Announcement • May 31
Benesse Holdings, Inc. Ordinary Shares to Be Deleted from OTC Equity Benesse Holdings, Inc. Ordinary Shares (Japan) will be deleted from OTC Equity effective May 30, 2024, due to CUSIP Suspended. Announcement • Apr 30
Benesse Holdings, Inc. to Delist from Prime Section of Tokyo Stock Exchange, Effective May 17, 2024 Benesse Holdings, Inc. will be delisted from Prime Section of Tokyo Stock Exchange effective from May 17, 2024 due to reverse stock split. Announcement • Mar 27
Benesse Holdings, Inc. to Report Fiscal Year 2024 Results on May 15, 2024 Benesse Holdings, Inc. announced that they will report fiscal year 2024 results on May 15, 2024 Announcement • Mar 06
EFU Investments Limited and Baring Private Equity Asia Fund VIII managed by BPEA EQT completed the acquisition of 70.21% stake in Benesse Holdings, Inc. (TSE:9783) from Minamigata Holdings Ltd. EFU Investments Limited and Baring Private Equity Asia Fund VIII managed by BPEA EQT agreed to acquire 83% stake in Benesse Holdings, Inc. (TSE:9783) from Minamigata Holdings Ltd. and others for ¥2600 on November 10, 2023. If the Tender Offer is achieved, the Offeror plans to receive an investment from Bezant (HK) and loans from Sumitomo Mitsui Banking Corporation (“SMBC”) and Nomura Capital Investment Co.Ltd. (“NCI”) up to a total of ¥185 billion on or before the commencement date of settlement of the Tender Offer. Target Company retained Anderson Mori & Tomotsune as its legal advisor independent from the Target Company and DC Advisory, Daiwa Securities as its financial advisor. Karl Pires and Toshiro Mochizuki of Shearman & Sterling acted as legal advisor to Benesse Holdings, Inc.
EFU Investments Limited and Baring Private Equity Asia Fund VIII managed by BPEA EQT completed the acquisition of 70.21% stake in Benesse Holdings, Inc. (TSE:9783) from Minamigata Holdings Ltd. on March 4, 2024. Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥46.26 (vs JP¥67.92 in 3Q 2023) Third quarter 2024 results: EPS: JP¥46.26 (down from JP¥67.92 in 3Q 2023). Revenue: JP¥103.7b (down 3.0% from 3Q 2023). Net income: JP¥4.46b (down 32% from 3Q 2023). Profit margin: 4.3% (down from 6.1% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • Jan 30
Benesse Holdings, Inc. Revises Consolidated Earnings Guidance for the Full Year Ending March 31, 2024 Benesse Holdings, Inc. revised consolidated earnings guidance for the full year ending March 31, 2024. For the year, the company expects net sales of JPY 412,000 JPY against previous forecast of JPY 423,000 million, operating profit of JPY 20,000 against previous guidance of JPY 21,500 million and net income attributable to owners of parent of JPY 7,500 against previous guidance of JPY 11,500 million, Net income of JPY 77.74 against previous guidance of JPY 119.24 per basic share. Announcement • Dec 22
Benesse Holdings, Inc. to Report Q3, 2024 Results on Feb 09, 2024 Benesse Holdings, Inc. announced that they will report Q3, 2024 results on Feb 09, 2024 Valuation Update With 7 Day Price Move • Nov 17
Investor sentiment improves as stock rises 36% After last week's 36% share price gain to JP¥2,600, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 17x in the Consumer Services industry in Japan. Total returns to shareholders of 22% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,264 per share. New Risk • Nov 13
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 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.0% average weekly change). Reported Earnings • Nov 11
Second quarter 2024 earnings released: EPS: JP¥75.03 (vs JP¥80.59 in 2Q 2023) Second quarter 2024 results: EPS: JP¥75.03 (down from JP¥80.59 in 2Q 2023). Revenue: JP¥103.1b (up 1.7% from 2Q 2023). Net income: JP¥7.24b (down 6.9% from 2Q 2023). Profit margin: 7.0% (down from 7.7% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.1% 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 increased by 63% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Sep 22
Benesse Holdings, Inc. to Report Q2, 2024 Results on Nov 10, 2023 Benesse Holdings, Inc. announced that they will report Q2, 2024 results on Nov 10, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥30.00 per share at 3.2% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 05 December 2023. Payout ratio is a comfortable 48% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.6%). Price Target Changed • Aug 29
Price target decreased by 8.5% to JP¥1,976 Down from JP¥2,160, the current price target is an average from 5 analysts. New target price is 6.6% above last closing price of JP¥1,855. Stock is down 15% over the past year. The company is forecast to post earnings per share of JP¥120 for next year compared to JP¥118 last year. Reported Earnings • Aug 08
First quarter 2024 earnings released: JP¥16.75 loss per share (vs JP¥24.10 loss in 1Q 2023) First quarter 2024 results: JP¥16.75 loss per share (improved from JP¥24.10 loss in 1Q 2023). Revenue: JP¥100.5b (flat on 1Q 2023). Net loss: JP¥1.62b (loss narrowed 31% from 1Q 2023). Revenue is forecast to grow 2.4% p.a. on average during the next 3 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 58% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Announcement • Jun 04
Benesse Holdings, Inc. to Report Q1, 2024 Results on Aug 04, 2023 Benesse Holdings, Inc. announced that they will report Q1, 2024 results on Aug 04, 2023 Reported Earnings • May 14
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: JP¥118 (up from JP¥11.04 in FY 2022). Revenue: JP¥411.9b (down 4.6% from FY 2022). Net income: JP¥11.4b (up JP¥10.3b from FY 2022). Profit margin: 2.8% (up from 0.2% in FY 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) exceeded analyst estimates by 1.3%. Revenue is forecast to grow 2.0% 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 24% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Announcement • May 12
Benesse Holdings, Inc. (TSE:9783) agreed to acquire unknown minority stake in Waris Co., Ltd. Benesse Holdings, Inc. (TSE:9783) agreed to acquire unknown minority stake in Waris Co., Ltd on May 11, 2023. Benesse Holdings, Inc and existing shareholders including co-Chief Executive Officer's Fumika Yonekura, Miwa Tanaka, and Kyoko Kawa of Waris Co., Ltd have concluded a share transfer and underwriting agreement for the Benesse Holdings to acquire shares of Waris, following the share acquisition and underwriting of capital increase on June 30, 2023, Waris will become a consolidated subsidiary of the Benesse Holdings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥30.00 per share at 3.1% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.5%). Reported Earnings • Feb 10
Third quarter 2023 earnings released: EPS: JP¥67.92 (vs JP¥38.60 in 3Q 2022) Third quarter 2023 results: EPS: JP¥67.92 (up from JP¥38.60 in 3Q 2022). Revenue: JP¥107.0b (down 3.7% from 3Q 2022). Net income: JP¥6.55b (up 76% from 3Q 2022). Profit margin: 6.1% (up from 3.4% in 3Q 2022). Revenue is forecast to grow 2.4% p.a. on average during the next 3 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 fallen by 34% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Announcement • Feb 08
Benesse Holdings, Inc. Provides Dividend Guidance for the Fiscal Year Ending March 31, 2023 Benesse Holdings, Inc. provided dividend guidance for the fiscal year ending March 31, 2023. For the period, the company expects dividend of JPY 30.00 per share against JPY 25.00 per share a year ago. Announcement • Nov 27
Benesse Holdings, Inc. to Report Q3, 2023 Results on Feb 08, 2023 Benesse Holdings, Inc. announced that they will report Q3, 2023 results on Feb 08, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥80.59 (vs JP¥89.34 in 2Q 2022) Second quarter 2023 results: EPS: JP¥80.59 (down from JP¥89.34 in 2Q 2022). Revenue: JP¥101.3b (down 9.5% from 2Q 2022). Net income: JP¥7.77b (down 9.8% from 2Q 2022). Profit margin: 7.7% (in line with 2Q 2022). Revenue is forecast to grow 2.7% 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 51% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. 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, 3 were independent directors. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Outside Director Masaru Onishi 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 11
Second quarter 2023 earnings released: EPS: JP¥80.59 (vs JP¥89.34 in 2Q 2022) Second quarter 2023 results: EPS: JP¥80.59 (down from JP¥89.34 in 2Q 2022). Revenue: JP¥101.3b (down 9.5% from 2Q 2022). Net income: JP¥7.77b (down 9.8% from 2Q 2022). Profit margin: 7.7% (in line with 2Q 2022). Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Price Target Changed • Nov 10
Price target decreased to JP¥2,410 Down from JP¥2,650, the current price target is an average from 5 analysts. New target price is 22% above last closing price of JP¥1,971. Stock is down 18% over the past year. The company is forecast to post earnings per share of JP¥127 for next year compared to JP¥11.04 last year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 30 November 2022. The company is paying out more than 100% of its profits and is paying out 97% of its cash flow. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.5%). Reported Earnings • Aug 07
First quarter 2023 earnings released: JP¥24.10 loss per share (vs JP¥31.46 loss in 1Q 2022) First quarter 2023 results: JP¥24.10 loss per share (up from JP¥31.46 loss in 1Q 2022). Revenue: JP¥100.6b (down 4.6% from 1Q 2022). Net loss: JP¥2.32b (loss narrowed 23% from 1Q 2022). Over the next year, revenue is forecast to stay flat compared to a 8.5% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Major Estimate Revision • May 20
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 revenue forecast fell from JP¥442.9b to JP¥434.3b. EPS estimate rose from JP¥126 to JP¥140. Net income forecast to grow 1,173% next year vs 16% growth forecast for Consumer Services industry in Japan. Consensus price target broadly unchanged at JP¥2,760. Share price was steady at JP¥2,076 over the past week. Reported Earnings • May 17
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥11.04 (down from JP¥32.40 in FY 2021). Revenue: JP¥431.9b (up 1.0% from FY 2021). Net income: JP¥1.06b (down 66% from FY 2021). Profit margin: 0.2% (down from 0.7% in FY 2021). Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) also missed analyst estimates by 81%. Over the next year, revenue is forecast to grow 2.5%, compared to a 11% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Board Change • Apr 27
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, 3 were independent directors. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Outside Director Yumiko Noda was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. 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: 28 June 2022. Payout ratio is a comfortable 45% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.4%). In line with average of industry peers (2.2%). Reported Earnings • Feb 08
Third quarter 2022 earnings: EPS misses analyst expectations Third quarter 2022 results: EPS: JP¥53.21 (up from JP¥49.31 in 3Q 2021). Revenue: JP¥111.1b (up 2.2% from 3Q 2021). Net income: JP¥5.13b (up 7.9% from 3Q 2021). Profit margin: 4.6% (up from 4.4% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 24%. Over the next year, revenue is forecast to grow 2.8%, compared to a 14% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 07
Second quarter 2022 earnings released: EPS JP¥89.34 (vs JP¥82.44 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥111.9b (up 1.0% from 2Q 2021). Net income: JP¥8.61b (up 8.4% from 2Q 2021). Profit margin: 7.7% (up from 7.2% in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 01 December 2021. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.9%). Reported Earnings • Aug 11
First quarter 2022 earnings released: JP¥31.46 loss per share (vs JP¥58.86 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¥105.5b (up 7.5% from 1Q 2021). Net loss: JP¥3.03b (loss narrowed 47% from 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jul 17
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from JP¥80.75 to JP¥67.04 per share. Revenue forecast steady at JP¥438.7b. Net income forecast to grow 143% next year vs 45% growth forecast for Consumer Services industry in Japan. Consensus price target up from JP¥2,721 to JP¥2,810. Share price was steady at JP¥2,707 over the past week. Price Target Changed • May 18
Price target increased to JP¥2,750 Up from JP¥2,510, the current price target is an average from 5 analysts. New target price is 6.2% above last closing price of JP¥2,589. Stock is down 17% over the past year. Reported Earnings • May 14
Full year 2021 earnings released: EPS JP¥32.40 (vs JP¥65.28 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥427.5b (down 4.7% from FY 2020). Net income: JP¥3.12b (down 50% from FY 2020). Profit margin: 0.7% (down from 1.4% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has only fallen by 16% 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: 29 June 2021. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.9%). Is New 90 Day High Low • Mar 11
New 90-day high: JP¥2,263 The company is up 7.0% from its price of JP¥2,117 on 11 December 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Consumer Services industry, which is up 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥1,632 per share. Major Estimate Revision • Feb 13
Analysts update estimates The 2021 consensus earning per share (EPS) estimate increased from JP¥17.45 to JP¥21.83. Revenue estimate for the same period was approximately flat at JP¥425.4b. Net income is expected to grow by 4,361% next year compared to 25% growth forecast for the Consumer Services industry in Japan. The consensus price target was lowered from JP¥2,670 to JP¥2,510. Share price is up 2.9% to JP¥2,226 over the past week. Price Target Changed • Feb 10
Price target lowered to JP¥2,530 Down from JP¥2,730, the current price target is an average from 5 analysts. The new target price is 14% above the current share price of JP¥2,228. As of last close, the stock is down 30% over the past year. Reported Earnings • Feb 07
Third quarter 2021 earnings released: EPS JP¥49.31 (vs JP¥49.85 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and revenues, although profit margins were improved. Third quarter 2021 results: Revenue: JP¥108.6b (down 2.9% from 3Q 2020). Net income: JP¥4.75b (down 1.0% from 3Q 2020). Profit margin: 4.4% (up from 4.3% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 54% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Feb 07
Revenue and earnings miss expectations Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) also missed analyst estimates by 37%. Over the next year, revenue is forecast to grow 3.9%, compared to a 6.6% growth forecast for the Consumer Services industry in Japan. Major Estimate Revision • Dec 25
Analysts lower EPS estimates to JP¥17.45 The 2021 consensus revenue estimate was lowered from JP¥434.0b to JP¥426.9b. Earning per share (EPS) estimate was also lowered from JP¥21.81 to JP¥17.45 for the same period. Net income is expected to grow by 2,487% next year compared to 9.4% growth forecast for the Consumer Services industry in Japan. The consensus price target was lowered from JP¥2,730 to JP¥2,670. Share price is down by 4.2% to JP¥2,009 over the past week. Is New 90 Day High Low • Dec 25
New 90-day low: JP¥2,009 The company is down 27% from its price of JP¥2,749 on 25 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is down 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥1,590 per share. Is New 90 Day High Low • Dec 03
New 90-day low: JP¥2,175 The company is down 18% from its price of JP¥2,659 on 04 September 2020. The Japanese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥1,748 per share. 
