Buy Or Sell Opportunity • May 18
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.1% to JP¥1,380. The fair value is estimated to be JP¥1,733, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.2% over the last 3 years. Earnings per share has declined by 2.9%. For the next 3 years, revenue is forecast to grow by 2.5% per annum. Earnings are also forecast to grow by 13% per annum over the same time period. Reported Earnings • May 17
Full year 2026 earnings: EPS misses analyst expectations Full year 2026 results: EPS: JP¥84.70 (down from JP¥117 in FY 2025). Revenue: JP¥1.01t (up 1.5% from FY 2025). Net income: JP¥21.0b (down 28% from FY 2025). Profit margin: 2.1% (down from 2.9% in FY 2025). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 19%. Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Live News • May 16
Rengo Raises Dividend and Announces Share Buyback as Profitability Targets Set for Next Year Rengo reported higher sales but sharply lower earnings, citing margin pressure. The company nonetheless raised its annual dividend and outlined targets for improved earnings efficiency in the coming fiscal year.
The company also indicated plans for a further dividend hike alongside forecasts that point to a rebound in profits.
Rengo additionally announced a decision to buy back treasury shares, which could reduce the number of shares outstanding.
Taken together, the dividend increases and share buyback signal that management is willing to return more capital to shareholders even after a period of weaker profitability.
The key question for investors is whether the planned improvement in earnings efficiency will materialise as outlined, given the recent margin pressure and the higher shareholder payouts now being put in place. Announcement • May 14
Rengo Co., Ltd., Annual General Meeting, Jun 26, 2026 Rengo Co., Ltd., Annual General Meeting, Jun 26, 2026. Major Estimate Revision • May 14
Consensus EPS estimates increase by 22% The consensus outlook for fiscal year 2027 has been updated. 2027 EPS estimate increased from JP¥119 to JP¥145. Revenue forecast steady at JP¥1.06t. Net income forecast to grow 2.8% next year vs 24% growth forecast for Packaging industry in Japan. Consensus price target broadly unchanged at JP¥1,540. Share price rose 12% to JP¥1,385 over the past week. Announcement • May 14
Rengo Co., Ltd. (TSE:3941) announces an Equity Buyback for 25,000,000 shares, representing 10.08% for ¥25,000 million. Rengo Co., Ltd. (TSE:3941) announces a share repurchase program. Under the program, the company will repurchase up to 25,000,000 shares, representing 10.08% of its issued share capital (excluding treasury stock), for a total purchase price of ¥25,000 million. The purpose of the program is to enhance shareholder returns and improve capital efficiency. As of March 31, 2026, the company has 248,043,353 issued shares (excluding treasury stock) and 23,012,676 treasury shares. Announcement • May 09
Rengo Co., Ltd. to Report Fiscal Year 2026 Results on May 14, 2026 Rengo Co., Ltd. announced that they will report fiscal year 2026 results on May 14, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 30 June 2026. Payout ratio is a comfortable 26% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (3.1%). Buy Or Sell Opportunity • Mar 19
Now 20% undervalued Over the last 90 days, the stock has risen 7.7% to JP¥1,267. The fair value is estimated to be JP¥1,586, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.6% over the last 3 years. Earnings per share has grown by 4.7%. For the next 3 years, revenue is forecast to grow by 2.4% per annum. Earnings are also forecast to grow by 4.5% per annum over the same time period. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,321, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 14x in the Packaging industry in Asia. Total returns to shareholders of 68% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,575 per share. Price Target Changed • Feb 10
Price target increased by 15% to JP¥1,467 Up from JP¥1,277, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of JP¥1,480. Stock is up 81% over the past year. The company is forecast to post earnings per share of JP¥97.14 for next year compared to JP¥117 last year. Reported Earnings • Feb 05
Third quarter 2026 earnings released: EPS: JP¥76.98 (vs JP¥30.14 in 3Q 2025) Third quarter 2026 results: EPS: JP¥76.98 (up from JP¥30.14 in 3Q 2025). Revenue: JP¥261.5b (up 6.2% from 3Q 2025). Net income: JP¥19.1b (up 156% from 3Q 2025). Profit margin: 7.3% (up from 3.0% in 3Q 2025). Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 15% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Dec 19
