Valuation Update With 7 Day Price Move • May 19
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥2,293, the stock trades at a trailing P/E ratio of 8x. Average trailing P/E is 14x in the Chemicals industry in Japan. Total returns to shareholders of 100% over the past three years. New Risk • May 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 7.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.6% average weekly change). Reported Earnings • May 13
Full year 2026 earnings released: EPS: JP¥286 (vs JP¥214 in FY 2025) Full year 2026 results: EPS: JP¥286 (up from JP¥214 in FY 2025). Revenue: JP¥29.7b (up 7.7% from FY 2025). Net income: JP¥1.99b (up 32% from FY 2025). Profit margin: 6.7% (up from 5.5% in FY 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 12
Muto Seiko Co., Annual General Meeting, Jun 23, 2026 Muto Seiko Co., Annual General Meeting, Jun 23, 2026. Announcement • May 10
Muto Seiko Co. to Report Fiscal Year 2026 Results on May 12, 2026 Muto Seiko Co. announced that they will report fiscal year 2026 results at 3:00 PM, Tokyo Standard Time on May 12, 2026 Buy Or Sell Opportunity • Mar 25
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 6.3% to JP¥2,133. The fair value is estimated to be JP¥1,768, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.4% over the last 3 years. Earnings per share has grown by 7.7%. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥71.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 25 June 2026. Payout ratio is a comfortable 41% and the cash payout ratio is 81%. Trailing yield: 4.7%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.3%). Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: JP¥81.63 (vs JP¥75.84 in 3Q 2025) Third quarter 2026 results: EPS: JP¥81.63 (up from JP¥75.84 in 3Q 2025). Revenue: JP¥7.75b (up 7.6% from 3Q 2025). Net income: JP¥567.0m (up 6.4% from 3Q 2025). Profit margin: 7.3% (down from 7.4% in 3Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 31% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 10
Muto Seiko Co. to Report Q3, 2026 Results on Feb 12, 2026 Muto Seiko Co. announced that they will report Q3, 2026 results on Feb 12, 2026 Reported Earnings • Nov 16
Second quarter 2026 earnings released: EPS: JP¥95.59 (vs JP¥54.55 in 2Q 2025) Second quarter 2026 results: EPS: JP¥95.59 (up from JP¥54.55 in 2Q 2025). Revenue: JP¥7.78b (up 1.3% from 2Q 2025). Net income: JP¥664.0m (up 72% from 2Q 2025). Profit margin: 8.5% (up from 5.0% in 2Q 2025). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 41% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 17 December 2025. Payout ratio is a comfortable 46% but the company is not cash flow positive. Trailing yield: 5.3%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.6%). Announcement • Sep 02
Muto Seiko Co. to Report Q2, 2026 Results on Nov 13, 2025 Muto Seiko Co. announced that they will report Q2, 2026 results on Nov 13, 2025 Reported Earnings • Aug 10
First quarter 2026 earnings released: EPS: JP¥59.71 (vs JP¥67.22 in 1Q 2025) First quarter 2026 results: EPS: JP¥59.71 (down from JP¥67.22 in 1Q 2025). Revenue: JP¥7.06b (up 8.0% from 1Q 2025). Net income: JP¥418.0m (down 12% from 1Q 2025). Profit margin: 5.9% (down from 7.3% in 1Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 40% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Jun 29
Full year 2025 earnings released: EPS: JP¥214 (vs JP¥250 in FY 2024) Full year 2025 results: EPS: JP¥214 (down from JP¥250 in FY 2024). Revenue: JP¥27.6b (up 4.8% from FY 2024). Net income: JP¥1.51b (down 15% from FY 2024). Profit margin: 5.5% (down from 6.7% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has increased by 41% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jun 06
Muto Seiko Co. to Report Q1, 2026 Results on Aug 08, 2025 Muto Seiko Co. announced that they will report Q1, 2026 results on Aug 08, 2025 Reported Earnings • May 17
Full year 2025 earnings released: EPS: JP¥214 (vs JP¥250 in FY 2024) Full year 2025 results: EPS: JP¥214 (down from JP¥250 in FY 2024). Revenue: JP¥27.6b (up 4.8% from FY 2024). Net income: JP¥1.51b (down 15% from FY 2024). Profit margin: 5.5% (down from 6.7% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 26% 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 14
Muto Seiko Co. (TSE:7927) announces an Equity Buyback for 90,000 shares, representing 1.28% for ¥130 million. Muto Seiko Co. (TSE:7927) announces a share repurchase program. Under the program, the company will repurchase up to 90,000 shares, representing 1.28% of its share capital, for ¥130 million. The purpose of the program is to enhance shareholder returns and improve capital efficiency. The share repurchase program will run until September 30, 2025. As of May 13, 2025, the company had 7,028,361 shares outstanding (excluding treasury shares) and 711,187 shares in treasury. Announcement • May 13
Muto Seiko Co., Annual General Meeting, Jun 24, 2025 Muto Seiko Co., Annual General Meeting, Jun 24, 2025. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to JP¥1,182, the stock trades at a trailing P/E ratio of 4.9x. Average trailing P/E is 10x in the Chemicals industry in Japan. Total returns to shareholders of 219% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥73.50 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 23 June 2025. Payout ratio is a comfortable 45% but the company is paying out more than the cash it is generating. Trailing yield: 5.5%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.6%). Announcement • Mar 11
Muto Seiko Co. to Report Fiscal Year 2025 Results on May 13, 2025 Muto Seiko Co. announced that they will report fiscal year 2025 results on May 13, 2025 Buy Or Sell Opportunity • Mar 10
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 1.5% to JP¥1,686. The fair value is estimated to be JP¥1,405, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.8% over the last 3 years. Earnings per share has grown by 33%. Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: JP¥75.84 (vs JP¥57.07 in 3Q 2024) Third quarter 2025 results: EPS: JP¥75.84 (up from JP¥57.07 in 3Q 2024). Revenue: JP¥7.20b (up 7.5% from 3Q 2024). Net income: JP¥533.0m (up 32% from 3Q 2024). Profit margin: 7.4% (up from 6.0% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has increased by 55% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 03
Muto Seiko Co. to Report Q3, 2025 Results on Feb 13, 2025 Muto Seiko Co. announced that they will report Q3, 2025 results on Feb 13, 2025 Announcement • Oct 30
KOYO Coproration acquired Tachibana Seiki Co. Ltd. from Muto Seiko Co. (TSE:7927) for ¥600 million. KOYO Coproration acquired Tachibana Seiki Co. Ltd. from Muto Seiko Co. (TSE:7927) for ¥600 million on October 29, 2024. A cash consideration of ¥600 million will be paid by KOYO Coproration. As part of consideration, ¥600 million is paid towards common equity of Tachibana Seiki Co. Ltd.
For the period ending March 31, 2024, Tachibana Seiki Co. Ltd. reported total revenue of ¥1.06 billion, EBIT of ¥0.77 million and net income of ¥199.42 million. As of March 31, 2024, Tachibana Seiki Co. Ltd. reported total assets of ¥1.3 billion and total common equity of ¥1.12 billion.
KOYO Coproration completed the acquisition of Tachibana Seiki Co. Ltd. from Muto Seiko Co. (TSE:7927) on October 29, 2024. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥16.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 12 December 2024. Payout ratio is a comfortable 37% and this is well supported by cash flows. Trailing yield: 5.6%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.4%). Announcement • Aug 29
Muto Seiko Co. to Report Q2, 2025 Results on Nov 13, 2024 Muto Seiko Co. announced that they will report Q2, 2025 results on Nov 13, 2024 Reported Earnings • Aug 13
First quarter 2025 earnings released: EPS: JP¥67.22 (vs JP¥45.82 in 1Q 2024) First quarter 2025 results: EPS: JP¥67.22 (up from JP¥45.82 in 1Q 2024). Revenue: JP¥6.54b (up 1.5% from 1Q 2024). Net income: JP¥477.0m (up 47% from 1Q 2024). Profit margin: 7.3% (up from 5.0% in 1Q 2024). Over the last 3 years on average, earnings per share has increased by 47% per year whereas the company’s share price has increased by 46% per year. Announcement • Aug 09
Muto Seiko Co. (TSE:7927) announces an Equity Buyback for 80,000 shares, representing 1.13% for ¥120 million. Muto Seiko Co. (TSE:7927) announces a share repurchase program. Under the program, the company will repurchase up to 80,000 shares, representing 1.13% of its share capital, for ¥120 million. The purpose of the program is to enhance shareholder returns and improve capital efficiency. The share repurchase program will run until March 31, 2025. As of August 8, 2024, the company had 7,099,893 shares outstanding (excluding treasury shares) and 639,655 shares in treasury. New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.4% average weekly change). Market cap is less than US$100m (JP¥9.06b market cap, or US$63.6m). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 27% After last week's 27% share price decline to JP¥1,277, the stock trades at a trailing P/E ratio of 5.1x. Average trailing P/E is 12x in the Chemicals industry in Japan. Total returns to shareholders of 150% over the past three years. Buy Or Sell Opportunity • Aug 05
Now 26% undervalued after recent price drop Over the last 90 days, the stock has fallen 33% to JP¥1,277. The fair value is estimated to be JP¥1,733, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 52%. Buy Or Sell Opportunity • Jul 12
