Upcoming Dividend • Jun 22
Upcoming dividend of JP¥5.00 per share Eligible shareholders must have bought the stock before 29 June 2026. Payment date: 03 September 2026. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 4.7%. Within top quartile of Japanese dividend payers (3.9%). Higher than average of industry peers (1.5%). Announcement • Jun 01
EM Systems Co., Ltd. to Report Q2, 2026 Results on Aug 10, 2026 EM Systems Co., Ltd. announced that they will report Q2, 2026 results on Aug 10, 2026 Reported Earnings • May 18
First quarter 2026 earnings released: EPS: JP¥2.24 (vs JP¥11.59 in 1Q 2025) First quarter 2026 results: EPS: JP¥2.24 (down from JP¥11.59 in 1Q 2025). Revenue: JP¥5.04b (down 17% from 1Q 2025). Net income: JP¥155.0m (down 81% from 1Q 2025). Profit margin: 3.1% (down from 13% in 1Q 2025). Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Healthcare Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • May 15
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥544, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 17x in the Healthcare Services industry in Japan. Total loss to shareholders of 22% over the past three years. Declared Dividend • Apr 11
Final dividend reduced to JP¥14.00 Dividend of JP¥14.00 is 18% lower than last year. Ex-date: 29th June 2026 Payment date: 3rd September 2026 Dividend yield will be 5.3%, which is higher than the industry average of 0.9%. Sustainability & Growth Dividend is not covered by earnings (110% earnings payout ratio) nor is it covered by cash flows (353% cash payout ratio). The dividend has increased by an average of 18% 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 22% to bring the payout ratio under control. EPS is expected to grow by 5.8% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Feb 14
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥35.44 (up from JP¥34.54 in FY 2024). Revenue: JP¥23.7b (down 4.7% from FY 2024). Net income: JP¥2.45b (up 1.1% from FY 2024). Profit margin: 10% (in line with FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 8.4%. Revenue is forecast to stay flat during the next 2 years compared to a 11% growth forecast for the Healthcare Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Feb 13
EM Systems Co., Ltd., Annual General Meeting, Mar 27, 2026 EM Systems Co., Ltd., Annual General Meeting, Mar 27, 2026. Announcement • Dec 27
EM Systems Co., Ltd. to Report Fiscal Year 2025 Results on Feb 13, 2026 EM Systems Co., Ltd. announced that they will report fiscal year 2025 results on Feb 13, 2026 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥22.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 31 March 2026. Payout ratio is on the higher end at 90%, however this is supported by cash flows. Trailing yield: 4.8%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.1%). Major Estimate Revision • Dec 12
Consensus EPS estimates increase by 24% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥22.6b to JP¥23.5b. EPS estimate increased from JP¥31.10 to JP¥38.70 per share. Net income forecast to shrink 35% next year vs 17% growth forecast for Healthcare Services industry in Japan . Consensus price target of JP¥1,300 unchanged from last update. Share price was steady at JP¥789 over the past week. New Risk • Dec 11
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 14% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 14% per year for the foreseeable future. Minor Risk Dividend is not well covered by earnings (90% payout ratio). Reported Earnings • Nov 18
Third quarter 2025 earnings released: EPS: JP¥11.54 (vs JP¥7.54 in 3Q 2024) Third quarter 2025 results: EPS: JP¥11.54 (up from JP¥7.54 in 3Q 2024). Revenue: JP¥5.97b (down 12% from 3Q 2024). Net income: JP¥799.0m (up 52% from 3Q 2024). Profit margin: 13% (up from 7.8% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is expected to decline by 2.0% p.a. on average during the next 3 years, while revenues in the Healthcare Services industry in Japan are expected to grow by 11%. 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 6% per year, which means it is significantly lagging earnings. Announcement • Sep 27
EM Systems Co., Ltd. to Report Q3, 2025 Results on Nov 14, 2025 EM Systems Co., Ltd. announced that they will report Q3, 2025 results on Nov 14, 2025 Announcement • Sep 12
EM Systems Co., Ltd. (TSE:4820) agreed to acquire precal Inc from Yoshiki Osuga and others. EM Systems Co., Ltd. (TSE:4820) agreed to acquire precal Inc from Yoshiki Osuga and others on September 11, 2025. EM Systems Co., Ltd. will acquire 0.02 million shares in precal Inc.
For the period ending June 30, 2025, precal Inc reported total revenue of ¥14 million, operating loss of ¥169 million and net loss of ¥157 million. As of June 30, 2025, precal Inc reported total assets of ¥176 million and total common equity of ¥140 million.
