Live News • May 11
JFE Holdings Shares Jump 5% After Profit Surges 2.1x on Steel Cost Savings JFE Holdings reported fiscal 2027 net profit of ¥1.5b, described as a 2.1x increase, supported by cost reductions in its steel operations and gains from inventory valuation.
The profit outcome was characterized as stronger than market expectations and was followed by a 5% intraday jump in the stock, indicating a positive market reaction to the results.
Earlier, the company cut its annual dividend for fiscal 2025 after a profit decline, while indicating that business profit was roughly flat and outlining forecasts for higher revenue and profitability in fiscal 2026.
The latest profit surge, together with management’s previous guidance for stronger earnings in fiscal 2026, suggests a company that is relying on cost control and operational efficiency to support results even after a weaker profit year and a dividend cut.
For investors, the key trade-off to consider is how reliable those cost savings and inventory gains might be over time compared with the reduced dividend and the potential for earnings to be more sensitive to steel market conditions. Reported Earnings • May 09
Full year 2026 earnings released: EPS: JP¥110 (vs JP¥144 in FY 2025) Full year 2026 results: EPS: JP¥110 (down from JP¥144 in FY 2025). Revenue: JP¥4.54t (down 6.6% from FY 2025). Net income: JP¥70.2b (down 24% from FY 2025). Profit margin: 1.5% (down from 1.9% in FY 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • May 08
JFE Holdings, Inc., Annual General Meeting, Jun 24, 2026 JFE Holdings, Inc., Annual General Meeting, Jun 24, 2026. Announcement • Apr 03
JFE Holdings, Inc. to Report Fiscal Year 2026 Results on May 08, 2026 JFE Holdings, Inc. announced that they will report fiscal year 2026 results at 2:00 PM, Tokyo Standard Time on May 08, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 26 June 2026. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.5%). Reported Earnings • Feb 07
Third quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2026 results: EPS: JP¥53.79 (down from JP¥90.58 in 3Q 2025). Revenue: JP¥1.15t (down 6.3% from 3Q 2025). Net income: JP¥34.2b (down 41% from 3Q 2025). Profit margin: 3.0% (down from 4.7% in 3Q 2025). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) exceeded analyst estimates by 126%. Revenue is forecast to grow 1.6% p.a. on average during the next 3 years, compared to a 3.3% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Announcement • Jan 28
JFE Holdings, Inc. Announces Board and Executive Changes JFE Holdings, Inc. has resolved on the following unofficial executive appointments from June 2026, at a meeting of the Board of Directors held on January 28, 2026. Masashi Terahata will retire from his position as Representative Director and Executive Vice President on April 1, 2026, but will continue as a Director without representation rights until the General Meeting in June 2026. Toshihiro Tanaka will be appointed as the new Representative Director, effective from the date of the General Meeting of Shareholders in June 2026. Toshihiro Tanaka was born on January 27, 1963. He graduated from Waseda University, School of Law, in March 1986. His career began at Nippon Kokan Co. Ltd. in April 1986. He held the position of Senior Staff, Planning Section, Corporate Planning Department, JFE Steel Corporation in April 2010, Manager, Planning Section, Corporate Planning Department in April 2012, General Manager, Controller Department in April 2015, Vice President in April 2016, Vice President, JFE Holdings, Inc. in April 2018, and Senior Vice President since April 2019. Announcement • Dec 23
JFE Holdings, Inc. to Report Q3, 2026 Results on Feb 05, 2026 JFE Holdings, Inc. announced that they will report Q3, 2026 results on Feb 05, 2026 Declared Dividend • Dec 05
First half dividend of JP¥40.00 announced Shareholders will receive a dividend of JP¥40.00. Ex-date: 30th March 2026 Payment date: 26th June 2026 Dividend yield will be 4.1%, which is higher than the industry average of 3.4%. Sustainability & Growth Dividend is covered by both earnings (75% earnings payout ratio) and cash flows (45% cash payout ratio). The dividend has remained flat since 10 years ago. However, payments have been volatile during that time. EPS is expected to grow by 78% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Nov 26
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 2.6% to JP¥1,880. The fair value is estimated to be JP¥1,560, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 3.1% over the last 3 years. Earnings per share has declined by 36%. For the next 3 years, revenue is forecast to grow by 0.9% per annum. Earnings are also forecast to grow by 19% per annum over the same time period. Reported Earnings • Nov 07
Second quarter 2026 earnings: EPS exceeds analyst expectations Second quarter 2026 results: EPS: JP¥30.73 (up from JP¥23.53 in 2Q 2025). Revenue: JP¥1.12t (down 9.9% from 2Q 2025). Net income: JP¥19.5b (up 31% from 2Q 2025). Profit margin: 1.7% (up from 1.2% in 2Q 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 35%. Revenue is forecast to stay flat during the next 3 years compared to a 2.8% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Nov 06
