Reported Earnings • Jun 03
Full year 2026 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2026 results: EPS: JP¥109 (up from JP¥89.43 in FY 2025). Revenue: JP¥63.8b (up 7.7% from FY 2025). Net income: JP¥5.11b (up 22% from FY 2025). Profit margin: 8.0% (up from 7.1% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) missed analyst estimates by 3.6%. Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 15
Full year 2026 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2026 results: EPS: JP¥109 (up from JP¥89.43 in FY 2025). Revenue: JP¥63.8b (up 7.7% from FY 2025). Net income: JP¥5.11b (up 22% from FY 2025). Profit margin: 8.0% (up from 7.1% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) missed analyst estimates by 3.6%. Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Apr 14
Vector Inc., Annual General Meeting, May 28, 2026 Vector Inc., Annual General Meeting, May 28, 2026. Announcement • Feb 20
Wellness Communications Corporation (TSE:366A) agreed to acquire 67.60% stake in ASHITA-TEAM Co., Ltd. from Vector Inc. (TSE:6058) for ¥0.40 million. Wellness Communications Corporation (TSE:366A) agreed to acquire 67.60% stake in ASHITA-TEAM Co., Ltd. from Vector Inc. (TSE:6058) for ¥0.40 million on February 20, 2026. As a result of the share transfer, ASHITA-TEAM will cease to be a consolidated subsidiary of Vector Inc. Vector Inc. plans to transfer the ¥50 million in receivables remaining after the debt forgiveness to Wellness Communications for ¥50 million on the day the share transfer is executed. As part of the acquisition, Hiroyuki Akahane is scheduled to step down as Representative Director of ASHITA-TEAM as of end-February 2026, at which point a new Representative Director will be appointed.
For the period ending February 28, 2025, ASHITA-TEAM Co., Ltd. reported total revenue of ¥2.21 billion, EBIT of ¥129 million and net income of ¥71 million. As of February 28, 2025, ASHITA-TEAM Co., Ltd. reported total assets of ¥1.09 billion and net liabilities of ¥1.59 billion.
The expected completion of the transaction is February 27, 2026. Upcoming Dividend • Feb 19
Upcoming dividend of JP¥33.00 per share Eligible shareholders must have bought the stock before 26 February 2026. Payment date: 01 June 2026. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (2.0%). Announcement • Jan 21
Vector Inc. to Report Fiscal Year 2026 Results on Apr 14, 2026 Vector Inc. announced that they will report fiscal year 2026 results on Apr 14, 2026 New Risk • Jan 15
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 7.7% 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 (7.7% average weekly change). Reported Earnings • Jan 15
Third quarter 2026 earnings released: EPS: JP¥39.53 (vs JP¥21.64 in 3Q 2025) Third quarter 2026 results: EPS: JP¥39.53 (up from JP¥21.64 in 3Q 2025). Revenue: JP¥16.9b (up 12% from 3Q 2025). Net income: JP¥1.85b (up 83% from 3Q 2025). Profit margin: 11% (up from 6.7% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Jan 14
Vector Inc. Provides Consolidated Earnings Forecast for the Fiscal Year Ending February 28, 2026 Vector Inc. provided consolidated earnings forecast for the fiscal year ending February 28, 2026. For the year, company expects Net sales to be JPY 63,000 million. Operating profit to be JPY 8,500 million. Profit attributable to owners of parent to be JPY 5,000 million. Earnings per share to be JPY 106.60. Announcement • Dec 17
MicroAd, Inc. (TSE:9553) proposed to acquire remaining 30% stake in MicroAd Taiwan, Ltd. from Vector Inc. (TSE:6058) for approximately TWD 120 million. MicroAd, Inc. (TSE:9553) proposed to acquire remaining 30% stake in MicroAd Taiwan, Ltd. from Vector Inc. (TSE:6058) for approximately TWD 120 million recently. A cash consideration of approximately TWD 116.99 million (¥580 million) will be paid by MicroAd, Inc. Upon completion, MicroAd, Inc. will own 100% stake in MicroAd Taiwan, Ltd.
As of December 31, 2024, MicroAd Taiwan, Ltd. reported total assets of TWD 311 million (¥1.521 billion) and total common equity of TWD 240 million (¥1.173 billion).