Now 21% overvalued Over the last 90 days, the stock has fallen 4.5% to JP¥1,837. The fair value is estimated to be JP¥1,522, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 52%. Reported Earnings • Jun 25
Full year 2024 earnings released: EPS: JP¥250 (vs JP¥182 in FY 2023) Full year 2024 results: EPS: JP¥250 (up from JP¥182 in FY 2023). Revenue: JP¥26.3b (flat on FY 2023). Net income: JP¥1.77b (up 36% from FY 2023). Profit margin: 6.7% (up from 5.0% in FY 2023). Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 42% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Jun 11
Now 20% overvalued Over the last 90 days, the stock has fallen 9.5% to JP¥1,797. The fair value is estimated to be JP¥1,493, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 52%. Announcement • Jun 06
Muto Seiko Co. to Report Q1, 2025 Results on Aug 08, 2024 Muto Seiko Co. announced that they will report Q1, 2025 results on Aug 08, 2024 Reported Earnings • May 16
Full year 2024 earnings released: EPS: JP¥250 (vs JP¥182 in FY 2023) Full year 2024 results: EPS: JP¥250 (up from JP¥182 in FY 2023). Revenue: JP¥26.3b (flat on FY 2023). Net income: JP¥1.77b (up 36% from FY 2023). Profit margin: 6.7% (up from 5.0% in FY 2023). Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 44% per year, which means it is significantly lagging earnings growth. Announcement • May 15
Muto Seiko Co., Annual General Meeting, Jun 20, 2024 Muto Seiko Co., Annual General Meeting, Jun 20, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥75.50 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 24 June 2024. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.1%). Announcement • Mar 02
Muto Seiko Co. to Report Fiscal Year 2024 Results on May 13, 2024 Muto Seiko Co. announced that they will report fiscal year 2024 results on May 13, 2024 New Risk • Feb 12
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.6% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (7.6% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (JP¥13.9b market cap, or US$93.3m). Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥57.07 (vs JP¥74.49 in 3Q 2023) Third quarter 2024 results: EPS: JP¥57.07 (down from JP¥74.49 in 3Q 2023). Revenue: JP¥6.70b (down 7.9% from 3Q 2023). Net income: JP¥405.0m (down 24% from 3Q 2023). Profit margin: 6.0% (down from 7.3% in 3Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Announcement • Dec 07
Muto Seiko Co. to Report Q2, 2024 Results on Feb 08, 2024 Muto Seiko Co. announced that they will report Q2, 2024 results on Feb 08, 2024 Valuation Update With 7 Day Price Move • Nov 17
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to JP¥1,999, the stock trades at a trailing P/E ratio of 8.2x. Average trailing P/E is 14x in the Chemicals industry in Japan. Total returns to shareholders of 378% over the past three years. New Risk • Nov 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 6.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.7% average weekly change). Market cap is less than US$100m (JP¥11.2b market cap, or US$73.6m). Reported Earnings • Nov 13
Second quarter 2024 earnings released: EPS: JP¥106 (vs JP¥44.11 in 2Q 2023) Second quarter 2024 results: EPS: JP¥106 (up from JP¥44.11 in 2Q 2023). Revenue: JP¥6.98b (flat on 2Q 2023). Net income: JP¥753.0m (up 138% from 2Q 2023). Profit margin: 11% (up from 4.5% in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 61% per year whereas the company’s share price has increased by 56% per year. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥12.00 per share at 4.6% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 13 December 2023. Payout ratio is a comfortable 41% and this is well supported by cash flows. Trailing yield: 4.6%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.5%). Announcement • Sep 06
Muto Seiko Co. to Report Q2, 2024 Results on Nov 10, 2023 Muto Seiko Co. announced that they will report Q2, 2024 results on Nov 10, 2023 Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥45.82 (vs JP¥46.75 in 1Q 2023) First quarter 2024 results: EPS: JP¥45.82 (down from JP¥46.75 in 1Q 2023). Revenue: JP¥6.45b (up 9.9% from 1Q 2023). Net income: JP¥325.0m (down 3.3% from 1Q 2023). Profit margin: 5.0% (down from 5.7% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 51% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jun 28
Full year 2023 earnings released: EPS: JP¥182 (vs JP¥72.50 in FY 2022) Full year 2023 results: EPS: JP¥182 (up from JP¥72.50 in FY 2022). Revenue: JP¥26.2b (up 29% from FY 2022). Net income: JP¥1.30b (up 150% from FY 2022). Profit margin: 5.0% (up from 2.6% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 51% per year whereas the company’s share price has increased by 49% per year. Announcement • Jun 14
Muto Seiko Co. to Report Q1, 2024 Results on Aug 10, 2023 Muto Seiko Co. announced that they will report Q1, 2024 results on Aug 10, 2023 Valuation Update With 7 Day Price Move • May 19
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to JP¥1,287, the stock trades at a trailing P/E ratio of 7x. Average trailing P/E is 12x in the Chemicals industry in Japan. Total returns to shareholders of 213% over the past three years. Reported Earnings • May 14
Full year 2023 earnings released: EPS: JP¥182 (vs JP¥72.50 in FY 2022) Full year 2023 results: EPS: JP¥182 (up from JP¥72.50 in FY 2022). Revenue: JP¥26.2b (up 29% from FY 2022). Net income: JP¥1.30b (up 150% from FY 2022). Profit margin: 5.0% (up from 2.6% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥53.50 per share at 2.4% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 26 June 2023. Payout ratio is a comfortable 10% and the cash payout ratio is 85%. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.8%). Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improves as stock rises 37% After last week's 37% share price gain to JP¥1,043, the stock trades at a trailing P/E ratio of 5.8x. Average trailing P/E is 11x in the Chemicals industry in Japan. Total returns to shareholders of 97% over the past three years. Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥74.49 (vs JP¥29.78 in 3Q 2022) Third quarter 2023 results: EPS: JP¥74.49 (up from JP¥29.78 in 3Q 2022). Revenue: JP¥7.27b (up 38% from 3Q 2022). Net income: JP¥534.0m (up 150% from 3Q 2022). Profit margin: 7.3% (up from 4.0% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Dec 07
Muto Seiko Co. to Report Q3, 2023 Results on Feb 10, 2023 Muto Seiko Co. announced that they will report Q3, 2023 results on Feb 10, 2023 Announcement • Nov 18
Muto Seiko Co. (TSE:7927) announces an Equity Buyback for 100,000 shares, representing 1.39% for ¥80 million. Muto Seiko Co. (TSE:7927) announces a share repurchase program. Under the program, the company will repurchase up to 100,000 shares, representing 1.39% of its share capital, for ¥80 million. The purpose of the program is to enhance shareholder returns and improve capital efficiency. The share repurchase program will run until March 31, 2023. As of November 17, 2022, the company had 7,186,607 shares outstanding (excluding treasury shares) and 552,941 shares in treasury. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 5 non-independent directors. Independent Director Toshimitsu Yasue was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 12
Second quarter 2023 earnings released: EPS: JP¥44.11 (vs JP¥11.55 in 2Q 2022) Second quarter 2023 results: EPS: JP¥44.11 (up from JP¥11.55 in 2Q 2022). Revenue: JP¥7.00b (up 35% from 2Q 2022). Net income: JP¥317.0m (up 282% from 2Q 2022). Profit margin: 4.5% (up from 1.6% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 25
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥649, the stock trades at a trailing P/E ratio of 6.3x. Average trailing P/E is 9x in the Chemicals industry in Japan. Total returns to shareholders of 37% over the past three years. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 14 December 2022. Trailing yield: 5.3%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.9%). Announcement • Sep 18
Muto Seiko Co. to Report Q2, 2023 Results on Nov 11, 2022 Muto Seiko Co. announced that they will report Q2, 2023 results on Nov 11, 2022 Reported Earnings • Sep 17
First quarter 2023 earnings released: EPS: JP¥46.75 (vs JP¥15.58 in 1Q 2022) First quarter 2023 results: EPS: JP¥46.75 (up from JP¥15.58 in 1Q 2022). Revenue: JP¥5.87b (up 29% from 1Q 2022). Net income: JP¥336.0m (up 200% from 1Q 2022). Profit margin: 5.7% (up from 2.5% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Jun 02
Muto Seiko Co. to Report Q1, 2023 Results on Aug 12, 2022 Muto Seiko Co. announced that they will report Q1, 2023 results on Aug 12, 2022 Valuation Update With 7 Day Price Move • May 20
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥543, the stock trades at a trailing P/E ratio of 8.2x. Average trailing P/E is 9x in the Chemicals industry in Japan. Total returns to shareholders of 26% over the past three years. Reported Earnings • May 18
Full year 2022 earnings released: EPS: JP¥66.51 (vs JP¥40.07 in FY 2021) Full year 2022 results: EPS: JP¥66.51 (up from JP¥40.07 in FY 2021). Revenue: JP¥20.2b (up 5.2% from FY 2021). Net income: JP¥478.0m (up 66% from FY 2021). Profit margin: 2.4% (up from 1.5% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • May 15
Muto Seiko Co., Annual General Meeting, Jun 23, 2022 Muto Seiko Co., Annual General Meeting, Jun 23, 2022. Agenda: AGM. 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. 6 experienced directors. 3 highly experienced directors. No independent directors (5 non-independent directors). External Director Masashi Ushimaru 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. Announcement • Apr 08
Muto Seiko Co. to Report Fiscal Year 2022 Results on May 13, 2022 Muto Seiko Co. announced that they will report fiscal year 2022 results on May 13, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 25 June 2022. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 4.4%. Within top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (2.6%). Reported Earnings • Feb 12
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥29.36 (up from JP¥10.58 loss in 3Q 2021). Revenue: JP¥5.29b (down 5.2% from 3Q 2021). Net income: JP¥211.0m (up JP¥287.0m from 3Q 2021). Profit margin: 4.0% (up from net loss in 3Q 2021). The move to profitability was driven by lower expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment improved over the past week After last week's 23% share price gain to JP¥560, the stock trades at a trailing P/E ratio of 11.4x. Average trailing P/E is 10x in the Chemicals industry in Japan. Total returns to shareholders of 21% over the past three years. Reported Earnings • Nov 16
Second quarter 2022 earnings released: EPS JP¥10.30 (vs JP¥45.36 in 2Q 2021) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥5.21b (down 1.2% from 2Q 2021). Net income: JP¥74.0m (down 77% from 2Q 2021). Profit margin: 1.4% (down from 6.2% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 15 December 2021. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.9%). Reported Earnings • Jun 30
Full year 2021 earnings released: EPS JP¥40.07 (vs JP¥87.11 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥19.2b (down 7.7% from FY 2020). Net income: JP¥288.0m (down 54% from FY 2020). Profit margin: 1.5% (down from 3.0% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 49% 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. Reported Earnings • May 18
Full year 2021 earnings released: EPS JP¥40.07 (vs JP¥87.11 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥19.2b (down 7.7% from FY 2020). Net income: JP¥288.0m (down 54% from FY 2020). Profit margin: 1.5% (down from 3.0% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 26 June 2021. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.8%). Announcement • Mar 05
Muto Seiko Co. to Report Fiscal Year 2021 Results on May 14, 2021 Muto Seiko Co. announced that they will report fiscal year 2021 results on May 14, 2021 Reported Earnings • Feb 14
Third quarter 2021 earnings released: JP¥10.58 loss per share (vs JP¥10.44 profit in 3Q 2020) The company reported a soft third quarter result with weaker earnings and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: JP¥5.58b (up 7.5% from 3Q 2020). Net loss: JP¥76.0m (down 201% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 05
New 90-day high: JP¥727 The company is up 49% from its price of JP¥487 on 06 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 16% over the same period. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥727, the stock is trading at a trailing P/E ratio of 16.1x, up from the previous P/E ratio of 13.9x. This compares to an average P/E of 17x in the Chemicals industry in Japan. Total return to shareholders over the past three years is a loss of 47%. Is New 90 Day High Low • Jan 18
New 90-day high: JP¥634 The company is up 30% from its price of JP¥487 on 20 October 2020. The Japanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 16% over the same period. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥614, the stock is trading at a trailing P/E ratio of 13.6x, up from the previous P/E ratio of 11.8x. This compares to an average P/E of 17x in the Chemicals industry in Japan. Total return to shareholders over the past three years is a loss of 65%. Valuation Update With 7 Day Price Move • Dec 22
Investor sentiment deteriorated over the past week After last week's 15% share price decline to JP¥514, the stock is trading at a trailing P/E ratio of 11.4x, down from the previous P/E ratio of 13.4x. This compares to an average P/E of 17x in the Chemicals industry in Japan. Total return to shareholders over the past three years is a loss of 67%. Valuation Update With 7 Day Price Move • Dec 04
Market bids up stock over the past week After last week's 17% share price gain to JP¥576, the stock is trading at a trailing P/E ratio of 12.8x, up from the previous P/E ratio of 10.9x. This compares to an average P/E of 16x in the Chemicals industry in Japan. Total return to shareholders over the past three years is a loss of 63%. Is New 90 Day High Low • Nov 30
New 90-day high: JP¥508 The company is up 15% from its price of JP¥443 on 01 September 2020. The Japanese market is up 10.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Chemicals industry, which is up 20% over the same period.