Announcement • Jun 03
Rhythm Co.,Ltd. to Report Q1, 2027 Results on Aug 07, 2026 Rhythm Co.,Ltd. announced that they will report Q1, 2027 results on Aug 07, 2026 Reported Earnings • May 19
Full year 2026 earnings released: EPS: JP¥288 (vs JP¥91.83 in FY 2025) Full year 2026 results: EPS: JP¥288 (up from JP¥91.83 in FY 2025). Revenue: JP¥34.8b (up 6.4% from FY 2025). Net income: JP¥2.31b (up 205% from FY 2025). Profit margin: 6.6% (up from 2.3% in FY 2025). Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Announcement • May 15
Rhythm Co.,Ltd., Annual General Meeting, Jun 24, 2026 Rhythm Co.,Ltd., Annual General Meeting, Jun 24, 2026. Announcement • May 10
Rhythm Co.,Ltd. to Report Fiscal Year 2026 Results on May 14, 2026 Rhythm Co.,Ltd. announced that they will report fiscal year 2026 results on May 14, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥152 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 19 June 2026. Payout ratio is a comfortable 24% and the cash payout ratio is 89%. Trailing yield: 4.0%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Buy Or Sell Opportunity • Mar 05
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 16% to JP¥4,105. The fair value is estimated to be JP¥3,365, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.0% over the last 3 years. Earnings per share has grown by 61%. Reported Earnings • Feb 16
Third quarter 2026 earnings released: EPS: JP¥52.54 (vs JP¥25.80 in 3Q 2025) Third quarter 2026 results: EPS: JP¥52.54 (up from JP¥25.80 in 3Q 2025). Revenue: JP¥9.18b (down 2.4% from 3Q 2025). Net income: JP¥419.0m (up 97% from 3Q 2025). Profit margin: 4.6% (up from 2.3% in 3Q 2025). Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 40% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Dec 09
Now 20% undervalued Over the last 90 days, the stock has risen 8.2% to JP¥3,630. The fair value is estimated to be JP¥4,546, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 2.5% over the last 3 years. Earnings per share has grown by 40%. Announcement • Nov 29
Rhythm Co.,Ltd. to Report Q3, 2026 Results on Feb 13, 2026 Rhythm Co.,Ltd. announced that they will report Q3, 2026 results on Feb 13, 2026 Reported Earnings • Nov 15
Second quarter 2026 earnings released: EPS: JP¥37.41 (vs JP¥11.27 in 2Q 2025) Second quarter 2026 results: EPS: JP¥37.41 (up from JP¥11.27 in 2Q 2025). Revenue: JP¥8.20b (up 4.8% from 2Q 2025). Net income: JP¥299.0m (up 222% from 2Q 2025). Profit margin: 3.6% (up from 1.2% in 2Q 2025). Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Declared Dividend • Nov 14
Dividend increased to JP¥152 Dividend of JP¥152 is 108% higher than last year. Ex-date: 30th March 2026 Payment date: 19th June 2026 Dividend yield will be 4.4%, which is higher than the industry average of 2.0%. Sustainability & Growth Dividend is covered by earnings (30% earnings payout ratio) but not covered by cash flows (131% cash payout ratio). The dividend has increased by an average of 18% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 51% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Sep 02
Rhythm Co.,Ltd. to Report Q2, 2026 Results on Nov 12, 2025 Rhythm Co.,Ltd. announced that they will report Q2, 2026 results on Nov 12, 2025 Reported Earnings • Aug 11
First quarter 2026 earnings released: EPS: JP¥185 (vs JP¥29.44 in 1Q 2025) First quarter 2026 results: EPS: JP¥185 (up from JP¥29.44 in 1Q 2025). Revenue: JP¥8.38b (up 2.8% from 1Q 2025). Net income: JP¥1.51b (up JP¥1.27b from 1Q 2025). Profit margin: 18% (up from 3.0% in 1Q 2025). Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jul 01
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to JP¥3,145, the stock trades at a trailing P/E ratio of 33x. Average trailing P/E is 12x in the Luxury industry in Japan. Total returns to shareholders of 111% over the past three years. New Risk • Jun 24
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 7.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Announcement • Jun 24
