New Risk • May 14
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 4.8% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 58% per year over the past 5 years. Minor Risk Market cap is less than US$100m (JP¥2.27b market cap, or US$14.4m). Reported Earnings • May 13
Full year 2026 earnings released: JP¥171 loss per share (vs JP¥25.17 profit in FY 2025) Full year 2026 results: JP¥171 loss per share (down from JP¥25.17 profit in FY 2025). Revenue: JP¥6.97b (up 30% from FY 2025). Net loss: JP¥457.0m (down JP¥524.0m from profit in FY 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 85 percentage points per year, which is a significant difference in performance. Announcement • May 11
Innovation Inc., Annual General Meeting, Jun 24, 2026 Innovation Inc., Annual General Meeting, Jun 24, 2026. Buy Or Sell Opportunity • May 01
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 5.6% to JP¥896. The fair value is estimated to be JP¥1,125, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Mar 30
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.9% to JP¥912. The fair value is estimated to be JP¥1,160, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Meanwhile, the company became loss making. 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: 11 June 2026. The company is not currently making a profit and its cash payout ratio is 78%. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.0%). Buy Or Sell Opportunity • Mar 09
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.2% to JP¥920. The fair value is estimated to be JP¥1,151, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Feb 17
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.9% to JP¥933. The fair value is estimated to be JP¥1,166, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Feb 10
Third quarter 2026 earnings released: JP¥62.91 loss per share (vs JP¥0.76 profit in 3Q 2025) Third quarter 2026 results: JP¥62.91 loss per share (down from JP¥0.76 profit in 3Q 2025). Revenue: JP¥1.66b (up 28% from 3Q 2025). Net loss: JP¥168.0m (down JP¥170.0m from profit in 3Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 82 percentage points per year, which is a significant difference in performance. Announcement • Dec 27
Innovation Inc. to Report Q3, 2026 Results on Feb 09, 2026 Innovation Inc. announced that they will report Q3, 2026 results on Feb 09, 2026 Reported Earnings • Nov 12
Second quarter 2026 earnings released: JP¥31.19 loss per share (vs JP¥13.06 profit in 2Q 2025) Second quarter 2026 results: JP¥31.19 loss per share (down from JP¥13.06 profit in 2Q 2025). Revenue: JP¥1.78b (up 29% from 2Q 2025). Net loss: JP¥83.0m (down 337% from profit in 2Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 68 percentage points per year, which is a significant difference in performance. Announcement • Sep 01
Innovation Inc. to Report Q2, 2026 Results on Nov 10, 2025 Innovation Inc. announced that they will report Q2, 2026 results on Nov 10, 2025 Reported Earnings • Aug 14
First quarter 2026 earnings released: JP¥70.29 loss per share (vs JP¥4.48 loss in 1Q 2025) First quarter 2026 results: JP¥70.29 loss per share (further deteriorated from JP¥4.48 loss in 1Q 2025). Revenue: JP¥1.59b (up 31% from 1Q 2025). Net loss: JP¥186.0m (loss widened JP¥174.0m from 1Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 50 percentage points per year, which is a significant difference in performance. Reported Earnings • Jun 30
Full year 2025 earnings released: EPS: JP¥25.17 (vs JP¥94.87 in FY 2024) Full year 2025 results: EPS: JP¥25.17 (down from JP¥94.87 in FY 2024). Revenue: JP¥5.34b (up 11% from FY 2024). Net income: JP¥67.0m (down 73% from FY 2024). Profit margin: 1.3% (down from 5.1% in FY 2024). 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 45 percentage points per year, which is a significant difference in performance. Announcement • Jun 03
Innovation Inc. to Report Q1, 2026 Results on Aug 12, 2025 Innovation Inc. announced that they will report Q1, 2026 results on Aug 12, 2025 New Risk • May 17
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 174% The company is paying a dividend despite having no free cash flows. Dividend yield: 3.8% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 174% Paying a dividend despite having no free cash flows. Earnings have declined by 15% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (1.3% net profit margin). Market cap is less than US$100m (JP¥2.80b market cap, or US$19.2m). Reported Earnings • May 14
