Buy Or Sell Opportunity • Apr 13
Now 20% undervalued Over the last 90 days, the stock has risen 10% to JP¥5,038. The fair value is estimated to be JP¥6,311, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.2% over the last 3 years. Earnings per share has grown by 12%. For the next 3 years, revenue is forecast to grow by 2.7% per annum. Earnings are also forecast to grow by 5.4% per annum over the same time period. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥80.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 08 June 2026. Payout ratio is a comfortable 36% but the company is not cash flow positive. Trailing yield: 3.5%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.3%). Announcement • Mar 18
Kaneka Corporation to Report Fiscal Year 2026 Results on May 14, 2026 Kaneka Corporation announced that they will report fiscal year 2026 results on May 14, 2026 Reported Earnings • Feb 11
Third quarter 2026 earnings released: EPS: JP¥121 (vs JP¥120 in 3Q 2025) Third quarter 2026 results: EPS: JP¥121. Revenue: JP¥200.9b (down 3.0% from 3Q 2025). Net income: JP¥7.39b (down 2.4% from 3Q 2025). Profit margin: 3.7% (in line with 3Q 2025). Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Chemicals industry in Japan. Declared Dividend • Dec 06
First half dividend of JP¥80.00 announced Shareholders will receive a dividend of JP¥80.00. Ex-date: 30th March 2026 Payment date: 8th June 2026 Dividend yield will be 3.8%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (36% 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 7.2% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 37% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Dec 02
Kaneka Corporation to Report Q3, 2026 Results on Feb 10, 2026 Kaneka Corporation announced that they will report Q3, 2026 results on Feb 10, 2026 Reported Earnings • Nov 14
Second quarter 2026 earnings released: EPS: JP¥109 (vs JP¥49.73 in 2Q 2025) Second quarter 2026 results: EPS: JP¥109 (up from JP¥49.73 in 2Q 2025). Revenue: JP¥198.7b (flat on 2Q 2025). Net income: JP¥6.79b (up 117% from 2Q 2025). Profit margin: 3.4% (up from 1.6% in 2Q 2025). Revenue is forecast to grow 3.1% 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 7% per year and the company’s share price has also increased by 7% per year. Announcement • Nov 10
Kaneka Expands Global Reach with i-ED COIL Launch in Europe Kaneka Corporation has begun sales of its i-ED COIL, a brain aneurysm embolization coil in Europe as of October. The product obtained EC certification under an EU Medical Device Regulation in July and will be distributed primarily in Europe through Kaneka Medical Europe N.V. The i-ED COIL provides world-class flexibility, enabled by its specialized wire thickness and structural features. This flexibility enables coils to be packed more densely within aneurysms than conventional products and allows treatment of aneurysms with irregular shapes. Its role in reducing the risk of aneurysm rupture is highly regarded by physicians, and since its launch in the Japanese market in 2019, sales have continued to grow steadily. Kaneka is expanding its business in a wide range of fields, which include devices for the treatment of cardiac, peripheral vascular, and cerebrovascular diseases, as well as medical devices used in the treatment of gastrointestinal tract diseases. Looking ahead, company aim to strengthen the global reach of products such as i-ED COIL and achieve sales of JPY 300 billion by 2030 in the Health Care Solution Unit including these medical businesses. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥80.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 05 December 2025. Payout ratio is a comfortable 36% but the company is not cash flow positive. Trailing yield: 3.7%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.6%). Announcement • Sep 01
Kaneka Corporation to Report Q2, 2026 Results on Nov 12, 2025 Kaneka Corporation announced that they will report Q2, 2026 results on Nov 12, 2025 Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: JP¥67.73 (vs JP¥110 in 1Q 2025) First quarter 2026 results: EPS: JP¥67.73 (down from JP¥110 in 1Q 2025). Revenue: JP¥198.7b (flat on 1Q 2025). Net income: JP¥4.26b (down 39% from 1Q 2025). Profit margin: 2.1% (down from 3.5% in 1Q 2025). Revenue is forecast to grow 2.8% 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 1% per year but the company’s share price has increased by 7% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Jul 09
Final dividend of JP¥80.00 announced Shareholders will receive a dividend of JP¥80.00. Ex-date: 29th September 2025 Payment date: 5th December 2025 Dividend yield will be 3.7%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (32% 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 7.2% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 48% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 13
Kaneka Corporation to Report Q1, 2026 Results on Aug 08, 2025 Kaneka Corporation announced that they will report Q1, 2026 results on Aug 08, 2025 Reported Earnings • May 19
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥401 (up from JP¥358 in FY 2024). Revenue: JP¥807.2b (up 5.9% from FY 2024). Net income: JP¥25.3b (up 9.0% from FY 2024). Profit margin: 3.1% (up from 3.0% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.0%. Revenue is forecast to grow 4.0% 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 1% per year whereas the company’s share price has increased by 4% per year. Announcement • May 16
Kaneka Corporation (TSE:4118) announces an Equity Buyback for 3,000,000 shares, representing 4.77% for ¥12,000 million. Kaneka Corporation (TSE:4118) announces a share repurchase program. Under the program, the company will repurchase 3,000,000 shares, representing 4.77% of the outstanding shares for ¥12,000 million. The purpose of the program is to improve shareholder value and implement flexible capital policies in response to changes in the business environment. The program will run until March 29, 2026. As of April 30, 2025, the company had 62,934,292 shares outstanding and 3,065,708 shares in treasury. Announcement • May 14
Kaneka Corporation, Annual General Meeting, Jun 27, 2025 Kaneka Corporation, Annual General Meeting, Jun 27, 2025. 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¥3,214, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 10x in the Chemicals industry in Japan. Total returns to shareholders of 2.3% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,750 per share. Announcement • Mar 21
Kaneka Corporation to Report Fiscal Year 2025 Results on May 14, 2025 Kaneka Corporation announced that they will report fiscal year 2025 results on May 14, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 06 June 2025. Payout ratio is a comfortable 27% but the company is not cash flow positive. Trailing yield: 3.6%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.6%). Declared Dividend • Feb 18
Dividend of JP¥60.00 announced Shareholders will receive a dividend of JP¥60.00. Ex-date: 28th March 2025 Payment date: 6th June 2025 Dividend yield will be 3.2%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (27% 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 5.8% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 10% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: JP¥120 (vs JP¥69.95 in 3Q 2024) Third quarter 2025 results: EPS: JP¥120 (up from JP¥69.95 in 3Q 2024). Revenue: JP¥207.1b (up 6.4% from 3Q 2024). Net income: JP¥7.57b (up 67% from 3Q 2024). Profit margin: 3.7% (up from 2.3% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.1% 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 5% per year whereas the company’s share price has remained flat. Announcement • Jan 09
Kaneka Corporation (TSE:4118) acquired 96.80% stake in EndoStream Medical Ltd. Kaneka Corporation (TSE:4118) acquired 96.80% stake in EndoStream Medical Ltd on December 23, 2024. By combining Kaneka's manufacturing and ESM's technology, we will jointly develop new medical devices, mainly for cerebrovascular treatment, in addition to the Nautilus device for aneurysm treatment currently under development. We aim to achieve sales of over ¥20 billion by 2030.
