Reported Earnings • Jul 14
First quarter 2027 earnings released: JP¥0.97 loss per share (vs JP¥2.25 loss in 1Q 2026) First quarter 2027 results: JP¥0.97 loss per share (improved from JP¥2.25 loss in 1Q 2026). Revenue: JP¥7.40b (up 4.1% from 1Q 2026). Net loss: JP¥165.2m (loss narrowed 57% from 1Q 2026). Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 8% per year. Announcement • May 27
Riso Kyoiku Group Corporation to Report Q1, 2027 Results on Jul 10, 2026 Riso Kyoiku Group Corporation announced that they will report Q1, 2027 results on Jul 10, 2026 Reported Earnings • Apr 10
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥9.49 (down from JP¥10.48 in FY 2025). Revenue: JP¥34.2b (up 2.5% from FY 2025). Net income: JP¥1.62b (down 7.3% from FY 2025). Profit margin: 4.7% (down from 5.2% in FY 2025). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.3%. Revenue is forecast to grow 4.4% p.a. on average during the next 2 years, compared to a 8.3% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 16% per year, which means it is performing significantly worse than earnings. Announcement • Apr 08
Riso Kyoiku Group Corporation, Annual General Meeting, May 22, 2026 Riso Kyoiku Group Corporation, Annual General Meeting, May 22, 2026. Announcement • Mar 17
Riso Kyoiku Group Corporation to Report Fiscal Year 2026 Results on Apr 08, 2026 Riso Kyoiku Group Corporation announced that they will report fiscal year 2026 results on Apr 08, 2026 Upcoming Dividend • Feb 19
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 26 February 2026. Payment date: 11 May 2026. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.8%. Within top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (2.5%). Declared Dividend • Jan 14
Dividend of JP¥10.00 announced Dividend of JP¥10.00 is the same as last year. Ex-date: 26th February 2026 Payment date: 11th May 2026 Dividend yield will be 4.8%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is not covered by earnings (109% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 21% to bring the payout ratio under control. EPS is expected to grow by 26% over the next 2 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Jan 10
Third quarter 2026 earnings released: EPS: JP¥3.35 (vs JP¥2.66 in 3Q 2025) Third quarter 2026 results: EPS: JP¥3.35 (up from JP¥2.66 in 3Q 2025). Revenue: JP¥8.50b (up 4.4% from 3Q 2025). Net income: JP¥571.0m (up 26% from 3Q 2025). Profit margin: 6.7% (up from 5.6% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 16% per year, which means it is performing significantly worse than earnings. Announcement • Jan 09
Riso Kyoiku Group Corporation Revises Earnings Guidance for the Fiscal Year Ending February 28, 2026 Riso Kyoiku Group Corporation revised its earnings guidance for the fiscal year ending February 28, 2026. For the period the company expects Net Sales of JPY 34,200 million against previous forecasts of JPY 36,000 million, Operating Profit forecast of JPY 2,470 million against previous forecasts of JPY 3,145 million, Profit Attributable to Owners of Parent forecasts of JPY 1,540 million against previous forecasts of JPY 2,000 million and Basic Earnings per Share forecasts of JPY 9.05 per share against previous forecasts of JPY 11.76 per share.