Full year 2025 earnings released: EPS: JP¥25.17 (vs JP¥94.87 in FY 2024) Full year 2025 results: EPS: JP¥25.17 (down from JP¥94.87 in FY 2024). Revenue: JP¥5.34b (up 11% from FY 2024). Net income: JP¥67.0m (down 73% from FY 2024). Profit margin: 1.3% (down from 5.1% in FY 2024). 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 47 percentage points per year, which is a significant difference in performance. Announcement • May 12
Innovation Inc., Annual General Meeting, Jun 25, 2025 Innovation Inc., Annual General Meeting, Jun 25, 2025. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 11 June 2025. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.6%). Announcement • Mar 01
Innovation Inc. to Report Fiscal Year 2025 Results on May 12, 2025 Innovation Inc. announced that they will report fiscal year 2025 results on May 12, 2025 Reported Earnings • Feb 12
Third quarter 2025 earnings released: EPS: JP¥0.76 (vs JP¥27.97 in 3Q 2024) Third quarter 2025 results: EPS: JP¥0.76 (down from JP¥27.97 in 3Q 2024). Revenue: JP¥1.30b (up 2.8% from 3Q 2024). Net income: JP¥2.00m (down 97% from 3Q 2024). Profit margin: 0.2% (down from 5.7% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Announcement • Dec 03
Innovation Inc. to Report Q3, 2025 Results on Feb 10, 2025 Innovation Inc. announced that they will report Q3, 2025 results on Feb 10, 2025 Reported Earnings • Nov 15
Second quarter 2025 earnings released: EPS: JP¥13.06 (vs JP¥32.70 in 2Q 2024) Second quarter 2025 results: EPS: JP¥13.06 (down from JP¥32.70 in 2Q 2024). Revenue: JP¥1.38b (up 25% from 2Q 2024). Net income: JP¥35.0m (down 58% from 2Q 2024). Profit margin: 2.5% (down from 7.6% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has only fallen by 33% per year, which means it has not declined as severely as earnings. Announcement • Aug 27
Innovation Inc. to Report Q2, 2025 Results on Nov 11, 2024 Innovation Inc. announced that they will report Q2, 2025 results on Nov 11, 2024 Announcement • Aug 21
Innovation Inc. (TSE:3970) announces an Equity Buyback for 60,000 shares, representing 2.24% for ¥90 million. Innovation Inc. (TSE:3970) announces a share repurchase program. Under the program, the company will repurchase up to 60,000 shares, representing 2.24% of its issued share capital (excluding treasury stock), for a total purchase price of ¥90 million. The purpose of the program is to improve capital efficiency, implement a flexible capital policy in response to changes in the business environment, and further return profits to shareholders. The program will be valid till January 27, 2025. As of June 30, 2024, the company has 2,682,434 issued shares (excluding treasury stock) and 29,666 treasury shares. Reported Earnings • Aug 11
First quarter 2025 earnings released: JP¥4.48 loss per share (vs JP¥20.54 profit in 1Q 2024) First quarter 2025 results: JP¥4.48 loss per share (down from JP¥20.54 profit in 1Q 2024). Revenue: JP¥1.22b (up 20% from 1Q 2024). Net loss: JP¥12.0m (down 123% from profit in 1Q 2024). 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 25% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to JP¥1,001, the stock trades at a trailing P/E ratio of 11x. Average trailing P/E is 21x in the Interactive Media and Services industry in Japan. Total loss to shareholders of 62% over the past three years. Announcement • Jun 02
Innovation Inc. to Report Q1, 2025 Results on Aug 09, 2024 Innovation Inc. announced that they will report Q1, 2025 results on Aug 09, 2024 Reported Earnings • May 13
Full year 2024 earnings released: EPS: JP¥94.87 (vs JP¥25.13 in FY 2023) Full year 2024 results: EPS: JP¥94.87 (up from JP¥25.13 in FY 2023). Revenue: JP¥4.81b (up 5.3% from FY 2023). Net income: JP¥244.0m (up 294% from FY 2023). Profit margin: 5.1% (up from 1.4% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 26% per year, which means it has not declined as severely as earnings. Announcement • May 12
Innovation Inc., Annual General Meeting, Jun 25, 2024 Innovation Inc., Annual General Meeting, Jun 25, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 13 June 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.5%). Announcement • Mar 14
Innovation Inc. to Report Fiscal Year 2024 Results on May 10, 2024 Innovation Inc. announced that they will report fiscal year 2024 results on May 10, 2024 Reported Earnings • Feb 11
Third quarter 2024 earnings released: EPS: JP¥27.97 (vs JP¥33.80 in 3Q 2023) Third quarter 2024 results: EPS: JP¥27.97 (down from JP¥33.80 in 3Q 2023). Revenue: JP¥1.27b (up 28% from 3Q 2023). Net income: JP¥72.0m (down 14% from 3Q 2023). Profit margin: 5.7% (down from 8.5% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 37% per year whereas the company’s share price has fallen by 32% per year. Announcement • Nov 26
