Reported Earnings • May 08
First quarter 2026 earnings: EPS and revenues miss analyst expectations First quarter 2026 results: EPS: JP¥27.33 (down from JP¥32.88 in 1Q 2025). Revenue: JP¥532.1b (up 4.0% from 1Q 2025). Net income: JP¥16.8b (down 17% from 1Q 2025). Profit margin: 3.1% (down from 3.9% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) also missed analyst estimates by 14%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 2.4% growth forecast for the Consumer Durables industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 9% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 14
Sumitomo Forestry Co., Ltd. to Report Q1, 2026 Results on May 07, 2026 Sumitomo Forestry Co., Ltd. announced that they will report Q1, 2026 results at 3:30 PM, Tokyo Standard Time on May 07, 2026 Declared Dividend • Apr 11
Final dividend of JP¥25.00 announced Shareholders will receive a dividend of JP¥25.00. Ex-date: 29th June 2026 Payment date: 8th September 2026 Dividend yield will be 3.6%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is covered by earnings (30% earnings payout ratio) but not covered by cash flows (171% cash payout ratio). The dividend has increased by an average of 20% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 46% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Mar 18
Now 23% overvalued Over the last 90 days, the stock has fallen 6.1% to JP¥1,498. The fair value is estimated to be JP¥1,215, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 9.6% per annum. Earnings are also forecast to grow by 13% per annum over the same time period. New Risk • Feb 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 5.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Minor Risks Dividend is not well covered by cash flows (171% cash payout ratio). Share price has been volatile over the past 3 months (5.6% average weekly change). Reported Earnings • Feb 14
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥174 (down from JP¥190 in FY 2024). Revenue: JP¥2.27t (up 10% from FY 2024). Net income: JP¥106.7b (down 8.5% from FY 2024). Profit margin: 4.7% (down from 5.7% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.7%. Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Consumer Durables industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jan 31
Yamada Holdings Co., Ltd. (TSE:9831) agreed to acquire 90% stake in Toclas Corporation from DENSO Corporation (TSE:6902), Sumitomo Forestry Co., Ltd. (TSE:1911) and Noritz Corporation (TSE:5943) and others. Yamada Holdings Co., Ltd. (TSE:9831) agreed to acquire 90% stake in Toclas Corporation from DENSO Corporation (TSE:6902), Sumitomo Forestry Co., Ltd. (TSE:1911) and Noritz Corporation (TSE:5943) and others on January 30, 2026.
For the period ending March 31, 2025, Toclas Corporation reported total revenue of ¥25.94 billion and EBIT of ¥461 million. As of March 31, 2025, Toclas Corporation reported total assets of ¥13.87 billion.
The expected completion of the transaction is February 27, 2026. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,757, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 13x in the Consumer Durables industry in Japan. Total returns to shareholders of 148% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥819 per share. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 31 March 2026. Payout ratio is a comfortable 61% but the company is not cash flow positive. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.5%). Announcement • Dec 03
Sumitomo Forestry Co., Ltd. to Report Fiscal Year 2025 Results on Feb 13, 2026 Sumitomo Forestry Co., Ltd. announced that they will report fiscal year 2025 results on Feb 13, 2026 Reported Earnings • Nov 01
Third quarter 2025 earnings: EPS and revenues miss analyst expectations Third quarter 2025 results: EPS: JP¥33.54 (down from JP¥48.62 in 3Q 2024). Revenue: JP¥559.1b (up 9.4% from 3Q 2024). Net income: JP¥20.5b (down 31% from 3Q 2024). Profit margin: 3.7% (down from 5.8% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) also missed analyst estimates by 23%. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 1.5% growth forecast for the Consumer Durables industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 31% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Sep 09
First half dividend of JP¥25.00 announced Shareholders will receive a dividend of JP¥25.00. Ex-date: 29th December 2025 Payment date: 31st March 2026 Dividend yield will be 5.6%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is covered by earnings (57% earnings payout ratio) but 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 23% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 38% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Sep 02
Sumitomo Forestry Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 Sumitomo Forestry Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 Reported Earnings • Aug 08
Second quarter 2025 earnings: Revenues in line with analyst expectations Second quarter 2025 results: Revenue: JP¥563.1b (up 6.7% from 2Q 2024). Net income: JP¥28.4b (down 15% from 2Q 2024). Profit margin: 5.0% (down from 6.3% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 1.4% growth forecast for the Consumer Durables industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥91.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 09 September 2025. Payout ratio is a comfortable 26% but the company is not cash flow positive. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (4.0%). Higher than average of industry peers (1.7%). Announcement • Jun 05