The expected completion of the transaction is September 30, 2025. Declared Dividend • Sep 04
First half dividend of JP¥18.00 announced Shareholders will receive a dividend of JP¥18.00. Ex-date: 29th December 2025 Payment date: 31st March 2026 Dividend yield will be 4.6%, which is higher than the industry average of 0.9%. Sustainability & Growth Dividend is not adequately covered by earnings (98% earnings payout ratio). However, it is covered by cash flows (56% cash payout ratio). The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 9.3% to bring the payout ratio under control. EPS is expected to grow by 22% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Buy Or Sell Opportunity • Aug 29
Now 21% undervalued The stock has been flat over the last 90 days, currently trading at JP¥755. The fair value is estimated to be JP¥951, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 14%. Revenue is forecast to decline by 10% in 2 years. Earnings are forecast to decline by 3.6% in the next 2 years. Buy Or Sell Opportunity • Aug 13
Now 20% undervalued Over the last 90 days, the stock has risen 6.1% to JP¥761. The fair value is estimated to be JP¥956, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 14%. Revenue is forecast to decline by 10% in 2 years. Earnings are forecast to decline by 3.6% in the next 2 years. Reported Earnings • Aug 09
Second quarter 2025 earnings released: EPS: JP¥6.71 (vs JP¥5.89 in 2Q 2024) Second quarter 2025 results: EPS: JP¥6.71 (up from JP¥5.89 in 2Q 2024). Revenue: JP¥5.44b (flat on 2Q 2024). Net income: JP¥464.0m (up 12% from 2Q 2024). Profit margin: 8.5% (up from 7.6% in 2Q 2024). Revenue is expected to decline by 2.5% p.a. on average during the next 3 years, while revenues in the Healthcare Services industry in Japan are expected to grow by 11%. 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 10% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥17.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 04 September 2025. Payout ratio is on the higher end at 82%, however this is supported by cash flows. Trailing yield: 4.9%. Within top quartile of Japanese dividend payers (4.0%). Higher than average of industry peers (1.1%). Buy Or Sell Opportunity • Jun 18
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 5.9% to JP¥736. The fair value is estimated to be JP¥922, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 8.4%. Revenue is forecast to decline by 11% in 2 years. Earnings are forecast to decline by 5.6% in the next 2 years. Announcement • May 31
EM Systems Co., Ltd. to Report Q2, 2025 Results on Aug 08, 2025 EM Systems Co., Ltd. announced that they will report Q2, 2025 results on Aug 08, 2025 Reported Earnings • May 20
First quarter 2025 earnings released: EPS: JP¥16.48 (vs JP¥8.09 in 1Q 2024) First quarter 2025 results: EPS: JP¥16.48 (up from JP¥8.09 in 1Q 2024). Revenue: JP¥6.71b (up 21% from 1Q 2024). Net income: JP¥1.14b (up 100% from 1Q 2024). Profit margin: 17% (up from 10% in 1Q 2024). Revenue is expected to decline by 2.4% p.a. on average during the next 3 years, while revenues in the Healthcare Services industry in Japan are expected to grow by 12%. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥666, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 16x in the Healthcare Services industry in Japan. Total loss to shareholders of 14% over the past three years. Announcement • Mar 27
EM Systems Co., Ltd. to Report Q1, 2025 Results on May 14, 2025 EM Systems Co., Ltd. announced that they will report Q1, 2025 results on May 14, 2025 New Risk • Mar 06
New minor risk - Dividend sustainability The dividend is not well covered by earnings. Payout ratio: 101% Dividend yield: 4.4% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings 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. However, this risk is mitigated by the fact the dividend is covered by cash flows. 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: Minor Risks Dividend is not well covered by earnings (101% payout ratio). Large one-off items impacting financial results. Reported Earnings • Feb 16
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥34.54 (up from JP¥27.76 in FY 2023). Revenue: JP¥24.8b (up 22% from FY 2023). Net income: JP¥2.43b (up 24% from FY 2023). Profit margin: 9.8% (in line with FY 2023). Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) also surpassed analyst estimates by 20%. Revenue is expected to decline by 4.0% p.a. on average during the next 2 years, while revenues in the Healthcare Services industry in Japan are expected to grow by 13%. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 2% per year. Announcement • Feb 14
EM Systems Co., Ltd., Annual General Meeting, Mar 28, 2025 EM Systems Co., Ltd., Annual General Meeting, Mar 28, 2025. Buy Or Sell Opportunity • Feb 14
Now 23% undervalued Over the last 90 days, the stock has risen 19% to JP¥763. The fair value is estimated to be JP¥985, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years, while earnings per share has been flat. Revenue is forecast to decline by 1.0% in 2 years. Earnings are forecast to grow by 21% in the next 2 years. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 29 March 2025. Payout ratio is a comfortable 53% and the cash payout ratio is 86%. Trailing yield: 3.7%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.4%). Major Estimate Revision • Dec 05
Consensus EPS estimates fall by 12%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from JP¥22.0b to JP¥23.8b. EPS estimate fell from JP¥32.80 to JP¥28.80 per share. Net income forecast to shrink 1.9% next year vs 32% growth forecast for Healthcare Services industry in Japan . Consensus price target of JP¥1,300 unchanged from last update. Share price rose 6.3% to JP¥762 over the past week. Announcement • Dec 03
EM Systems Co., Ltd. to Report Fiscal Year 2024 Results on Feb 14, 2025 EM Systems Co., Ltd. announced that they will report fiscal year 2024 results on Feb 14, 2025 New Risk • Nov 15
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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥640, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 19x in the Healthcare Services industry in Japan. Total loss to shareholders of 12% over the past three years. Announcement • Oct 06
EM Systems Co., Ltd. to Report Q3, 2024 Results on Nov 14, 2024 EM Systems Co., Ltd. announced that they will report Q3, 2024 results on Nov 14, 2024 Reported Earnings • Aug 13
Second quarter 2024 earnings released: EPS: JP¥5.89 (vs JP¥3.93 in 2Q 2023) Second quarter 2024 results: EPS: JP¥5.89 (up from JP¥3.93 in 2Q 2023). Revenue: JP¥5.42b (up 9.7% from 2Q 2023). Net income: JP¥414.0m (up 49% from 2Q 2023). Profit margin: 7.6% (up from 5.6% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Healthcare Services industry in Japan. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥539, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 18x in the Healthcare Services industry in Japan. Total loss to shareholders of 32% over the past three years. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥7.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 04 September 2024. Payout ratio is a comfortable 49% but the company is paying out more than the cash it is generating. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.3%). Announcement • Jun 02
EM Systems Co., Ltd. to Report Q2, 2024 Results on Aug 09, 2024 EM Systems Co., Ltd. announced that they will report Q2, 2024 results on Aug 09, 2024 Reported Earnings • May 17
First quarter 2024 earnings released: EPS: JP¥8.09 (vs JP¥7.23 in 1Q 2023) First quarter 2024 results: EPS: JP¥8.09 (up from JP¥7.23 in 1Q 2023). Revenue: JP¥5.57b (up 14% from 1Q 2023). Net income: JP¥571.0m (up 12% from 1Q 2023). Profit margin: 10% (in line with 1Q 2023). Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Healthcare Services industry in Japan. Announcement • Apr 03
EM Systems Co., Ltd. to Report Q1, 2024 Results on May 14, 2024 EM Systems Co., Ltd. announced that they will report Q1, 2024 results on May 14, 2024 Buy Or Sell Opportunity • Mar 25
Now 21% undervalued Over the last 90 days, the stock has risen 5.0% to JP¥720. The fair value is estimated to be JP¥914, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 3.9%. For the next 3 years, revenue is forecast to grow by 6.5% per annum. Earnings are also forecast to grow by 11% per annum over the same time period. Buy Or Sell Opportunity • Mar 25
Now 21% undervalued Over the last 90 days, the stock has risen 5.0% to JP¥720. The fair value is estimated to be JP¥914, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 3.9%. For the next 3 years, revenue is forecast to grow by 6.5% per annum. Earnings are also forecast to grow by 11% per annum over the same time period. Announcement • Feb 16
EM Systems Co., Ltd., Annual General Meeting, Mar 28, 2024 EM Systems Co., Ltd., Annual General Meeting, Mar 28, 2024. Reported Earnings • Feb 16
Full year 2023 earnings released: EPS: JP¥27.76 (vs JP¥26.74 in FY 2022) Full year 2023 results: EPS: JP¥27.76 (up from JP¥26.74 in FY 2022). Revenue: JP¥20.4b (up 20% from FY 2022). Net income: JP¥1.96b (up 3.6% from FY 2022). Profit margin: 9.6% (down from 11% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Feb 14
EM Systems Co., Ltd. (TSE:4820) announces an Equity Buyback for 1,600,000 shares, representing 2.26% for ¥1,000 million. EM Systems Co., Ltd. (TSE:4820) announces a share repurchase program. Under the program, the company will repurchase up to 1,600,000 shares, representing 2.26% of its issued share capital, for ¥1,000 million. The purpose of the program is to implement flexible capital policies in response to changes in the business environment, improve capital efficiency, and strengthen shareholder returns. The program will continue through December 30, 2024. As of December 31, 2023, the company had 70,696,151 issued shares (excluding treasury stock) and 3,818,649 treasury shares. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥7.00 per share at 2.2% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 25 March 2024. Payout ratio is a comfortable 66% and the cash payout ratio is 90%. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (0.8%). Announcement • Dec 15
