Valuation Update With 7 Day Price Move • Jun 12
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥907, the stock trades at a trailing P/E ratio of 73x. Average trailing P/E is 10x in the Consumer Durables industry in Japan. Total returns to shareholders of 58% over the past three years. New Risk • Jun 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.7% 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 Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 27% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.7% average weekly change). Profit margins are more than 30% lower than last year (0.8% net profit margin). Market cap is less than US$100m (JP¥1.85b market cap, or US$11.5m). Announcement • Jun 03
Makoto Construction Co,Ltd to Report Q1, 2027 Results on Aug 07, 2026 Makoto Construction Co,Ltd announced that they will report Q1, 2027 results on Aug 07, 2026 New Risk • May 19
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.6% 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 Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 27% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (0.8% net profit margin). Market cap is less than US$100m (JP¥1.90b market cap, or US$12.0m). Reported Earnings • May 19
Full year 2026 earnings released: EPS: JP¥12.43 (vs JP¥22.87 in FY 2025) Full year 2026 results: EPS: JP¥12.43 (down from JP¥22.87 in FY 2025). Revenue: JP¥3.13b (down 4.4% from FY 2025). Net income: JP¥25.0m (down 46% from FY 2025). Profit margin: 0.8% (down from 1.4% in FY 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 98 percentage points per year, which is a significant difference in performance. Announcement • May 14
Makoto Construction Co,Ltd, Annual General Meeting, Jun 25, 2026 Makoto Construction Co,Ltd, Annual General Meeting, Jun 25, 2026. Announcement • May 10
Makoto Construction Co,Ltd to Report Fiscal Year 2026 Results on May 14, 2026 Makoto Construction Co,Ltd announced that they will report fiscal year 2026 results on May 14, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 29 June 2026. The company is not currently making a profit but it is cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Reported Earnings • Feb 16
Third quarter 2026 earnings released: EPS: JP¥14.42 (vs JP¥23.36 in 3Q 2025) Third quarter 2026 results: EPS: JP¥14.42 (down from JP¥23.36 in 3Q 2025). Revenue: JP¥843.0m (down 42% from 3Q 2025). Net income: JP¥29.0m (down 38% from 3Q 2025). Profit margin: 3.4% (up from 3.3% in 3Q 2025). The increase in margin was driven by lower expenses. 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. Buy Or Sell Opportunity • Dec 26
Now 27% undervalued Over the last 90 days, the stock has risen 80% to JP¥1,657. The fair value is estimated to be JP¥2,268, 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. Earnings per share has declined by 53%. Announcement • Nov 29
Makoto Construction Co,Ltd to Report Q3, 2026 Results on Feb 13, 2026 Makoto Construction Co,Ltd announced that they will report Q3, 2026 results on Feb 13, 2026 New Risk • Nov 17
New major risk - Revenue and earnings growth Earnings have declined by 8.9% 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 Share price has been highly volatile over the past 3 months (20% average weekly change). Earnings have declined by 8.9% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (dividend per share is over 8x earnings per share). Profit margins are more than 30% lower than last year (0.2% net profit margin). Market cap is less than US$100m (JP¥1.76b market cap, or US$11.4m). Reported Earnings • Nov 17
Second quarter 2026 earnings released: JP¥9.94 loss per share (vs JP¥4.97 profit in 2Q 2025) Second quarter 2026 results: JP¥9.94 loss per share (down from JP¥4.97 profit in 2Q 2025). Revenue: JP¥586.0m (up 23% from 2Q 2025). Net loss: JP¥20.0m (down 300% from profit in 2Q 2025). Over the last 3 years on average, earnings per share has fallen by 53% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥975, the stock trades at a trailing P/E ratio of 54.5x. Average trailing P/E is 11x in the Consumer Durables industry in Japan. Total returns to shareholders of 78% over the past three years. Valuation Update With 7 Day Price Move • Oct 01
