Reported Earnings • Aug 18
Second quarter 2026 earnings released: JP¥2.88 loss per share (vs JP¥22.83 loss in 2Q 2025) Second quarter 2026 results: JP¥2.88 loss per share (improved from JP¥22.83 loss in 2Q 2025). Revenue: JP¥3.57b (up 6.9% from 2Q 2025). Net loss: JP¥33.9m (loss narrowed 87% from 2Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 77 percentage points per year, which is a significant difference in performance. Reported Earnings • May 18
First quarter 2026 earnings released: JP¥6.89 loss per share (vs JP¥11.02 loss in 1Q 2025) First quarter 2026 results: JP¥6.89 loss per share (improved from JP¥11.02 loss in 1Q 2025). Revenue: JP¥3.38b (up 39% from 1Q 2025). Net loss: JP¥81.0m (loss narrowed 37% from 1Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 82 percentage points per year, which is a significant difference in performance. Board Change • Apr 09
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 3 non-independent directors. Director Takeshi Umemoto was the last director to join the board, commencing their role in 2024. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 14
Full year 2025 earnings released: JP¥94.04 loss per share (vs JP¥59.13 loss in FY 2024) Full year 2025 results: JP¥94.04 loss per share (further deteriorated from JP¥59.13 loss in FY 2024). Revenue: JP¥13.5b (up 46% from FY 2024). Net loss: JP¥1.11b (loss widened 59% from FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. Announcement • Feb 14
Frontier Management Inc. Provides Consolidated Earnings Guidance for the Fiscal Year Ending December 31, 2026 Frontier Management Inc. provided consolidated earnings guidance for the fiscal year ending December 31, 2026. For the year, the company expects net sales of JPY 15,000 million, operating profit of JPY 610 million, profit attributable to owners of parent of JPY 50 million and Basic earnings per share of JPY 4.24. Announcement • Feb 13
Frontier Management Inc., Annual General Meeting, Mar 26, 2026 Frontier Management Inc., Annual General Meeting, Mar 26, 2026. Reported Earnings • Nov 18
Third quarter 2025 earnings released: JP¥12.66 loss per share (vs JP¥10.45 loss in 3Q 2024) Third quarter 2025 results: JP¥12.66 loss per share (further deteriorated from JP¥10.45 loss in 3Q 2024). Revenue: JP¥3.01b (up 37% from 3Q 2024). Net loss: JP¥149.0m (loss widened 21% from 3Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 77 percentage points per year, which is a significant difference in performance. Announcement • Sep 30
Frontier Management Inc. to Report Q3, 2025 Results on Nov 14, 2025 Frontier Management Inc. announced that they will report Q3, 2025 results on Nov 14, 2025 Reported Earnings • Aug 15
Second quarter 2025 earnings released Second quarter 2025 results: JP¥22.83 loss per share. Revenue: JP¥3.34b (up 39% from 2Q 2024). Net loss: JP¥268.6m (flat on 2Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 66 percentage points per year, which is a significant difference in performance. Announcement • Jun 27
Frontier Management Inc. to Report Q2, 2025 Results on Aug 13, 2025 Frontier Management Inc. announced that they will report Q2, 2025 results on Aug 13, 2025 Board Change • Apr 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Hikaru Minami was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Mar 25
Frontier Management Inc. to Report Q1, 2025 Results on May 14, 2025 Frontier Management Inc. announced that they will report Q1, 2025 results on May 14, 2025 Buy Or Sell Opportunity • Feb 18
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.7% to JP¥668. The fair value is estimated to be JP¥839, 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 became loss making. New Risk • Feb 15
New major risk - Revenue and earnings growth Earnings have declined by 8.5% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 340% Paying a dividend despite having no free cash flows. Earnings have declined by 8.5% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.6% average weekly change). Market cap is less than US$100m (JP¥8.07b market cap, or US$53.0m). Reported Earnings • Feb 15
Full year 2024 earnings released: JP¥59.13 loss per share (vs JP¥67.46 profit in FY 2023) Full year 2024 results: JP¥59.13 loss per share (down from JP¥67.46 profit in FY 2023). Revenue: JP¥9.27b (down 7.6% from FY 2023). Net loss: JP¥694.0m (down 189% from profit in FY 2023). Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • Feb 13
Frontier Management Inc., Annual General Meeting, Mar 27, 2025 Frontier Management Inc., Annual General Meeting, Mar 27, 2025. Announcement • Jan 03
Frontier Management Inc. to Report Fiscal Year 2024 Results on Feb 13, 2025 Frontier Management Inc. announced that they will report fiscal year 2024 results on Feb 13, 2025 Buy Or Sell Opportunity • Dec 30