The expected completion of the transaction is January 31, 2026. Board Change • Nov 05
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent External Director Masatoshi Inoue was the last independent director to join the board, commencing their role in 2025. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Declared Dividend • Oct 17
Dividend of JP¥33.00 announced Shareholders will receive a dividend of JP¥33.00. Ex-date: 26th February 2026 Payment date: 1st June 2026 Dividend yield will be 2.8%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is well covered by both earnings (30% earnings payout ratio) and cash flows (19% cash payout ratio). The dividend has increased by an average of 27% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 12% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 16
Second quarter 2026 earnings released: EPS: JP¥21.28 (vs JP¥10.02 in 2Q 2025) Second quarter 2026 results: EPS: JP¥21.28 (up from JP¥10.02 in 2Q 2025). Revenue: JP¥14.9b (up 11% from 2Q 2025). Net income: JP¥998.0m (up 112% from 2Q 2025). Profit margin: 6.7% (up from 3.5% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 16
First quarter 2026 earnings released: EPS: JP¥16.35 (vs JP¥11.70 in 1Q 2025) First quarter 2026 results: EPS: JP¥16.35 (up from JP¥11.70 in 1Q 2025). Revenue: JP¥14.8b (up 6.7% from 1Q 2025). Net income: JP¥767.0m (up 40% from 1Q 2025). Profit margin: 5.2% (up from 4.0% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Reported Earnings • Jun 04
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥89.43 (down from JP¥98.11 in FY 2024). Revenue: JP¥59.3b (flat on FY 2024). Net income: JP¥4.20b (down 10% from FY 2024). Profit margin: 7.1% (down from 7.9% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.5%. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 15
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥89.43 (down from JP¥98.11 in FY 2024). Revenue: JP¥59.3b (flat on FY 2024). Net income: JP¥4.20b (down 10% from FY 2024). Profit margin: 7.1% (down from 7.9% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.5%. Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Apr 14
Vector Inc., Annual General Meeting, May 29, 2025 Vector Inc., Annual General Meeting, May 29, 2025. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to JP¥808, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 18x in the Media industry in Japan. Total loss to shareholders of 27% over the past three years. Upcoming Dividend • Feb 20
Upcoming dividend of JP¥32.00 per share Eligible shareholders must have bought the stock before 27 February 2025. Payment date: 02 June 2025. Payout ratio is a comfortable 37% and this is well supported by cash flows. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.3%). Announcement • Jan 29
Vector Inc. to Report Fiscal Year 2025 Results on Apr 14, 2025 Vector Inc. announced that they will report fiscal year 2025 results on Apr 14, 2025 Major Estimate Revision • Jan 28
Consensus EPS estimates fall by 10%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from JP¥58.0b to JP¥59.2b. EPS estimate fell from JP¥102 to JP¥91.70 per share. Net income forecast to grow 22% next year vs 13% growth forecast for Media industry in Japan. Consensus price target down from JP¥1,700 to JP¥1,400. Share price was steady at JP¥1,053 over the past week. Reported Earnings • Jan 15
Third quarter 2025 earnings released: EPS: JP¥21.64 (vs JP¥45.17 in 3Q 2024) Third quarter 2025 results: EPS: JP¥21.64 (down from JP¥45.17 in 3Q 2024). Revenue: JP¥15.1b (up 1.4% from 3Q 2024). Net income: JP¥1.02b (down 53% from 3Q 2024). Profit margin: 6.7% (down from 15% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Reported Earnings • Oct 18
Second quarter 2025 earnings released: EPS: JP¥10.02 (vs JP¥2.11 in 2Q 2024) Second quarter 2025 results: EPS: JP¥10.02 (up from JP¥2.11 in 2Q 2024). Revenue: JP¥13.5b (down 2.2% from 2Q 2024). Net income: JP¥470.0m (up 365% from 2Q 2024). Profit margin: 3.5% (up from 0.7% in 2Q 2024). Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Declared Dividend • Oct 17
Dividend of JP¥32.00 announced Shareholders will receive a dividend of JP¥32.00. Ex-date: 27th February 2025 Payment date: 2nd June 2025 Dividend yield will be 3.3%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is well covered by both earnings (31% earnings payout ratio) and cash flows (41% cash payout ratio). The dividend has increased by an average of 22% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 36% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Oct 16
Vector Inc. Revises Consolidated Earnings Forecast for the Fiscal Year Ending February 28, 2025 Vector Inc. revised consolidated earnings forecast for the fiscal year ending February 28, 2025. For the year, company expects Net sales to be JPY 61,000 million compared to previous guidance of JPY 63,000 million. Operating profit to be JPY 8,500 million compared to previous guidance of JPY 8,500 million. Profit attributable to owners of parent to be JPY 5,000 million compared to previous guidance of JPY 5,000 million. Earnings per share to be JPY 106.58 compared to previous guidance of JPY 106.58. Announcement • Oct 15