Rhythm Co.,Ltd. (TSE:7769) announces an Equity Buyback for 291,500 shares, representing 3.53% for ¥1,000 million. Rhythm Co.,Ltd. (TSE:7769) announces a share repurchase program. Under the program, the company will repurchase up to 291,500 shares, representing 3.53% of its issued share capital for ¥1,000 million. The shares will be repurchased at a purchase price of ¥3,430 per share. The purpose of the program is to improve its corporate value, measures to improve capital efficiency. The repurchase will take place on June 24, 2025. As of March 31, 2025, total number of shares issued were 8,253,927 shares and 131,166 shares in treasury. Reported Earnings • Jun 21
Full year 2025 earnings released: EPS: JP¥91.83 (vs JP¥57.78 in FY 2024) Full year 2025 results: EPS: JP¥91.83 (up from JP¥57.78 in FY 2024). Revenue: JP¥32.7b (flat on FY 2024). Net income: JP¥758.0m (up 59% from FY 2024). Profit margin: 2.3% (up from 1.5% in FY 2024). Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 26% per year, which means it is well ahead of earnings. Announcement • May 31
Rhythm Co.,Ltd. to Report Q1, 2026 Results on Aug 08, 2025 Rhythm Co.,Ltd. announced that they will report Q1, 2026 results on Aug 08, 2025 Reported Earnings • May 18
Full year 2025 earnings released: EPS: JP¥91.83 (vs JP¥57.78 in FY 2024) Full year 2025 results: EPS: JP¥91.83 (up from JP¥57.78 in FY 2024). Revenue: JP¥32.7b (flat on FY 2024). Net income: JP¥758.0m (up 59% from FY 2024). Profit margin: 2.3% (up from 1.5% in FY 2024). Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. Announcement • May 15
Rhythm Co.,Ltd., Annual General Meeting, Jun 18, 2025 Rhythm Co.,Ltd., Annual General Meeting, Jun 18, 2025. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥73.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 14 July 2025. Payout ratio is a comfortable 43% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.8%). New Risk • Mar 17
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 5.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥3,545, the stock trades at a trailing P/E ratio of 31.1x. Average trailing P/E is 14x in the Luxury industry in Japan. Total returns to shareholders of 173% over the past three years. Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: JP¥25.80 (vs JP¥20.47 in 3Q 2024) Third quarter 2025 results: EPS: JP¥25.80 (up from JP¥20.47 in 3Q 2024). Revenue: JP¥9.40b (up 5.6% from 3Q 2024). Net income: JP¥213.0m (up 26% from 3Q 2024). Profit margin: 2.3% (up from 1.9% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 43% per year, which means it is well ahead of earnings. Announcement • Nov 30
Rhythm Co.,Ltd. to Report Q3, 2025 Results on Feb 13, 2025 Rhythm Co.,Ltd. announced that they will report Q3, 2025 results on Feb 13, 2025 New Risk • Nov 22
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. This is currently the only risk that has been identified for the company. Declared Dividend • Nov 16
Dividend of JP¥73.00 announced Shareholders will receive a dividend of JP¥73.00. Ex-date: 28th March 2025 Payment date: 14th July 2025 Dividend yield will be 1.9%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (49% earnings payout ratio) and cash flows (85% cash payout ratio). The dividend has increased by an average of 9.3% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 46% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Aug 27
Rhythm Co.,Ltd. to Report Q2, 2025 Results on Nov 14, 2024 Rhythm Co.,Ltd. announced that they will report Q2, 2025 results on Nov 14, 2024 Reported Earnings • Aug 14
First quarter 2025 earnings released: EPS: JP¥29.44 (vs JP¥12.23 loss in 1Q 2024) First quarter 2025 results: EPS: JP¥29.44 (up from JP¥12.23 loss in 1Q 2024). Revenue: JP¥8.15b (up 17% from 1Q 2024). Net income: JP¥243.0m (up JP¥344.0m from 1Q 2024). Profit margin: 3.0% (up from net loss in 1Q 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has increased by 51% per year, which means it is well ahead of earnings. Reported Earnings • Jun 26
Full year 2024 earnings released: EPS: JP¥57.78 (vs JP¥96.16 in FY 2023) Full year 2024 results: EPS: JP¥57.78 (down from JP¥96.16 in FY 2023). Revenue: JP¥32.6b (up 4.4% from FY 2023). Net income: JP¥477.0m (down 40% from FY 2023). Profit margin: 1.5% (down from 2.5% in FY 2023). Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 69% per year, which means it is well ahead of earnings. Announcement • Jun 06
Rhythm Co.,Ltd. to Report Q1, 2025 Results on Aug 09, 2024 Rhythm Co.,Ltd. announced that they will report Q1, 2025 results on Aug 09, 2024 Valuation Update With 7 Day Price Move • May 21
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥3,965, the stock trades at a trailing P/E ratio of 68.6x. Average trailing P/E is 15x in the Luxury industry in Japan. Total returns to shareholders of 418% over the past three years. Reported Earnings • May 20
Full year 2024 earnings released: EPS: JP¥57.77 (vs JP¥96.16 in FY 2023) Full year 2024 results: EPS: JP¥57.77 (down from JP¥96.16 in FY 2023). Revenue: JP¥32.6b (up 4.4% from FY 2023). Net income: JP¥477.0m (down 40% from FY 2023). Profit margin: 1.5% (down from 2.5% in FY 2023). Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 74% per year, which means it is well ahead of earnings. Announcement • May 16
Rhythm Co.,Ltd., Annual General Meeting, Jun 21, 2024 Rhythm Co.,Ltd., Annual General Meeting, Jun 21, 2024. Buy Or Sell Opportunity • Apr 23
Now 24% overvalued The stock has been flat over the last 90 days, currently trading at JP¥2,912. The fair value is estimated to be JP¥2,354, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.7% over the last 3 years. Meanwhile, the company has become profitable. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥48.50 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 24 June 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (1.7%). Announcement • Mar 02
Rhythm Co.,Ltd. to Report Fiscal Year 2024 Results on May 14, 2024 Rhythm Co.,Ltd. announced that they will report fiscal year 2024 results on May 14, 2024 Reported Earnings • Feb 14
Third quarter 2024 earnings released: EPS: JP¥20.47 (vs JP¥23.01 in 3Q 2023) Third quarter 2024 results: EPS: JP¥20.47 (down from JP¥23.01 in 3Q 2023). Revenue: JP¥8.90b (up 18% from 3Q 2023). Net income: JP¥169.0m (down 11% from 3Q 2023). Profit margin: 1.9% (down from 2.5% in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has increased by 64% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Feb 08
Now 21% undervalued Over the last 90 days, the stock has risen 35% to JP¥3,530. The fair value is estimated to be JP¥4,445, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.4% over the last 3 years. Meanwhile, the company has become profitable. Announcement • Nov 27
Rhythm Co.,Ltd. to Report Q3, 2024 Results on Feb 13, 2024 Rhythm Co.,Ltd. announced that they will report Q3, 2024 results on Feb 13, 2024 Reported Earnings • Nov 16
Second quarter 2024 earnings released: EPS: JP¥2.18 (vs JP¥34.52 in 2Q 2023) Second quarter 2024 results: EPS: JP¥2.18 (down from JP¥34.52 in 2Q 2023). Revenue: JP¥7.57b (down 13% from 2Q 2023). Net income: JP¥18.0m (down 94% from 2Q 2023). Profit margin: 0.2% (down from 3.3% in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 61% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 03
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥2,256, the stock trades at a trailing P/E ratio of 49.3x. Average trailing P/E is 14x in the Luxury industry in Japan. Total returns to shareholders of 276% over the past three years. New Risk • Oct 02
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 Dividend is not well covered by earnings and cash flows. Payout ratio: 106% Cash payout ratio: 426% Minor Risks Share price has been volatile over the past 3 months (5.6% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.2% net profit margin). Announcement • Aug 30
Rhythm Co.,Ltd. to Report Q2, 2024 Results on Nov 13, 2023 Rhythm Co.,Ltd. announced that they will report Q2, 2024 results on Nov 13, 2023 New Risk • Aug 13
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 106% Cash payout ratio: 426% Dividend yield: 3.0% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 106% Cash payout ratio: 426% Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.2% net profit margin). Market cap is less than US$100m (JP¥13.5b market cap, or US$93.0m). Reported Earnings • Aug 12
First quarter 2024 earnings released: JP¥12.23 loss per share (vs JP¥38.15 profit in 1Q 2023) First quarter 2024 results: JP¥12.23 loss per share (down from JP¥38.15 profit in 1Q 2023). Revenue: JP¥6.97b (down 12% from 1Q 2023). Net loss: JP¥101.0m (down 132% from profit in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 94% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jun 24
Full year 2023 earnings released: EPS: JP¥96.16 (vs JP¥125 in FY 2022) Full year 2023 results: EPS: JP¥96.16 (down from JP¥125 in FY 2022). Revenue: JP¥31.2b (up 4.1% from FY 2022). Net income: JP¥794.0m (down 23% from FY 2022). Profit margin: 2.5% (down from 3.4% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 94% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Announcement • May 28
Rhythm Co.,Ltd. to Report Q1, 2024 Results on Aug 10, 2023 Rhythm Co.,Ltd. announced that they will report Q1, 2024 results on Aug 10, 2023 Reported Earnings • May 20
Full year 2023 earnings released: EPS: JP¥96.16 (vs JP¥125 in FY 2022) Full year 2023 results: EPS: JP¥96.16 (down from JP¥125 in FY 2022). Revenue: JP¥31.2b (up 4.1% from FY 2022). Net income: JP¥794.0m (down 23% from FY 2022). Profit margin: 2.5% (down from 3.4% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 94% per year but the company’s share price has only increased by 44% per year, which means it is significantly lagging earnings growth. Announcement • May 16
Rhythm Co.,Ltd., Annual General Meeting, Jun 21, 2023 Rhythm Co.,Ltd., Annual General Meeting, Jun 21, 2023. Valuation Update With 7 Day Price Move • Apr 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥2,040, the stock trades at a trailing P/E ratio of 19.5x. Average trailing P/E is 11x in the Luxury industry in Japan. Total returns to shareholders of 272% over the past three years. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥36.00 per share at 2.0% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 23 June 2023. Payout ratio is a comfortable 36% but the company is not cash flow positive. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.9%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥23.01 (vs JP¥61.52 in 3Q 2022) Third quarter 2023 results: EPS: JP¥23.01 (down from JP¥61.52 in 3Q 2022). Revenue: JP¥7.53b (down 4.9% from 3Q 2022). Net income: JP¥190.0m (down 63% from 3Q 2022). Profit margin: 2.5% (down from 6.4% in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Nov 30
Rhythm Co.,Ltd. to Report Q3, 2023 Results on Feb 10, 2023 Rhythm Co.,Ltd. announced that they will report Q3, 2023 results on Feb 10, 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, 2 were independent directors. The company's board is composed of: 4 independent directors. 6 non-independent directors. Independent Director Hitomi Uchida was the last independent director to join the board, commencing their role in 2022. 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 13
Second quarter 2023 earnings released: EPS: JP¥34.51 (vs JP¥3.15 in 2Q 2022) Second quarter 2023 results: EPS: JP¥34.51 (up from JP¥3.15 in 2Q 2022). Revenue: JP¥8.67b (up 28% from 2Q 2022). Net income: JP¥285.0m (up JP¥259.0m from 2Q 2022). Profit margin: 3.3% (up from 0.4% 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 79% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Aug 31
Rhythm Co.,Ltd. to Report Q2, 2023 Results on Nov 11, 2022 Rhythm Co.,Ltd. announced that they will report Q2, 2023 results on Nov 11, 2022 Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥38.15 (vs JP¥51.47 in 1Q 2022) First quarter 2023 results: EPS: JP¥38.15 (down from JP¥51.47 in 1Q 2022). Revenue: JP¥7.93b (up 12% from 1Q 2022). Net income: JP¥315.0m (down 26% from 1Q 2022). Profit margin: 4.0% (down from 6.0% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 63% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jun 26
Full year 2022 earnings released Full year 2022 results: Revenue: JP¥30.0b (up 9.9% from FY 2021). Net income: JP¥1.03b (up JP¥2.29b from FY 2021). Profit margin: 3.4% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Jun 01
Rhythm Co.,Ltd. to Report Q1, 2023 Results on Aug 10, 2022 Rhythm Co.,Ltd. announced that they will report Q1, 2023 results on Aug 10, 2022 Reported Earnings • May 16
Full year 2022 earnings released: EPS: JP¥125 (vs JP¥153 loss in FY 2021) Full year 2022 results: EPS: JP¥125 (up from JP¥153 loss in FY 2021). Revenue: JP¥30.0b (up 9.9% from FY 2021). Net income: JP¥1.03b (up JP¥2.29b from FY 2021). Profit margin: 3.4% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. 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 6% per year, which means it is significantly lagging earnings growth. 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 External Director Yasuhisa Okuno was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 08
Rhythm Co.,Ltd. to Report Fiscal Year 2022 Results on May 12, 2022 Rhythm Co.,Ltd. announced that they will report fiscal year 2022 results on May 12, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 24 June 2022. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.4%). In line with average of industry peers (2.0%). Reported Earnings • Feb 12
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥61.50 (up from JP¥47.22 in 3Q 2021). Revenue: JP¥7.92b (up 5.9% from 3Q 2021). Net income: JP¥508.0m (up 30% from 3Q 2021). Profit margin: 6.4% (up from 5.2% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 12
Second quarter 2022 earnings released: EPS JP¥3.15 (vs JP¥26.39 loss in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥6.75b (up 2.4% from 2Q 2021). Net income: JP¥26.0m (up JP¥244.0m from 2Q 2021). Profit margin: 0.4% (up from net loss in 2Q 2021). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 12% per year and the company’s share price has also fallen by 12% per year. Valuation Update With 7 Day Price Move • Sep 09
Investor sentiment improved over the past week After last week's 20% share price gain to JP¥1,533, the stock trades at a trailing P/E ratio of 13.7x. Average trailing P/E is 15x in the Luxury industry in Japan. Total loss to shareholders of 15% over the past three years. Valuation Update With 7 Day Price Move • Aug 26
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥1,273, the stock trades at a trailing P/E ratio of 11.4x. Average trailing P/E is 15x in the Luxury industry in Japan. Total loss to shareholders of 34% over the past three years. Reported Earnings • Aug 13
First quarter 2022 earnings released: EPS JP¥51.46 (vs JP¥213 loss in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥7.10b (up 30% from 1Q 2021). Net income: JP¥425.0m (up JP¥2.19b from 1Q 2021). Profit margin: 6.0% (up from net loss in 1Q 2021). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 53% 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. Reported Earnings • Jun 27
Full year 2021 earnings released: JP¥153 loss per share (vs JP¥138 loss in FY 2020) The company reported a poor full year result with increased losses, weaker revenues and weaker control over costs. Full year 2021 results: Revenue: JP¥27.3b (down 8.7% from FY 2020). Net loss: JP¥1.26b (loss widened 11% from FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 70 percentage points per year, which is a significant difference in performance.