Innovation Inc. to Report Q3, 2024 Results on Feb 09, 2024 Innovation Inc. announced that they will report Q3, 2024 results on Feb 09, 2024 Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥32.70 (vs JP¥18.54 in 2Q 2023) Second quarter 2024 results: EPS: JP¥32.70 (up from JP¥18.54 in 2Q 2023). Revenue: JP¥1.10b (down 15% from 2Q 2023). Net income: JP¥84.0m (up 83% from 2Q 2023). Profit margin: 7.6% (up from 3.6% in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has fallen by 27% per year, which means it is performing significantly worse than earnings. Announcement • Sep 23
Innovation Inc. to Report Q2, 2024 Results on Nov 09, 2023 Innovation Inc. announced that they will report Q2, 2024 results on Nov 09, 2023 Reported Earnings • Aug 11
First quarter 2024 earnings released: EPS: JP¥20.54 (vs JP¥38.11 in 1Q 2023) First quarter 2024 results: EPS: JP¥20.54 (down from JP¥38.11 in 1Q 2023). Revenue: JP¥1.01b (down 9.2% from 1Q 2023). Net income: JP¥52.0m (down 44% from 1Q 2023). Profit margin: 5.1% (down from 8.3% in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 30% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Aug 10
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to JP¥1,388, the stock trades at a trailing P/E ratio of 57.5x. Average trailing P/E is 22x in the Interactive Media and Services industry in Japan. Total loss to shareholders of 66% over the past three years. New Risk • Jun 24
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.1% 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 Dividend is not well covered by earnings (155% payout ratio). Share price has been volatile over the past 3 months (5.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.4% net profit margin). Shareholders have been diluted in the past year (3.5% increase in shares outstanding). Market cap is less than US$100m (JP¥4.06b market cap, or US$28.2m). New Risk • Jun 23
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.5% 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 Dividend is not well covered by earnings (155% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.4% net profit margin). Shareholders have been diluted in the past year (3.5% increase in shares outstanding). Market cap is less than US$100m (JP¥4.18b market cap, or US$29.2m). Announcement • Jun 14
Innovation Inc. to Report Q1, 2024 Results on Aug 09, 2023 Innovation Inc. announced that they will report Q1, 2024 results on Aug 09, 2023 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥39.00 per share at 2.5% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 09 June 2023. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Valuation Update With 7 Day Price Move • Feb 16
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥1,556, the stock trades at a trailing P/E ratio of 9.5x. Average trailing P/E is 20x in the Interactive Media and Services industry in Japan. Total loss to shareholders of 16% over the past three years. Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥33.80 (vs JP¥48.46 in 3Q 2022) Third quarter 2023 results: EPS: JP¥33.80 (down from JP¥48.46 in 3Q 2022). Revenue: JP¥989.0m (down 16% from 3Q 2022). Net income: JP¥84.0m (down 26% from 3Q 2022). Profit margin: 8.5% (down from 9.7% in 3Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Nov 30
Innovation Inc. to Report Q3, 2023 Results on Feb 09, 2023 Innovation Inc. announced that they will report Q3, 2023 results on Feb 09, 2023 Board Change • Nov 16
No independent directors There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. No independent directors (7 non-independent directors). Director Kazuhiro Goto was the last director to join the board, commencing their role in 2020. 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 • Nov 11
Second quarter 2023 earnings released: EPS: JP¥17.92 (vs JP¥39.58 in 2Q 2022) Second quarter 2023 results: EPS: JP¥17.92 (down from JP¥39.58 in 2Q 2022). Revenue: JP¥1.30b (up 20% from 2Q 2022). Net income: JP¥46.0m (down 51% from 2Q 2022). Profit margin: 3.6% (down from 8.6% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Buying Opportunity • Nov 11
Now 29% undervalued after recent price drop Over the last 90 days, the stock is down 20%. The fair value is estimated to be JP¥2,831, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 40% over the last year. Earnings per share has grown by 63%. Buying Opportunity • Oct 11
