New Risk • Jun 26
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 32% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (23% average weekly change). Earnings are forecast to decline by an average of 32% per year for the foreseeable future. Minor Risk Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Jun 24
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,046, the stock trades at a trailing P/E ratio of 3.3x. Average trailing P/E is 15x in the Luxury industry in Japan. Total returns to shareholders of 345% over the past three years. Announcement • Jun 09
Unitika Ltd. to Report Q1, 2027 Results on Aug 06, 2026 Unitika Ltd. announced that they will report Q1, 2027 results on Aug 06, 2026 Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,315, the stock trades at a trailing P/E ratio of 4.2x. Average trailing P/E is 16x in the Luxury industry in Japan. Total returns to shareholders of 492% over the past three years. Reported Earnings • May 17
Full year 2026 earnings released: EPS: JP¥315 (vs JP¥421 loss in FY 2025) Full year 2026 results: EPS: JP¥315 (up from JP¥421 loss in FY 2025). Revenue: JP¥118.6b (down 6.2% from FY 2025). Net income: JP¥18.2b (up JP¥42.4b from FY 2025). Profit margin: 15% (up from net loss in FY 2025). Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 86% per year, which means it is well ahead of earnings. Announcement • May 14
Unitika Ltd., Annual General Meeting, Jun 26, 2026 Unitika Ltd., Annual General Meeting, Jun 26, 2026. Valuation Update With 7 Day Price Move • May 14
Investor sentiment deteriorates as stock falls 28% After last week's 28% share price decline to JP¥1,815, the stock trades at a trailing P/E ratio of 9.7x. Average trailing P/E is 17x in the Luxury industry in Japan. Total returns to shareholders of 740% over the past three years. Announcement • May 09
Unitika Ltd. to Report Fiscal Year 2026 Results on May 14, 2026 Unitika Ltd. announced that they will report fiscal year 2026 results on May 14, 2026 Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥2,565, the stock trades at a trailing P/E ratio of 13.7x. Average trailing P/E is 17x in the Luxury industry in Japan. Total returns to shareholders of 1,082% over the past three years. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to JP¥1,463, the stock trades at a trailing P/E ratio of 7.8x. Average trailing P/E is 16x in the Luxury industry in Japan. Total returns to shareholders of 587% over the past three years. Valuation Update With 7 Day Price Move • Mar 26
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to JP¥1,145, the stock trades at a trailing P/E ratio of 6.1x. Average trailing P/E is 16x in the Luxury industry in Japan. Total returns to shareholders of 420% over the past three years. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥1,548, the stock trades at a trailing P/E ratio of 8.3x. Average trailing P/E is 15x in the Luxury industry in Japan. Total returns to shareholders of 600% over the past three years. Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,238, the stock trades at a trailing P/E ratio of 6.6x. Average trailing P/E is 16x in the Luxury industry in Japan. Total returns to shareholders of 436% over the past three years. Reported Earnings • Feb 07
Third quarter 2026 earnings released: EPS: JP¥245 (vs JP¥252 loss in 3Q 2025) Third quarter 2026 results: EPS: JP¥245 (up from JP¥252 loss in 3Q 2025). Revenue: JP¥33.5b (up 4.7% from 3Q 2025). Net income: JP¥14.1b (up JP¥28.7b from 3Q 2025). Profit margin: 42% (up from net loss in 3Q 2025). Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has increased by 50% per year, which means it is well ahead of earnings. Announcement • Dec 04
Unitika Ltd. to Report Q3, 2026 Results on Feb 06, 2026 Unitika Ltd. announced that they will report Q3, 2026 results on Feb 06, 2026 Reported Earnings • Nov 14
Second quarter 2026 earnings released: JP¥83.06 loss per share (vs JP¥205 loss in 2Q 2025) Second quarter 2026 results: JP¥83.06 loss per share (improved from JP¥205 loss in 2Q 2025). Revenue: JP¥31.2b (up 1.1% from 2Q 2025). Net loss: JP¥4.79b (loss narrowed 60% from 2Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 100 percentage points per year, which is a significant difference in performance. New Risk • Nov 11
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 9.4% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.4% average weekly change). Earnings have declined by 80% per year over the past 5 years. Minor Risk Market cap is less than US$100m (JP¥14.2b market cap, or US$92.3m). Announcement • Sep 04
Unitika Ltd. to Report Q2, 2026 Results on Nov 11, 2025 Unitika Ltd. announced that they will report Q2, 2026 results on Nov 11, 2025 Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥22.58 (vs JP¥34.27 in 1Q 2025) First quarter 2026 results: EPS: JP¥22.58 (down from JP¥34.27 in 1Q 2025). Revenue: JP¥30.9b (flat on 1Q 2025). Net income: JP¥1.30b (down 34% from 1Q 2025). Profit margin: 4.2% (down from 6.4% in 1Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 109 percentage points per year, which is a significant difference in performance. Announcement • Jun 25
Shikibo Ltd. (TSE:3109) signed of memorandum of understanding to acquire PT Unitika Trading Indonesia from Unitika Ltd. (TSE:3103). Shikibo Ltd. (TSE:3109) signed of memorandum of understanding to acquire PT Unitika Trading Indonesia from Unitika Ltd. (TSE:3103) on June 25, 2025. In a related transaction, Shikibo Ltd. also signed of memorandum of understanding to acquire Unitika's consolidated subsidiary Unitika Trading Co., Ltd. (UTC), part of the apparel textile business of UTC's subsidiaries UNITIKA (BEIJING) TRAIDING CO., LTD. and UNITIKA TRADING VIETNAM CO., LTD.
The expected completion of the transaction is by end of December 2025. Announcement • Jun 10
Unitika Ltd. to Report Q1, 2026 Results on Aug 06, 2025 Unitika Ltd. announced that they will report Q1, 2026 results on Aug 06, 2025 Reported Earnings • May 18
Full year 2025 earnings released: JP¥421 loss per share (vs JP¥94.41 loss in FY 2024) Full year 2025 results: JP¥421 loss per share (further deteriorated from JP¥94.41 loss in FY 2024). Revenue: JP¥126.4b (up 6.8% from FY 2024). Net loss: JP¥24.3b (loss widened 346% from FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 109 percentage points per year, which is a significant difference in performance. Announcement • May 14
Unitika Ltd., Annual General Meeting, Jun 27, 2025 Unitika Ltd., Annual General Meeting, Jun 27, 2025. Buy Or Sell Opportunity • Apr 07
Now 24% undervalued after recent price drop Over the last 90 days, the stock has fallen 11% to JP¥127. The fair value is estimated to be JP¥168, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company became loss making. Announcement • Feb 28
Unitika Ltd. to Report Fiscal Year 2025 Results on May 14, 2025 Unitika Ltd. announced that they will report fiscal year 2025 results on May 14, 2025 Reported Earnings • Feb 14
Third quarter 2025 earnings released: JP¥252 loss per share (vs JP¥43.73 loss in 3Q 2024) Third quarter 2025 results: JP¥252 loss per share (further deteriorated from JP¥43.73 loss in 3Q 2024). Revenue: JP¥32.0b (up 12% from 3Q 2024). Net loss: JP¥14.6b (loss widened 477% from 3Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 109 percentage points per year, which is a significant difference in performance. Announcement • Nov 29
Unitika Ltd. announced that it expects to receive ¥20.000776536 billion in funding Unitika Ltd. announced a private placement to issue Class C shares 115,504,600 shares at an issue price of ¥173.16 per share for the gross proceeds of ¥20,000,776,536 on November 28, 2024. The transaction has been approved by shareholders and is subject to Scheduled resolution of the Board of Directors regarding convening this Extraordinary General Meeting of Shareholders in Early to mid-January 2025 and Extraordinary General Meeting of Shareholders (scheduled) in Early February 2025. The company has disclosed no issue expenses in the connection with transaction and is expected to close From April 1, 2025 to May 31, 2025. Announcement • Nov 23
Unitika Ltd. to Report Q3, 2025 Results on Feb 12, 2025 Unitika Ltd. announced that they will report Q3, 2025 results on Feb 12, 2025 Reported Earnings • Nov 10
Second quarter 2025 earnings released: JP¥205 loss per share (vs JP¥13.65 loss in 2Q 2024) Second quarter 2025 results: JP¥205 loss per share (further deteriorated from JP¥13.65 loss in 2Q 2024). Revenue: JP¥30.9b (up 2.7% from 2Q 2024). Net loss: JP¥11.8b (loss widened JP¥11.0b from 2Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 114 percentage points per year, which is a significant difference in performance. New Risk • Nov 08
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.1b (US$92.3m) 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: Major Risks Share price has been highly volatile over the past 3 months (8.3% average weekly change). Earnings have declined by 36% per year over the past 5 years. Minor Risk Market cap is less than US$100m (JP¥14.1b market cap, or US$92.3m). Announcement • Aug 10
Unitika Ltd. to Report Q2, 2025 Results on Nov 08, 2024 Unitika Ltd. announced that they will report Q2, 2025 results on Nov 08, 2024 Reported Earnings • Aug 08
First quarter 2025 earnings released: EPS: JP¥34.27 (vs JP¥4.11 in 1Q 2024) First quarter 2025 results: EPS: JP¥34.27 (up from JP¥4.11 in 1Q 2024). Revenue: JP¥30.7b (up 9.7% from 1Q 2024). Net income: JP¥1.98b (up JP¥1.74b from 1Q 2024). Profit margin: 6.4% (up from 0.8% in 1Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 109 percentage points per year, which is a significant difference in performance. Announcement • Jun 02
Unitika Ltd. to Report Q1, 2025 Results on Aug 06, 2024 Unitika Ltd. announced that they will report Q1, 2025 results on Aug 06, 2024 Reported Earnings • May 18
Full year 2024 earnings released: JP¥94.41 loss per share (vs JP¥3.14 loss in FY 2023) Full year 2024 results: JP¥94.41 loss per share (further deteriorated from JP¥3.14 loss in FY 2023). Revenue: JP¥118.3b (flat on FY 2023). Net loss: JP¥5.44b (loss widened JP¥5.26b from FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 97 percentage points per year, which is a significant difference in performance. Announcement • May 16
Unitika Ltd., Annual General Meeting, Jun 27, 2024 Unitika Ltd., Annual General Meeting, Jun 27, 2024. New Risk • Apr 04
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 9.6% 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 Risks Share price has been highly volatile over the past 3 months (9.6% average weekly change). Earnings have declined by 32% per year over the past 5 years. Minor Risk Market cap is less than US$100m (JP¥12.6b market cap, or US$82.9m). Announcement • Mar 02
Unitika Ltd. to Report Fiscal Year 2024 Results on May 14, 2024 Unitika Ltd. announced that they will report fiscal year 2024 results on May 14, 2024 New Risk • Mar 01
New major risk - Revenue and earnings growth Earnings have declined by 32% 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 Risk Earnings have declined by 32% per year over the past 5 years. Minor Risk Market cap is less than US$100m (JP¥9.40b market cap, or US$62.5m). Reported Earnings • Feb 09
Third quarter 2024 earnings released: JP¥40.05 loss per share (vs JP¥32.68 loss in 3Q 2023) Third quarter 2024 results: JP¥40.05 loss per share (further deteriorated from JP¥32.68 loss in 3Q 2023). Revenue: JP¥28.5b (down 2.0% from 3Q 2023). Net loss: JP¥2.31b (loss widened 23% from 3Q 2023). Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Luxury industry in Japan. 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 • Nov 29
Unitika Ltd. to Report Q3, 2024 Results on Feb 07, 2024 Unitika Ltd. announced that they will report Q3, 2024 results on Feb 07, 2024 Reported Earnings • Nov 10
Second quarter 2024 earnings released: JP¥11.20 loss per share (vs JP¥12.45 profit in 2Q 2023) Second quarter 2024 results: JP¥11.20 loss per share (down from JP¥12.45 profit in 2Q 2023). Revenue: JP¥30.1b (up 2.0% from 2Q 2023). Net loss: JP¥646.0m (down 190% from profit in 2Q 2023). Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Luxury industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 58 percentage points per year, which is a significant difference in performance. Announcement • Aug 12
Unitika Ltd. to Report Q2, 2024 Results on Nov 09, 2023 Unitika Ltd. announced that they will report Q2, 2024 results on Nov 09, 2023 Reported Earnings • Aug 08