Reasons for the Revision: Regarding the consolidated performance for the current fiscal year, while net sales are expected to exceed the previous fiscal year's results, they are projected to fall below the initial forecast. In the Tutoring School Business segment (TOMAS) and the Early Childhood Education Business segment (Shingakai), net sales failed to reach the planned levels as the number of students trended below the targets set at the beginning of the period. In addition to the impact of lower-than- expected sales, profits at each level are projected to underperform the plan due to an increase in land and house rent accompanying rising rents for existing schools, as well as an increase in personnel and recruitment costs resulting from initiatives to retain talented human resources. Reported Earnings • Oct 10
Second quarter 2026 earnings released: EPS: JP¥5.49 (vs JP¥6.47 in 2Q 2025) Second quarter 2026 results: EPS: JP¥5.49 (down from JP¥6.47 in 2Q 2025). Revenue: JP¥9.65b (flat on 2Q 2025). Net income: JP¥935.2m (down 15% from 2Q 2025). Profit margin: 9.7% (down from 11% in 2Q 2025). Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 9% per year whereas the company’s share price has fallen by 13% per year. Reported Earnings • Jul 13
First quarter 2026 earnings released: JP¥2.25 loss per share (vs JP¥1.34 loss in 1Q 2025) First quarter 2026 results: JP¥2.25 loss per share (further deteriorated from JP¥1.34 loss in 1Q 2025). Revenue: JP¥7.11b (up 3.0% from 1Q 2025). Net loss: JP¥383.2m (loss widened 84% from 1Q 2025). Revenue is forecast to grow 6.1% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 9% per year. Announcement • Apr 18
Riso Kyoiku Co., Ltd. Announces Resignation of Kazuhiro Abe as Audit & Supervisory Board Member, Effective May 23, 2025 Riso Kyoiku Co., Ltd. announced that Mr. Kazuhiro Abe, Outside Audit & Supervisory Board Member, has contributed to the oversight of management for over a decade. He has decided to resign from his position as Audit & Supervisory Board Member to mark a natural transition. Going forward, Mr. Abe is expected to continue contributing to the Company's growth as an advisor, utilizing his extensive experience gained during his tenure as an Audit & Supervisory Board
Member. Intended resign date is May 23, 2025. Reported Earnings • Apr 09
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥10.70. Revenue: JP¥33.4b (up 3.7% from FY 2024). Net income: JP¥1.78b (up 7.2% from FY 2024). Profit margin: 5.3% (up from 5.2% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.0%. Revenue is forecast to grow 5.1% p.a. on average during the next 2 years, compared to a 9.1% growth forecast for the Consumer Services industry in Japan. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥223, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 15x in the Consumer Services industry in Japan. Total loss to shareholders of 34% over the past three years. Buy Or Sell Opportunity • Mar 31
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 13% to JP¥263. The fair value is estimated to be JP¥330, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.6% over the last 3 years. Earnings per share has declined by 11%. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to grow by 18% in the next 2 years. Buy Or Sell Opportunity • Mar 12
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 13% to JP¥262. The fair value is estimated to be JP¥331, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.6% over the last 3 years. Earnings per share has declined by 11%. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to grow by 18% in the next 2 years. Buy Or Sell Opportunity • Feb 22
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.9% to JP¥268. The fair value is estimated to be JP¥335, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.6% over the last 3 years. Earnings per share has declined by 11%. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to grow by 18% in the next 2 years. Upcoming Dividend • Feb 20
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 27 February 2025. Payment date: 12 May 2025. Payout ratio is on the higher end at 90%, however this is supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.7%). Announcement • Jan 29
Riso Kyoiku Co., Ltd. to Report Fiscal Year 2025 Results on Apr 08, 2025 Riso Kyoiku Co., Ltd. announced that they will report fiscal year 2025 results at 12:00 PM, Tokyo Standard Time on Apr 08, 2025 Reported Earnings • Jan 15
Third quarter 2025 earnings released: EPS: JP¥2.66 (vs JP¥2.49 in 3Q 2024) Third quarter 2025 results: EPS: JP¥2.66 (up from JP¥2.49 in 3Q 2024). Revenue: JP¥8.14b (up 4.0% from 3Q 2024). Net income: JP¥452.0m (up 17% from 3Q 2024). Profit margin: 5.6% (up from 4.9% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 6% per year. Declared Dividend • Jan 12
Dividend of JP¥10.00 announced Dividend of JP¥10.00 is the same as last year. Ex-date: 27th February 2025 Payment date: 12th May 2025 Dividend yield will be 3.3%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is not adequately covered by earnings (91% earnings payout ratio). However, it is covered by cash flows (73% cash payout ratio). The dividend has increased by an average of 13% per year over the past 9 years. However, payments have been volatile during that time. Earnings per share is expected to grow by 33% over the next 3 years, which should maintain adequate earnings cover for the dividend. Reported Earnings • Oct 15
Second quarter 2025 earnings released: EPS: JP¥6.47 (vs JP¥7.02 in 2Q 2024) Second quarter 2025 results: EPS: JP¥6.47. Revenue: JP¥9.69b (up 4.7% from 2Q 2024). Net income: JP¥1.10b (up 1.7% from 2Q 2024). Profit margin: 11% (in line with 2Q 2024). Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Consumer Services industry in Japan. Reported Earnings • Jul 16
First quarter 2025 earnings released: JP¥1.34 loss per share (vs JP¥1.79 loss in 1Q 2024) First quarter 2025 results: JP¥1.34 loss per share (improved from JP¥1.79 loss in 1Q 2024). Revenue: JP¥6.90b (up 3.1% from 1Q 2024). Net loss: JP¥208.0m (loss narrowed 25% from 1Q 2024). Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 8.4% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 11% per year. Reported Earnings • Jun 01
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥11.03 (up from JP¥9.67 in FY 2023). Revenue: JP¥32.2b (up 2.3% from FY 2023). Net income: JP¥1.70b (up 14% from FY 2023). Profit margin: 5.3% (up from 4.7% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 8.0%. Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 8.6% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • May 29
Riso Kyoiku Co., Ltd. to Report Q1, 2025 Results on Jul 12, 2024 Riso Kyoiku Co., Ltd. announced that they will report Q1, 2025 results on Jul 12, 2024 New Risk • May 29
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 10% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Dividend is not well covered by earnings and cash flows. Payout ratio: 91% Cash payout ratio: 204% High level of non-cash earnings (33% accrual ratio). Minor Risk Shareholders have been diluted in the past year (10% increase in shares outstanding). Announcement • May 29
Hulic Co., Ltd. (TSE:3003) completed the acquisition of 25.49% stake in Riso Kyoiku Co., Ltd. (TSE:4714). Hulic Co., Ltd. (TSE:3003) made an offer to acquire 25.49% stake in Riso Kyoiku Co., Ltd. (TSE:4714) for ¥12.6 billion on April 8, 2024. As per the transaction, Hulic Co., Ltd. will acquire maximum 39.4 million shares at ¥320 pre share. The transaction is expected to close on May 22, 2024.
Hulic Co., Ltd. (TSE:3003) completed the acquisition of 25.49% stake in Riso Kyoiku Co., Ltd. (TSE:4714) on May 27, 2024. Valuation Update With 7 Day Price Move • Apr 15
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to JP¥277, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 17x in the Consumer Services industry in Japan. Total returns to shareholders of 1.3% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥143 per share. Announcement • Apr 10
Riso Kyoiku Co., Ltd., Annual General Meeting, May 24, 2024 Riso Kyoiku Co., Ltd., Annual General Meeting, May 24, 2024. Reported Earnings • Apr 09
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥11.03 (up from JP¥9.67 in FY 2023). Revenue: JP¥32.2b (up 2.3% from FY 2023). Net income: JP¥1.70b (up 14% from FY 2023). Profit margin: 5.3% (up from 4.7% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 8.0%. Revenue is forecast to grow 3.9% p.a. on average during the next 2 years, compared to a 6.9% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has fallen by 2% per year. Announcement • Apr 08
Riso Kyoiku Co., Ltd. announced that it expects to receive ¥3.39999994 billion in funding Riso Kyoiku Co., Ltd. announced a private placement that it will issue 15,596,330 common shares at an issue price of ¥218 per share for the gross proceeds of ¥3,399,999,940 on April 8, 2024. Upcoming Dividend • Feb 21
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 28 February 2024. Payment date: 13 May 2024. The company is paying out more than 100% of its profits and is paying out 94% of its cash flow. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.4%). Announcement • Jan 31
Riso Kyoiku Co., Ltd. to Report Fiscal Year 2024 Results on Apr 08, 2024 Riso Kyoiku Co., Ltd. announced that they will report fiscal year 2024 results on Apr 08, 2024 Reported Earnings • Jan 10
Third quarter 2024 earnings released: EPS: JP¥2.42 (vs JP¥2.50 in 3Q 2023) Third quarter 2024 results: EPS: JP¥2.42 (down from JP¥2.50 in 3Q 2023). Revenue: JP¥7.83b (flat on 3Q 2023). Net income: JP¥373.0m (down 3.4% from 3Q 2023). Profit margin: 4.8% (down from 4.9% in 3Q 2023). Revenue is forecast to grow 6.8% p.a. on average during the next 2 years, compared to a 7.7% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Reported Earnings • Oct 11
Second quarter 2024 earnings released: EPS: JP¥6.99 (vs JP¥5.82 in 2Q 2023) Second quarter 2024 results: EPS: JP¥6.99 (up from JP¥5.82 in 2Q 2023). Revenue: JP¥9.25b (up 2.8% from 2Q 2023). Net income: JP¥1.08b (up 20% from 2Q 2023). Profit margin: 12% (up from 10.0% in 2Q 2023). Revenue is forecast to grow 4.1% p.a. on average during the next 2 years, compared to a 8.1% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Buying Opportunity • Aug 17
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 14%. The fair value is estimated to be JP¥310, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.1% over the last 3 years. Earnings per share has grown by 23%. Revenue is forecast to grow by 13% in 2 years. Earnings is forecast to grow by 57% in the next 2 years. Reported Earnings • Jun 02
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: JP¥9.67 (down from JP¥16.24 in FY 2022). Revenue: JP¥31.5b (up 4.9% from FY 2022). Net income: JP¥1.49b (down 39% from FY 2022). Profit margin: 4.7% (down from 8.1% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.9%. Revenue is forecast to grow 6.7% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 12
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: JP¥9.67 (down from JP¥16.24 in FY 2022). Revenue: JP¥31.5b (up 4.9% from FY 2022). Net income: JP¥1.49b (down 39% from FY 2022). Profit margin: 4.7% (down from 8.1% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.9%. Revenue is forecast to grow 8.6% p.a. on average during the next 2 years, compared to a 7.0% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Feb 20
Upcoming dividend of JP¥16.00 per share at 4.5% yield Eligible shareholders must have bought the stock before 27 February 2023. Payment date: 12 May 2023. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 4.5%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.5%). Reported Earnings • Jan 11
Third quarter 2023 earnings released: EPS: JP¥2.50 (vs JP¥2.96 in 3Q 2022) Third quarter 2023 results: EPS: JP¥2.50 (down from JP¥2.96 in 3Q 2022). Revenue: JP¥7.80b (up 4.7% from 3Q 2022). Net income: JP¥386.0m (down 12% from 3Q 2022). Profit margin: 4.9% (down from 5.9% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. 5 highly experienced directors. No independent directors (8 non-independent directors). External Director Toru Konishi was the last director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Announcement • Oct 15
Riso Kyoiku Co., Ltd. Provides Sales Guidance for the Fiscal Year Ending February 28, 2023, Fiscal Year Ending February 29, 2024 and Fiscal Year Ending February 28, 2025 Riso Kyoiku Co., Ltd. provided sales guidance for the fiscal year ending February 28, 2023, fiscal year ending February 29, 2024 and fiscal year ending February 28, 2025. For the fiscal year ending February 28, 2023, the company forecast sales of JPY 33 billion and net income of JPY 2.5 billion.For the fiscal year ending February 29, 2024, the company forecast sales of JPY 37 billion and net income of JPY 2.7 billion.For the fiscal year ending February 28, 2025, the company forecast sales of JPY 40 billion and net income of JPY 3 billion. Reported Earnings • Oct 13
Second quarter 2023 earnings released: EPS: JP¥5.82 (vs JP¥7.04 in 2Q 2022) Second quarter 2023 results: EPS: JP¥5.82 (down from JP¥7.04 in 2Q 2022). Revenue: JP¥9.00b (up 5.8% from 2Q 2022). Net income: JP¥898.0m (down 14% from 2Q 2022). Profit margin: 10.0% (down from 12% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 9.1% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Reported Earnings • Jul 13
First quarter 2023 earnings released: JP¥1.70 loss per share (vs JP¥1.13 loss in 1Q 2022) First quarter 2023 results: JP¥1.70 loss per share (down from JP¥1.13 loss in 1Q 2022). Revenue: JP¥6.44b (up 5.4% from 1Q 2022). Net loss: JP¥262.0m (loss widened 57% from 1Q 2022). Over the next year, revenue is forecast to grow 11%, compared to a 9.0% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Reported Earnings • Jun 03
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥16.24 (up from JP¥3.79 in FY 2021). Revenue: JP¥30.0b (up 19% from FY 2021). Net income: JP¥2.43b (up 338% from FY 2021). Profit margin: 8.1% (up from 2.2% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 23%. Over the next year, revenue is forecast to grow 9.2%, compared to a 10% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. 1 highly experienced director. No independent directors (6 non-independent directors). External Director Toru Konishi was the last director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Apr 08
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥16.24 (up from JP¥3.79 in FY 2021). Revenue: JP¥30.0b (up 19% from FY 2021). Net income: JP¥2.43b (up 338% from FY 2021). Profit margin: 8.1% (up from 2.2% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 23%. Over the next year, revenue is forecast to grow 9.7%, compared to a 11% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Buying Opportunity • Mar 07
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 16%. The fair value is estimated to be JP¥431, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.7% per annum over the last 3 years. Earnings per share has declined by 5.9% per annum over the last 3 years. Upcoming Dividend • Feb 18
Upcoming dividend of JP¥16.00 per share Eligible shareholders must have bought the stock before 25 February 2022. Payment date: 13 May 2022. Payout ratio is on the higher end at 77%, however this is supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (2.1%). Buying Opportunity • Jan 14
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 32%. The fair value is estimated to be JP¥430, however is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.7% per annum over the last 3 years. Earnings per share has declined by 5.9% per annum over the last 3 years. Reported Earnings • Jan 12
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: JP¥2.96 (down from JP¥3.44 in 3Q 2021). Revenue: JP¥7.45b (up 10.0% from 3Q 2021). Net income: JP¥440.0m (down 13% from 3Q 2021). Profit margin: 5.9% (down from 7.5% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 4.1%. Earnings per share (EPS) also missed analyst estimates by 49%. Earnings per share (EPS) missed analyst estimates by 49%. Over the next year, revenue is forecast to grow 12%, compared to a 13% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 7% per year. Reported Earnings • Oct 05
Second quarter 2022 earnings released: EPS JP¥7.04 (vs JP¥3.91 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥8.50b (up 22% from 2Q 2021). Net income: JP¥1.04b (up 83% from 2Q 2021). Profit margin: 12% (up from 8.2% 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 10% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Announcement • Jul 15
Riso Kyoiku Co., Ltd. Revises Earnings Guidance for the Full Year Ending February 2022 Riso Kyoiku Co., Ltd. revised earnings guidance for the full year ending February 2022. For the year, the company expects net sales upward by JPY 500 million to JPY 29.5 billion and net income upward by JPY 200 million to JPY 1.9 billion. Reported Earnings • Jul 10
First quarter 2022 earnings released: JP¥1.13 loss per share (vs JP¥7.16 loss in 1Q 2021) The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2022 results: Revenue: JP¥6.11b (up 47% from 1Q 2021). Net loss: JP¥167.0m (loss narrowed 84% from 1Q 2021). 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 7% per year, which means it is well ahead of earnings. Reported Earnings • Jun 03
Full year 2021 earnings released: EPS JP¥3.79 (vs JP¥13.23 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥25.2b (down 5.6% from FY 2020). Net income: JP¥555.0m (down 72% from FY 2020). Profit margin: 2.2% (down from 7.3% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • May 29
Hulic Co., Ltd. (TSE:3003) acquired an additional 6.3% stake in Riso Kyoiku Co., Ltd. (TSE:4714). Hulic Co., Ltd. (TSE:3003) acquired an additional 6.3% stake in Riso Kyoiku Co., Ltd. (TSE:4714) on May 28, 2021. Under the terms of the transaction, Hulic Co., Ltd. acquired an additional 9.3 million shares in Riso Kyoiku Co., Ltd.
Hulic Co., Ltd. (TSE:3003) completed the acquisition of an additional 6.3% stake in Riso Kyoiku Co., Ltd. (TSE:4714) on May 28, 2021. Announcement • Apr 18
Riso Kyoiku Co., Ltd. Provides Earnings Guidance for the Fiscal Year Ending February 2022, 2023 and 2024 Riso Kyoiku Co., Ltd. provided earnings guidance for the fiscal year ending February 2022, 2023 and 2024. For the fiscal year ending February 2022, the company forecasts net sales of JPY 29 billion, ordinary income of JPY 2.5 billion, and net income of JPY 1.7 billion.
In the fiscal year ending February 2023, the company plans to achieve net sales of JPY 32 billion, ordinary income of JPY 3.2 billion, and net income of JPY 2.1 billion.
For the fiscal year ending February 2024, the company plans to achieve net sales of JPY 35.5 billion, ordinary income of JPY 3.7 billion, and net income of JPY 2.5 billion. Reported Earnings • Apr 10
Full year 2021 earnings released: EPS JP¥3.79 (vs JP¥13.23 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥25.2b (down 5.6% from FY 2020). Net income: JP¥555.0m (down 72% from FY 2020). Profit margin: 2.2% (down from 7.3% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Feb 03
New 90-day high: JP¥342 The company is up 3.0% from its price of JP¥333 on 05 November 2020. The Japanese market is up 14% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Consumer Services industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥227 per share. Is New 90 Day High Low • Jan 19
New 90-day low: JP¥291 The company is down 12% from its price of JP¥330 on 21 October 2020. The Japanese market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is down 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥193 per share. Reported Earnings • Jan 09
Third quarter 2021 earnings released: EPS JP¥3.44 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥6.78b (up 5.7% from 3Q 2020). Net income: JP¥508.0m (up 54% from 3Q 2020). Profit margin: 7.5% (up from 5.1% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Jan 09
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 0.2%. Earnings per share (EPS) exceeded analyst estimates by 5.9%. Over the next year, revenue is forecast to grow 9.8%, compared to a 6.5% growth forecast for the Consumer Services industry in Japan. Announcement • Oct 01
Hulic Co., Ltd. (TSE:3003) acquired a 5% stake in Riso Kyoiku Co., Ltd. (TSE:4714) from Mitsugu Iwasa, Founder and Chairman of the Board of Riso Kyoiku for ¥2.4 billion. Hulic Co., Ltd. (TSE:3003) acquired a 5% stake in Riso Kyoiku Co., Ltd. (TSE:4714) from Mitsugu Iwasa, Founder and Chairman of the Board of Riso Kyoiku for ¥2.4 billion on September 29, 2020. Under the transaction, 7.82 million shares will be acquired. The Board of Directors of Hulic took a resolution on September 29, 2020 for the delivery date of the shares to be September 30, 2020. For the year ending February 29, 2020, Riso Kyoiku reported net assets worth ¥6,157 million, total assets worth ¥13,214 million, sales worth ¥26,705 million and a net income worth ¥1,954 million.
Hulic Co., Ltd. completed the acquisition of a 5% stake in Riso Kyoiku Co., Ltd. (TSE:4714) from Mitsugu Iwasa, Founder and Chairman of the Board on September 29, 2020. Announcement • Aug 07
Riso Kyoiku Co., Ltd. announced that it has received ¥1.000008 billion in funding from Nihon Doro Koun Co.,Ltd. On August 6, 2020, Riso Kyoiku Co., Ltd. (TSE:4714) closed the transaction. Announcement • Jul 22
Riso Kyoiku Co., Ltd. announced that it expects to receive ¥1.000008 billion in funding from Nihon Doro Koun Co.,Ltd. Riso Kyoiku Co., Ltd. (TSE:4714) announced a private placement of 3,508,800 common shares at a price of ¥235 per share for gross proceeds of ¥1,000,008,000 on July 21, 2020. The transaction will involve participation from returning investor Nihon Doro Koun Co.,Ltd. The transaction will take place through third party allotment. The company will pay ¥35,000,000, resulting in net proceeds pf ¥965,000,000. The transaction is expected to close on August 6, 2020. The transaction has been approved by the board of directors of the company.