Now 22% undervalued Over the last 90 days, the stock is up 4.7%. The fair value is estimated to be JP¥2,960, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 40% over the last year. Earnings per share has grown by 63%. Buying Opportunity • Sep 20
Now 21% undervalued Over the last 90 days, the stock is up 26%. The fair value is estimated to be JP¥3,280, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 40% over the last year. Earnings per share has grown by 63%. Announcement • Sep 09
Innovation Inc. to Report Q2, 2023 Results on Nov 09, 2022 Innovation Inc. announced that they will report Q2, 2023 results on Nov 09, 2022 Buying Opportunity • Aug 24
Now 21% undervalued Over the last 90 days, the stock is up 13%. The fair value is estimated to be JP¥3,218, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 40% over the last year. Earnings per share has grown by 63%. Valuation Update With 7 Day Price Move • Aug 16
Investor sentiment improved over the past week After last week's 20% share price gain to JP¥2,599, the stock trades at a trailing P/E ratio of 13.3x. Average trailing P/E is 28x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 50% over the past three years. Reported Earnings • Aug 11
First quarter 2023 earnings released: EPS: JP¥38.11 (vs JP¥23.02 in 1Q 2022) First quarter 2023 results: EPS: JP¥38.11 (up from JP¥23.02 in 1Q 2022). Revenue: JP¥1.11b (up 26% from 1Q 2022). Net income: JP¥92.0m (up 70% from 1Q 2022). Profit margin: 8.3% (up from 6.1% in 1Q 2022). The increase in margin was driven by higher revenue. Buying Opportunity • Aug 08
Now 24% undervalued Over the last 90 days, the stock is up 10%. The fair value is estimated to be JP¥2,814, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 36% over the last 3 years. Earnings per share has grown by 57%. Buying Opportunity • Jul 01
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 2.0%. The fair value is estimated to be JP¥2,628, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 36% over the last 3 years. Earnings per share has grown by 57%. Announcement • Jun 29
Innovation Inc. to Report Q1, 2023 Results on Aug 09, 2022 Innovation Inc. announced that they will report Q1, 2023 results on Aug 09, 2022 Buying Opportunity • Jun 13
Now 20% undervalued Over the last 90 days, the stock is up 7.1%. The fair value is estimated to be JP¥2,757, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 36% over the last 3 years. Earnings per share has grown by 57%. Buying Opportunity • May 24
Now 20% undervalued Over the last 90 days, the stock is up 16%. The fair value is estimated to be JP¥2,846, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 36% over the last 3 years. Earnings per share has grown by 57%. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥2,121, the stock trades at a trailing P/E ratio of 14.2x. Average trailing P/E is 23x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 175% over the past three years. Announcement • May 18
Innovation Inc., Annual General Meeting, Jun 23, 2022 Innovation Inc., Annual General Meeting, Jun 23, 2022. Board Change • Apr 27
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 7 non-independent directors. Director Kazuhiro Goto was the last director to join the board, commencing their role in 2020. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Apr 05
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥2,394, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 24x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 206% over the past three years. Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥2,323, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 25x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 198% over the past three years. Valuation Update With 7 Day Price Move • Feb 16
Investor sentiment deteriorated over the past week After last week's 25% share price decline to JP¥2,235, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 25x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 205% over the past three years. Buying Opportunity • Feb 15
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 37%. The fair value is estimated to be JP¥3,060, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 36% per annum over the last 3 years. Earnings per share has grown by 59% per annum over the last 3 years. Reported Earnings • Feb 10