Sumitomo Forestry Co., Ltd. to Report Q2, 2025 Results on Aug 07, 2025 Sumitomo Forestry Co., Ltd. announced that they will report Q2, 2025 results on Aug 07, 2025 Announcement • May 30
Sumitomo Forestry Co., Ltd. Revises Dividend Guidance for the Fiscal Year Ending December 31, 2025 Sumitomo Forestry Co., Ltd. revised dividend guidance for the fiscal year ending December 31, 2025. For the full year, the company expects to pay dividend of JPY 91.50 per share compared to JPY 91.00 per share previously forecasted. Announcement • May 16
Sumitomo Forestry Co., Ltd. (TSE:1911) completed the acquisition of 85.19% stake in LeTech Corporation (TSE:3497) from Keystone Partners Co., Ltd., Emerald, LLC and others. Sumitomo Forestry Co., Ltd. (TSE:1911) proposed to acquire 85.19% stake in LeTech Corporation (TSE:3497) from Keystone Partners Co., Ltd., Emerald, LLC and others for ¥6.2 billion on March 28, 2025. A cash consideration of ¥6.18 billion valued at ¥686 per share will be paid by Sumitomo Forestry Co., Ltd. As part of consideration, ¥6.18 billion is paid towards common equity of LeTech Corporation. In case of termination of transaction, seller will pay a termination fee of ¥250 million. Simultaneous to this tender offer, The Transaction consists of a series of procedures (the "Squeeze-out Procedures") with the second tender offer.
The transaction is subject to approval of merger agreement by target board and minimum tender. The Board of Directors of LeTech Corporation formed a special committee for the transaction. The deal has been unanimously approved by the board. The expected completion of the transaction is May 14, 2025.
PwC Advisory LLC acted as financial advisor for Sumitomo Forestry Co., Ltd. Anderson Mori & Tomotsune acted as legal advisor for Sumitomo Forestry Co., Ltd. Mori Hamada & Matsumoto LPC acted as legal advisor for LeTech Corporation. Plutus Consulting Co., Ltd. acted as financial advisor for LeTech Corporation. Plutus Consulting Co., Ltd. acted as fairness opinion provider for LeTech Corporation. DC Advisory Japan acted as financial advisor to Sumitomo Forestry Co., Ltd. (TSE:1911).
Sumitomo Forestry Co., Ltd. (TSE:1911) completed the acquisition of 85.19% stake in LeTech Corporation (TSE:3497) from Keystone Partners Co., Ltd., Emerald, LLC and others on May 14, 2025. As a result of the first tender offer, 7,290,465 Company shares had been tendered exceeding the minimum number of shares to be purchased resulting in the Offeror acquiring all of those shares. Reported Earnings • May 01
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: EPS: JP¥98.65 (down from JP¥109 in 1Q 2024). Revenue: JP¥511.6b (up 13% from 1Q 2024). Net income: JP¥20.2b (down 9.2% from 1Q 2024). Profit margin: 3.9% (down from 4.9% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.7%. Earnings per share (EPS) also missed analyst estimates by 31%. Revenue is forecast to grow 8.3% p.a. on average during the next 3 years, while revenues in the Consumer Durables industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Apr 11
Final dividend of JP¥91.00 announced Shareholders will receive a dividend of JP¥91.00. Ex-date: 27th June 2025 Payment date: 9th September 2025 Dividend yield will be 4.2%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is covered by earnings (21% earnings payout ratio) but 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 25% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 34% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 01
Sumitomo Forestry Co., Ltd. to Report Q1, 2025 Results on Apr 30, 2025 Sumitomo Forestry Co., Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 Price Target Changed • Feb 28
Price target decreased by 7.5% to JP¥6,093 Down from JP¥6,585, the current price target is an average from 6 analysts. New target price is 34% above last closing price of JP¥4,557. Stock is up 5.3% over the past year. The company is forecast to post earnings per share of JP¥590 for next year compared to JP¥569 last year. Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥4,463, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Consumer Durables industry in Japan. Total returns to shareholders of 131% over the past three years. Reported Earnings • Feb 15
Full year 2024 earnings: Revenues and EPS in line with analyst expectations Full year 2024 results: EPS: JP¥569 (up from JP¥506 in FY 2023). Revenue: JP¥2.05t (up 19% from FY 2023). Net income: JP¥116.5b (up 14% from FY 2023). Profit margin: 5.7% (down from 5.9% in FY 2023). 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 7.1% p.a. on average during the next 3 years, while revenues in the Consumer Durables industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 13
Sumitomo Forestry Co., Ltd., Annual General Meeting, Mar 28, 2025 Sumitomo Forestry Co., Ltd., Annual General Meeting, Mar 28, 2025. Announcement • Jan 17
Sumitomo Forestry Co., Ltd. to Report Fiscal Year 2024 Results on Feb 13, 2025 Sumitomo Forestry Co., Ltd. announced that they will report fiscal year 2024 results on Feb 13, 2025 Upcoming Dividend • Dec 20
Upcoming dividend of JP¥80.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 31 March 2025. Payout ratio is a comfortable 21% but the company is not cash flow positive. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.6%). New Risk • Nov 02
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 7.6% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (7.6% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (9.1% average weekly change). Price Target Changed • Oct 03
Price target increased by 8.3% to JP¥6,773 Up from JP¥6,257, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of JP¥6,840. Stock is up 89% over the past year. The company is forecast to post earnings per share of JP¥570 for next year compared to JP¥506 last year. Announcement • Sep 06
Sumitomo Forestry Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 Sumitomo Forestry Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 Declared Dividend • Aug 10
Dividend increased to JP¥80.00 Dividend of JP¥80.00 is 23% higher than last year. Ex-date: 27th December 2024 Payment date: 31st March 2025 Dividend yield will be 2.9%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is well covered by both earnings (23% earnings payout ratio) and cash flows (29% cash payout ratio). The dividend has increased by an average of 21% 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. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 32% After last week's 32% share price decline to JP¥4,346, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 11x in the Consumer Durables industry in Japan. Total returns to shareholders of 134% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,990 per share. Valuation Update With 7 Day Price Move • Jul 17
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥6,080, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 13x in the Consumer Durables industry in Japan. Total returns to shareholders of 228% over the past three years. Announcement • Jun 06
Sumitomo Forestry Co., Ltd. to Report Q2, 2024 Results on Aug 08, 2024 Sumitomo Forestry Co., Ltd. announced that they will report Q2, 2024 results on Aug 08, 2024 Price Target Changed • Jun 05
Price target increased by 7.0% to JP¥5,457 Up from JP¥5,098, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of JP¥5,552. Stock is up 71% over the past year. The company is forecast to post earnings per share of JP¥537 for next year compared to JP¥506 last year. Price Target Changed • May 29
Price target increased by 11% to JP¥5,348 Up from JP¥4,832, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of JP¥5,347. Stock is up 70% over the past year. The company is forecast to post earnings per share of JP¥526 for next year compared to JP¥506 last year. New Risk • May 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. 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 (5.6% average weekly change). Shareholders have been diluted in the past year (2.4% increase in shares outstanding). Valuation Update With 7 Day Price Move • May 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥5,633, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Consumer Durables industry in Japan. Total returns to shareholders of 167% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,099 per share. Reported Earnings • May 01
First quarter 2024 earnings: EPS exceeds analyst expectations First quarter 2024 results: EPS: JP¥109 (up from JP¥72.07 in 1Q 2023). Revenue: JP¥453.6b (up 21% from 1Q 2023). Net income: JP¥22.2b (up 54% from 1Q 2023). Profit margin: 4.9% (up from 3.8% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 43%. Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Consumer Durables industry in Japan. Buy Or Sell Opportunity • May 01
Now 30% overvalued after recent price rise Over the last 90 days, the stock has risen 23% to JP¥5,359. The fair value is estimated to be JP¥4,113, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.0% over the last year. Earnings per share has grown by 7.6%. For the next 3 years, revenue is forecast to grow by 6.4% per annum. Earnings are also forecast to grow by 5.4% per annum over the same time period. Declared Dividend • Apr 11
Final dividend increased to JP¥65.00 Dividend of JP¥65.00 is 8.3% higher than last year. Ex-date: 27th June 2024 Payment date: 12th September 2024 Dividend yield will be 2.7%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is well covered by both earnings (13% earnings payout ratio) and cash flows (28% cash payout ratio). The dividend has increased by an average of 21% 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 • Mar 31
Sumitomo Forestry Co., Ltd. to Report Q1, 2024 Results on Apr 30, 2024 Sumitomo Forestry Co., Ltd. announced that they will report Q1, 2024 results on Apr 30, 2024 Announcement • Feb 16
Sumitomo Forestry Co., Ltd., Annual General Meeting, Mar 28, 2024 Sumitomo Forestry Co., Ltd., Annual General Meeting, Mar 28, 2024. Reported Earnings • Feb 16
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥506 (down from JP¥544 in FY 2022). Revenue: JP¥1.73t (up 3.8% from FY 2022). Net income: JP¥102.5b (down 5.7% from FY 2022). Profit margin: 5.9% (down from 6.5% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.3%. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 1.7% growth forecast for the Consumer Durables industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 28
Sumitomo Forestry Co., Ltd. to Report Fiscal Year 2023 Results on Feb 14, 2024 Sumitomo Forestry Co., Ltd. announced that they will report fiscal year 2023 results on Feb 14, 2024 Upcoming Dividend • Dec 21
Upcoming dividend of JP¥65.00 per share at 3.0% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 31 March 2024. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.7%). Price Target Changed • Nov 21
Price target increased by 7.2% to JP¥4,196 Up from JP¥3,913, the current price target is an average from 5 analysts. New target price is 8.0% above last closing price of JP¥3,884. Stock is up 65% over the past year. The company is forecast to post earnings per share of JP¥463 for next year compared to JP¥544 last year. Reported Earnings • Nov 02
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: JP¥92.78 (down from JP¥166 in 3Q 2022). Revenue: JP¥416.4b (down 1.7% from 3Q 2022). Net income: JP¥19.0b (down 43% from 3Q 2022). Profit margin: 4.6% (down from 7.8% in 3Q 2022). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 8.8%. Earnings per share (EPS) also missed analyst estimates by 51%. Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Consumer Durables industry in Japan. Over the last 3 years on average, earnings per share has increased by 26% per year and the company’s share price has also increased by 26% per year. Announcement • Sep 14
Sumitomo Forestry Co., Ltd. to Report Q3, 2023 Results on Oct 31, 2023 Sumitomo Forestry Co., Ltd. announced that they will report Q3, 2023 results on Oct 31, 2023 Price Target Changed • Aug 23
Price target increased by 7.8% to JP¥3,836 Up from JP¥3,560, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of JP¥3,924. Stock is up 66% over the past year. The company is forecast to post earnings per share of JP¥444 for next year compared to JP¥544 last year. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥4,014, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 11x in the Consumer Durables industry in Japan. Total returns to shareholders of 190% over the past three years. Reported Earnings • Aug 09
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: JP¥151 (up from JP¥135 in 2Q 2022). Revenue: JP¥440.2b (up 2.6% from 2Q 2022). Net income: JP¥30.4b (up 13% from 2Q 2022). Profit margin: 6.9% (up from 6.3% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.4%. Earnings per share (EPS) also surpassed analyst estimates by 23%. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Consumer Durables industry in Japan. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has increased by 41% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Jul 23
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.3% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (137% cash payout ratio). Shareholders have been diluted in the past year (2.3% increase in shares outstanding). Upcoming Dividend • Jun 22
Upcoming dividend of JP¥60.00 per share at 3.6% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 08 September 2023. Payout ratio is a comfortable 7.7% but the company is paying out more than the cash it is generating. Trailing yield: 3.6%. Within top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.6%). Price Target Changed • Jun 08
Price target increased by 8.6% to JP¥3,278 Up from JP¥3,018, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of JP¥3,242. Stock is up 59% over the past year. The company is forecast to post earnings per share of JP¥387 for next year compared to JP¥544 last year. Announcement • Jun 07
Sumitomo Forestry Co., Ltd. to Report Q2, 2023 Results on Aug 08, 2023 Sumitomo Forestry Co., Ltd. announced that they will report Q2, 2023 results on Aug 08, 2023 Reported Earnings • Apr 29
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: EPS: JP¥72.07 (down from JP¥113 in 1Q 2022). Revenue: JP¥376.3b (up 6.3% from 1Q 2022). Net income: JP¥14.4b (down 36% from 1Q 2022). Profit margin: 3.8% (down from 6.4% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 12%. Earnings per share (EPS) also surpassed analyst estimates by 3.0%. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the Consumer Durables 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 32% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 18
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: JP¥544 (up from JP¥458 in FY 2021). Revenue: JP¥1.67t (up 21% from FY 2021). Net income: JP¥108.7b (up 25% from FY 2021). Profit margin: 6.5% (up from 6.3% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) also surpassed analyst estimates by 1.7%. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Consumer Durables industry in Japan. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥65.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 30 March 2023. Payout ratio is a comfortable 7.7% and this is well supported by cash flows. Trailing yield: 5.4%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.0%). Announcement • Dec 06
Sumitomo Forestry Co., Ltd. to Report Fiscal Year 2022 Results on Feb 14, 2023 Sumitomo Forestry Co., Ltd. announced that they will report fiscal year 2022 results on Feb 14, 2023 Buying Opportunity • Nov 28
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be JP¥3,005, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 49%. For the next 3 years, revenue is forecast to grow by 3.2% per annum. Earnings is also forecast to grow by 2.0% per annum over the same time period. 