Price target increased by 7.7% to JP¥1,277 Up from JP¥1,185, the current price target is an average from 6 analysts. New target price is 8.6% above last closing price of JP¥1,176. Stock is up 38% over the past year. The company is forecast to post earnings per share of JP¥97.68 for next year compared to JP¥117 last year. Declared Dividend • Dec 04
First half dividend of JP¥20.00 announced Shareholders will receive a dividend of JP¥20.00. Ex-date: 30th March 2026 Payment date: 30th June 2026 Dividend yield will be 3.6%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is covered by earnings (18% earnings payout ratio) but 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 13% 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. EPS is expected to grow by 49% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Dec 02
Price target increased by 7.5% to JP¥1,152 Up from JP¥1,072, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of JP¥1,110. Stock is up 25% over the past year. The company is forecast to post earnings per share of JP¥96.13 for next year compared to JP¥117 last year. Announcement • Nov 29
Rengo Co., Ltd. to Report Q3, 2026 Results on Feb 03, 2026 Rengo Co., Ltd. announced that they will report Q3, 2026 results on Feb 03, 2026 Reported Earnings • Nov 08
Second quarter 2026 earnings released: EPS: JP¥20.29 (vs JP¥19.71 in 2Q 2025) Second quarter 2026 results: EPS: JP¥20.29 (up from JP¥19.71 in 2Q 2025). Revenue: JP¥247.8b (down 1.1% from 2Q 2025). Net income: JP¥5.03b (up 3.0% from 2Q 2025). Profit margin: 2.0% (up from 1.9% in 2Q 2025). The increase in margin was driven by lower expenses. Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has increased by 5% per year and the company’s share price has also increased by 5% per year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 03 December 2025. Payout ratio is a comfortable 35% but the company is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (3.0%). Announcement • Sep 22
Rengo Co., Ltd.(TSE:3941) dropped from FTSE All-World Index (USD) Rengo Co., Ltd.(TSE:3941) dropped from FTSE All-World Index (USD) Announcement • Sep 01
Rengo Co., Ltd. to Report Q2, 2026 Results on Nov 06, 2025 Rengo Co., Ltd. announced that they will report Q2, 2026 results on Nov 06, 2025 Reported Earnings • Aug 06
First quarter 2026 earnings released: EPS: JP¥24.22 (vs JP¥56.49 in 1Q 2025) First quarter 2026 results: EPS: JP¥24.22 (down from JP¥56.49 in 1Q 2025). Revenue: JP¥249.4b (up 2.0% from 1Q 2025). Net income: JP¥6.00b (down 57% from 1Q 2025). Profit margin: 2.4% (down from 5.7% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 9.3% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Declared Dividend • Jul 09
Final dividend of JP¥15.00 announced Dividend of JP¥15.00 is the same as last year. Ex-date: 29th September 2025 Payment date: 3rd December 2025 Dividend yield will be 3.6%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is covered by earnings (28% earnings payout ratio) but 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 9.6% 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. EPS is expected to grow by 7.1% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • Jun 13
Consensus EPS estimates increase by 12% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from JP¥99.85 to JP¥112. Revenue forecast steady at JP¥1.01t. Net income forecast to shrink 8.4% next year vs 36% growth forecast for Packaging industry in Japan . Consensus price target broadly unchanged at JP¥1,005. Share price was steady at JP¥734 over the past week. Announcement • May 31
Rengo Co., Ltd. to Report Q1, 2026 Results on Aug 05, 2025 Rengo Co., Ltd. announced that they will report Q1, 2026 results on Aug 05, 2025 Major Estimate Revision • May 24
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from JP¥118 to JP¥105 per share. Revenue forecast steady at JP¥1.02t. Net income forecast to shrink 2.6% next year vs 11% growth forecast for Packaging industry in Japan . Consensus price target broadly unchanged at JP¥1,040. Share price was steady at JP¥730 over the past week. New Risk • May 13
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 18% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (18% operating cash flow to total debt). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • May 10
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥117 (down from JP¥133 in FY 2024). Revenue: JP¥993.3b (up 10% from FY 2024). Net income: JP¥29.0b (down 12% from FY 2024). Profit margin: 2.9% (down from 3.7% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.1%. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 2.4% growth forecast for the Packaging industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • May 09
Rengo Co., Ltd., Annual General Meeting, Jun 27, 2025 Rengo Co., Ltd., Annual General Meeting, Jun 27, 2025. Announcement • May 01
Rengo Co., Ltd. (TSE:3941) completed the acquisition of Shinko, Inc. Rengo Co., Ltd. (TSE:3941) acquired Shinko, Inc. on April 30, 2025.