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: JP¥48.46 (up from JP¥34.61 in 3Q 2021). Revenue: JP¥1.17b (up 62% from 3Q 2021). Net income: JP¥114.0m (up 41% from 3Q 2021). Profit margin: 9.7% (down from 11% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 15%. Earnings per share (EPS) also surpassed analyst estimates by 53%. Over the next year, revenue is forecast to grow 3.4%, compared to a 14% growth forecast for the industry in Japan. 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 52% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥3,905, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 35x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 466% over the past three years. Reported Earnings • Nov 10
Second quarter 2022 earnings released: EPS JP¥39.58 (vs JP¥28.43 in 2Q 2021) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2022 results: Revenue: JP¥1.08b (up 58% from 2Q 2021). Net income: JP¥93.0m (up 60% from 2Q 2021). Profit margin: 8.6% (in line with 2Q 2021). Valuation Update With 7 Day Price Move • Aug 31
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥3,140, the stock trades at a trailing P/E ratio of 25x. Average trailing P/E is 34x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 243% over the past three years. Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment deteriorated over the past week After last week's 17% share price decline to JP¥2,480, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 37x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 175% over the past three years. Reported Earnings • Aug 12
First quarter 2022 earnings released: EPS JP¥23.02 (vs JP¥31.76 in 1Q 2021) The company reported a mediocre first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2022 results: Revenue: JP¥884.0m (up 30% from 1Q 2021). Net income: JP¥54.0m (down 13% from 1Q 2021). Profit margin: 6.1% (down from 9.1% in 1Q 2021). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • May 24
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥3,530, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 34x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 201% over the past three years. Reported Earnings • May 16
Full year 2021 earnings released: EPS JP¥135 (vs JP¥47.04 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥3.08b (up 53% from FY 2020). Net income: JP¥293.0m (up 219% from FY 2020). Profit margin: 9.5% (up from 4.5% in FY 2020). The increase in margin was driven by higher revenue. Is New 90 Day High Low • Mar 03
New 90-day low: JP¥2,922 The company is down 20% from its price of JP¥3,635 on 03 December 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Interactive Media and Services industry, which is flat over the same period. Reported Earnings • Feb 11
Third quarter 2021 earnings released: EPS JP¥34.61 (vs JP¥8.71 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥723.0m (up 41% from 3Q 2020). Net income: JP¥81.0m (up 377% from 3Q 2020). Profit margin: 11% (up from 3.3% in 3Q 2020). The increase in margin was driven by higher revenue. Is New 90 Day High Low • Feb 10
New 90-day high: JP¥4,100 The company is up 18% from its price of JP¥3,460 on 12 November 2020. The Japanese market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Interactive Media and Services industry, which is up 3.0% over the same period. Is New 90 Day High Low • Jan 22
New 90-day high: JP¥3,795 The company is up 3.0% from its price of JP¥3,670 on 23 October 2020. The Japanese market is up 14% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Interactive Media and Services industry, which is down 4.0% over the same period. Announcement • Dec 25
Innovation Inc. to Report Q3, 2021 Results on Feb 09, 2021 Innovation Inc. announced that they will report Q3, 2021 results on Feb 09, 2021 Announcement • Oct 01
Innovation Inc. to Report Q2, 2021 Results on Nov 10, 2020 Innovation Inc. announced that they will report Q2, 2021 results on Nov 10, 2020 Announcement • Jul 17
Innovation Inc. announced that it expects to receive ¥10.51974 million in funding Innovation Inc. (TSE:3970) announced that it will issue 3,795 of stock acquisition right at a price of ¥2,772 per stock acquisition right for a total gross proceeds of ¥10,519,740 on July 15, 2020. The stock purchase rights will be issued through third party allotment. Each stock acquisition right is convertible into 100 shares of common stock resulting in 379,500 common shares of the company for three years starting from August 3, 2020 to expiry date August 31, 2023. The initial exercise price of stock acquisition right is ¥5,270 and the lower exercise price is ¥3,162. The transaction will be expected to complete on July 31, 2020. The estimated amount of expense will be ¥7,000,000 in the transaction. Announcement • Jun 29
Innovation Inc. to Report Q1, 2021 Results on Aug 11, 2020 Innovation Inc. announced that they will report Q1, 2021 results on Aug 11, 2020