EM Systems Co., Ltd. to Report Fiscal Year 2023 Results on Feb 14, 2024 EM Systems Co., Ltd. announced that they will report fiscal year 2023 results on Feb 14, 2024 Reported Earnings • Nov 12
Third quarter 2023 earnings released: EPS: JP¥8.03 (vs JP¥7.86 in 3Q 2022) Third quarter 2023 results: EPS: JP¥8.03 (up from JP¥7.86 in 3Q 2022). Revenue: JP¥5.38b (up 24% from 3Q 2022). Net income: JP¥568.0m (up 2.3% from 3Q 2022). Profit margin: 11% (down from 13% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Sep 28
EM Systems Co., Ltd. to Report Q3, 2023 Results on Nov 10, 2023 EM Systems Co., Ltd. announced that they will report Q3, 2023 results on Nov 10, 2023 New Risk • Sep 04
New major risk - Revenue and earnings growth Earnings have declined by 1.4% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 1.4% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (122% cash payout ratio). Profit margins are more than 30% lower than last year (8.6% net profit margin). New Risk • Aug 10
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.7% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining 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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (8.6% net profit margin). Upcoming Dividend • Jun 22
Upcoming dividend of JP¥5.00 per share at 1.5% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 04 September 2023. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (0.6%). Announcement • May 28
EM Systems Co., Ltd. to Report Q2, 2023 Results on Aug 09, 2023 EM Systems Co., Ltd. announced that they will report Q2, 2023 results on Aug 09, 2023 Reported Earnings • May 13
First quarter 2023 earnings released: EPS: JP¥7.23 (vs JP¥7.92 in 1Q 2022) First quarter 2023 results: EPS: JP¥7.23 (down from JP¥7.92 in 1Q 2022). Revenue: JP¥4.88b (up 22% from 1Q 2022). Net income: JP¥511.0m (down 9.2% from 1Q 2022). Profit margin: 11% (down from 14% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to stay flat during the next 3 years compared to a 12% growth forecast for the Healthcare Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 28
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥26.74 (up from JP¥25.72 in FY 2021). Revenue: JP¥16.9b (up 17% from FY 2021). Net income: JP¥1.89b (up 3.5% from FY 2021). Profit margin: 11% (down from 13% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 7.8%. Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Healthcare Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Price Target Changed • Mar 24
Price target decreased by 7.7% to JP¥1,200 Down from JP¥1,300, the current price target is provided by 1 analyst. New target price is 43% above last closing price of JP¥838. Stock is up 8.3% over the past year. The company is forecast to post earnings per share of JP¥31.80 for next year compared to JP¥26.74 last year. Reported Earnings • Feb 16
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥26.74 (up from JP¥25.72 in FY 2021). Revenue: JP¥16.9b (up 17% from FY 2021). Net income: JP¥1.89b (up 3.5% from FY 2021). Profit margin: 11% (down from 13% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 7.8%. Revenue is forecast to stay flat during the next 2 years compared to a 14% growth forecast for the Healthcare Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Buying Opportunity • Feb 03
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be JP¥1,171, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.0% over the last 3 years. Earnings per share has grown by 17%. Revenue is forecast to grow by 3.2% in 2 years. Earnings is forecast to grow by 24% in the next 2 years. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥7.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 22 March 2023. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (0.5%). Announcement • Dec 06
EM Systems Co., Ltd. to Report Fiscal Year 2022 Results on Feb 14, 2023 EM Systems Co., Ltd. announced that they will report fiscal year 2022 results on Feb 14, 2023 Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 4 independent directors. 6 non-independent directors. Independent External Director Shinobu Okamoto 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 12
Third quarter 2022 earnings released: EPS: JP¥7.86 (vs JP¥8.12 in 3Q 2021) Third quarter 2022 results: EPS: JP¥7.86 (down from JP¥8.12 in 3Q 2021). Revenue: JP¥4.33b (up 6.8% from 3Q 2021). Net income: JP¥555.0m (down 4.0% from 3Q 2021). Profit margin: 13% (down from 14% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Healthcare Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Sep 06
Investor sentiment deteriorated over the past week After last week's 15% share price decline to JP¥871, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 30x in the Healthcare Services industry in Japan. Total loss to shareholders of 5.2% over the past three years. Reported Earnings • Aug 11
Second quarter 2022 earnings released Second quarter 2022 results: EPS: JP¥7.43. Revenue: JP¥4.18b (flat on 2Q 2021). Net income: JP¥526.0m (up JP¥526.0m from 2Q 2021). Profit margin: 13% (up from null in 2Q 2021). Over the next year, revenue is forecast to grow 4.2%, compared to a 14% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 7% per year. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥4.00 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 02 September 2022. Payout ratio is a comfortable 37% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (0.5%). Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥1,034, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 32x in the Healthcare Services industry in Japan. Total returns to shareholders of 38% over the past three years. Major Estimate Revision • May 20
Consensus EPS estimates increase by 18% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from JP¥15.5b to JP¥17.0b. EPS estimate increased from JP¥25.60 to JP¥30.30 per share. Net income forecast to grow 2.1% next year vs 21% growth forecast for Healthcare Services industry in Japan. Consensus price target of JP¥1,200 unchanged from last update. Share price rose 6.8% to JP¥990 over the past week. Reported Earnings • May 16
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: JP¥7.92. Revenue: JP¥3.99b (flat on 1Q 2021). Net income: JP¥563.0m (up JP¥563.0m from 1Q 2021). Profit margin: 14% (up from null in 1Q 2021). Revenue exceeded analyst estimates by 5.7%. Earnings per share (EPS) also surpassed analyst estimates by 22%. Over the next year, revenue is forecast to grow 3.6%, compared to a 12% growth forecast for the industry in Japan. 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 9% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Apr 27
Price target decreased to JP¥1,200 Down from JP¥1,300, the current price target is provided by 1 analyst. New target price is 33% above last closing price of JP¥900. Stock is up 11% over the past year. The company is forecast to post earnings per share of JP¥25.60 for next year compared to JP¥25.72 last year. 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: 4 independent directors. 6 non-independent directors. Independent External Director Shinobu Okamoto 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 • Feb 10
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: JP¥25.72 (up from JP¥18.07 in FY 2020). Revenue: JP¥14.4b (up 7.9% from FY 2020). Net income: JP¥1.83b (up 42% from FY 2020). Profit margin: 13% (up from 9.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.1%. Earnings per share (EPS) also surpassed analyst estimates by 22%. Over the next year, revenue is forecast to grow 2.5%, compared to a 15% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥6.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 18 March 2022. Payout ratio is a comfortable 55% but the company is not cash flow positive. Trailing yield: 1.0%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (0.2%). Major Estimate Revision • Dec 16
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate increased from JP¥19.00 to JP¥21.10. Revenue forecast steady at JP¥14.0b. Net income forecast to grow 17% next year vs 36% growth forecast for Healthcare Services industry in Japan. Consensus price target down from JP¥1,300 to JP¥1,200. Share price rose 3.0% to JP¥783 over the past week. Major Estimate Revision • Mar 10
Analysts lower revenue estimates to JP¥15.2b The 2021 consensus revenue estimate decreased from JP¥17.4b. Earning per share (EPS) estimate was also lowered from JP¥23.90 to JP¥21.10 for the same period. Net income is expected to grow by 17% next year compared to 36% growth forecast for the Healthcare Services industry in Japan. The consensus price target of JP¥850 was unchanged from the last update. Share price stayed mostly flat at JP¥828 over the past week. Is New 90 Day High Low • Mar 03
New 90-day low: JP¥823 The company is down 4.0% from its price of JP¥853 on 03 December 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Healthcare Services industry, which is down 10.0% over the same period. Reported Earnings • Feb 14
Third quarter 2021 earnings released: EPS JP¥3.21 (vs JP¥4.37 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: JP¥3.34b (up 3.5% from 3Q 2020). Net income: JP¥260.0m (down 16% from 3Q 2020). Profit margin: 7.8% (down from 9.6% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Dec 24
New 90-day high: JP¥922 The company is up 4.0% from its price of JP¥883 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 Healthcare Services industry, which is up 41% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥1,222 per share. Price Target Changed • Dec 01
Price target lowered to JP¥850 Down from JP¥1,000, the current price target is an average from 2 analysts. The new target price is close to the current share price of JP¥845. As of last close, the stock is down 20% over the past year.