For the period ending February 28, 2025, Shinko, Inc. reported total revenue of ¥1.7 billion.
Rengo Co., Ltd. (TSE:3941) completed the acquisition of Shinko, Inc. on April 30, 2025. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (3.1%). Announcement • Mar 01
Rengo Co., Ltd. to Report Fiscal Year 2025 Results on May 09, 2025 Rengo Co., Ltd. announced that they will report fiscal year 2025 results at 12:00 PM, Tokyo Standard Time on May 09, 2025 Reported Earnings • Feb 05
Third quarter 2025 earnings released: EPS: JP¥30.14 (vs JP¥58.83 in 3Q 2024) Third quarter 2025 results: EPS: JP¥30.14 (down from JP¥58.83 in 3Q 2024). Revenue: JP¥246.4b (up 3.1% from 3Q 2024). Net income: JP¥7.47b (down 49% from 3Q 2024). Profit margin: 3.0% (down from 6.1% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 2.4% growth forecast for the Packaging 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 2% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Dec 24
Now 21% overvalued Over the last 90 days, the stock has fallen 14% to JP¥859. The fair value is estimated to be JP¥709, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.3% over the last 3 years. Earnings per share has grown by 7.6%. For the next 3 years, revenue is forecast to grow by 3.9% per annum. Earnings are also forecast to grow by 4.1% per annum over the same time period. Announcement • Dec 03
Rengo Co., Ltd. to Report Q3, 2025 Results on Feb 04, 2025 Rengo Co., Ltd. announced that they will report Q3, 2025 results on Feb 04, 2025 Buy Or Sell Opportunity • Nov 06
Now 23% overvalued Over the last 90 days, the stock has fallen 3.3% to JP¥888. The fair value is estimated to be JP¥722, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.3% over the last 3 years. Earnings per share has grown by 7.6%. For the next 3 years, revenue is forecast to grow by 3.5% per annum. Earnings are also forecast to grow by 4.9% per annum over the same time period. Reported Earnings • Nov 03
Second quarter 2025 earnings released: EPS: JP¥19.71 (vs JP¥35.49 in 2Q 2024) Second quarter 2025 results: EPS: JP¥19.71 (down from JP¥35.49 in 2Q 2024). Revenue: JP¥250.6b (up 9.4% from 2Q 2024). Net income: JP¥4.89b (down 44% from 2Q 2024). Profit margin: 1.9% (down from 3.8% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 2.4% growth forecast for the Packaging industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (3.1%). Announcement • Aug 27
Rengo Co., Ltd. to Report Q2, 2025 Results on Nov 01, 2024 Rengo Co., Ltd. announced that they will report Q2, 2025 results on Nov 01, 2024 Reported Earnings • Aug 03
First quarter 2025 earnings released: EPS: JP¥56.49 (vs JP¥38.83 in 1Q 2024) First quarter 2025 results: EPS: JP¥56.49 (up from JP¥38.83 in 1Q 2024). Revenue: JP¥244.5b (up 9.3% from 1Q 2024). Net income: JP¥14.0b (up 46% from 1Q 2024). Profit margin: 5.7% (up from 4.3% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 1% per year. Announcement • Jun 02
Rengo Co., Ltd. to Report Q1, 2025 Results on Aug 01, 2024 Rengo Co., Ltd. announced that they will report Q1, 2025 results on Aug 01, 2024 Reported Earnings • May 12
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥133 (up from JP¥82.47 in FY 2023). Revenue: JP¥900.8b (up 6.5% from FY 2023). Net income: JP¥33.0b (up 62% from FY 2023). Profit margin: 3.7% (up from 2.4% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 7.4%. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • May 12
Rengo Co., Ltd., Annual General Meeting, Jun 27, 2024 Rengo Co., Ltd., Annual General Meeting, Jun 27, 2024. Price Target Changed • Apr 12
Price target increased by 8.3% to JP¥1,362 Up from JP¥1,258, the current price target is an average from 5 analysts. New target price is 16% above last closing price of JP¥1,172. Stock is up 35% over the past year. The company is forecast to post earnings per share of JP¥144 for next year compared to JP¥82.47 last year. Announcement • Apr 04
Rengo Co., Ltd. (TSE:3941) acquired 60% stake in Biomaterial in Tokyo Co. Ltd. Rengo Co., Ltd. (TSE:3941) acquired 60% stake in Biomaterial in Tokyo Co. Ltd. on April 3, 2024.Rengo Co., Ltd. (TSE:3941) completed the acquisition of 60% stake in Biomaterial in Tokyo Co. Ltd. on April 3, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 25% but the company is not cash flow positive. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.2%). In line with average of industry peers (2.7%). Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,154, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 15x in the Packaging industry in Asia. Total returns to shareholders of 33% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,097 per share. Announcement • Mar 02
