Upcoming Dividend • Jun 22
Upcoming dividend of JP¥5.50 per share Eligible shareholders must have bought the stock before 29 June 2026. Payment date: 14 September 2026. Payout ratio is a comfortable 73% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.9%). Higher than average of industry peers (2.4%). Announcement • Jun 05
Nippon Denko Co., Ltd. to Report Q2, 2026 Results on Aug 05, 2026 Nippon Denko Co., Ltd. announced that they will report Q2, 2026 results on Aug 05, 2026 Valuation Update With 7 Day Price Move • May 28
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥544, the stock trades at a trailing P/E ratio of 34.7x. Average trailing P/E is 12x in the Metals and Mining industry in Japan. Total returns to shareholders of 130% over the past three years. Reported Earnings • May 13
First quarter 2026 earnings released: EPS: JP¥4.50 (vs JP¥0.18 in 1Q 2025) First quarter 2026 results: EPS: JP¥4.50 (up from JP¥0.18 in 1Q 2025). Revenue: JP¥19.4b (flat on 1Q 2025). Net income: JP¥561.0m (up JP¥536.0m from 1Q 2025). Profit margin: 2.9% (up from 0.1% in 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Declared Dividend • Apr 11
Final dividend of JP¥5.50 announced Shareholders will receive a dividend of JP¥5.50. Ex-date: 29th June 2026 Payment date: 14th September 2026 Dividend yield will be 2.9%, which is lower than the industry average of 3.4%. Sustainability & Growth Dividend is not covered by earnings (103% earnings payout ratio). However, it is well covered by cash flows (17% cash payout ratio). The dividend has increased by an average of 10% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 14% to bring the payout ratio under control. However, EPS has declined by 8.6% over the last 5 years so the company would need to reverse this trend. New Risk • Feb 17
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 20% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 14% per year over the past 5 years. Minor Risks 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 (1.8% net profit margin). Reported Earnings • Feb 16
Full year 2025 earnings released: EPS: JP¥10.69 (vs JP¥22.91 in FY 2024) Full year 2025 results: EPS: JP¥10.69 (down from JP¥22.91 in FY 2024). Revenue: JP¥77.3b (down 1.2% from FY 2024). Net income: JP¥1.42b (down 55% from FY 2024). Profit margin: 1.8% (down from 4.0% in FY 2024). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Feb 12
Nippon Denko Co., Ltd., Annual General Meeting, Mar 27, 2026 Nippon Denko Co., Ltd., Annual General Meeting, Mar 27, 2026. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥7.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 30 March 2026. Payout ratio is on the higher end at 80%, however this is supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (3.1%). Announcement • Dec 03
Nippon Denko Co., Ltd. to Report Fiscal Year 2025 Results on Feb 12, 2026 Nippon Denko Co., Ltd. announced that they will report fiscal year 2025 results on Feb 12, 2026 Reported Earnings • Nov 08
Third quarter 2025 earnings released: JP¥0.22 loss per share (vs JP¥7.32 profit in 3Q 2024) Third quarter 2025 results: JP¥0.22 loss per share (down from JP¥7.32 profit in 3Q 2024). Revenue: JP¥19.8b (down 1.1% from 3Q 2024). Net loss: JP¥29.0m (down 103% from profit in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 37% 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. Declared Dividend • Sep 13
First half dividend of JP¥7.00 announced Shareholders will receive a dividend of JP¥7.00. Ex-date: 29th December 2025 Payment date: 30th March 2026 Dividend yield will be 3.6%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (54% earnings payout ratio) and cash flows (36% cash payout ratio). The dividend has increased by an average of 8.2% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 22% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Sep 05
Nippon Denko Co., Ltd. to Report Q3, 2025 Results on Nov 06, 2025 Nippon Denko Co., Ltd. announced that they will report Q3, 2025 results on Nov 06, 2025 Reported Earnings • Aug 07
Second quarter 2025 earnings released: EPS: JP¥3.23 (vs JP¥6.20 in 2Q 2024) Second quarter 2025 results: EPS: JP¥3.23 (down from JP¥6.20 in 2Q 2024). Revenue: JP¥18.7b (flat on 2Q 2024). Net income: JP¥443.0m (down 48% from 2Q 2024). Profit margin: 2.4% (down from 4.5% in 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. New Risk • Aug 07
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: 3.9% Last year net profit margin: 5.6% 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 Dividend is not well covered by cash flows (91% cash payout ratio). Profit margins are more than 30% lower than last year (3.9% net profit margin). Announcement • Aug 05
Nippon Denko Co., Ltd. (TSE:5563) announces an Equity Buyback for 20,000,000 shares, representing 14.56% for ¥4,000 million. Nippon Denko Co., Ltd. (TSE:5563) announces a share repurchase program. Under the program, the company will repurchase up to 20,000,000 shares, representing 14.56% of its share capital, for ¥4,000 million. The purpose of the program is to enhance shareholder returns, improve capital efficiency, and implement a flexible capital policy that responds to changes in the business environment. The program will expire on March 31, 2026. As of June 30, 2025, the company had 137,381,434 shares in issue (excluding treasury stock) and 5,038 shares in treasury. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥5.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 10 September 2025. Payout ratio is a comfortable 43% and the cash payout ratio is 91%. Trailing yield: 4.4%. Within top quartile of Japanese dividend payers (4.0%). In line with average of industry peers (4.0%). Announcement • Jun 05
Nippon Denko Co., Ltd. to Report Q2, 2025 Results on Aug 05, 2025 Nippon Denko Co., Ltd. announced that they will report Q2, 2025 results on Aug 05, 2025 Reported Earnings • May 09
First quarter 2025 earnings released: EPS: JP¥0.18 (vs JP¥2.31 loss in 1Q 2024) First quarter 2025 results: EPS: JP¥0.18 (up from JP¥2.31 loss in 1Q 2024). Revenue: JP¥19.4b (up 9.4% from 1Q 2024). Net income: JP¥25.0m (up JP¥342.0m from 1Q 2024). Profit margin: 0.1% (up from net loss in 1Q 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 43% 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. Declared Dividend • May 01
Final dividend of JP¥4.00 announced Shareholders will receive a dividend of JP¥4.00. Ex-date: 27th June 2025 Payment date: 10th September 2025 Dividend yield will be 4.2%, which is higher than the industry average of 3.4%. Sustainability & Growth Dividend is covered by earnings (48% earnings payout ratio) but not adequately covered by cash flows (91% cash payout ratio). The dividend has increased by an average of 8.2% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 45% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. 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¥235, the stock trades at a trailing P/E ratio of 10.3x. Average trailing P/E is 9x in the Metals and Mining industry in Japan. Total loss to shareholders of 18% over the past three years. Announcement • Mar 06
Nippon Denko Co., Ltd. to Report Q1, 2025 Results on May 08, 2025 Nippon Denko Co., Ltd. announced that they will report Q1, 2025 results on May 08, 2025 Announcement • Feb 14
Nippon Denko Co., Ltd. Announces Year End Dividend for the Fiscal Year Ended December 31, 2024, Payable on March 28, 2025 Nippon Denko Co., Ltd. announced year end dividend for the fiscal year ended December 31, 2024. For the year, the company announced year end dividend of JPY 7 per share compared to previous guidance of JPY 6 per share paid a year ago. Scheduled date to commence dividend payments: March 28, 2025. Reported Earnings • Feb 14
Full year 2024 earnings released: EPS: JP¥22.91 (vs JP¥31.82 in FY 2023) Full year 2024 results: EPS: JP¥22.91 (down from JP¥31.82 in FY 2023). Revenue: JP¥78.2b (up 2.4% from FY 2023). Net income: JP¥3.14b (down 28% from FY 2023). Profit margin: 4.0% (down from 5.7% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥6.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 31 March 2025. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (4.6%). Announcement • Dec 05