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥832, the stock trades at a trailing P/E ratio of 46.5x. Average trailing P/E is 12x in the Consumer Durables industry in Japan. Total returns to shareholders of 52% over the past three years. Valuation Update With 7 Day Price Move • Sep 09
Investor sentiment improves as stock rises 33% After last week's 33% share price gain to JP¥1,284, the stock trades at a trailing P/E ratio of 71.8x. Average trailing P/E is 11x in the Consumer Durables industry in Japan. Total returns to shareholders of 133% over the past three years. Announcement • Sep 05
Makoto Construction Co,Ltd to Report Q2, 2026 Results on Nov 13, 2025 Makoto Construction Co,Ltd announced that they will report Q2, 2026 results on Nov 13, 2025 Reported Earnings • Aug 10
First quarter 2026 earnings released: JP¥11.93 loss per share (vs JP¥6.96 loss in 1Q 2025) First quarter 2026 results: JP¥11.93 loss per share (further deteriorated from JP¥6.96 loss in 1Q 2025). Revenue: JP¥425.0m (down 17% from 1Q 2025). Net loss: JP¥24.0m (loss widened 71% from 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to JP¥857, the stock trades at a trailing P/E ratio of 37.5x. Average trailing P/E is 11x in the Consumer Durables industry in Japan. Total returns to shareholders of 54% over the past three years. Announcement • Jun 06
Makoto Construction Co,Ltd to Report Q1, 2026 Results on Aug 08, 2025 Makoto Construction Co,Ltd announced that they will report Q1, 2026 results on Aug 08, 2025 New Risk • May 30
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 109% The company is paying a dividend despite having no free cash flows. Dividend yield: 4.0% 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 Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 109% Paying a dividend despite having no free cash flows. High level of non-cash earnings (21% accrual ratio). Market cap is less than US$10m (JP¥1.23b market cap, or US$8.53m). Minor Risk Profit margins are more than 30% lower than last year (1.4% net profit margin). Reported Earnings • May 17
Full year 2025 earnings released: EPS: JP¥22.87 (vs JP¥65.12 in FY 2024) Full year 2025 results: EPS: JP¥22.87 (down from JP¥65.12 in FY 2024). Revenue: JP¥3.27b (up 2.7% from FY 2024). Net income: JP¥46.0m (down 65% from FY 2024). Profit margin: 1.4% (down from 4.1% in FY 2024). Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • May 13
Makoto Construction Co,Ltd, Annual General Meeting, Jun 26, 2025 Makoto Construction Co,Ltd, Annual General Meeting, Jun 26, 2025. Announcement • Mar 27
Makoto Construction Co,Ltd to Report Fiscal Year 2025 Results on May 13, 2025 Makoto Construction Co,Ltd announced that they will report fiscal year 2025 results on May 13, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 26 June 2025. Payout ratio is on the higher end at 90% but the company is not cash flow positive. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.5%). Reported Earnings • Feb 16
Third quarter 2025 earnings released: EPS: JP¥23.36 (vs JP¥22.87 in 3Q 2024) Third quarter 2025 results: EPS: JP¥23.36 (up from JP¥22.87 in 3Q 2024). Revenue: JP¥1.44b (up 52% from 3Q 2024). Net income: JP¥47.0m (up 2.2% from 3Q 2024). Profit margin: 3.3% (down from 4.9% in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Dec 03
Makoto Construction Co,Ltd to Report Q3, 2025 Results on Feb 14, 2025 Makoto Construction Co,Ltd announced that they will report Q3, 2025 results on Feb 14, 2025 New Risk • Nov 14
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 44% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Payout ratio: 91% Paying a dividend despite having no free cash flows. High level of non-cash earnings (44% accrual ratio). Market cap is less than US$10m (JP¥1.22b market cap, or US$7.80m). Minor Risks Share price has been volatile over the past 3 months (6.0% average weekly change). Profit margins are more than 30% lower than last year (2.1% net profit margin). New Risk • Nov 11
