net income: JP¥1.15b (up 24% from 2Q 2022). Profit margin: 11% (in line with 2Q 2022). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 9.7%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 5% per year. Announcement • Oct 29
SMS Co., Ltd. Provides Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2023 SMS Co., Ltd. provided consolidated earnings forecast for the fiscal year ending March 31, 2023. For the full year, the company expected net sales to be JPY 46,063 million, Operating profit to be JPY 7,238 million, Profit attributable to owners of parent to be JPY 5,984 million and earnings per share to be JPY 68.67. Buying Opportunity • Sep 22
Now 21% undervalued Over the last 90 days, the stock is up 7.5%. The fair value is estimated to be JP¥3,640, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.0% over the last 3 years. Earnings per share has grown by 9.0%. For the next 3 years, revenue is forecast to grow by 12% per annum. Earnings is also forecast to grow by 18% per annum over the same time period. Announcement • Sep 01
SMS Co., Ltd. to Report Q2, 2023 Results on Oct 28, 2022 SMS Co., Ltd. announced that they will report Q2, 2023 results on Oct 28, 2022 Reported Earnings • Jul 31
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: EPS: JP¥34.14 (up from JP¥28.42 in 1Q 2022). Revenue: JP¥12.5b (up 16% from 1Q 2022). Net income: JP¥2.98b (up 20% from 1Q 2022). Profit margin: 24% (in line with 1Q 2022). Revenue exceeded analyst estimates by 3.2%. Earnings per share (EPS) also surpassed analyst estimates by 9.4%. Over the next year, revenue is forecast to grow 17%, compared to a 15% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year and the company’s share price has also increased by 9% per year. Valuation Update With 7 Day Price Move • Jul 07
Investor sentiment improved over the past week After last week's 18% share price gain to JP¥3,060, the stock trades at a forward P/E ratio of 42x. Average forward P/E is 22x in the Professional Services 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¥3,760 per share.