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 43% to JP¥715. The fair value is estimated to be JP¥895, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years, while earnings per share has been flat. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥42.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 28 March 2025. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 5.6%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (0.9%). Declared Dividend • Dec 05
Dividend increased to JP¥42.00 Dividend of JP¥42.00 is 2.4% higher than last year. Ex-date: 27th December 2024 Payment date: 28th March 2025 Dividend yield will be 5.4%, which is higher than the industry average of 1.2%. Sustainability & Growth Dividend is not covered by earnings (340% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 22% per year over the past 6 years and payments have been stable during that time. The company's earnings per share (EPS) would need to grow by 278% to bring the payout ratio under control. However, EPS has remained steady over the last 5 years so the company would need to improve on their historical growth rates. Reported Earnings • Nov 15
Third quarter 2024 earnings released: JP¥10.39 loss per share (vs JP¥10.63 profit in 3Q 2023) Third quarter 2024 results: JP¥10.39 loss per share (down from JP¥10.63 profit in 3Q 2023). Revenue: JP¥2.19b (down 3.8% from 3Q 2023). Net loss: JP¥122.0m (down 199% from profit in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has fallen by 6% per year. Valuation Update With 7 Day Price Move • Nov 14
Investor sentiment deteriorates as stock falls 30% After last week's 30% share price decline to JP¥826, the stock trades at a trailing P/E ratio of 25.1x. Average trailing P/E is 17x in the Professional Services industry in Japan. Total loss to shareholders of 4.0% over the past three years. Announcement • Sep 18
Frontier Management Inc. to Report Q3, 2024 Results on Nov 13, 2024 Frontier Management Inc. announced that they will report Q3, 2024 results on Nov 13, 2024 Buy Or Sell Opportunity • Aug 21
Now 20% overvalued Over the last 90 days, the stock has fallen 13% to JP¥1,084. The fair value is estimated to be JP¥902, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 13%. Reported Earnings • Aug 18
Second quarter 2024 earnings released: JP¥0.007 loss per share (vs JP¥12.71 profit in 2Q 2023) Second quarter 2024 results: JP¥0.007 loss per share (down from JP¥12.71 profit in 2Q 2023). Revenue: JP¥2.40b (up 2.6% from 2Q 2023). Net loss: JP¥87.0k (down 100% from profit in 2Q 2023). Profit margin: 0% (down from 6.2% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. New Risk • Aug 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.2% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.2% average weekly change). Minor Risks Dividend is not well covered by cash flows (266% cash payout ratio). Shareholders have been diluted in the past year (2.2% increase in shares outstanding). Market cap is less than US$100m (JP¥9.36b market cap, or US$65.8m). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 33% After last week's 33% share price decline to JP¥797, the stock trades at a trailing P/E ratio of 17.6x. Average trailing P/E is 16x in the Professional Services industry in Japan. Total loss to shareholders of 15% over the past three years. Announcement • Jun 17
Frontier Management Inc. to Report Q2, 2024 Results on Aug 13, 2024 Frontier Management Inc. announced that they will report Q2, 2024 results on Aug 13, 2024 Reported Earnings • May 18
First quarter 2024 earnings released: EPS: JP¥1.11 (vs JP¥22.67 in 1Q 2023) First quarter 2024 results: EPS: JP¥1.11 (down from JP¥22.67 in 1Q 2023). Revenue: JP¥2.16b (down 19% from 1Q 2023). Net income: JP¥13.0m (down 95% from 1Q 2023). Profit margin: 0.6% (down from 9.8% in 1Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 21% 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 • May 15
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,262, the stock trades at a trailing P/E ratio of 19x. Average trailing P/E is 18x in the Professional Services industry in Japan. Total loss to shareholders of 1.9% over the past three years. Announcement • Mar 31
Frontier Management Inc. to Report Q1, 2024 Results on May 14, 2024 Frontier Management Inc. announced that they will report Q1, 2024 results on May 14, 2024 Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥1,855, the stock trades at a trailing P/E ratio of 27.9x. Average trailing P/E is 18x in the Professional Services industry in Japan. Total returns to shareholders of 9.5% over the past three years. Reported Earnings • Feb 16