Nippon Denko Co., Ltd. to Report Fiscal Year 2024 Results on Feb 12, 2025 Nippon Denko Co., Ltd. announced that they will report fiscal year 2024 results on Feb 12, 2025 Reported Earnings • Nov 08
Third quarter 2024 earnings released: EPS: JP¥7.32 (vs JP¥0.26 loss in 3Q 2023) Third quarter 2024 results: EPS: JP¥7.32 (up from JP¥0.26 loss in 3Q 2023). Revenue: JP¥20.0b (up 12% from 3Q 2023). Net income: JP¥1.01b (up JP¥1.04b from 3Q 2023). Profit margin: 5.0% (up from net loss in 3Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 28% 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. Announcement • Nov 07
Nippon Denko Co., Ltd. Provides Consolidated Earnings Guidance for the Year Ending December 31, 2024 Nippon Denko Co., Ltd. provided consolidated earnings guidance for the year ending December 31, 2024. For the period, the company expected net sales of ¥79,800 million, ordinary profit of ¥5,000 million, profit attributable to owners of parent of ¥3,400 million and earnings per share of ¥24.80. Announcement • Aug 30
Nippon Denko Co., Ltd. to Report Q3, 2024 Results on Nov 06, 2024 Nippon Denko Co., Ltd. announced that they will report Q3, 2024 results on Nov 06, 2024 Reported Earnings • Aug 13
Second quarter 2024 earnings released: EPS: JP¥6.20 (vs JP¥4.77 in 2Q 2023) Second quarter 2024 results: EPS: JP¥6.20 (up from JP¥4.77 in 2Q 2023). Revenue: JP¥18.8b (flat on 2Q 2023). Net income: JP¥851.0m (up 30% from 2Q 2023). Profit margin: 4.5% (up from 3.5% in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 19% 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. Announcement • Aug 09
Nippon Denko Co., Ltd. Revises Consolidated Earnings Guidance for the Year Ending December 31, 2024 Nippon Denko Co., Ltd. revised consolidated earnings guidance for the year ending December 31, 2024. For the period, the company expects net sales to be ¥79,800 million, ordinary profit to be ¥5,000 million, profit attributable to owners of parent to be ¥3,400 million or earnings per share to be ¥24.80. The company ordinary profit is expected to double year-on-year to ¥5.0 billion due to the price revisions and other efforts to improve profitability, as well as the impact of yen depreciation and inventory, despite the margin decline in the Ferroalloys business and higher costs in each business arising from increased labor costs and commodity prices. Declared Dividend • Aug 09
Dividend of JP¥6.00 announced Shareholders will receive a dividend of JP¥6.00. Ex-date: 27th December 2024 Payment date: 31st March 2025 Dividend yield will be 3.7%, which is higher than the industry average of 3.4%. Sustainability & Growth Dividend is well covered by both earnings (32% earnings payout ratio) and cash flows (31% cash payout ratio). The dividend has increased by an average of 6.1% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 56% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to JP¥230, the stock trades at a trailing P/E ratio of 8.1x. Average trailing P/E is 9x in the Metals and Mining industry in Japan. Total loss to shareholders of 16% over the past three years. Announcement • Jun 27
Nippon Denko Co., Ltd. Announces its High-Performance Vanadium Dioxide (Vo2) Latent Heat Storage Material Adopted as Device for Stabilizing the Power Supply Temperature of DENDEN-01 Nippon Denko Co., Ltd. announced that the Company's high-performance vanadium dioxide (VO2) latent heat storage material was adopted as a device for stabilizing the power supply temperature of DENDEN-01, an ultra-small satellite developed by a group led by Kansai University. Satellites less than 100kg are called an ultra-small satellite, and the development and usage of CubeSats, whose standard structures are 10 cm3, is rapidly progressing. However, CubeSats are constrained by issues such as limitations on power, weight, and size, and their small heat capacity, thereby still being susceptible to abrupt temperature changes in outer space. In particular, a power supply which is one of the installed devices is extremely vulnerable to low temperatures, which significantly undermine their performance, causing malfunction to satellites. To tackle this issue and achieve a highly reliable power supply, the Company and