First quarter 2024 earnings released: EPS: JP¥4.11 (vs JP¥35.38 in 1Q 2023) First quarter 2024 results: EPS: JP¥4.11 (down from JP¥35.38 in 1Q 2023). Revenue: JP¥27.9b (down 5.6% from 1Q 2023). Net income: JP¥237.0m (down 88% from 1Q 2023). Profit margin: 0.8% (down from 6.9% in 1Q 2023). Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Luxury industry in Japan. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jun 16
Consensus EPS estimates fall by 47% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from JP¥23.45 to JP¥12.40 per share. Revenue forecast steady at JP¥127.9b. Net income forecast to grow 880% next year vs 7.8% growth forecast for Luxury industry in Japan. Consensus price target of JP¥260 unchanged from last update. Share price rose 10% to JP¥249 over the past week. Announcement • May 28
Unitika Ltd. to Report Q1, 2024 Results on Aug 07, 2023 Unitika Ltd. announced that they will report Q1, 2024 results on Aug 07, 2023 Reported Earnings • May 15
Full year 2023 earnings released: EPS: JP¥1.77 (vs JP¥38.56 in FY 2022) Full year 2023 results: EPS: JP¥1.77 (down from JP¥38.56 in FY 2022). Revenue: JP¥117.9b (up 2.8% from FY 2022). Net income: JP¥102.0m (down 95% from FY 2022). Profit margin: 0.1% (down from 1.9% in FY 2022). Revenue is forecast to grow 6.0% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Luxury industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Announcement • May 14
Unitika Ltd., Annual General Meeting, Jun 29, 2023 Unitika Ltd., Annual General Meeting, Jun 29, 2023. Reported Earnings • Feb 09
Third quarter 2023 earnings released: JP¥28.74 loss per share (vs JP¥14.59 profit in 3Q 2022) Third quarter 2023 results: JP¥28.74 loss per share (down from JP¥14.59 profit in 3Q 2022). Revenue: JP¥29.1b (up 2.1% from 3Q 2022). Net loss: JP¥1.66b (down 297% from profit in 3Q 2022). Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Luxury industry in Japan. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Price Target Changed • Dec 15
Price target decreased to JP¥260 Down from JP¥450, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of JP¥250. Stock is down 16% over the past year. The company is forecast to post earnings per share of JP¥42.00 for next year compared to JP¥38.56 last year. Major Estimate Revision • Dec 03
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 EPS estimate increased from JP¥20.80 to JP¥38.10. Revenue forecast steady at JP¥124.5b. Net income forecast to shrink 13% next year vs 34% growth forecast for Luxury industry in Japan . Consensus price target of JP¥470 unchanged from last update. Share price was steady at JP¥258 over the past week. Announcement • Nov 19
Unitika Ltd. to Report Q3, 2023 Results on Feb 07, 2023 Unitika Ltd. announced that they will report Q3, 2023 results on Feb 07, 2023 Board Change • Nov 16
Less than half of directors are independent There are 5 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: 3 independent directors. 5 non-independent directors. Independent Outside Director Noriko Ishikawa was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Nov 11
Second quarter 2023 earnings released: EPS: JP¥15.07 (vs JP¥15.16 in 2Q 2022) Second quarter 2023 results: EPS: JP¥15.07 (down from JP¥15.16 in 2Q 2022). Revenue: JP¥29.5b (up 7.5% from 2Q 2022). Net income: JP¥869.0m (flat on 2Q 2022). Profit margin: 2.9% (down from 3.2% in 2Q 2022). Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Luxury industry in Japan. Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Buying Opportunity • Sep 02
Now 20% undervalued Over the last 90 days, the stock is up 5.1%. The fair value is estimated to be JP¥307, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 3.8% over the last 3 years. Earnings per share has grown by 64%. Revenue is forecast to grow by 11% in 2 years. Earnings is forecast to grow by 14% in the next 2 years. Valuation Update With 7 Day Price Move • Aug 30
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥268, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 19x in the Luxury industry in Japan. Total loss to shareholders of 17% over the past three years. Reported Earnings • Aug 07
First quarter 2023 earnings released: EPS: JP¥35.38 (vs JP¥20.45 in 1Q 2022) First quarter 2023 results: EPS: JP¥35.38 (up from JP¥20.45 in 1Q 2022). Revenue: JP¥29.6b (up 5.5% from 1Q 2022). Net income: JP¥2.04b (up 73% from 1Q 2022). Profit margin: 6.9% (up from 4.2% in 1Q 2022). Over the next year, revenue is forecast to grow 8.8%, compared to a 10.0% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Reported Earnings • May 18
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥38.56 (down from JP¥61.45 in FY 2021). Revenue: JP¥114.7b (up 3.9% from FY 2021). Net income: JP¥2.22b (down 37% from FY 2021). Profit margin: 1.9% (down from 3.2% in FY 2021). Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 43%. Over the next year, revenue is forecast to grow 5.0%, compared to a 9.2% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Board Change • Apr 27
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. 5 non-independent directors. Independent Outside Director Ishikawa Noriko 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 • Feb 08
Third quarter 2022 earnings: EPS in line with expectations, revenues disappoint Third quarter 2022 results: EPS: JP¥18.78 (up from JP¥14.05 in 3Q 2021). Revenue: JP¥28.5b (up 6.2% from 3Q 2021). Net income: JP¥1.08b (up 34% from 3Q 2021). Profit margin: 3.8% (up from 3.0% in 3Q 2021). Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the next year, revenue is forecast to grow 6.0%, compared to a 6.5% growth forecast for the 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 15% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 10
Second quarter 2022 earnings released: EPS JP¥17.95 (vs JP¥57.84 in 2Q 2021) The company reported a poor second quarter result with weaker earnings and profit margins, although revenues were flat. Second quarter 2022 results: Revenue: JP¥27.5b (flat on 2Q 2021). Net income: JP¥1.04b (down 69% from 2Q 2021). Profit margin: 3.8% (down from 12% in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 17% per year and the company’s share price has also fallen by 17% per year. Reported Earnings • Aug 06
First quarter 2022 earnings released: EPS JP¥21.84 (vs JP¥4.08 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥28.1b (up 2.8% from 1Q 2021). Net income: JP¥1.26b (up 436% from 1Q 2021). Profit margin: 4.5% (up from 0.9% in 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jun 05
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from JP¥113.3b to JP¥111.0b. EPS estimate rose from JP¥45.95 to JP¥63.80. Net income forecast to shrink 16% next year vs 4.3% growth forecast for Luxury industry in Japan . Consensus price target of JP¥420 unchanged from last update. Share price was steady at JP¥373 over the past week. Reported Earnings • May 16
Full year 2021 earnings released: EPS JP¥67.02 (vs JP¥43.00 loss in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: JP¥110.4b (down 7.7% from FY 2020). Net income: JP¥3.86b (up JP¥6.34b from FY 2020). Profit margin: 3.5% (up from net loss in FY 2020). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improved over the past week After last week's 18% share price gain to JP¥475, the stock is trading at a trailing P/E ratio of 7.8x, up from the previous P/E ratio of 6.6x. This compares to an average P/E of 18x in the Luxury industry in Japan. Total return to shareholders over the past three years is a loss of 31%. Is New 90 Day High Low • Feb 08
New 90-day high: JP¥454 The company is up 22% from its price of JP¥371 on 10 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥493 per share. Reported Earnings • Feb 07
Third quarter 2021 earnings released: EPS JP¥18.25 (vs JP¥3.14 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: JP¥26.8b (down 5.1% from 3Q 2020). Net income: JP¥1.05b (up 481% from 3Q 2020). Profit margin: 3.9% (up from 0.6% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 71% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Feb 07
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 0.8%. Earnings per share (EPS) exceeded analyst estimates by 2.4%. Over the next year, revenue is forecast to stay flat compared to a 5.0% growth forecast for the Luxury industry in Japan. Is New 90 Day High Low • Dec 15
New 90-day high: JP¥414 The company is up 10.0% from its price of JP¥376 on 16 September 2020. The Japanese market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 4.0% over the same period.