Vector Inc. Revises Dividend Forecast for the Fiscal Year Ending February 28, 2025 Vector Inc. at its board meeting held on October 15, 2024, resolved to change its dividend policy as follows. In addition, the Company also announced that the year-end dividend forecast for the fiscal year ending February 28, 2025, released on April 12, 2024, has been revised as follows due to this change of dividend policy. The company now expects to pay JPY 32 per share as compared to JPY 31 per share previously forecasted. The company paid JPY 29 per share a year ago. Reason for Change: While taking into consideration the maintenance of a sound financial position and the enhancement of internal reserves for aggressive business development, the Company recognizes that returning profits to shareholders is one of the most important management issues. The Company has changed its dividend policy to enhance shareholder returns. Major Estimate Revision • Jul 30
Consensus EPS estimates fall by 23% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥63.5b to JP¥58.5b. EPS estimate also fell from JP¥107 per share to JP¥82.10 per share. Net income forecast to shrink 8.2% next year vs 11% growth forecast for Media industry in Japan . Consensus price target down from JP¥1,700 to JP¥1,600. Share price fell 4.0% to JP¥988 over the past week. Price Target Changed • Jul 29
Price target decreased by 11% to JP¥1,600 Down from JP¥1,800, the current price target is provided by 1 analyst. New target price is 57% above last closing price of JP¥1,020. Stock is down 22% over the past year. The company is forecast to post earnings per share of JP¥82.10 for next year compared to JP¥98.11 last year. Valuation Update With 7 Day Price Move • Jul 22
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥1,025, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 15x in the Media industry in Japan. Total returns to shareholders of 4.3% over the past three years. Reported Earnings • Jul 14
First quarter 2025 earnings released: EPS: JP¥11.70 (vs JP¥15.15 in 1Q 2024) First quarter 2025 results: EPS: JP¥11.70 (down from JP¥15.15 in 1Q 2024). Revenue: JP¥13.9b (down 6.0% from 1Q 2024). Net income: JP¥549.0m (down 24% from 1Q 2024). Profit margin: 4.0% (down from 4.9% in 1Q 2024). Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jun 06
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥98.11 (up from JP¥66.54 in FY 2023). Revenue: JP¥59.2b (up 7.2% from FY 2023). Net income: JP¥4.68b (up 48% from FY 2023). Profit margin: 7.9% (up from 5.7% in FY 2023). Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 2.6%. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • May 10
Vector Inc. to Report Q1, 2025 Results on Jul 12, 2024 Vector Inc. announced that they will report Q1, 2025 results on Jul 12, 2024 New Risk • Apr 20
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 5.8% 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 (5.8% average weekly change). Large one-off items impacting financial results. Reported Earnings • Apr 14
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥98.11 (up from JP¥66.54 in FY 2023). Revenue: JP¥59.2b (up 7.2% from FY 2023). Net income: JP¥4.68b (up 48% from FY 2023). Profit margin: 7.9% (up from 5.7% in FY 2023). Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 2.6%. Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • Apr 12
Vector Inc., Annual General Meeting, May 30, 2024 Vector Inc., Annual General Meeting, May 30, 2024. Agenda: To consider payment of dividends of surplus with a record date of February 29, 2024. Announcement • Feb 27
Vector Inc. to Report Fiscal Year 2024 Results on Apr 12, 2024 Vector Inc. announced that they will report fiscal year 2024 results on Apr 12, 2024 Upcoming Dividend • Feb 21
Upcoming dividend of JP¥29.00 per share Eligible shareholders must have bought the stock before 28 February 2024. Payment date: 31 May 2024. Payout ratio is a comfortable 28% and the cash payout ratio is 84%. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.3%). In line with average of industry peers (2.2%). New Risk • Jan 17
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 5.6% 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 Dividend is not well covered by cash flows (183% cash payout ratio). Share price has been volatile over the past 3 months (5.6% average weekly change). Large one-off items impacting financial results. Reported Earnings • Jan 14
Third quarter 2024 earnings released: EPS: JP¥45.17 (vs JP¥19.93 in 3Q 2023) Third quarter 2024 results: EPS: JP¥45.17 (up from JP¥19.93 in 3Q 2023). Revenue: JP¥14.9b (up 2.6% from 3Q 2023). Net income: JP¥2.16b (up 128% from 3Q 2023). Profit margin: 15% (up from 6.6% in 3Q 2023). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Jan 13
Vector Inc. (TSE:6058) announces an Equity Buyback for 1,000,000 shares, representing 2.08% for ¥1,200 million. Vector Inc. (TSE:6058) announces a share repurchase program. Under the program, the company will repurchase up to 1,000,000 shares, representing 2.08% of its issued share capital, for ¥1,200 million. The purpose of the program is to enhance shareholder returns and improve capital efficiency, as well as implement flexible capital policies in response to changes in the business environment. The program will be valid till March 29, 2024. As of December 31, 2023, the company has 48,176,100 issued shares (excluding treasury stock) and 262,061 treasury shares. Reported Earnings • Oct 15
Second quarter 2024 earnings released: EPS: JP¥2.11 (vs JP¥22.70 in 2Q 2023) Second quarter 2024 results: EPS: JP¥2.11 (down from JP¥22.70 in 2Q 2023). Revenue: JP¥13.8b (up 2.0% from 2Q 2023). Net income: JP¥101.0m (down 91% from 2Q 2023). Profit margin: 0.7% (down from 8.0% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Media industry in Japan. 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 4% per year, which means it is significantly lagging earnings growth. Announcement • Aug 31
Vector Inc. (TSE:6058) completed the acquisition of additional 25.071429% stake in Vitabrid Japan Inc. from Hyundai Bioscience Co., Ltd. (KOSDAQ:A048410) Vector Inc. (TSE:6058) agreed to acquire additional 25.071429% stake in Vitabrid Japan Inc. from Hyundai Bioscience Co., Ltd. (KOSDAQ:A048410) for KRW 13.7 billion on August 25, 2022. For the period ended February 28, 2022, Vitabrid Japan reported Total assets of KRW 30 billion, and sales of KRW 106 billion. The acquisition is expected to be closed on August 29, 2022.
Vector Inc. (TSE:6058) completed the acquisition of additional 25.071429% stake in Vitabrid Japan Inc. from Hyundai Bioscience Co., Ltd. (KOSDAQ:A048410) for KRW 13.7 billion on August 31, 2023. Major Estimate Revision • Aug 04
Consensus EPS estimates increase by 10% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥84.95 to JP¥93.70. Revenue forecast unchanged at JP¥63.1b. Net income forecast to grow 50% next year vs 8.8% growth forecast for Media industry in Japan. Consensus price target of JP¥1,800 unchanged from last update. Share price was steady at JP¥1,305 over the past week. Reported Earnings • Jul 16
First quarter 2024 earnings released: EPS: JP¥15.15 (vs JP¥17.54 in 1Q 2023) First quarter 2024 results: EPS: JP¥15.15 (down from JP¥17.54 in 1Q 2023). Revenue: JP¥14.8b (up 12% from 1Q 2023). Net income: JP¥722.0m (down 14% from 1Q 2023). Profit margin: 4.9% (down from 6.4% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • Jul 13
Vector Inc. (TSE:6058) signed a share transfer agreement to acquire 66.7% stake in Owned Co., Ltd from Sho Ishii, Yasukuni Shinya and others for JPY 490 million. Vector Inc. (TSE:6058) signed a share transfer agreement to acquire 66.7% stake in Owned Co., Ltd from Sho Ishii, Yasukuni Shinya and others for JPY 490 million on July 11, 2023. As part of transaction, 7,756 shares will be acquired. In addition to consideration, agreement has been reached to pay earnout consideration. The transaction is expected to close on July 14, 2023. New Risk • Jul 06
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 125% Dividend yield: 1.9% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. 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 Risk High level of non-cash earnings (22% accrual ratio). Minor Risk Dividend is not well covered by cash flows (125% cash payout ratio). Reported Earnings • Jun 02
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥66.54 (up from JP¥43.44 in FY 2022). Revenue: JP¥55.2b (up 17% from FY 2022). Net income: JP¥3.17b (up 53% from FY 2022). Profit margin: 5.7% (up from 4.4% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 5.3%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 16
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥66.54 (up from JP¥43.44 in FY 2022). Revenue: JP¥55.2b (up 17% from FY 2022). Net income: JP¥3.17b (up 53% from FY 2022). Profit margin: 5.7% (up from 4.4% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 5.3%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Feb 20
Upcoming dividend of JP¥18.00 per share at 1.4% yield Eligible shareholders must have bought the stock before 27 February 2023. Payment date: 29 May 2023. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.5%). Reported Earnings • Jan 14
Third quarter 2023 earnings released: EPS: JP¥19.93 (vs JP¥20.81 in 3Q 2022) Third quarter 2023 results: EPS: JP¥19.93 (down from JP¥20.81 in 3Q 2022). Revenue: JP¥14.5b (up 17% from 3Q 2022). Net income: JP¥950.0m (down 4.2% from 3Q 2022). Profit margin: 6.6% (down from 8.0% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 100% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 16
Price target increased to JP¥1,770 Up from JP¥1,483, the current price target is an average from 3 analysts. New target price is 47% above last closing price of JP¥1,208. Stock is down 10.0% over the past year. The company is forecast to post earnings per share of JP¥65.10 for next year compared to JP¥43.44 last year. Board Change • Nov 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent External Director Ryuichi Tomimura was the last director to join the board, commencing their role in 2020. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 17