Kansai University have jointly developed a vanadium dioxide (VO2") latent heat storage material which responds to the severe temperature changes in outer space. This material has both heat storage and releasing capabilities, and demonstrates high performance by optimizing its transition temperature and transition responsiveness. Furthermore, a novel device for stabilizing the power Supply temperature of satellites utilizing this material can expect the achievement of stable performance of a power supply by reducing the energy consumption in CubeSats when in operation and keeping the temperature of a power supply constant. This device for stabilizing the Power supply temperature of satellites will be installed in DENDEN-01, which was developed by the group led by Associate Professor Masaki Yamagata, and a demonstration experiment will be conducted in outer space. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥4.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 09 September 2024. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (3.8%). Announcement • Jun 06
Nippon Denko Co., Ltd. to Report Q2, 2024 Results on Aug 07, 2024 Nippon Denko Co., Ltd. announced that they will report Q2, 2024 results on Aug 07, 2024 Reported Earnings • May 11
First quarter 2024 earnings released: JP¥2.31 loss per share (vs JP¥1.06 profit in 1Q 2023) First quarter 2024 results: JP¥2.31 loss per share (down from JP¥1.06 profit in 1Q 2023). Revenue: JP¥17.7b (down 14% from 1Q 2023). Net loss: JP¥317.0m (down 317% from profit in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 1% per year. Board Change • May 01
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 4 experienced directors. No highly experienced directors. Outside Audit & Supervisory Board Member Hiroaki Kimura is the most experienced director on the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Mar 10
Nippon Denko Co., Ltd. to Report Q1, 2024 Results on May 09, 2024 Nippon Denko Co., Ltd. announced that they will report Q1, 2024 results on May 09, 2024 Announcement • Feb 16
Nippon Denko Co., Ltd. Announces Dividend for the Year Ended December 31, 2023, Payable on March 29, 2024 Nippon Denko Co., Ltd. announced dividend of JPY 6.00 per share for the year ended December 31, 2023 against JPY 9.00 per share paid for the same period a year ago. Scheduled date to commence dividend payments: March 29, 2024. Reported Earnings • Feb 10
Full year 2023 earnings released: EPS: JP¥30.42 (vs JP¥54.45 in FY 2022) Full year 2023 results: EPS: JP¥30.42 (down from JP¥54.45 in FY 2022). Revenue: JP¥76.4b (down 3.7% from FY 2022). Net income: JP¥4.18b (down 47% from FY 2022). Profit margin: 5.5% (down from 10.0% in FY 2022). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 2% per year. Announcement • Feb 10
Nippon Denko Co., Ltd., Annual General Meeting, Mar 28, 2024 Nippon Denko Co., Ltd., Annual General Meeting, Mar 28, 2024. Buy Or Sell Opportunity • Feb 09
Now 28% overvalued after recent price rise Over the last 90 days, the stock has risen 11% to JP¥307. The fair value is estimated to be JP¥239, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Meanwhile, the company has become profitable. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥4.00 per share at 2.5% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 01 April 2024. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (3.7%). Announcement • Dec 05
Nippon Denko Co., Ltd. to Report Fiscal Year 2023 Results on Feb 08, 2024 Nippon Denko Co., Ltd. announced that they will report fiscal year 2023 results on Feb 08, 2024 Announcement • Nov 09
Nippon Denko Co., Ltd. Provides Dividend Guidance for the Fiscal Year Ending December 31, 2023 Nippon Denko Co., Ltd. provided dividend guidance for the fiscal year ending December 31, 2023. For the year, the company expects to pay dividend of JPY 4.00 per share against JPY 9.00 per share paid a year ago. Reported Earnings • Nov 08
Third quarter 2023 earnings released: JP¥0.26 loss per share (vs JP¥12.88 profit in 3Q 2022) Third quarter 2023 results: JP¥0.26 loss per share (down from JP¥12.88 profit in 3Q 2022). Revenue: JP¥17.9b (down 13% from 3Q 2022). Net loss: JP¥36.0m (down 102% from profit in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Sep 06
Nippon Denko Co., Ltd. to Report Q3, 2023 Results on Nov 07, 2023 Nippon Denko Co., Ltd. announced that they will report Q3, 2023 results on Nov 07, 2023 Reported Earnings • Aug 08
Second quarter 2023 earnings released: EPS: JP¥4.77 (vs JP¥17.02 in 2Q 2022) Second quarter 2023 results: EPS: JP¥4.77 (down from JP¥17.02 in 2Q 2022). Revenue: JP¥18.7b (flat on 2Q 2022). Net income: JP¥654.0m (down 74% from 2Q 2022). Profit margin: 3.5% (down from 13% in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥3.00 per share at 6.0% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 11 September 2023. Payout ratio is a comfortable 49% but the company is paying out more than the cash it is generating. Trailing yield: 6.0%. Within top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (3.7%). Announcement • Jun 03
Nippon Denko Co., Ltd. to Report Q2, 2023 Results on Aug 07, 2023 Nippon Denko Co., Ltd. announced that they will report Q2, 2023 results on Aug 07, 2023 Valuation Update With 7 Day Price Move • May 18
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥292, the stock trades at a trailing P/E ratio of 8x. Average trailing P/E is 8x in the Metals and Mining industry in Japan. Total returns to shareholders of 117% over the past three years. Reported Earnings • May 16
First quarter 2023 earnings released: EPS: JP¥1.06 (vs JP¥20.83 in 1Q 2022) First quarter 2023 results: EPS: JP¥1.06 (down from JP¥20.83 in 1Q 2022). Revenue: JP¥20.7b (up 4.8% from 1Q 2022). Net income: JP¥146.0m (down 95% from 1Q 2022). Profit margin: 0.7% (down from 16% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 97% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 10
Full year 2022 earnings released: EPS: JP¥54.45 (vs JP¥52.91 in FY 2021) Full year 2022 results: EPS: JP¥54.45 (up from JP¥52.91 in FY 2021). Revenue: JP¥79.3b (up 20% from FY 2021). Net income: JP¥7.95b (up 2.3% from FY 2021). Profit margin: 10.0% (down from 12% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 110% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Announcement • Feb 10
Nippon Denko Co., Ltd., Annual General Meeting, Mar 30, 2023 Nippon Denko Co., Ltd., Annual General Meeting, Mar 30, 2023. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 31 March 2023. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 5.5%. Within top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (5.6%). Announcement • Dec 16
Nippon Denko Co., Ltd. to Report Fiscal Year 2022 Results on Feb 08, 2023 Nippon Denko Co., Ltd. announced that they will report fiscal year 2022 results on Feb 08, 2023 Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Hokuto Nakano 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. Lack of board continuity. Reported Earnings • Nov 10
Third quarter 2022 earnings released: EPS: JP¥12.88 (vs JP¥11.03 in 3Q 2021) Third quarter 2022 results: EPS: JP¥12.88 (up from JP¥11.03 in 3Q 2021). Revenue: JP¥20.5b (up 21% from 3Q 2021). Net income: JP¥1.89b (up 17% from 3Q 2021). Profit margin: 9.2% (in line with 3Q 2021). Over the last 3 years on average, earnings per share has increased by 108% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 07
Second quarter 2022 earnings released: EPS: JP¥17.02 (vs JP¥10.53 in 2Q 2021) Second quarter 2022 results: EPS: JP¥17.02 (up from JP¥10.53 in 2Q 2021). Revenue: JP¥18.7b (up 22% from 2Q 2021). Net income: JP¥2.50b (up 62% from 2Q 2021). Profit margin: 13% (up from 10% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 99% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 12 September 2022. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (6.1%). Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥352, the stock trades at a trailing P/E ratio of 4.9x. Average trailing P/E is 6x in the Metals and Mining industry in Japan. Total returns to shareholders of 94% over the past three years. Reported Earnings • May 13
First quarter 2022 earnings released: EPS: JP¥20.83 (vs JP¥1.98 in 1Q 2021) First quarter 2022 results: EPS: JP¥20.83 (up from JP¥1.98 in 1Q 2021). Revenue: JP¥19.8b (up 27% from 1Q 2021). Net income: JP¥3.06b (up JP¥2.77b from 1Q 2021). Profit margin: 16% (up from 1.9% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. 3 highly experienced directors. No independent directors (10 non-independent directors). Senior Managing Executive Officer, Head of Alloy Sales and Director Kozo Tahata was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Feb 09
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: JP¥52.91 (up from JP¥17.83 in FY 2020). Revenue: JP¥66.0b (up 22% from FY 2020). Net income: JP¥7.77b (up 197% from FY 2020). Profit margin: 12% (up from 4.8% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥4.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 31 March 2022. Payout ratio is a comfortable 31% but the company is not cash flow positive. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (3.6%). Reported Earnings • Nov 10
Third quarter 2021 earnings released: EPS JP¥11.03 (vs JP¥1.89 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥17.0b (up 37% from 3Q 2020). Net income: JP¥1.62b (up JP¥1.90b from 3Q 2020). Profit margin: 9.5% (up from net loss in 3Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 6% per year. Valuation Update With 7 Day Price Move • Oct 14
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥370, the stock trades at a trailing P/E ratio of 23.5x. Average trailing P/E is 10x in the Metals and Mining industry in Japan. Total returns to shareholders of 36% over the past three years. Reported Earnings • Aug 13
Second quarter 2021 earnings released: EPS JP¥10.53 (vs JP¥11.94 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: JP¥15.4b (up 23% from 2Q 2020). Net income: JP¥1.55b (down 12% from 2Q 2020). Profit margin: 10% (down from 14% in 2Q 2020). 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 8% per year, which means it is well ahead of earnings. Reported Earnings • May 14
First quarter 2021 earnings released: EPS JP¥1.98 (vs JP¥2.68 in 1Q 2020) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2021 results: Revenue: JP¥15.6b (up 4.1% from 1Q 2020). Net income: JP¥291.0m (down 26% from 1Q 2020). Profit margin: 1.9% (down from 2.6% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Reported Earnings • Apr 03
Full year 2020 earnings released: EPS JP¥17.83 (vs JP¥97.19 loss in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: JP¥54.0b (down 23% from FY 2019). Net income: JP¥2.62b (up JP¥16.9b from FY 2019). Profit margin: 4.8% (up from net loss in FY 2019). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 94 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥345, the stock trades at a trailing P/E ratio of 19.4x. Average trailing P/E is 15x in the Metals and Mining industry in Japan. Total returns to shareholders of 7.8% over the past three years. Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥326, the stock trades at a trailing P/E ratio of 18.3x, up from the previous P/E ratio of 15.9x. Average P/E is 14x in the Metals and Mining industry in Japan. Total return to shareholders over the past three years was a loss of 1.4%. Is New 90 Day High Low • Mar 12
New 90-day high: JP¥317 The company is up 16% from its price of JP¥274 on 11 December 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Metals and Mining industry, which is up 17% over the same period. Reported Earnings • Feb 10
Full year 2020 earnings released: EPS JP¥17.83 (vs JP¥97.19 loss in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: JP¥54.0b (down 23% from FY 2019). Net income: JP¥2.62b (up JP¥16.9b from FY 2019). Profit margin: 4.8% (up from net loss in FY 2019). Over the last 3 years on average, earnings per share has fallen by 93% 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. Is New 90 Day High Low • Dec 09
New 90-day high: JP¥266 The company is up 29% from its price of JP¥207 on 10 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 Metals and Mining industry, which is up 9.0% over the same period. Announcement • Jun 29
Nippon Denko Co., Ltd. to Report Q2, 2020 Results on Aug 11, 2020 Nippon Denko Co., Ltd. announced that they will report Q2, 2020 results on Aug 11, 2020