Rengo Co., Ltd. to Report Q4, 2024 Results on May 10, 2024 Rengo Co., Ltd. announced that they will report Q4, 2024 results on May 10, 2024 Reported Earnings • Feb 08
Third quarter 2024 earnings released: EPS: JP¥58.83 (vs JP¥21.89 in 3Q 2023) Third quarter 2024 results: EPS: JP¥58.83 (up from JP¥21.89 in 3Q 2023). Revenue: JP¥238.9b (up 3.1% from 3Q 2023). Net income: JP¥14.6b (up 169% from 3Q 2023). Profit margin: 6.1% (up from 2.3% in 3Q 2023). Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Jan 22
Now 20% overvalued Over the last 90 days, the stock has fallen 3.9% to JP¥945. The fair value is estimated to be JP¥787, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has declined by 9.9%. For the next 3 years, revenue is forecast to grow by 3.4% per annum. Earnings are also forecast to grow by 6.3% per annum over the same time period. Announcement • Nov 26
Rengo Co., Ltd. to Report Q3, 2024 Results on Feb 06, 2024 Rengo Co., Ltd. announced that they will report Q3, 2024 results on Feb 06, 2024 Announcement • Nov 17
Rengo Co., Ltd. (TSE:3941) acquired 30% stake in Velvin Containers Private Limited. Rengo Co., Ltd. (TSE:3941) acquired 30% stake in Velvin Containers Private Limited on November 16, 2023. Velvin Containers Private Limited will change its name to Velvin Rengo Containers Private Limited.Rengo Co., Ltd. (TSE:3941) completed the acquisition of 30% stake in Velvin Containers Private Limited on November 16, 2023. Reported Earnings • Nov 04
Second quarter 2024 earnings released: EPS: JP¥35.49 (vs JP¥22.36 in 2Q 2023) Second quarter 2024 results: EPS: JP¥35.49 (up from JP¥22.36 in 2Q 2023). Revenue: JP¥229.1b (up 7.4% from 2Q 2023). Net income: JP¥8.79b (up 59% from 2Q 2023). Profit margin: 3.8% (up from 2.6% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Packaging industry in Japan. 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 4% per year, which means it is well ahead of earnings. Buying Opportunity • Nov 02
Now 23% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be JP¥1,225, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.2% over the last 3 years. Earnings per share has declined by 10%. For the next 3 years, revenue is forecast to grow by 3.6% per annum. Earnings is also forecast to grow by 9.0% per annum over the same time period. Buying Opportunity • Oct 04
Now 21% undervalued Over the last 90 days, the stock is up 10%. The fair value is estimated to be JP¥1,228, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.2% over the last 3 years. Earnings per share has declined by 10%. For the next 3 years, revenue is forecast to grow by 3.6% per annum. Earnings is also forecast to grow by 9.0% per annum over the same time period. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥12.00 per share at 2.3% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 04 December 2023. Payout ratio is a comfortable 25% but the company is paying out more than the cash it is generating. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (2.7%). Announcement • Aug 30
Rengo Co., Ltd. to Report Q2, 2024 Results on Nov 02, 2023 Rengo Co., Ltd. announced that they will report Q2, 2024 results on Nov 02, 2023 Reported Earnings • Aug 04
First quarter 2024 earnings released: EPS: JP¥38.83 (vs JP¥26.26 in 1Q 2023) First quarter 2024 results: EPS: JP¥38.83 (up from JP¥26.26 in 1Q 2023). Revenue: JP¥223.8b (up 12% from 1Q 2023). Net income: JP¥9.62b (up 48% from 1Q 2023). Profit margin: 4.3% (up from 3.2% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Packaging industry in Japan. 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 6% per year, which means it is well ahead of earnings. Announcement • May 31
Rengo Co., Ltd. to Report Q1, 2024 Results on Aug 03, 2023 Rengo Co., Ltd. announced that they will report Q1, 2024 results on Aug 03, 2023 Reported Earnings • May 15
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: JP¥82.47 (down from JP¥114 in FY 2022). Revenue: JP¥846.1b (up 13% from FY 2022). Net income: JP¥20.4b (down 28% from FY 2022). Profit margin: 2.4% (down from 3.8% 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 14%. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Packaging industry in Japan. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • May 14
Rengo Co., Ltd., Annual General Meeting, Jun 29, 2023 Rengo Co., Ltd., Annual General Meeting, Jun 29, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥12.00 per share at 2.8% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (3.2%). Reported Earnings • Feb 09
Third quarter 2023 earnings released: EPS: JP¥21.89 (vs JP¥27.41 in 3Q 2022) Third quarter 2023 results: EPS: JP¥21.89 (down from JP¥27.41 in 3Q 2022). Revenue: JP¥231.8b (up 19% from 3Q 2022). Net income: JP¥5.42b (down 20% from 3Q 2022). Profit margin: 2.3% (down from 3.5% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Packaging industry in Japan. 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 2% per year, which means it is well ahead of earnings. Major Estimate Revision • Dec 10
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 revenue forecast increased from JP¥830.5b to JP¥846.5b. EPS estimate fell from JP¥116 to JP¥101 per share. Net income forecast to grow 44% next year vs 29% growth forecast for Packaging industry in Japan. Consensus price target of JP¥1,048 unchanged from last update. Share price was steady at JP¥871 over the past week. Major Estimate Revision • Dec 02
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 EPS estimate increased from JP¥92.90 to JP¥116. Revenue forecast steady at JP¥830.5b. Net income forecast to grow 49% next year vs 29% growth forecast for Packaging industry in Japan. Consensus price target broadly unchanged at JP¥1,048. Share price fell 2.6% to JP¥865 over the past week. Announcement • Nov 27
Rengo Co., Ltd. to Report Q3, 2023 Results on Feb 07, 2023 Rengo Co., Ltd. announced that they will report Q3, 2023 results on Feb 07, 2023 Reported Earnings • Nov 18
Second quarter 2023 earnings released: EPS: JP¥22.36 (vs JP¥27.26 in 2Q 2022) Second quarter 2023 results: EPS: JP¥22.36 (down from JP¥27.26 in 2Q 2022). Revenue: JP¥213.4b (up 17% from 2Q 2022). Net income: JP¥5.54b (down 18% from 2Q 2022). Profit margin: 2.6% (down from 3.7% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Packaging industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 4% per year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Outside Director Kaoru Tamaoka was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 04
Second quarter 2023 earnings released: EPS: JP¥22.36 (vs JP¥27.26 in 2Q 2022) Second quarter 2023 results: EPS: JP¥22.36 (down from JP¥27.26 in 2Q 2022). Revenue: JP¥213.4b (up 17% from 2Q 2022). Net income: JP¥5.54b (down 18% from 2Q 2022). Profit margin: 2.6% (down from 3.7% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Packaging industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 2% per year. Price Target Changed • Oct 26
Price target increased to JP¥1,038 Up from JP¥968, the current price target is an average from 5 analysts. New target price is 24% above last closing price of JP¥835. Stock is down 3.4% over the past year. The company is forecast to post earnings per share of JP¥112 for next year compared to JP¥114 last year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥12.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 05 December 2022. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (3.1%). Announcement • Sep 02
Rengo Co., Ltd. to Report Q2, 2023 Results on Nov 02, 2022 Rengo Co., Ltd. announced that they will report Q2, 2023 results on Nov 02, 2022 Reported Earnings • Aug 03
First quarter 2023 earnings: EPS exceeds analyst expectations First quarter 2023 results: EPS: JP¥26.26 (down from JP¥49.79 in 1Q 2022). Revenue: JP¥200.1b (up 11% from 1Q 2022). Net income: JP¥6.50b (down 47% from 1Q 2022). Profit margin: 3.2% (down from 6.8% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.5%. Over the next year, revenue is forecast to grow 8.6%, compared to a 8.7% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • May 29
Rengo Co., Ltd. to Report Q1, 2023 Results on Aug 02, 2022 Rengo Co., Ltd. announced that they will report Q1, 2023 results on Aug 02, 2022 Reported Earnings • May 17
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: JP¥114 (down from JP¥116 in FY 2021). Revenue: JP¥746.9b (up 9.7% from FY 2021). Net income: JP¥28.2b (down 1.4% from FY 2021). Profit margin: 3.8% (down from 4.2% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.3%. Over the next year, revenue is forecast to grow 6.1%, compared to a 7.3% growth forecast for the 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 9% per year, which means it is significantly lagging earnings.