Second quarter 2023 earnings released: EPS: JP¥22.70 (vs JP¥3.76 in 2Q 2022) Second quarter 2023 results: EPS: JP¥22.70 (up from JP¥3.76 in 2Q 2022). Revenue: JP¥13.5b (up 26% from 2Q 2022). Net income: JP¥1.08b (up JP¥903.0m from 2Q 2022). Profit margin: 8.0% (up from 1.7% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 121% 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 • Jul 22
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥1,186, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 15x in the Media industry in Japan. Total returns to shareholders of 36% over the past three years. Reported Earnings • Jul 18
First quarter 2023 earnings released: EPS: JP¥17.54 (vs JP¥9.29 in 1Q 2022) First quarter 2023 results: EPS: JP¥17.54 (up from JP¥9.29 in 1Q 2022). Revenue: JP¥13.1b (up 18% from 1Q 2022). Net income: JP¥836.0m (up 89% from 1Q 2022). Profit margin: 6.4% (up from 4.0% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 14%, compared to a 4.6% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 127% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jun 02
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: JP¥43.44 (up from JP¥10.19 in FY 2021). Revenue: JP¥47.4b (up 27% from FY 2021). Net income: JP¥2.07b (up 326% from FY 2021). Profit margin: 4.4% (up from 1.3% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) also surpassed analyst estimates by 21%. Over the next year, revenue is forecast to grow 14%, compared to a 3.6% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 125% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • May 14
Vector Inc. to Report Q3, 2023 Results on Jan 13, 2023 Vector Inc. announced that they will report Q3, 2023 results on Jan 13, 2023 Price Target Changed • Apr 27
Price target increased to JP¥1,900 Up from JP¥1,483, the current price target is an average from 4 analysts. New target price is 50% above last closing price of JP¥1,266. Stock is up 31% over the past year. The company is forecast to post earnings per share of JP¥60.31 for next year compared to JP¥43.44 last year. Board Change • Apr 27
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent External Director Ryuichi Tomimura was the last director to join the board, commencing their role in 2020. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Apr 21
Consensus EPS estimates increase by 28% The consensus outlook for earnings per share (EPS) in 2023 has improved. 2023 revenue forecast increased from JP¥52.1b to JP¥53.1b. EPS estimate increased from JP¥49.13 to JP¥62.93 per share. Net income forecast to grow 45% next year vs 1.6% growth forecast for Media industry in Japan. Consensus price target of JP¥2,000 unchanged from last update. Share price rose 11% to JP¥1,278 over the past week. Reported Earnings • Apr 15
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: JP¥43.44 (up from JP¥10.19 in FY 2021). Revenue: JP¥47.4b (up 27% from FY 2021). Net income: JP¥2.07b (up 326% from FY 2021). Profit margin: 4.4% (up from 1.3% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) also surpassed analyst estimates by 21%. Over the next year, revenue is forecast to grow 10%, compared to a 3.2% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 125% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jan 25
Investor sentiment deteriorated over the past week After last week's 16% share price decline to JP¥981, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 16x in the Media industry in Japan. Total loss to shareholders of 30% over the past three years. Reported Earnings • Jan 16
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: JP¥20.81 (down from JP¥26.37 in 3Q 2021). Revenue: JP¥12.4b (up 25% from 3Q 2021). Net income: JP¥992.0m (down 21% from 3Q 2021). Profit margin: 8.0% (down from 13% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 42%. Earnings per share (EPS) missed analyst estimates by 42%. Over the next year, revenue is forecast to grow 15%, compared to a 1.3% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 117% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Price Target Changed • Dec 28
Price target increased to JP¥1,670 Up from JP¥1,483, the current price target is an average from 3 analysts. New target price is 42% above last closing price of JP¥1,177. Stock is up 21% over the past year. The company is forecast to post earnings per share of JP¥37.22 for next year compared to JP¥10.19 last year. Reported Earnings • Oct 17
Second quarter 2022 earnings released: EPS JP¥3.76 (vs JP¥21.37 loss in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥10.8b (up 24% from 2Q 2021). Net income: JP¥179.0m (up JP¥1.20b from 2Q 2021). Profit margin: 1.7% (up from net loss in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Sep 12
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥1,138, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 19x in the Media industry in Japan. Total loss to shareholders of 55% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,380 per share.