New Risk • Jun 01
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 91% Dividend yield: 3.9% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 3.2% per year for the foreseeable future. Minor Risks Dividend is not well covered by cash flows (91% cash payout ratio). Share price has been volatile over the past 3 months (9.3% average weekly change). Valuation Update With 7 Day Price Move • May 28
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥3,050, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 15x in the Chemicals industry in Japan. Total returns to shareholders of 182% over the past three years. Reported Earnings • May 13
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥435 (up from JP¥220 in FY 2025). Revenue: JP¥154.9b (up 6.7% from FY 2025). Net income: JP¥16.6b (up 98% from FY 2025). Profit margin: 11% (up from 5.8% in FY 2025). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 28%. Revenue is forecast to stay flat during the next 2 years compared to a 4.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 34% per year whereas the company’s share price has increased by 30% per year. Announcement • May 12
Ishihara Sangyo Kaisha,Ltd., Annual General Meeting, Jun 25, 2026 Ishihara Sangyo Kaisha,Ltd., Annual General Meeting, Jun 25, 2026. Buy Or Sell Opportunity • Apr 03
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 2.7% to JP¥2,816. The fair value is estimated to be JP¥2,333, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.1% over the last 3 years. Earnings per share has grown by 22%. Revenue is forecast to grow by 0.8% in 2 years. Earnings are forecast to decline by 24% in the next 2 years. New Risk • Mar 23
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 6.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 11% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (6.6% average weekly change). Upcoming Dividend • Mar 23
Upcoming dividend of JP¥90.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 29 June 2026. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.3%). Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥3,950, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 15x in the Chemicals industry in Japan. Total returns to shareholders of 324% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,357 per share. Reported Earnings • Feb 15
Third quarter 2026 earnings released: EPS: JP¥103 (vs JP¥28.02 in 3Q 2025) Third quarter 2026 results: EPS: JP¥103 (up from JP¥28.02 in 3Q 2025). Revenue: JP¥31.6b (up 2.3% from 3Q 2025). Net income: JP¥3.96b (up 269% from 3Q 2025). Profit margin: 13% (up from 3.5% in 3Q 2025). The increase in margin was primarily driven by lower expenses. Revenue is forecast to stay flat during the next 3 years compared to a 4.4% growth forecast for the Chemicals 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 increased by 47% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Feb 09
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 2.3% 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. This is currently the only risk that has been identified for the company. Price Target Changed • Jan 07
Price target decreased by 11% to JP¥2,190 Down from JP¥2,460, the current price target is an average from 2 analysts. New target price is 20% below last closing price of JP¥2,747. Stock is up 80% over the past year. The company is forecast to post earnings per share of JP¥337 for next year compared to JP¥220 last year. Declared Dividend • Dec 09
First half dividend of JP¥70.00 announced Shareholders will receive a dividend of JP¥70.00. Ex-date: 30th March 2026 Payment date: 29th June 2026 Dividend yield will be 3.7%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by both earnings (33% earnings payout ratio) and cash flows (54% cash payout ratio). The dividend has increased by an average of 51% per year over the past 6 years and payments have been stable during that time. EPS is expected to grow by 2.9% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • Dec 05
Consensus EPS estimates increase by 27% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥147.2b to JP¥150.6b. EPS estimate increased from JP¥266 to JP¥337 per share. Net income forecast to shrink 6.5% next year vs 9.1% growth forecast for Chemicals industry in Japan . Consensus price target of JP¥2,627 unchanged from last update. Share price fell 4.2% to JP¥2,690 over the past week. Reported Earnings • Nov 08
Second quarter 2026 earnings released: EPS: JP¥23.84 (vs JP¥56.14 loss in 2Q 2025) Second quarter 2026 results: EPS: JP¥23.84 (up from JP¥56.14 loss in 2Q 2025). Revenue: JP¥33.9b (down 8.2% from 2Q 2025). Net income: JP¥912.0m (up JP¥3.06b from 2Q 2025). Profit margin: 2.7% (up from net loss in 2Q 2025). The move to profitability was driven by lower expenses. Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Chemicals 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 increased by 35% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 20
ISHIHARA SANGYO KAISHA, LTD Launches "Lushade®? Black," an Ultra-Low Reflectance Structural Black Pigment That Absorbs over 99.0% of Visible Light ISHIHARA SANGYO KAISHA, LTD. has established full-scale production of LUSHADE®? BLACK--an ultra-low reflectance black pigment that absorbs over 99.0% of visible light--and is now ready to expand its sales into global market. LUSHADE®? BLACK is an ultra-low reflectance structural black pigment that absorbs more than 99.0% of visiblelight. This exceptional optical property helps suppress stray light and enhances the appearance of optical devices. Additionally, its infrared reflectivity enables the formulation of black coatings that reflect infrared light. When used in coatings, it also helps suppress surface temperature rise. LUSHADE®? Black is a bismuth sulfide black pigment featuring a surface structure resembling sea urchin spines. This structure enables the pigment to absorb more than 99.0% the visible light, resulting in an ultra-black pigment with extremely low reflectance. Moreover, it reflects infrared light, making it suitable for infrared-reflective black coatings. It also effectively suppresses surface temperature rise, helping to reduce heating of the coated surface. With these properties, LUSHADE®? BLACK are expected to find applications in the following areas. Black Coating for Optical Lens Edges: Utilizes its low reflectance to prevent stray light for improved optical performance. Low-Reflectance Coating Inside Camera Modules: Red reduces internal reflections, contributing to clear and sharp image quality. Infrared-Reflective Black Coatings: Suitable for use in infrared-reflective black coating for infrared-based devices, such as LiDAR, and for reducing surface temperature rise. LUSHade®? BLACK is expected to become a key material that supports next-generation optical technologies across a wide range of industries. Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: JP¥124 (vs JP¥75.22 in 1Q 2025) First quarter 2026 results: EPS: JP¥124 (up from JP¥75.22 in 1Q 2025). Revenue: JP¥42.6b (up 13% from 1Q 2025). Net income: JP¥4.74b (up 65% from 1Q 2025). Profit margin: 11% (up from 7.6% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.1% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals 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 34% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Jul 28
Now 21% undervalued Over the last 90 days, the stock has risen 27% to JP¥2,199. The fair value is estimated to be JP¥2,772, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.6% over the last 3 years. Earnings per share has declined by 21%. For the next 3 years, revenue is forecast to grow by 2.0% per annum. Earnings are also forecast to grow by 17% per annum over the same time period. Reported Earnings • Jul 01
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: JP¥220 (up from JP¥209 in FY 2024). Revenue: JP¥145.2b (up 4.9% from FY 2024). Net income: JP¥8.41b (up 5.3% from FY 2024). Profit margin: 5.8% (in line with FY 2024). Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) exceeded analyst estimates by 26%. Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 27% per year, which means it is well ahead of earnings. Price Target Changed • Jun 04
Price target increased by 13% to JP¥2,333 Up from JP¥2,067, the current price target is an average from 2 analysts. New target price is 23% above last closing price of JP¥1,895. Stock is up 19% over the past year. The company is forecast to post earnings per share of JP¥229 for next year compared to JP¥220 last year. Reported Earnings • May 09
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥220 (up from JP¥209 in FY 2024). Revenue: JP¥145.2b (up 4.9% from FY 2024). Net income: JP¥8.41b (up 5.3% from FY 2024). Profit margin: 5.8% (in line with FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.1%. Revenue is forecast to grow 4.3% p.a. on average during the next 2 years, compared to a 4.6% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Announcement • May 08
Ishihara Sangyo Kaisha,Ltd., Annual General Meeting, Jun 26, 2025 Ishihara Sangyo Kaisha,Ltd., Annual General Meeting, Jun 26, 2025. Price Target Changed • Apr 16
Price target increased by 16% to JP¥2,400 Up from JP¥2,067, the current price target is an average from 2 analysts. New target price is 48% above last closing price of JP¥1,623. Stock is down 7.6% over the past year. The company is forecast to post earnings per share of JP¥175 for next year compared to JP¥209 last year. New Risk • Apr 08
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 6.3% 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 Dividend is not well covered by cash flows (170% cash payout ratio). Share price has been volatile over the past 3 months (6.3% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to JP¥1,433, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 10x in the Chemicals industry in Japan. Total returns to shareholders of 57% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥85.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 27 June 2025. Payout ratio is a comfortable 39% but the company is paying out more than the cash it is generating. Trailing yield: 4.5%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.6%). Reported Earnings • Feb 14
Third quarter 2025 earnings released: EPS: JP¥28.02 (vs JP¥23.75 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥28.02 (up from JP¥23.75 loss in 3Q 2024). Revenue: JP¥30.9b (flat on 3Q 2024). Net income: JP¥1.07b (up JP¥1.98b from 3Q 2024). Profit margin: 3.5% (up from net loss in 3Q 2024). Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Major Estimate Revision • Dec 03
Consensus EPS estimates fall by 15%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from JP¥145.6b to JP¥148.3b. EPS estimate fell from JP¥194 to JP¥165 per share. Net income forecast to grow 67% next year vs 13% growth forecast for Chemicals industry in Japan. Consensus price target of JP¥2,067 unchanged from last update. Share price was steady at JP¥1,474 over the past week. Declared Dividend • Nov 11
Dividend of JP¥70.00 announced Shareholders will receive a dividend of JP¥70.00. Ex-date: 28th March 2025 Payment date: 27th June 2025 Dividend yield will be 5.0%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (54% 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 42% per year over the past 5 years and payments have been stable during that time. EPS is expected to grow by 110% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 09
Second quarter 2025 earnings released: JP¥56.14 loss per share (vs JP¥32.41 loss in 2Q 2024) Second quarter 2025 results: JP¥56.14 loss per share (further deteriorated from JP¥32.41 loss in 2Q 2024). Revenue: JP¥36.9b (up 23% from 2Q 2024). Net loss: JP¥2.15b (loss widened 74% from 2Q 2024). Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Reported Earnings • Aug 14
First quarter 2025 earnings released: EPS: JP¥75.22 (vs JP¥131 in 1Q 2024) First quarter 2025 results: EPS: JP¥75.22 (down from JP¥131 in 1Q 2024). Revenue: JP¥37.6b (flat on 1Q 2024). Net income: JP¥2.87b (down 42% from 1Q 2024). Profit margin: 7.6% (down from 13% in 1Q 2024). Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Chemicals 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 8% per year, which means it is well ahead of earnings. New Risk • Aug 05
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 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.9% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 27% After last week's 27% share price decline to JP¥1,142, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Chemicals industry in Japan. Total returns to shareholders of 13% over the past three years. Price Target Changed • May 12
Price target decreased by 8.5% to JP¥2,087 Down from JP¥2,280, the current price target is an average from 3 analysts. New target price is 13% above last closing price of JP¥1,843. Stock is up 43% over the past year. The company is forecast to post earnings per share of JP¥186 for next year compared to JP¥209 last year. Announcement • May 12
Ishihara Sangyo Kaisha,Ltd., Annual General Meeting, Jun 26, 2024 Ishihara Sangyo Kaisha,Ltd., Annual General Meeting, Jun 26, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 24% but the company is not cash flow positive. Trailing yield: 3.4%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.1%). Reported Earnings • Feb 10
Third quarter 2024 earnings released: JP¥23.75 loss per share (vs JP¥35.25 loss in 3Q 2023) Third quarter 2024 results: JP¥23.75 loss per share (improved from JP¥35.25 loss in 3Q 2023). Revenue: JP¥31.0b (up 3.4% from 3Q 2023). Net loss: JP¥907.0m (loss narrowed 35% from 3Q 2023). Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Chemicals 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 increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Nov 11
Second quarter 2024 earnings released: JP¥32.41 loss per share (vs JP¥23.70 profit in 2Q 2023) Second quarter 2024 results: JP¥32.41 loss per share (down from JP¥23.70 profit in 2Q 2023). Revenue: JP¥29.9b (down 3.2% from 2Q 2023). Net loss: JP¥1.24b (down 231% from profit in 2Q 2023). Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 32% per year and the company’s share price has also increased by 32% per year. Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥131 (vs JP¥86.70 in 1Q 2023) First quarter 2024 results: EPS: JP¥131 (up from JP¥86.70 in 1Q 2023). Revenue: JP¥37.6b (up 13% from 1Q 2023). Net income: JP¥4.99b (up 44% from 1Q 2023). Profit margin: 13% (up from 10% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jun 20
Price target increased by 12% to JP¥2,050 Up from JP¥1,827, the current price target is an average from 2 analysts. New target price is 59% above last closing price of JP¥1,287. Stock is up 25% over the past year. The company is forecast to post earnings per share of JP¥203 for next year compared to JP¥176 last year. Reported Earnings • May 14
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥176 (down from JP¥293 in FY 2022). Revenue: JP¥131.2b (up 18% from FY 2022). Net income: JP¥6.95b (down 41% from FY 2022). Profit margin: 5.3% (down from 11% in FY 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 28%. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • May 13
Consensus EPS estimates increase by 20% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥164 to JP¥197. Revenue forecast steady at JP¥147.0b. Net income forecast to shrink 30% next year vs 1.2% growth forecast for Chemicals industry in Japan . Consensus price target of JP¥1,827 unchanged from last update. Share price rose 6.0% to JP¥1,292 over the past week. Announcement • May 13
Ishihara Sangyo Kaisha,Ltd., Annual General Meeting, Jun 28, 2023 Ishihara Sangyo Kaisha,Ltd., Annual General Meeting, Jun 28, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥40.00 per share at 3.6% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 29 June 2023. Payout ratio is a comfortable 14% but the company is not cash flow positive. Trailing yield: 3.6%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.8%). Major Estimate Revision • Mar 03
Consensus EPS estimates fall by 22%, revenue upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from JP¥130.2b to JP¥132.0b. EPS estimate fell from JP¥183 to JP¥143 per share. Net income forecast to shrink 26% next year vs 1.6% growth forecast for Chemicals industry in Japan . Consensus price target of JP¥1,860 unchanged from last update. Share price rose 5.7% to JP¥1,129 over the past week. Reported Earnings • Feb 12
Third quarter 2023 earnings released: JP¥35.25 loss per share (vs JP¥14.89 profit in 3Q 2022) Third quarter 2023 results: JP¥35.25 loss per share (down from JP¥14.89 profit in 3Q 2022). Revenue: JP¥29.9b (up 31% from 3Q 2022). Net loss: JP¥1.40b (down 335% from profit in 3Q 2022). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥23.69 (vs JP¥43.50 in 2Q 2022) Second quarter 2023 results: EPS: JP¥23.69 (down from JP¥43.50 in 2Q 2022). Revenue: JP¥30.9b (up 17% from 2Q 2022). Net income: JP¥947.0m (down 46% from 2Q 2022). Profit margin: 3.1% (down from 6.6% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. 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 Satoshi Ando was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 12
Second quarter 2023 earnings released: EPS: JP¥23.69 (vs JP¥43.50 in 2Q 2022) Second quarter 2023 results: EPS: JP¥23.69 (down from JP¥43.50 in 2Q 2022). Revenue: JP¥30.9b (up 17% from 2Q 2022). Net income: JP¥947.0m (down 46% from 2Q 2022). Profit margin: 3.1% (down from 6.6% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.4% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Nov 11
Ishihara Sangyo Kaisha,Ltd. (TSE:4028) announces an Equity Buyback for 2,300,000 shares, representing 5.75% for ¥2,000 million. Ishihara Sangyo Kaisha,Ltd. (TSE:4028) announces a share repurchase program. Under the program, the company will repurchase up to 2,300,000 shares, representing 5.75% of its share capital, for ¥2,000 million. The program is aimed at improving capital efficiency, we will comprehensively consider growth investment, dividend level, cash on hand and stock price level, and implement it flexibly. The program will expire on March 31, 2023. As of September 30, 2022, the company had 39,969,847 shares in issue (excluding treasury stock) and 414,096 shares in treasury. Announcement • Sep 09
Ishihara Sangyo Kaisha,Ltd. to Report Q2, 2023 Results on Nov 10, 2022 Ishihara Sangyo Kaisha,Ltd. announced that they will report Q2, 2023 results on Nov 10, 2022 Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥86.70 (vs JP¥60.94 in 1Q 2022) First quarter 2023 results: EPS: JP¥86.70 (up from JP¥60.94 in 1Q 2022). Revenue: JP¥33.3b (up 12% from 1Q 2022). Net income: JP¥3.46b (up 42% from 1Q 2022). Profit margin: 10% (up from 8.2% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 15%, compared to a 9.6% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jul 20
Price target decreased to JP¥2,010 Down from JP¥2,200, the current price target is an average from 3 analysts. New target price is 91% above last closing price of JP¥1,055. Stock is down 5.6% over the past year. The company is forecast to post earnings per share of JP¥209 for next year compared to JP¥293 last year. Valuation Update With 7 Day Price Move • Jun 07
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥1,218, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 10x in the Chemicals industry in Japan. Total returns to shareholders of 8.9% over the past three years. Major Estimate Revision • Jun 04
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 revenue forecast increased from JP¥116.0b to JP¥130.0b. EPS estimate fell from JP¥185 to JP¥183. Net income forecast to shrink 38% next year vs 5.9% growth forecast for Chemicals industry in Japan . Consensus price target of JP¥2,100 unchanged from last update. Share price rose 9.7% to JP¥1,116 over the past week. Reported Earnings • May 13
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥293 (up from JP¥84.41 in FY 2021). Revenue: JP¥111.0b (up 9.0% from FY 2021). Net income: JP¥11.7b (up 247% from FY 2021). Profit margin: 11% (up from 3.3% in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 80%. Over the next year, revenue is forecast to grow 4.5%, compared to a 7.6% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • May 13
Ishihara Sangyo Kaisha,Ltd., Annual General Meeting, Jun 28, 2022 Ishihara Sangyo Kaisha,Ltd., Annual General Meeting, Jun 28, 2022. Board Change • Apr 27
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 Satoshi Ando was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. 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 6.6% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.4%). In line with average of industry peers (2.6%). Reported Earnings • Feb 12
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: JP¥14.89 (up from JP¥40.79 loss in 3Q 2021). Revenue: JP¥22.8b (up 20% from 3Q 2021). Net income: JP¥595.0m (up JP¥2.23b from 3Q 2021). Profit margin: 2.6% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 10%. Earnings per share (EPS) also surpassed analyst estimates by 160%. Over the next year, revenue is forecast to grow 1.5%, compared to a 6.2% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 12
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: JP¥14.89 (up from JP¥40.79 loss in 3Q 2021). Revenue: JP¥22.8b (up 20% from 3Q 2021). Net income: JP¥595.0m (up JP¥2.23b from 3Q 2021). Profit margin: 2.6% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 10%. Earnings per share (EPS) also surpassed analyst estimates by 160%. Over the next year, revenue is forecast to grow 1.5%, compared to a 6.2% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Price Target Changed • Dec 05
Price target increased to JP¥2,200 Up from JP¥2,000, the current price target is an average from 2 analysts. New target price is 87% above last closing price of JP¥1,174. Stock is up 92% over the past year. The company is forecast to post earnings per share of JP¥163 for next year compared to JP¥84.41 last year. Reported Earnings • Nov 13
Second quarter 2022 earnings released: EPS JP¥43.50 (vs JP¥39.79 loss in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥26.4b (up 9.3% from 2Q 2021). Net income: JP¥1.74b (up JP¥3.33b from 2Q 2021). Profit margin: 6.6% (up from net loss in 2Q 2021). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Sep 15
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥1,342, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Chemicals industry in Japan. Total loss to shareholders of 12% over the past three years. Reported Earnings • Aug 13
First quarter 2022 earnings released: EPS JP¥60.94 (vs JP¥10.79 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥29.8b (up 21% from 1Q 2021). Net income: JP¥2.44b (up 465% from 1Q 2021). Profit margin: 8.2% (up from 1.7% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Aug 13
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥1,340, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Chemicals industry in Japan. Total loss to shareholders of 16% over the past three years. Major Estimate Revision • Jun 17
Consensus EPS estimates increase to JP¥103 The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from JP¥103.0b to JP¥104.5b. EPS estimate increased from JP¥90.10 to JP¥103 per share. Net income forecast to grow 22% next year vs 16% growth forecast for Chemicals industry in Japan. Consensus price target up from JP¥1,800 to JP¥2,300. Share price rose 21% to JP¥1,235 over the past week. Valuation Update With 7 Day Price Move • Jun 17
Investor sentiment improved over the past week After last week's 21% share price gain to JP¥1,235, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 12x in the Chemicals industry in Japan. Total returns to shareholders of 27% over the past three years. Reported Earnings • May 14
Full year 2021 earnings released: EPS JP¥84.41 (vs JP¥59.03 in FY 2020) The company reported a solid full year result with improved earnings and profit margins, although revenues were flat. Full year 2021 results: Revenue: JP¥101.8b (flat on FY 2020). Net income: JP¥3.37b (up 43% from FY 2020). Profit margin: 3.3% (up from 2.3% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings.