Board Change • Jun 12
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. 4 non-independent directors. Independent Outside Director Hatsumi Matsuami was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • May 29
Vertex Corporation (TSE:5290) announces an Equity Buyback for 588,000 shares, representing 1.17% for ¥1,000 million. Vertex Corporation (TSE:5290) announces a share repurchase program. Under the program, the company will repurchase up to 588,000 shares, representing 0.61.17% of its total shares outstanding (excluding treasury shares), for a total of ¥1,000 million. The purpose of repurchase program is to enhance shareholder returns and improve capital efficiency. The repurchase program is valid till September 30, 2026. As of March 31, 2026, the company had 50,050,460 shares outstanding (excluding treasury shares) and had 7,656,240 shares in treasury. Valuation Update With 7 Day Price Move • May 21
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥1,579, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 12x in the Basic Materials industry in Japan. Total returns to shareholders of 131% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,267 per share. Reported Earnings • May 18
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥208 (up from JP¥95.30 in FY 2025). Revenue: JP¥46.5b (up 20% from FY 2025). Net income: JP¥10.3b (up 114% from FY 2025). Profit margin: 22% (up from 12% in FY 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.3%. Revenue is forecast to grow 8.3% p.a. on average during the next 2 years, compared to a 5.3% growth forecast for the Basic Materials industry in Japan. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Announcement • May 14
Vertex Corporation, Annual General Meeting, Jun 25, 2026 Vertex Corporation, Annual General Meeting, Jun 25, 2026. Announcement • May 09
Vertex Corporation to Report Fiscal Year 2026 Results on May 14, 2026 Vertex Corporation announced that they will report fiscal year 2026 results on May 14, 2026 Buy Or Sell Opportunity • May 01
Now 20% undervalued Over the last 90 days, the stock has risen 43% to JP¥1,891. The fair value is estimated to be JP¥2,369, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 31%. Revenue is forecast to grow by 30% in 2 years. Earnings are forecast to decline by 46% in the next 2 years. Buy Or Sell Opportunity • Mar 30
Now 20% undervalued Over the last 90 days, the stock has risen 50% to JP¥1,966. The fair value is estimated to be JP¥2,459, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 31%. Revenue is forecast to grow by 30% in 2 years. Earnings are forecast to decline by 46% in the next 2 years. Upcoming Dividend • Mar 25
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 30 June 2026. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.8%). Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: JP¥153 (vs JP¥30.85 in 3Q 2025) Third quarter 2026 results: EPS: JP¥153 (up from JP¥30.85 in 3Q 2025). Revenue: JP¥13.3b (up 29% from 3Q 2025). Net income: JP¥7.56b (up 387% from 3Q 2025). Profit margin: 57% (up from 15% in 3Q 2025). Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Basic Materials industry in Japan. Over the last 3 years on average, earnings per share has increased by 31% per year whereas the company’s share price has increased by 34% per year. New Risk • Feb 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,525, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 15x in the Basic Materials industry in Japan. Total returns to shareholders of 159% over the past three years. Declared Dividend • Jan 08
Dividend of JP¥32.50 announced Shareholders will receive a dividend of JP¥32.50. Ex-date: 30th March 2026 Payment date: 30th June 2026 Dividend yield will be 2.4%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (31% earnings payout ratio) and cash flows (29% cash payout ratio). The dividend has increased by an average of 21% per year over the past 7 years and payments have been stable during that time. EPS is expected to grow by 9.3% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jan 07
Vertex Corporation announces Annual dividend, payable on June 30, 2026 Vertex Corporation announced Annual dividend of JPY 32.5000 per share payable on June 30, 2026, ex-date on March 30, 2026 and record date on March 31, 2026. Announcement • Dec 24
Vertex Corporation to Report Q3, 2026 Results on Feb 12, 2026 Vertex Corporation announced that they will report Q3, 2026 results on Feb 12, 2026 Reported Earnings • Nov 16
Second quarter 2026 earnings released: EPS: JP¥15.81 (vs JP¥24.51 in 2Q 2025) Second quarter 2026 results: EPS: JP¥15.81 (down from JP¥24.51 in 2Q 2025). Revenue: JP¥8.95b (down 8.3% from 2Q 2025). Net income: JP¥784.0m (down 37% from 2Q 2025). Profit margin: 8.8% (down from 13% in 2Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 6.8% p.a. on average during the next 2 years, compared to a 3.7% growth forecast for the Basic Materials 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 increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Oct 03
Vertex Corporation (TSE:5290) completed the acquisition of Ihi Construction Materials Co., Ltd. from IHI Corporation (TSE:7013). Vertex Corporation (TSE:5290) agreed to acquire Ihi Construction Materials Co., Ltd. from IHI Corporation (TSE:7013) on March 27, 2025.
For the period ending December 31, 2024, Ihi Construction Materials Co., Ltd. reported total revenue of ¥12.61 billion and operating loss of ¥10 million. As of December 31, 2024, Ihi Construction Materials Co., Ltd. reported total common equity of ¥3.68 billion.
The expected completion of the transaction is October 1, 2025.
Vertex Corporation (TSE:5290) completed the acquisition of Ihi Construction Materials Co., Ltd. from IHI Corporation (TSE:7013) on October 1, 2025. The trade name of Ihi Construction Materials has been changed to IKK Corporation. Announcement • Sep 23
Vertex Corporation to Report Q2, 2026 Results on Nov 13, 2025 Vertex Corporation announced that they will report Q2, 2026 results on Nov 13, 2025 Announcement • Sep 18
Vertex Corporation (TSE:5290) announces an Equity Buyback for 300,000 shares, representing 0.6% for ¥456.6 million. Vertex Corporation (TSE:5290) announces a share repurchase program. Under the program, the company will repurchase up to 300,000 shares, representing 0.6% of its total shares outstanding (excluding treasury shares), for a total of ¥456.6 million. The shares will be repurchased at a price of ¥1,522 per share. The purpose of repurchase program is to enhance shareholder returns, improve capital efficiency, and implement flexible capital policies in response to changes in the business environment. The repurchase program is valid till September 19, 2025. As of August 31, 2025, the company had 50,350,988 shares outstanding (excluding treasury shares) and had 7,355,712 shares in treasury. Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: JP¥26.28 (vs JP¥28.51 in 1Q 2025) First quarter 2026 results: EPS: JP¥26.28 (down from JP¥28.51 in 1Q 2025). Revenue: JP¥8.70b (down 3.4% from 1Q 2025). Net income: JP¥658.0m (down 9.4% from 1Q 2025). Profit margin: 7.6% (down from 8.1% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 4.9% p.a. on average during the next 2 years, compared to a 4.2% growth forecast for the Basic Materials 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 increased by 33% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Jun 19
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.3% 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. Announcement • Jun 10
Vertex Corporation to Report Q1, 2026 Results on Aug 08, 2025 Vertex Corporation announced that they will report Q1, 2026 results on Aug 08, 2025 Reported Earnings • May 18
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: JP¥191 (up from JP¥144 in FY 2024). Revenue: JP¥38.9b (up 5.7% from FY 2024). Net income: JP¥4.83b (up 30% from FY 2024). Profit margin: 12% (up from 10% in FY 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.7%. Earnings per share (EPS) exceeded analyst estimates by 19%. 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 24% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 14
Vertex Corporation, Annual General Meeting, Jun 27, 2025 Vertex Corporation, Annual General Meeting, Jun 27, 2025. Announcement • Apr 09
Vertex Corporation (TSE:5290) announces an Equity Buyback for 421,000 shares, representing 1.46% for ¥800 million. Vertex Corporation (TSE:5290) announces a share repurchase program. Under the program, the company will repurchase up to 421,000 shares, representing 1.46% of its total shares outstanding (excluding treasury shares), for a total of ¥800 million. The purpose of repurchase program is to enhance shareholder returns, improve capital efficiency, and implement flexible capital policies in response to changes in the business environment. The repurchase program is valid till July 31, 2025. As of March 31, 2025, the company had 28,853,350 shares outstanding (excluding treasury shares) and had 3,321,930 shares in treasury. Announcement • Apr 02
Vertex Corporation to Report Fiscal Year 2025 Results on May 09, 2025 Vertex Corporation announced that they will report fiscal year 2025 results on May 09, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (2.8%). Announcement • Feb 18
Vertex Corporation Provides Year-End Dividend Guidance for the Fiscal Year Ending March 31, 2025 Vertex Corporation provided year-end dividend guidance for the fiscal year ending March 31, 2025. For the period, the company expects to pay year-end dividend of JPY 50.00 per share compared to JPY 40.00 per share paid a year ago. Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: JP¥61.71 (vs JP¥47.56 in 3Q 2024) Third quarter 2025 results: EPS: JP¥61.71 (up from JP¥47.56 in 3Q 2024). Revenue: JP¥10.4b (flat on 3Q 2024). Net income: JP¥1.55b (up 26% from 3Q 2024). Profit margin: 15% (up from 12% in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 31
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,946, the stock trades at a trailing P/E ratio of 12.7x. Average trailing P/E is 9x in the Basic Materials industry in Japan. Total returns to shareholders of 110% over the past three years. Buy Or Sell Opportunity • Jan 17
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to JP¥1,721. The fair value is estimated to be JP¥2,163, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 4.9%. Announcement • Jan 03
Vertex Corporation to Report Q3, 2025 Results on Feb 13, 2025 Vertex Corporation announced that they will report Q3, 2025 results on Feb 13, 2025 Announcement • Sep 03
Vertex Corporation to Report Q2, 2025 Results on Nov 14, 2024 Vertex Corporation announced that they will report Q2, 2025 results on Nov 14, 2024 Reported Earnings • Aug 14
First quarter 2025 earnings released: EPS: JP¥8.17 (vs JP¥20.23 in 1Q 2024) First quarter 2025 results: EPS: JP¥8.17 (down from JP¥20.23 in 1Q 2024). Revenue: JP¥8.24b (up 8.2% from 1Q 2024). Net income: JP¥209.0m (down 61% from 1Q 2024). Profit margin: 2.5% (down from 7.0% in 1Q 2024). The decrease in margin was driven by higher expenses. 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 21% per year, which means it is well ahead of earnings. Announcement • Aug 11
Vertex Corporation (TSE:5290) announces an Equity Buyback for 265,000 shares, representing 1.03% for ¥500 million. Vertex Corporation (TSE:5290) announces a share repurchase program. Under the program, the company will repurchase up to 265,000 shares, representing 1.03% of its total shares outstanding (excluding treasury shares), for a total of ¥500 million. The purpose of repurchase program is to enhance shareholder returns, improve capital efficiency, and implement a flexible capital policy in response to changes in the business environment. The repurchase program is valid till November 30, 2024. As of July 31, 2024, the company had 25,773,890 shares outstanding (excluding treasury shares) and had 3,079,460 shares in treasury. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥1,627, the stock trades at a trailing P/E ratio of 11x. Average trailing P/E is 9x in the Basic Materials industry in Japan. Total returns to shareholders of 74% over the past three years. Announcement • Jun 27
Vertex Corporation to Report Q1, 2025 Results on Aug 08, 2024 Vertex Corporation announced that they will report Q1, 2025 results on Aug 08, 2024 Reported Earnings • May 12
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥144. Revenue: JP¥36.8b (down 5.8% from FY 2023). Net income: JP¥3.73b (flat on FY 2023). Profit margin: 10% (in line with FY 2023). Revenue missed analyst estimates by 9.3%. Earnings per share (EPS) also missed analyst estimates by 12%. Revenue is forecast to grow 7.0% p.a. on average during the next 2 years, compared to a 3.1% growth forecast for the Basic Materials industry in Japan. Announcement • May 12
Vertex Corporation, Annual General Meeting, Jun 27, 2024 Vertex Corporation, Annual General Meeting, Jun 27, 2024. Announcement • May 11
Vertex Corporation (TSE:5290) announces an Equity Buyback for 420,000 shares, representing 1.61% for ¥800 million. Vertex Corporation (TSE:5290) announces a share repurchase program. Under the program, the company will repurchase up to 420,000 shares, representing 1.61% of its total shares outstanding (excluding treasury shares), for a total of ¥800 million. The purpose of repurchase program is to enhance shareholder returns, to improve the capital efficiency and to implement flexible capital policies in response to changes in the business environment. The repurchase program is valid till November 30, 2024. As of March 31, 2024, the company had 26,040,217 shares outstanding (excluding treasury shares) and had 4,513,133 shares in treasury. Announcement • Mar 28
Vertex Corporation to Report Fiscal Year 2024 Results on May 10, 2024 Vertex Corporation announced that they will report fiscal year 2024 results on May 10, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.2%). In line with average of industry peers (2.4%). Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥47.56 (vs JP¥51.15 in 3Q 2023) Third quarter 2024 results: EPS: JP¥47.56 (down from JP¥51.15 in 3Q 2023). Revenue: JP¥10.3b (down 11% from 3Q 2023). Net income: JP¥1.23b (down 9.0% from 3Q 2023). Profit margin: 12% (in line with 3Q 2023). Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Basic Materials industry in Japan. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. Announcement • Dec 24
Vertex Corporation to Report Q3, 2024 Results on Feb 08, 2024 Vertex Corporation announced that they will report Q3, 2024 results on Feb 08, 2024 Announcement • Nov 10
Vertex Corporation (TSE:5290) announces an Equity Buyback for 335,000 shares, representing 1.27% for ¥500 million. Vertex Corporation (TSE:5290) announces a share repurchase program. Under the program, the company will repurchase up to 335,000 shares, representing 1.27% of its total shares outstanding (excluding treasury shares), for a total of ¥500 million. The purpose of repurchase program is to enhance shareholder returns, to improve the capital efficiency and to implement flexible capital policies in response to changes in the business environment. The repurchase program is valid till January 31, 2024. As of September 30, 2023, the company had 26,368,995 shares outstanding (excluding treasury shares) and had 4,184,355 shares in treasury. Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥30.74 (vs JP¥25.49 in 2Q 2023) Second quarter 2024 results: EPS: JP¥30.74 (up from JP¥25.49 in 2Q 2023). Revenue: JP¥8.58b (down 1.9% from 2Q 2023). Net income: JP¥794.0m (up 18% from 2Q 2023). Profit margin: 9.3% (up from 7.7% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Basic Materials 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 36% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Sep 23
Vertex Corporation to Report Q2, 2024 Results on Nov 09, 2023 Vertex Corporation announced that they will report Q2, 2024 results on Nov 09, 2023 Price Target Changed • Sep 05
Price target decreased by 7.4% to JP¥1,630 Down from JP¥1,760, the current price target is provided by 1 analyst. New target price is 7.8% above last closing price of JP¥1,512. Stock is up 3.6% over the past year. The company is forecast to post earnings per share of JP¥163 for next year compared to JP¥141 last year. Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥20.23 (vs JP¥22.94 in 1Q 2023) First quarter 2024 results: EPS: JP¥20.23 (down from JP¥22.94 in 1Q 2023). Revenue: JP¥7.62b (down 6.7% from 1Q 2023). Net income: JP¥532.0m (down 14% from 1Q 2023). Profit margin: 7.0% (down from 7.6% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 6.1% p.a. on average during the next 2 years, compared to a 3.9% growth forecast for the Basic Materials 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 increased by 36% per year, which means it is tracking significantly ahead of earnings growth. Buying Opportunity • Jul 03
Now 20% undervalued Over the last 90 days, the stock is up 15%. The fair value is estimated to be JP¥1,929, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 15%. Revenue is forecast to grow by 10% in 2 years. Earnings is forecast to grow by 30% in the next 2 years. Announcement • Jun 30
Vertex Corporation to Report Q1, 2024 Results on Aug 10, 2023 Vertex Corporation announced that they will report Q1, 2024 results on Aug 10, 2023 Buying Opportunity • Jun 06
Now 21% undervalued Over the last 90 days, the stock is up 6.8%. The fair value is estimated to be JP¥1,793, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 15%. Revenue is forecast to grow by 10% in 2 years. Earnings is forecast to grow by 30% in the next 2 years. Buying Opportunity • May 18
Now 22% undervalued Over the last 90 days, the stock is up 8.5%. The fair value is estimated to be JP¥1,768, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 15%. Revenue is forecast to grow by 10% in 2 years. Earnings is forecast to grow by 30% in the next 2 years. Reported Earnings • May 14
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: JP¥141 (down from JP¥161 in FY 2022). Revenue: JP¥39.1b (up 4.2% from FY 2022). Net income: JP¥3.74b (down 12% from FY 2022). Profit margin: 9.6% (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) missed analyst estimates by 7.1%. Revenue is forecast to grow 4.8% p.a. on average during the next 2 years, compared to a 5.1% growth forecast for the Basic Materials industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 40% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 13
Vertex Corporation, Annual General Meeting, Jun 29, 2023 Vertex Corporation, Annual General Meeting, Jun 29, 2023. Announcement • May 12
Vertex Corporation (TSE:5290) announces an Equity Buyback for 215,000 shares, representing 0.8% for ¥300 million. Vertex Corporation (TSE:5290) announces a share repurchase program. Under the program, the company will repurchase up to 215,000 shares, representing 0.80% of its total shares outstanding (excluding treasury shares), for a total of ¥300 million. The purpose of repurchase program is to enhance shareholder returns, to improve the capital efficiency and to implement flexible capital policies through changes in the business environment. The repurchase program is valid till July 31, 2023. As of March 31, 2023, the company had 26,728,545 shares outstanding (excluding treasury shares) and had 3,824,805 shares in treasury. Buying Opportunity • Apr 19
Now 21% undervalued Over the last 90 days, the stock is up 10%. The fair value is estimated to be JP¥1,776, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 17%. Revenue is forecast to grow by 11% in 2 years. Earnings is forecast to grow by 27% in the next 2 years. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥30.00 per share at 1.9% 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: 1.9%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.8%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥51.15 (vs JP¥51.43 in 3Q 2022) Third quarter 2023 results: EPS: JP¥51.15. Revenue: JP¥11.5b (up 3.5% from 3Q 2022). Net income: JP¥1.35b (flat on 3Q 2022). Profit margin: 12% (in line with 3Q 2022). Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Basic Materials industry in Japan. Buying Opportunity • Jan 05
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 3.2%. The fair value is estimated to be JP¥1,601, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 12% in 2 years. Earnings is forecast to grow by 27% in the next 2 years. Announcement • Dec 18
Vertex Corporation to Report Q3, 2023 Results on Feb 09, 2023 Vertex Corporation announced that they will report Q3, 2023 results on Feb 09, 2023 Buying Opportunity • Dec 13
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 3.2%. The fair value is estimated to be JP¥1,730, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 12% in 2 years. Earnings is forecast to grow by 27% in the next 2 years. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. 1 independent director (8 non-independent directors). was the last director to join the board, commencing their role in . 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 12
Second quarter 2023 earnings released: EPS: JP¥25.49 (vs JP¥37.71 in 2Q 2022) Second quarter 2023 results: EPS: JP¥25.49 (down from JP¥37.71 in 2Q 2022). Revenue: JP¥8.75b (down 1.0% from 2Q 2022). Net income: JP¥675.0m (down 31% from 2Q 2022). Profit margin: 7.7% (down from 11% in 2Q 2022). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Basic Materials industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Sep 15
Vertex Corporation to Report Q2, 2023 Results on Nov 10, 2022 Vertex Corporation announced that they will report Q2, 2023 results on Nov 10, 2022 Announcement • Sep 01
J-GIA No. 1 Investment Limited Partnership, managed by Japan Growth Investments Alliance, Inc. acquired Proflex Co., Ltd. from Vertex Corporation (TSE:5290). J-GIA No. 1 Investment Limited Partnership, managed by Japan Growth Investments Alliance, Inc. acquired Proflex Co., Ltd. from Vertex Corporation (TSE:5290) on August 31, 2022. For the period ended March 31, 2022, Proflex Co., Ltd reported revenues of ¥1.2 billion, Net worth of ¥983 million, Total assets of ¥3.1 billion, Operating income of ¥143 million, and Net loss of ¥10 million.
J-GIA No. 1 Investment Limited Partnership, managed by Japan Growth Investments Alliance, Inc. completed the acquisition of Proflex Co., Ltd. from Vertex Corporation (TSE:5290) on August 31, 2022. Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥68.81 (vs JP¥29.89 in 1Q 2022) First quarter 2023 results: EPS: JP¥68.81. Revenue: JP¥8.16b (up 9.1% from 1Q 2022). Net income: JP¥619.0m (down 21% from 1Q 2022). Profit margin: 7.6% (down from 11% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 4.5%, compared to a 7.4% growth forecast for the industry in Japan. Announcement • Jun 29
Vertex Corporation to Report Q1, 2023 Results on Aug 10, 2022 Vertex Corporation announced that they will report Q1, 2023 results on Aug 10, 2022 Reported Earnings • May 16
Full year 2022 earnings released: EPS: JP¥483 (vs JP¥428 in FY 2021) Full year 2022 results: EPS: JP¥483 (up from JP¥428 in FY 2021). Revenue: JP¥37.5b (flat on FY 2021). Net income: JP¥4.24b (up 13% from FY 2021). Profit margin: 11% (up from 10.0% in FY 2021). 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 37% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 14
Vertex Corporation, Annual General Meeting, Jun 29, 2022 Vertex Corporation, Annual General Meeting, Jun 29, 2022. Announcement • May 13
Vertex Corporation (TSE:5290) announces an Equity Buyback for 215,000 shares, representing 2.39% for ¥700 million. Vertex Corporation (TSE:5290) announces a share repurchase program. Under the program, the company will repurchase up to 215,000 shares, representing 2.39% of its issued share capital (excluding treasury stock), for ¥700 million. The purpose of the program is to enhance shareholder returns, improve capital efficiency, and implement agile capital policies in response to changes in the business environment. The program will run until November 30, 2022. As of March 31, 2022, the company had 8,989,735 shares in issue (excluding treasury stock) and 1,194,715 shares in treasury. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. 1 independent director (8 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Apr 08
Vertex Corporation to Report Fiscal Year 2022 Results on May 12, 2022 Vertex Corporation announced that they will report fiscal year 2022 results on May 12, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥65.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 30 June 2022. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (2.7%). Reported Earnings • Feb 12
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥154 (down from JP¥181 in 3Q 2021). Revenue: JP¥11.2b (down 1.4% from 3Q 2021). Net income: JP¥1.35b (down 15% from 3Q 2021). Profit margin: 12% (down from 14% in 3Q 2021). Revenue was in line with analyst estimates. 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 41% per year, which means it is well ahead of earnings. Announcement • Dec 10
Vertex Corporation announced that it expects to receive ¥0.4 million in funding Vertex Corporation announced a private placement of 400,000 shares of common stock at a price of ¥1 per share for gross proceeds of ¥400,000 on December 9, 2021. The transaction has been approved by the board of directors. The transaction is expected to close on December 16, 2021. Reported Earnings • Nov 13
Second quarter 2022 earnings released: EPS JP¥113 (vs JP¥67.02 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥8.84b (up 15% from 2Q 2021). Net income: JP¥982.0m (up 67% from 2Q 2021). Profit margin: 11% (up from 7.6% in 2Q 2021). The increase in margin was driven by higher revenue. Announcement • Aug 04
Vertex Corporation (TSE:5290) announces an Equity Buyback for 200,000 shares, representing 2.28% for ¥550 million. Vertex Corporation (TSE:5290) announces a share repurchase program. Under the program, the company will repurchase 200,000 shares, representing 2.28% of its share capital, for ¥550 million. The company will repurchase its shares in order to enhance shareholder returns, improve capital efficiency, and enable the implementation of a flexible capital policy in response to changes in the business environment. The program will run until March 31, 2022. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥90.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 29 June 2021. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (2.7%). Lower than average of industry peers (2.2%). Is New 90 Day High Low • Mar 08
New 90-day high: JP¥2,433 The company is up 32% from its price of JP¥1,848 on 08 December 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Basic Materials industry, which is up 4.0% over the same period. Valuation Update With 7 Day Price Move • Feb 19
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥2,286, the stock is trading at a trailing P/E ratio of 6.4x, up from the previous P/E ratio of 5.5x. This compares to an average P/E of 9x in the Basic Materials industry in Japan. Total returns to shareholders over the past year are 14%. Reported Earnings • Feb 12
Third quarter 2021 earnings released: EPS JP¥181 (vs JP¥121 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥11.3b (up 5.0% from 3Q 2020). Net income: JP¥1.59b (up 48% from 3Q 2020). Profit margin: 14% (up from 10.0% in 3Q 2020). Is New 90 Day High Low • Feb 08
New 90-day high: JP¥1,938 The company is up 11% from its price of JP¥1,750 on 10 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Basic Materials industry, which is up 9.0% over the same period. Is New 90 Day High Low • Jan 12
New 90-day high: JP¥1,850 The company is up 7.0% from its price of JP¥1,733 on 14 October 2020. The Japanese market is up 12% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Basic Materials industry, which is up 3.0% over the same period. Announcement • Sep 26
Vertex Corporation to Report Q2, 2021 Results on Nov 12, 2020 Vertex Corporation announced that they will report Q2, 2021 results on Nov 12, 2020 Announcement • Jun 28
Vertex Corporation to Report Q1, 2021 Results on Aug 07, 2020 Vertex Corporation announced that they will report Q1, 2021 results on Aug 07, 2020 