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. 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 Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Payout ratio: 91% Paying a dividend despite having no free cash flows. Market cap is less than US$10m (JP¥1.22b market cap, or US$8.02m). Minor Risks Share price has been volatile over the past 3 months (6.0% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.1% net profit margin). New Risk • Nov 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.7% 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 Market cap is less than US$10m (JP¥1.23b market cap, or US$7.99m). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.7% average weekly change). Profit margins are more than 30% lower than last year (2.9% net profit margin). Announcement • Sep 27
Makoto Construction Co,Ltd to Report Q2, 2025 Results on Nov 08, 2024 Makoto Construction Co,Ltd announced that they will report Q2, 2025 results on Nov 08, 2024 New Risk • Sep 20
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: JP¥1.43b (US$9.94m) This is considered a major 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 Risk Market cap is less than US$10m (JP¥1.43b market cap, or US$9.94m). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (2.9% net profit margin). Valuation Update With 7 Day Price Move • Sep 20
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥713, the stock trades at a trailing P/E ratio of 15.8x. Average trailing P/E is 12x in the Consumer Durables industry in Japan. Total returns to shareholders of 31% over the past three years. Reported Earnings • Aug 11
First quarter 2025 earnings released: JP¥6.96 loss per share (vs JP¥12.92 profit in 1Q 2024) First quarter 2025 results: JP¥6.96 loss per share (down from JP¥12.92 profit in 1Q 2024). Revenue: JP¥513.0m (down 13% from 1Q 2024). Net loss: JP¥14.0m (down 154% from profit in 1Q 2024). 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 11% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Aug 05
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: JP¥1.41b (US$9.90m) This is considered a major 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 Risk Market cap is less than US$10m (JP¥1.41b market cap, or US$9.90m). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (4.1% net profit margin). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥701, the stock trades at a trailing P/E ratio of 10.8x. Average trailing P/E is 12x in the Consumer Durables industry in Japan. Total returns to shareholders of 33% over the past three years. Announcement • Jun 02
Makoto Construction Co,Ltd to Report Q1, 2025 Results on Aug 09, 2024 Makoto Construction Co,Ltd announced that they will report Q1, 2025 results on Aug 09, 2024 Reported Earnings • May 19
Full year 2024 earnings released: EPS: JP¥65.12 (vs JP¥109 in FY 2023) Full year 2024 results: EPS: JP¥65.12 (down from JP¥109 in FY 2023). Revenue: JP¥3.19b (down 8.0% from FY 2023). Net income: JP¥131.0m (down 40% from FY 2023). Profit margin: 4.1% (down from 6.3% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 11% per year. Announcement • May 16
Makoto Construction Co,Ltd, Annual General Meeting, Jun 25, 2024 Makoto Construction Co,Ltd, Annual General Meeting, Jun 25, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 28 June 2024. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.6%). Announcement • Mar 02
Makoto Construction Co,Ltd to Report Fiscal Year 2024 Results on May 14, 2024 Makoto Construction Co,Ltd announced that they will report fiscal year 2024 results on May 14, 2024 Reported Earnings • Feb 11
Third quarter 2024 earnings released: EPS: JP¥22.87 (vs JP¥36.78 in 3Q 2023) Third quarter 2024 results: EPS: JP¥22.87 (down from JP¥36.78 in 3Q 2023). Revenue: JP¥946.0m (down 12% from 3Q 2023). Net income: JP¥46.0m (down 38% from 3Q 2023). Profit margin: 4.9% (down from 6.9% in 3Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • Nov 27
Makoto Construction Co,Ltd to Report Q3, 2024 Results on Feb 09, 2024 Makoto Construction Co,Ltd announced that they will report Q3, 2024 results on Feb 09, 2024 Reported Earnings • Nov 13
Second quarter 2024 earnings released: EPS: JP¥22.87 (vs JP¥23.36 in 2Q 2023) Second quarter 2024 results: EPS: JP¥22.87 (down from JP¥23.36 in 2Q 2023). Revenue: JP¥911.0m (up 6.5% from 2Q 2023). Net income: JP¥46.0m (down 2.1% from 2Q 2023). Profit margin: 5.0% (down from 5.5% 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 37% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Announcement • Sep 22
Makoto Construction Co,Ltd to Report Q2, 2024 Results on Nov 10, 2023 Makoto Construction Co,Ltd announced that they will report Q2, 2024 results on Nov 10, 2023 Reported Earnings • Aug 10
First quarter 2024 earnings released: EPS: JP¥12.92 (vs JP¥4.97 in 1Q 2023) First quarter 2024 results: EPS: JP¥12.92 (up from JP¥4.97 in 1Q 2023). Revenue: JP¥589.0m (up 35% from 1Q 2023). Net income: JP¥26.0m (up 160% from 1Q 2023). Profit margin: 4.4% (up from 2.3% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. New Risk • Jun 30
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 5.7% 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 Risks Earnings have declined by 2.3% per year over the past 5 years. Market cap is less than US$10m (JP¥1.43b market cap, or US$9.90m). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.7% average weekly change). Announcement • Jun 02
Makoto Construction Co,Ltd to Report Q1, 2024 Results on Aug 08, 2023 Makoto Construction Co,Ltd announced that they will report Q1, 2024 results on Aug 08, 2023 Announcement • May 17
Makoto Construction Co,Ltd, Annual General Meeting, Jun 27, 2023 Makoto Construction Co,Ltd, Annual General Meeting, Jun 27, 2023. Reported Earnings • May 15
Full year 2023 earnings released: EPS: JP¥109 (vs JP¥71.58 in FY 2022) Full year 2023 results: EPS: JP¥109 (up from JP¥71.58 in FY 2022). Revenue: JP¥3.47b (up 10% from FY 2022). Net income: JP¥219.0m (up 52% from FY 2022). Profit margin: 6.3% (up from 4.6% 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 47% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥25.00 per share at 3.8% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 29 June 2023. Payout ratio is a comfortable 34% but the company is not cash flow positive. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.8%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥36.78 (vs JP¥25.35 in 3Q 2022) Third quarter 2023 results: EPS: JP¥36.78 (up from JP¥25.35 in 3Q 2022). Revenue: JP¥1.08b (up 11% from 3Q 2022). Net income: JP¥74.0m (up 45% from 3Q 2022). Profit margin: 6.9% (up from 5.3% 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 41% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Nov 27
Makoto Construction Co,Ltd to Report Q3, 2023 Results on Feb 10, 2023 Makoto Construction Co,Ltd announced that they will report Q3, 2023 results on Feb 10, 2023 Reported Earnings • Nov 17
Second quarter 2023 earnings released: EPS: JP¥23.36 (vs JP¥11.93 in 2Q 2022) Second quarter 2023 results: EPS: JP¥23.36 (up from JP¥11.93 in 2Q 2022). Revenue: JP¥855.0m (up 20% from 2Q 2022). Net income: JP¥47.0m (up 96% from 2Q 2022). Profit margin: 5.5% (up from 3.4% 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 39% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Board Change • Nov 17
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 Kensuke Kitamura 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. Reported Earnings • Nov 13
Second quarter 2023 earnings released: EPS: JP¥23.36 (vs JP¥11.93 in 2Q 2022) Second quarter 2023 results: EPS: JP¥23.36 (up from JP¥11.93 in 2Q 2022). Revenue: JP¥855.0m (up 20% from 2Q 2022). Net income: JP¥47.0m (up 96% from 2Q 2022). Profit margin: 5.5% (up from 3.4% 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 39% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Sep 29
Makoto Construction Co,Ltd to Report Q2, 2023 Results on Nov 11, 2022 Makoto Construction Co,Ltd announced that they will report Q2, 2023 results on Nov 11, 2022 Reported Earnings • Aug 11
First quarter 2023 earnings released: EPS: JP¥4.97 (vs JP¥26.84 in 1Q 2022) First quarter 2023 results: EPS: JP¥4.97 (down from JP¥26.84 in 1Q 2022). Revenue: JP¥435.0m (down 38% from 1Q 2022). Net income: JP¥10.0m (down 82% from 1Q 2022). Profit margin: 2.3% (down from 7.7% in 1Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Board Change • Aug 01
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 Kensuke Kitamura 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 • May 30
Makoto Construction Co,Ltd to Report Q1, 2023 Results on Aug 09, 2022 Makoto Construction Co,Ltd announced that they will report Q1, 2023 results on Aug 09, 2022 Reported Earnings • May 18
Full year 2022 earnings released: EPS: JP¥71.58 (vs JP¥56.17 in FY 2021) Full year 2022 results: EPS: JP¥71.58 (up from JP¥56.17 in FY 2021). Revenue: JP¥3.14b (up 10% from FY 2021). Net income: JP¥144.0m (up 27% from FY 2021). Profit margin: 4.6% (up from 4.0% 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 31% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • May 18
Makoto Construction Co,Ltd, Annual General Meeting, Jun 28, 2022 Makoto Construction Co,Ltd, Annual General Meeting, Jun 28, 2022. Board Change • Apr 28
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 Kensuke Kitamura 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
Makoto Construction Co,Ltd to Report Fiscal Year 2022 Results on May 13, 2022 Makoto Construction Co,Ltd announced that they will report fiscal year 2022 results on May 13, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 25 June 2022. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 4.1%. Within top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.6%). Reported Earnings • Feb 13
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥25.35 (up from JP¥17.40 in 3Q 2021). Revenue: JP¥970.0m (up 24% from 3Q 2021). Net income: JP¥51.0m (up 46% from 3Q 2021). Profit margin: 5.3% (up from 4.5% 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 14% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 13
Second quarter 2022 earnings released: EPS JP¥11.93 (vs JP¥7.95 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥712.0m (up 17% from 2Q 2021). Net income: JP¥24.0m (up 50% from 2Q 2021). Profit margin: 3.4% (up from 2.6% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Reported Earnings • Jun 30
Full year 2021 earnings released: EPS JP¥56.17 (vs JP¥9.94 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥2.85b (up 3.7% from FY 2020). Net income: JP¥113.0m (up 465% from FY 2020). Profit margin: 4.0% (up from 0.7% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Reported Earnings • May 18
Full year 2021 earnings released: EPS JP¥56.17 (vs JP¥9.94 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥2.85b (up 3.7% from FY 2020). Net income: JP¥113.0m (up 465% from FY 2020). Profit margin: 4.0% (up from 0.7% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 26 June 2021. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.3%). Announcement • Mar 04
Makoto Construction Co,Ltd to Report Fiscal Year 2021 Results on May 14, 2021 Makoto Construction Co,Ltd announced that they will report fiscal year 2021 results on May 14, 2021 Reported Earnings • Feb 15
Third quarter 2021 earnings released: EPS JP¥17.40 (vs JP¥1.49 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥783.0m (up 12% from 3Q 2020). Net income: JP¥35.0m (up JP¥32.0m from 3Q 2020). Profit margin: 4.5% (up from 0.4% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 64% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Announcement • Dec 30
Makoto Construction Co,Ltd to Report Q3, 2021 Results on Feb 12, 2021 Makoto Construction Co,Ltd announced that they will report Q3, 2021 results on Feb 12, 2021 Is New 90 Day High Low • Dec 16
New 90-day high: JP¥665 The company is up 19% from its price of JP¥558 on 16 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Durables industry, which is up 13% over the same period. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥665, the stock is trading at a trailing P/E ratio of 66.9x, up from the previous P/E ratio of 56.4x. This compares to an average P/E of 12x in the Consumer Durables industry in Japan. Total return to shareholders over the past three years is a loss of 7.7%. Announcement • Aug 30
Makoto Construction Co,Ltd to Report Q2, 2021 Results on Nov 12, 2020 Makoto Construction Co,Ltd announced that they will report Q2, 2021 results on Nov 12, 2020 Announcement • Jun 28
Makoto Construction Co,Ltd to Report Q1, 2021 Results on Aug 06, 2020 Makoto Construction Co,Ltd announced that they will report Q1, 2021 results on Aug 06, 2020