Now 21% overvalued The stock has been flat over the last 90 days, currently trading at JP¥1,764. The fair value is estimated to be JP¥1,456, however this is not to be taken as a sell 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 38%. For the next 3 years, revenue is forecast to grow by 0.4% per annum. Earnings are also forecast to grow by 19% per annum over the same time period. Announcement • Sep 23
JFE Holdings, Inc. to Report Q2, 2026 Results on Nov 06, 2025 JFE Holdings, Inc. announced that they will report Q2, 2026 results on Nov 06, 2025 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 08 December 2025. Payout ratio is on the higher end at 89%, however this is supported by cash flows. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (3.2%). Reported Earnings • Aug 05
First quarter 2026 earnings: EPS and revenues miss analyst expectations First quarter 2026 results: EPS: JP¥11.21 (down from JP¥43.27 in 1Q 2025). Revenue: JP¥1.12t (down 7.9% from 1Q 2025). Net income: JP¥7.13b (down 74% from 1Q 2025). Profit margin: 0.6% (down from 2.3% in 1Q 2025). Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) also missed analyst estimates by 48%. Revenue is forecast to stay flat during the next 3 years compared to a 2.7% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Declared Dividend • Jul 21
Final dividend of JP¥40.00 announced Shareholders will receive a dividend of JP¥40.00. Ex-date: 29th September 2025 Payment date: 8th December 2025 Dividend yield will be 5.3%, which is higher than the industry average of 3.4%. Sustainability & Growth Dividend is covered by both earnings (69% earnings payout ratio) and cash flows (51% cash payout ratio). 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 47% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 01
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥144 (down from JP¥323 in FY 2024). Revenue: JP¥4.86t (down 6.1% from FY 2024). Net income: JP¥91.9b (down 54% from FY 2024). Profit margin: 1.9% (down from 3.8% in FY 2024). Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 14%. Revenue is forecast to stay flat during the next 3 years compared to a 2.4% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Jun 27
Imabari Shipbuilding Co., Ltd. agreed to acquire an additional 30% stake in Japan Marine United Corporation from JFE Holdings, Inc. (TSE:5411) and IHI Corporation (TSE:7013). Imabari Shipbuilding Co., Ltd. agreed to acquire an additional 30% stake in Japan Marine United Corporation from JFE Holdings, Inc. (TSE:5411) and IHI Corporation (TSE:7013) on June 26, 2025. Upon completion, Imabari Shipbuilding Co., Ltd. will own 60% stake in Japan Marine United Corporation. The voting rights ratio JMU will change from the current Imabari Shipbuilding: 30%, JFE: 35%, IHI: 35% to Imabari Shipbuilding: 60%, JFE: 20%, IHI: 20% after the transaction is completed. In addition, there will be no change in NSY's business operations or investment ratios as a result of this transaction.
This transaction is subject to notification and approval from the relevant authorities in Japan and overseas. Announcement • Jun 24
JFE Holdings, Inc. to Report Q1, 2026 Results on Aug 05, 2025 JFE Holdings, Inc. announced that they will report Q1, 2026 results on Aug 05, 2025 Major Estimate Revision • Jun 19
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from JP¥4.89t to JP¥4.79t. EPS estimate also fell from JP¥226 per share to JP¥201 per share. Net income forecast to grow 20% next year vs 2.3% growth forecast for Metals and Mining industry in Japan. Consensus price target broadly unchanged at JP¥1,880. Share price was steady at JP¥1,675 over the past week. New Risk • May 09
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: 1.9% Last year net profit margin: 3.8% 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 High level of debt (62% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.9% net profit margin). Reported Earnings • May 09
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥144 (down from JP¥323 in FY 2024). Revenue: JP¥4.86t (down 6.1% from FY 2024). Net income: JP¥91.9b (down 54% from FY 2024). Profit margin: 1.9% (down from 3.8% in FY 2024). Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 14%. Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • May 08
JFE Holdings, Inc., Annual General Meeting, Jun 25, 2025 JFE Holdings, Inc., Annual General Meeting, Jun 25, 2025. Announcement • Mar 26
JFE Holdings, Inc. to Report Fiscal Year 2025 Results on May 08, 2025 JFE Holdings, Inc. announced that they will report fiscal year 2025 results on May 08, 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: 26 June 2025. Payout ratio is a comfortable 47% but the company is paying out more than the cash it is generating. Trailing yield: 5.0%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (4.1%). Buy Or Sell Opportunity • Mar 17
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 18% to JP¥1,973. The fair value is estimated to be JP¥1,638, 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 declined by 30%. For the next 3 years, revenue is forecast to grow by 0.2% per annum. Earnings are also forecast to grow by 11% per annum over the same time period. Reported Earnings • Feb 07