Kaneka Corporation (TSE:4118) completed the acquisition of 96.80% stake in EndoStream Medical Ltd on December 23, 2024. Announcement • Dec 21
Kaneka Corporation to Report Q3, 2025 Results on Feb 13, 2025 Kaneka Corporation announced that they will report Q3, 2025 results on Feb 13, 2025 Reported Earnings • Nov 15
Second quarter 2025 earnings released: EPS: JP¥49.73 (vs JP¥71.73 in 2Q 2024) Second quarter 2025 results: EPS: JP¥49.73 (down from JP¥71.73 in 2Q 2024). Revenue: JP¥197.6b (up 5.4% from 2Q 2024). Net income: JP¥3.13b (down 33% from 2Q 2024). Profit margin: 1.6% (down from 2.5% 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 5.1% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 10% per year whereas the company’s share price has fallen by 5% per year. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 05 December 2024. Payout ratio is a comfortable 27% but the company is not cash flow positive. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.4%). Announcement • Sep 18
Kaneka Corporation to Report Q2, 2025 Results on Nov 12, 2024 Kaneka Corporation announced that they will report Q2, 2025 results on Nov 12, 2024 Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to JP¥3,317, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 12x in the Chemicals industry in Japan. Total loss to shareholders of 19% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,772 per share. Announcement • Jun 18
Kaneka Corporation to Report Q1, 2025 Results on Aug 08, 2024 Kaneka Corporation announced that they will report Q1, 2025 results on Aug 08, 2024 Reported Earnings • May 18
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥358 (up from JP¥350 in FY 2023). Revenue: JP¥762.3b (flat on FY 2023). Net income: JP¥23.2b (flat on FY 2023). Profit margin: 3.0% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.9%. Revenue is forecast to grow 4.6% p.a. on average during the next 2 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 fallen by 8% per year whereas the company’s share price has fallen by 4% per year. Announcement • May 16
Kaneka Corporation, Annual General Meeting, Jun 27, 2024 Kaneka Corporation, Annual General Meeting, Jun 27, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥55.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 12 June 2024. Payout ratio is a comfortable 41% but the company is not cash flow positive. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.1%). Announcement • Mar 13
Kaneka Corporation to Report Fiscal Year 2024 Results on May 14, 2024 Kaneka Corporation announced that they will report fiscal year 2024 results on May 14, 2024 Major Estimate Revision • Mar 04
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from JP¥395 to JP¥346 per share. Revenue forecast steady at JP¥770.1b. Net income forecast to grow 40% next year vs 20% growth forecast for Chemicals industry in Japan. Consensus price target of JP¥4,055 unchanged from last update. Share price was steady at JP¥3,684 over the past week. Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥69.95 (vs JP¥34.88 in 3Q 2023) Third quarter 2024 results: EPS: JP¥69.95 (up from JP¥34.88 in 3Q 2023). Revenue: JP¥194.6b (up 4.3% from 3Q 2023). Net income: JP¥4.54b (up 96% from 3Q 2023). Profit margin: 2.3% (up from 1.2% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.0% 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 fallen by 3% per year whereas the company’s share price has fallen by 5% per year. Buy Or Sell Opportunity • Jan 26
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.5% to JP¥3,579. The fair value is estimated to be JP¥4,513, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 7.0%. Revenue is forecast to grow by 9.1% in 2 years. Earnings are forecast to grow by 90% in the next 2 years. Buying Opportunity • Jan 12
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 3.8%. The fair value is estimated to be JP¥4,560, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 7.0%. Revenue is forecast to grow by 8.9% in 2 years. Earnings is forecast to grow by 92% in the next 2 years. Announcement • Nov 30
Kaneka Corporation to Report Q3, 2024 Results on Feb 08, 2024 Kaneka Corporation announced that they will report Q3, 2024 results on Feb 08, 2024 Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥71.73 (vs JP¥91.80 in 2Q 2023) Second quarter 2024 results: EPS: JP¥71.73 (down from JP¥91.80 in 2Q 2023). Revenue: JP¥187.4b (flat on 2Q 2023). Net income: JP¥4.66b (down 23% from 2Q 2023). Profit margin: 2.5% (down from 3.2% in 2Q 2023). Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year and the company’s share price has also increased by 7% per year. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥55.00 per share at 2.7% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 05 December 2023. Payout ratio is a comfortable 43% but the company is not cash flow positive. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.3%). In line with average of industry peers (2.5%). Announcement • Sep 13
Kaneka Corporation to Report Q2, 2024 Results on Nov 09, 2023 Kaneka Corporation announced that they will report Q2, 2024 results on Nov 09, 2023 New Risk • Aug 11
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.2% Last year net profit margin: 4.1% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (2.2% net profit margin). Reported Earnings • Aug 10
First quarter 2024 earnings released: EPS: JP¥65.35 (vs JP¥161 in 1Q 2023) First quarter 2024 results: EPS: JP¥65.35 (down from JP¥161 in 1Q 2023). Revenue: JP¥182.7b (down 5.2% from 1Q 2023). Net income: JP¥4.24b (down 60% from 1Q 2023). Profit margin: 2.3% (down from 5.5% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 2.1% 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 18% per year whereas the company’s share price has increased by 13% per year. Announcement • Jun 15
Kaneka Corporation to Report Q1, 2024 Results on Aug 09, 2023 Kaneka Corporation announced that they will report Q1, 2024 results on Aug 09, 2023 Reported Earnings • May 18
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: JP¥350 (down from JP¥406 in FY 2022). Revenue: JP¥755.8b (up 9.3% from FY 2022). Net income: JP¥23.0b (down 13% from FY 2022). Profit margin: 3.0% (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 4.7%. Revenue is forecast to grow 2.1% 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 27% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • May 17
Kaneka Corporation, Annual General Meeting, Jun 29, 2023 Kaneka Corporation, Annual General Meeting, Jun 29, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥55.00 per share at 3.3% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 13 June 2023. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.8%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥34.87 (vs JP¥111 in 3Q 2022) Third quarter 2023 results: EPS: JP¥34.87 (down from JP¥111 in 3Q 2022). Revenue: JP¥186.5b (up 4.5% from 3Q 2022). Net income: JP¥2.32b (down 68% from 3Q 2022). Profit margin: 1.2% (down from 4.1% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.7% 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 29% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Price Target Changed • Jan 26
Price target decreased by 8.8% to JP¥4,021 Down from JP¥4,408, the current price target is an average from 7 analysts. New target price is 19% above last closing price of JP¥3,375. Stock is down 6.3% over the past year. The company is forecast to post earnings per share of JP¥423 for next year compared to JP¥406 last year. Announcement • Dec 17
Kaneka Corporation to Report Q3, 2023 Results on Feb 08, 2023 Kaneka Corporation announced that they will report Q3, 2023 results on Feb 08, 2023 Price Target Changed • Dec 13
Price target decreased to JP¥4,408 Down from JP¥4,920, the current price target is an average from 6 analysts. New target price is 31% above last closing price of JP¥3,360. Stock is down 11% over the past year. The company is forecast to post earnings per share of JP¥414 for next year compared to JP¥406 last year. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 9 experienced directors. 2 highly experienced directors. 4 independent directors (8 non-independent directors). Independent Director Yuko Sasakawa 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. Insufficient board refreshment. Reported Earnings • Nov 11
Second quarter 2023 earnings released: EPS: JP¥91.80 (vs JP¥107 in 2Q 2022) Second quarter 2023 results: EPS: JP¥91.80 (down from JP¥107 in 2Q 2022). Revenue: JP¥187.9b (up 13% from 2Q 2022). Net income: JP¥6.05b (down 14% from 2Q 2022). Profit margin: 3.2% (down from 4.2% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.7% p.a. on average 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 30% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥55.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 06 December 2022. Payout ratio is a comfortable 25% but the company is not cash flow positive. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (2.9%). Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥161 (vs JP¥119 in 1Q 2022) First quarter 2023 results: EPS: JP¥161 (up from JP¥119 in 1Q 2022). Revenue: JP¥192.7b (up 17% from 1Q 2022). Net income: JP¥10.5b (up 36% from 1Q 2022). Profit margin: 5.5% (up from 4.7% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 3.2%, 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 25% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 16
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: JP¥406 (up from JP¥243 in FY 2021). Revenue: JP¥691.5b (up 20% from FY 2021). Net income: JP¥26.5b (up 67% from FY 2021). Profit margin: 3.8% (up from 2.7% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.6%. Over the next year, revenue is forecast to grow 7.3%, compared to a 7.9% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 8 non-independent directors. Managing Executive Officer & Director Katsunobu Doro was the last director to join the board, commencing their role in 2019. 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¥60.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 06 June 2022. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (2.6%). Reported Earnings • Feb 09
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: JP¥111 (up from JP¥110 in 3Q 2021). Revenue: JP¥178.4b (up 15% from 3Q 2021). Net income: JP¥7.26b (up 1.0% from 3Q 2021). Profit margin: 4.1% (down from 4.6% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.9%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Over the next year, revenue is forecast to stay flat compared to a 6.6% 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 fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 10
Second quarter 2022 earnings released: EPS JP¥107 (vs JP¥31.26 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥166.2b (up 19% from 2Q 2021). Net income: JP¥7.01b (up 244% from 2Q 2021). Profit margin: 4.2% (up from 1.5% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 2% per year and the company’s share price has also fallen by 2% per year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 07 December 2021. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.9%). Reported Earnings • Aug 15
First quarter 2022 earnings released: EPS JP¥119 (vs JP¥6.70 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥164.1b (up 30% from 1Q 2021). Net income: JP¥7.76b (up JP¥7.32b from 1Q 2021). Profit margin: 4.7% (up from 0.3% 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 14% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Price Target Changed • Jul 10
Price target increased to JP¥5,056 Up from JP¥4,720, the current price target is an average from 5 analysts. New target price is 15% above last closing price of JP¥4,400. Stock is up 71% over the past year. Reported Earnings • May 16
Full year 2021 earnings released: EPS JP¥243 (vs JP¥215 in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: JP¥577.4b (down 4.0% from FY 2020). Net income: JP¥15.8b (up 13% from FY 2020). Profit margin: 2.7% (up from 2.3% in FY 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 21% 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. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 11 June 2021. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.8%). Price Target Changed • Mar 06
Price target raised to JP¥4,050 Up from JP¥3,650, the current price target is an average from 4 analysts. The new target price is 11% below the current share price of JP¥4,535. As of last close, the stock is up 64% over the past year. Price Target Changed • Mar 02
Price target raised to JP¥3,770 Up from JP¥3,464, the current price target is an average from 4 analysts. The new target price is 9.8% below the current share price of JP¥4,180. As of last close, the stock is up 46% over the past year. Is New 90 Day High Low • Feb 24
New 90-day high: JP¥4,340 The company is up 34% from its price of JP¥3,250 on 26 November 2020. The Japanese market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥2,998 per share. Major Estimate Revision • Feb 23
Analysts update estimates The 2021 consensus earning per share (EPS) estimate increased from JP¥164 to JP¥181. Revenue estimate for the same period was approximately flat at JP¥565.9b. Net income is expected to grow by 10.0% next year compared to 17% growth forecast for the Chemicals industry in Japan. The consensus price target increased from JP¥3,464 to JP¥3,650. Share price stayed mostly flat at JP¥4,275 over the past week. Reported Earnings • Feb 11
Third quarter 2021 earnings released: EPS JP¥110 (vs JP¥48.85 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥154.8b (up 1.4% from 3Q 2020). Net income: JP¥7.18b (up 125% from 3Q 2020). Profit margin: 4.6% (up from 2.1% in 3Q 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Feb 11
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) also surpassed analyst estimates by 1.6%. Over the next year, revenue is forecast to grow 3.3%, compared to a 6.5% growth forecast for the Chemicals industry in Japan. Is New 90 Day High Low • Jan 27
New 90-day high: JP¥3,795 The company is up 25% from its price of JP¥3,025 on 29 October 2020. The Japanese market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 19% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥1,364 per share. Is New 90 Day High Low • Jan 12
New 90-day high: JP¥3,700 The company is up 20% from its price of JP¥3,090 on 14 October 2020. The Japanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥1,350 per share. Is New 90 Day High Low • Dec 03
New 90-day high: JP¥3,295 The company is up 18% from its price of JP¥2,798 on 04 September 2020. The Japanese market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥1,265 per share.