Full year 2023 earnings released: EPS: JP¥67.46 (vs JP¥48.61 in FY 2022) Full year 2023 results: EPS: JP¥67.46 (up from JP¥48.61 in FY 2022). Revenue: JP¥10.0b (up 27% from FY 2022). Net income: JP¥780.0m (up 40% from FY 2022). Profit margin: 7.8% (up from 7.0% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Feb 15
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 17% to JP¥1,796. The fair value is estimated to be JP¥1,479, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 21%. Announcement • Dec 29
Frontier Management Inc. to Report Fiscal Year 2023 Results on Feb 14, 2024 Frontier Management Inc. announced that they will report fiscal year 2023 results on Feb 14, 2024 Upcoming Dividend • Dec 21
Upcoming dividend of JP¥28.00 per share at 1.8% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 27 March 2024. Payout ratio is a comfortable 44% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.2%). Announcement • Dec 15
Frontier Management Inc. Announces Board Changes Frontier Management Inc. announced that Mr. Nobumichi Hattori, who served as an Audit & Supervisory Board Member, will resign from the position, and in order to meet the statutory number of Audit & Supervisory Board Members, and also announced that Substitute Audit & Supervisory Board Member Ms. Hiroko Noda will be appointed as an Audit & Supervisory Board Member effective on December 31, 2023. Reported Earnings • Nov 11
Third quarter 2023 earnings released: EPS: JP¥10.63 (vs JP¥6.46 in 3Q 2022) Third quarter 2023 results: EPS: JP¥10.63 (up from JP¥6.46 in 3Q 2022). Revenue: JP¥2.28b (up 19% from 3Q 2022). Net income: JP¥123.0m (up 66% from 3Q 2022). Profit margin: 5.4% (up from 3.9% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. New Risk • Oct 18
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 5.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.4% average weekly change). Shareholders have been diluted in the past year (2.3% increase in shares outstanding). Announcement • Sep 28
Frontier Management Inc. to Report Q3, 2023 Results on Nov 10, 2023 Frontier Management Inc. announced that they will report Q3, 2023 results on Nov 10, 2023 New Risk • Aug 17
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.4b (US$98.5m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (JP¥14.4b market cap, or US$98.5m). Reported Earnings • Aug 12
Second quarter 2023 earnings released: EPS: JP¥12.71 (vs JP¥3.58 in 2Q 2022) Second quarter 2023 results: EPS: JP¥12.71 (up from JP¥3.58 in 2Q 2022). Revenue: JP¥2.34b (up 34% from 2Q 2022). Net income: JP¥146.0m (up 256% from 2Q 2022). Profit margin: 6.2% (up from 2.3% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Announcement • Jun 30
Frontier Management Inc. to Report Q2, 2023 Results on Aug 10, 2023 Frontier Management Inc. announced that they will report Q2, 2023 results on Aug 10, 2023 Reported Earnings • May 18
First quarter 2023 earnings released: EPS: JP¥22.67 (vs JP¥20.71 in 1Q 2022) First quarter 2023 results: EPS: JP¥22.67 (up from JP¥20.71 in 1Q 2022). Revenue: JP¥2.65b (up 19% from 1Q 2022). Net income: JP¥260.0m (up 10% from 1Q 2022). Profit margin: 9.8% (in line with 1Q 2022). 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 7% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • May 16
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥1,105, the stock trades at a trailing P/E ratio of 22.8x. Average trailing P/E is 17x in the Professional Services industry in Japan. Total loss to shareholders of 21% over the past three years. Reported Earnings • Mar 29
Full year 2022 earnings released: EPS: JP¥48.61 (vs JP¥29.64 in FY 2021) Full year 2022 results: EPS: JP¥48.61 (up from JP¥29.64 in FY 2021). Revenue: JP¥7.92b (up 38% from FY 2021). Net income: JP¥556.0m (up 65% from FY 2021). Profit margin: 7.0% (up from 5.9% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 16
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥964, the stock trades at a trailing P/E ratio of 19.9x. Average trailing P/E is 18x in the Professional Services industry in Japan. Total returns to shareholders of 20% over the past three years. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,289, the stock trades at a trailing P/E ratio of 26.5x. Average trailing P/E is 19x in the Professional Services industry in Japan. Total returns to shareholders of 51% over the past three years. Reported Earnings • Feb 12
Full year 2022 earnings released: EPS: JP¥48.61 (vs JP¥29.64 in FY 2021) Full year 2022 results: EPS: JP¥48.61 (up from JP¥29.64 in FY 2021). Revenue: JP¥7.92b (up 38% from FY 2021). Net income: JP¥556.0m (up 65% from FY 2021). Profit margin: 7.0% (up from 5.9% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 11
Frontier Management Inc. Provides Earnings Guidance for the Fiscal Year Ending December 31, 2022 Frontier Management Inc. provided earnings guidance for the fiscal year ending December 31, 2022. For the period, the company expects net sales to be JPY 10,000 million, operating income to be JPY 1,200 million, net income attributable to owners of parent to be JPY 700 million and net income per share to be JPY 61.06. Announcement • Jan 02
Frontier Management Inc. to Report Fiscal Year 2022 Results on Feb 10, 2023 Frontier Management Inc. announced that they will report fiscal year 2022 results on Feb 10, 2023 Announcement • Dec 28
Frontier Management Inc. Announces Revision of Dividend Policy Frontier Management Inc. announced that at the Board of Directors meeting held on December 27, 2022, FMI resolved to revise the dividend policy as follows. Contents of the review (Before revision): FMI's basic policy on profit distribution is to continue paying stable dividends while securing the internal reserves necessary for future business development and strengthening the management structure. The dividend payout ratio is targeted at 40% of consolidated net income in light of FMI Group's consolidated performance, financial position, economic conditions, and other factors. (after revision): FMI's basic policy on profit distribution is to continue paying stable dividends while securing the internal reserves necessary for future business development and strengthening the management structure. The dividend payout ratio is targeted at 40% of consolidated net income excluding consolidated subsidiary Frontier Capital Inc. (hereafter the FCI) in light of FMI Group's consolidated performance, financial position, economic conditions, and other factors. (dividend payments from FCI to FMI, if any, will be paid to FMI stockholders in accordance with the payout ratio target). Reason for review: FMI's basic policy on profit distribution is to continue paying stable dividends while securing internal reserves necessary for future business development and strengthening of the management structure. FMI's dividend policy is to target a dividend payout ratio of 40% of consolidated net income. On the other hand, FMI believe that the loss related to the start-up of FCI business does not correspond to FMI's basic policy on dividends, and that the loss on the start-up of the business does not correspond to FMI's basic policy on dividends. In addition, if FCI invests in a company that becomes a consolidated subsidiary of FCI in the future, it temporarily increases or decreases FMI's consolidated net income for accounting purposes, but in reality, it does not affect the increase or decrease of FMI's dividend resources. In order to realize stable dividends in the medium to long term, FMI will review and clarify FMI's dividend policy, considering that it is appropriate to deduct FCI profit and loss from FMI's consolidated net income and consider a specific dividend payout ratio target of 40%. Period of Application: The year-end dividend for the year ended December 31, 2022 will be adopted. Announcement • Dec 11
Frontier Management Inc. Announces Executive Changes, Effective January 1, 2023 Frontier Management Inc. appointed Sumio Nishizawa to new positions Managing Executive Officer; General Manager of Business Development Department; General Manager, Osaka Branch; General Manager, Fukuoka Branch and Adviser of Frontier Capital Inc. from former positions Managing Director and Executive Officer; General Manager of Business Development Department; General Manager, Osaka Branch and Adviser, Frontier Capital Corporation. ShinjiHikoe to new positions Executive Officers; Management Consulting Department; Deputy Head of Division; General Manager of Corporate Reform Department and Co-General Manager, Transaction Advisory Department from former positions Executive Officers; Management Consulting Department; Deputy Head of Division; General Manager of Corporate Reform Department and Professional Services department co general manager. Tomohiro Murata to new positions Executive Officers and Head of Industry Research Department from former positions Executive Officers. All the above effective from January 1, 2023. Board Change • Nov 16
Less than half of directors are independent There are 4 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 4 new directors. 4 experienced directors. No highly experienced directors. 2 independent directors (3 non-independent directors). Independent Outside Director Keiko Unotoro is the most experienced director on the board, commencing their role in 2021. They were also the last independent director to join the board. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: JP¥6.46 (vs JP¥0.18 loss in 3Q 2021) Third quarter 2022 results: EPS: JP¥6.46 (up from JP¥0.18 loss in 3Q 2021). Revenue: JP¥1.92b (up 46% from 3Q 2021). Net income: JP¥74.0m (up JP¥76.0m from 3Q 2021). Profit margin: 3.9% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Nov 12
Frontier Management Inc. Provides Earnings Guidance for the Fiscal Year Ending December 31, 2022 Frontier Management Inc. provided earnings guidance for the fiscal year ending December 31, 2022. For the period, the company expects net sales to be JPY 8,000 million, operating income to be JPY 1,000 million, net income attributable to owners of parent to be JPY 600 million and net income per share to be JPY 52.45. Reported Earnings • Aug 14
Second quarter 2022 earnings released: EPS: JP¥3.58 (vs JP¥1.50 loss in 2Q 2021) Second quarter 2022 results: EPS: JP¥3.58 (up from JP¥1.50 loss in 2Q 2021). Revenue: JP¥1.75b (up 40% from 2Q 2021). Net income: JP¥41.0m (up JP¥58.0m from 2Q 2021). Profit margin: 2.3% (up from net loss in 2Q 2021). The move to profitability was driven by higher revenue. 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 36% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 13
Frontier Management Inc. Provides Earnings Forecasts for the Fiscal Year of 2022 Frontier Management Inc. provided earnings forecasts for the fiscal year of 2022. For the year, company expects net sales to be JPY 7,000 million, Operating income to be JPY 800 million, Net income attributable to owners of parent to be JPY 500 million and Net income per share to be JPY 43.88. Announcement • Aug 12
Frontier Management Announces Notice of Revision of Dividend Payout Ratio Frontier Management Inc. announced that at the Board of Directors meeting held on August 12, 2022, FMI resolved to change the dividend payout ratio to be targeted from the fiscal year ending December 31, 2022. as follows. FMI basic policy for profit distribution is to continue paying stable dividends while retaining the internal reserves necessary for future business development and strengthening FMI management structure. Based on the above basic policy, FMI have targeted a dividend payout ratio of 30% of consolidated net income. However, in light of the Group's consolidated performance, financial position, economic conditions, and other factors, FMI have decided to target a dividend payout ratio of 40% of consolidated net income for the fiscal year under review. Reason for review: To enhance shareholder returns and expand the shareholder base. Timing of the review: This will be applied from the fiscal year ended December 2022. Valuation Update With 7 Day Price Move • Jun 04
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥1,443, the stock trades at a trailing P/E ratio of 32.6x. Average trailing P/E is 18x in the Professional Services industry in Japan. Total returns to shareholders of 161% over the past three years. Announcement • May 29
Frontier Management Inc. to Report Q2, 2022 Results on Aug 12, 2022 Frontier Management Inc. announced that they will report Q2, 2022 results on Aug 12, 2022 Valuation Update With 7 Day Price Move • May 20
Investor sentiment improved over the past week After last week's 42% share price gain to JP¥1,316, the stock trades at a trailing P/E ratio of 29.7x. Average trailing P/E is 17x in the Professional Services industry in Japan. Total returns to shareholders of 155% over the past three years. Reported Earnings • May 16
First quarter 2022 earnings released: EPS: JP¥20.71 (vs JP¥5.93 in 1Q 2021) First quarter 2022 results: EPS: JP¥20.71 (up from JP¥5.93 in 1Q 2021). Revenue: JP¥2.22b (up 67% from 1Q 2021). Net income: JP¥236.0m (up 247% from 1Q 2021). Profit margin: 11% (up from 5.1% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 15
Frontier Management Inc. Provides Earnings Guidance for the Full Year Ending December 31, 2022 Frontier Management Inc. provided earnings guidance for the full year ending December 31, 2022. For the period, the company expects Net sales of JPY 7,000 million, Operating income of JPY 800 million, Net income attributable to owners of parent of JPY 500 million and Net income per share of JPY 43.88. Board Change • Apr 27
Less than half of directors are independent There are 4 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 4 new directors. 4 experienced directors. No highly experienced directors. 2 independent directors (3 non-independent directors). Independent Outside Director Keiko Unotoro is the most experienced director on the board, commencing their role in 2021. They were also the last independent director to join the board. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Announcement • Feb 27
Frontier Management Inc. to Report Q1, 2022 Results on May 13, 2022 Frontier Management Inc. announced that they will report Q1, 2022 results on May 13, 2022 Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥811, the stock trades at a trailing P/E ratio of 27.3x. Average trailing P/E is 18x in the Professional Services industry in Japan. Total loss to shareholders of 5.4% over the past three years. Announcement • Feb 12
Frontier Management Inc., Annual General Meeting, Mar 24, 2022 Frontier Management Inc., Annual General Meeting, Mar 24, 2022. Agenda: To consider the dividend from retained earnings; to consider election of Directors; to consider election of three Audit & Supervisory Board members; and to consider revision of Monetary Compensation for Directors. Reported Earnings • Feb 12
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: JP¥29.64 (down from JP¥36.85 in FY 2020). Revenue: JP¥5.74b (up 11% from FY 2020). Net income: JP¥338.0m (down 20% from FY 2020). Profit margin: 5.9% (down from 8.1% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • Dec 28
Frontier Management Inc. (TSE:7038) agreed to acquire 60.4% stake in Celebrain Corporation from Yasuo Akita, Atsuko Takahashi, Koji Takajo and other two members. Frontier Management Inc. (TSE:7038) agreed to acquire 60.4% stake in Celebrain Corporation from Yasuo Akita, Atsuko Takahashi, Koji Takajo and other two members on December 27, 2021. The board of Frontier Management Inc resolved to acquire as of December 27, 2021. The transaction is for 670 shares. For the year ending December 31, 2020, Celebrain Corporation reported revenue of ¥331 million, EBIT of ¥14 million and net loss of ¥98 million. As of December 31, 2020, Celebrain Corporation had net assets of ¥24 million and total assets of ¥95 million. Significant synergies are expected by acquisition of shares of Celebrane, and FMI will further accelerate the growth strategy as a comprehensive consulting firm. The transaction is expected to close on January 14, 2022. Reported Earnings • Nov 16
Third quarter 2021 earnings released: JP¥0.18 loss per share (vs JP¥0.87 loss in 3Q 2020) The company reported a solid third quarter result with reduced losses, improved revenues and improved control over expenses. Third quarter 2021 results: Revenue: JP¥1.31b (up 10% from 3Q 2020). Net loss: JP¥2.00m (loss narrowed 80% from 3Q 2020). 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 2% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 24
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥1,030, the stock trades at a trailing P/E ratio of 30.2x. Average trailing P/E is 23x in the Professional Services industry in Japan. Total loss to shareholders of 59% over the past year. Board Change • Aug 20
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Outside Director Keiko Unotoro was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 13
Second quarter 2021 earnings released: JP¥1.53 loss per share (vs JP¥1.68 loss in 2Q 2020) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2021 results: Revenue: JP¥1.25b (up 15% from 2Q 2020). Net loss: JP¥17.4m (loss narrowed 8.6% from 2Q 2020). Reported Earnings • May 16
First quarter 2021 earnings released: EPS JP¥5.93 (vs JP¥8.82 in 1Q 2020) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2021 results: Revenue: JP¥1.33b (up 9.5% from 1Q 2020). Net income: JP¥68.0m (down 32% from 1Q 2020). Profit margin: 5.1% (down from 8.2% in 1Q 2020). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • May 14
Investor sentiment deteriorated over the past week After last week's 22% share price decline to JP¥1,322, the stock trades at a trailing P/E ratio of 35.9x. Average trailing P/E is 22x in the Professional Services industry in Japan. Total returns to shareholders of 5.0% over the past year. Reported Earnings • Mar 30
Full year 2020 earnings released: EPS JP¥73.70 (vs JP¥37.62 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: JP¥5.19b (up 8.8% from FY 2019). Net income: JP¥420.0m (down 2.1% from FY 2019). Profit margin: 8.1% (down from 9.0% in FY 2019). The decrease in margin was driven by higher expenses. Announcement • Feb 28
Frontier Management Inc. to Report Q1, 2021 Results on Apr 27, 2021 Frontier Management Inc. announced that they will report Q1, 2021 results on Apr 27, 2021 Reported Earnings • Feb 11
Full year 2020 earnings released: EPS JP¥36.90 (vs JP¥37.62 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: JP¥5.19b (up 8.8% from FY 2019). Net income: JP¥420.5m (down 2.0% from FY 2019). Profit margin: 8.1% (down from 9.0% in FY 2019). The decrease in margin was driven by higher expenses.