Third quarter 2025 earnings: EPS exceeds analyst expectations Third quarter 2025 results: EPS: JP¥90.58 (up from JP¥83.07 in 3Q 2024). Revenue: JP¥1.22t (down 5.0% from 3Q 2024). Net income: JP¥57.6b (up 9.1% from 3Q 2024). Profit margin: 4.7% (up from 4.1% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 27%. Revenue is forecast to stay flat during the next 3 years compared to a 1.4% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Price Target Changed • Jan 21
Price target decreased by 7.5% to JP¥1,978 Down from JP¥2,138, the current price target is an average from 8 analysts. New target price is 13% above last closing price of JP¥1,748. Stock is down 24% over the past year. The company is forecast to post earnings per share of JP¥214 for next year compared to JP¥323 last year. Announcement • Jan 03
JFE Holdings, Inc. to Report Q3, 2025 Results on Feb 06, 2025 JFE Holdings, Inc. announced that they will report Q3, 2025 results on Feb 06, 2025 Major Estimate Revision • Dec 10
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥247 to JP¥217 per share. Revenue forecast steady at JP¥4.97t. Net income forecast to grow 25% next year vs 16% growth forecast for Metals and Mining industry in Japan. Consensus price target down from JP¥2,238 to JP¥2,138. Share price was steady at JP¥1,740 over the past week. Declared Dividend • Dec 07
First half dividend of JP¥50.00 announced Shareholders will receive a dividend of JP¥50.00. Ex-date: 28th March 2025 Payment date: 26th June 2025 Dividend yield will be 5.8%, which is higher than the industry average of 3.4%. Sustainability & Growth Dividend is covered by earnings (49% earnings payout ratio) but not covered by cash flows (126% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 34% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • Dec 03
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥5.04t to JP¥4.97t. EPS estimate also fell from JP¥270 per share to JP¥232 per share. Net income forecast to grow 30% next year vs 16% growth forecast for Metals and Mining industry in Japan. Consensus price target down from JP¥2,319 to JP¥2,200. Share price was steady at JP¥1,723 over the past week. Buy Or Sell Opportunity • Nov 27
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 14% to JP¥1,701. The fair value is estimated to be JP¥2,145, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.7% over the last 3 years. Earnings per share has declined by 25%. For the next 3 years, revenue is forecast to grow by 0.9% per annum. Earnings are also forecast to grow by 11% per annum over the same time period. Major Estimate Revision • Nov 13
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥5.09t to JP¥5.04t. EPS estimate also fell from JP¥300 per share to JP¥270 per share. Net income forecast to grow 45% next year vs 16% growth forecast for Metals and Mining industry in Japan. Consensus price target of JP¥2,319 unchanged from last update. Share price fell 4.2% to JP¥1,785 over the past week. Reported Earnings • Nov 07
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: JP¥23.53 (down from JP¥84.89 in 2Q 2024). Revenue: JP¥1.24t (down 5.7% from 2Q 2024). Net income: JP¥15.0b (down 70% from 2Q 2024). Profit margin: 1.2% (down from 3.8% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) missed analyst estimates by 53%. Revenue is forecast to stay flat during the next 3 years compared to a 2.0% growth forecast for the Metals and Mining 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 9% per year, which means it is well ahead of earnings. Announcement • Sep 27
JFE Holdings, Inc. to Report Q2, 2025 Results on Nov 06, 2024 JFE Holdings, Inc. announced that they will report Q2, 2025 results on Nov 06, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 5.7%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (4.3%). Reported Earnings • Aug 06
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: EPS: JP¥43.27 (down from JP¥103 in 1Q 2024). Revenue: JP¥1.21t (down 4.0% from 1Q 2024). Net income: JP¥27.5b (down 54% from 1Q 2024). Profit margin: 2.3% (down from 4.7% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 6.7%. Earnings per share (EPS) also missed analyst estimates by 47%. Revenue is forecast to stay flat during the next 3 years compared to a 3.4% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,830, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 8x in the Metals and Mining industry in Japan. Total returns to shareholders of 58% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,751 per share. Declared Dividend • Jul 15
Final dividend of JP¥50.00 announced Shareholders will receive a dividend of JP¥50.00. Ex-date: 27th September 2024 Payment date: 4th December 2024 Dividend yield will be 4.3%, which is higher than the industry average of 3.4%. Sustainability & Growth Dividend is well covered by both earnings (31% earnings payout ratio) and cash flows (47% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 15% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 20
JFE Holdings, Inc. to Report Q1, 2025 Results on Aug 05, 2024 JFE Holdings, Inc. announced that they will report Q1, 2025 results on Aug 05, 2024 Reported Earnings • May 08
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: JP¥323 (up from JP¥281 in FY 2023). Revenue: JP¥5.17t (down 1.8% from FY 2023). Net income: JP¥197.4b (up 21% from FY 2023). Profit margin: 3.8% (up from 3.1% in FY 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) exceeded analyst estimates by 1.8%. Revenue is forecast to grow 1.1% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 12% per year. Announcement • May 08
JFE Holdings, Inc., Annual General Meeting, Jun 25, 2024 JFE Holdings, Inc., Annual General Meeting, Jun 25, 2024. Price Target Changed • Mar 26
Price target increased by 8.4% to JP¥2,711 Up from JP¥2,502, the current price target is an average from 10 analysts. New target price is approximately in line with last closing price of JP¥2,609. Stock is up 61% over the past year. The company is forecast to post earnings per share of JP¥317 for next year compared to JP¥281 last year. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 28 June 2024. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.2%). In line with average of industry peers (3.5%). Announcement • Mar 20
JFE Holdings, Inc. to Report Fiscal Year 2024 Results on May 07, 2024 JFE Holdings, Inc. announced that they will report fiscal year 2024 results on May 07, 2024 Reported Earnings • Feb 08
Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2024 results: EPS: JP¥83.07 (up from JP¥35.60 in 3Q 2023). Revenue: JP¥1.29t (down 4.1% from 3Q 2023). Net income: JP¥52.8b (up 155% from 3Q 2023). Profit margin: 4.1% (up from 1.5% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 6.3%. Earnings per share (EPS) exceeded analyst estimates by 31%. Revenue is forecast to stay flat during the next 3 years compared to a 2.9% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. Announcement • Feb 07
JFE Holdings, Inc. Announces Executive Changes JFE Holdings, Inc. announced that Yoshihisa Kitano, current President and CEO of JFE Steel Corporation and Representative Director of JFE Holdings, Inc. is appointed as President and Representative Director. The company also announced Yoshihisa Kitano, current President and Representative Director of JFE Holdings, Inc. Mr. Kakigi will resign from Director and become Senior Advisor in late June 2024. The senior manager changes are effective new senior managers effective April 1, 2024. Announcement • Dec 21
JFE Holdings, Inc. to Report Q3, 2024 Results on Feb 06, 2024 JFE Holdings, Inc. announced that they will report Q3, 2024 results on Feb 06, 2024 Reported Earnings • Nov 07
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: JP¥84.89 (up from JP¥67.99 in 2Q 2023). Revenue: JP¥1.31t (flat on 2Q 2023). Net income: JP¥50.5b (up 28% from 2Q 2023). Profit margin: 3.8% (up from 3.0% in 2Q 2023). Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates significantly. Revenue is forecast to stay flat during the next 3 years compared to a 1.3% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Oct 19
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 2.6%. The fair value is estimated to be JP¥2,608, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 0.09% per annum. Earnings is also forecast to grow by 11% per annum over the same time period. Announcement • Sep 23
JFE Holdings, Inc. to Report Q2, 2024 Results on Nov 06, 2023 JFE Holdings, Inc. announced that they will report Q2, 2024 results on Nov 06, 2023 New Risk • Sep 22
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.2% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks High level of debt (85% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (2.6% net profit margin). Shareholders have been diluted in the past year (5.2% increase in shares outstanding). Upcoming Dividend • Sep 21
Upcoming dividend of JP¥50.00 per share at 4.4% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 02 December 2023. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 4.4%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (3.2%). Reported Earnings • Aug 04
First quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2024 results: EPS: JP¥103 (down from JP¥146 in 1Q 2023). Revenue: JP¥1.26t (flat on 1Q 2023). Net income: JP¥59.6b (down 29% from 1Q 2023). Profit margin: 4.7% (down from 6.7% in 1Q 2023). Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) exceeded analyst estimates by 69%. Revenue is forecast to stay flat during the next 3 years compared to a 1.1% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has only increased by 44% per year, which means it is significantly lagging earnings growth. Announcement • Jun 17
JFE Holdings, Inc. to Report Q1, 2024 Results on Aug 03, 2023 JFE Holdings, Inc. announced that they will report Q1, 2024 results on Aug 03, 2023 Reported Earnings • May 09
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: JP¥281 (down from JP¥500 in FY 2022). Revenue: JP¥5.27t (up 21% from FY 2022). Net income: JP¥162.6b (down 44% from FY 2022). Profit margin: 3.1% (down from 6.6% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 7.6%. Revenue is forecast to stay flat during the next 3 years, in line with the revenue forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has increased by 93% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth.