Upcoming Dividend • May 21
Upcoming dividend of JP¥52.00 per share Eligible shareholders must have bought the stock before 28 May 2026. Payment date: 31 August 2026. Payout ratio is a comfortable 26% but the company is not cash flow positive. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.4%). Valuation Update With 7 Day Price Move • Apr 21
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,011, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 14x in the Specialty Retail industry in Japan. Total returns to shareholders of 37% over the past three years. Reported Earnings • Apr 16
Third quarter 2026 earnings released: EPS: JP¥57.85 (vs JP¥23.79 in 3Q 2025) Third quarter 2026 results: EPS: JP¥57.85 (up from JP¥23.79 in 3Q 2025). Revenue: JP¥2.78b (up 38% from 3Q 2025). Net income: JP¥304.0m (up 143% from 3Q 2025). Profit margin: 11% (up from 6.2% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.4% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Announcement • Apr 03
Pacific Net Co.,Ltd. to Report Q3, 2026 Results on Apr 14, 2026 Pacific Net Co.,Ltd. announced that they will report Q3, 2026 results on Apr 14, 2026 Reported Earnings • Jan 15
Second quarter 2026 earnings released: EPS: JP¥47.00 (vs JP¥20.55 in 2Q 2025) Second quarter 2026 results: EPS: JP¥47.00 (up from JP¥20.55 in 2Q 2025). Revenue: JP¥2.63b (up 33% from 2Q 2025). Net income: JP¥247.0m (up 129% from 2Q 2025). Profit margin: 9.4% (up from 5.5% in 2Q 2025). 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 only increased by 19% per year, which means it is significantly lagging earnings growth. 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 5.4% 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 High level of debt (229% net debt to equity). Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.4% average weekly change). Market cap is less than US$100m (JP¥9.79b market cap, or US$61.7m). Valuation Update With 7 Day Price Move • Dec 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,944, the stock trades at a trailing P/E ratio of 15.7x. Average trailing P/E is 14x in the Specialty Retail industry in Japan. Total returns to shareholders of 111% over the past three years. Announcement • Nov 05
Pacific Net Co.,Ltd. to Report Q2, 2026 Results on Jan 14, 2026 Pacific Net Co.,Ltd. announced that they will report Q2, 2026 results on Jan 14, 2026 Reported Earnings • Oct 16
First quarter 2026 earnings released: EPS: JP¥39.01 (vs JP¥16.18 in 1Q 2025) First quarter 2026 results: EPS: JP¥39.01 (up from JP¥16.18 in 1Q 2025). Revenue: JP¥2.38b (up 32% from 1Q 2025). Net income: JP¥205.0m (up 141% from 1Q 2025). Profit margin: 8.6% (up from 4.7% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Reported Earnings • Sep 02
Full year 2025 earnings released: EPS: JP¥101 (vs JP¥82.75 in FY 2024) Full year 2025 results: EPS: JP¥101 (up from JP¥82.75 in FY 2024). Revenue: JP¥8.10b (up 17% from FY 2024). Net income: JP¥529.0m (up 23% from FY 2024). Profit margin: 6.5% (up from 6.2% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 31% 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 27
Pacific Net Co.,Ltd. to Report Q1, 2026 Results on Oct 15, 2025 Pacific Net Co.,Ltd. announced that they will report Q1, 2026 results on Oct 15, 2025 Reported Earnings • Jul 17
Full year 2025 earnings released Full year 2025 results: Net income: (down JP¥432.0m from profit in FY 2024). Announcement • Jul 15
Pacific Net Co.,Ltd., Annual General Meeting, Aug 28, 2025 Pacific Net Co.,Ltd., Annual General Meeting, Aug 28, 2025. Upcoming Dividend • May 22
Upcoming dividend of JP¥47.00 per share Eligible shareholders must have bought the stock before 29 May 2025. Payment date: 01 September 2025. Payout ratio is a comfortable 44% but the company is not cash flow positive. Trailing yield: 3.6%. Lower than top quartile of Japanese dividend payers (4.0%). Higher than average of industry peers (1.5%). Announcement • May 18
Pacific Net Co.,Ltd. to Report Fiscal Year 2025 Results on Jul 15, 2025 Pacific Net Co.,Ltd. announced that they will report fiscal year 2025 results on Jul 15, 2025 Reported Earnings • Apr 15
Third quarter 2025 earnings released: EPS: JP¥23.79 (vs JP¥16.96 in 3Q 2024) Third quarter 2025 results: EPS: JP¥23.79 (up from JP¥16.96 in 3Q 2024). Revenue: JP¥2.02b (up 19% from 3Q 2024). Net income: JP¥125.0m (up 40% from 3Q 2024). Profit margin: 6.2% (up from 5.2% 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 28% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. 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¥1,051, the stock trades at a trailing P/E ratio of 12.1x. Average trailing P/E is 13x in the Specialty Retail industry in Japan. Total loss to shareholders of 2.5% over the past three years. Announcement • Feb 15
Pacific Net Co.,Ltd. to Report Q3, 2025 Results on Apr 14, 2025 Pacific Net Co.,Ltd. announced that they will report Q3, 2025 results on Apr 14, 2025 Reported Earnings • Jan 15
Second quarter 2025 earnings released: EPS: JP¥20.55 (vs JP¥20.24 in 2Q 2024) Second quarter 2025 results: EPS: JP¥20.55 (up from JP¥20.24 in 2Q 2024). Revenue: JP¥1.98b (up 17% from 2Q 2024). Net income: JP¥108.0m (up 1.9% from 2Q 2024). Profit margin: 5.5% (down from 6.3% in 2Q 2024). The decrease in margin was driven by higher expenses. 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 10% per year, which means it is significantly lagging earnings growth. Announcement • Nov 16
Pacific Net Co.,Ltd. to Report Q2, 2025 Results on Jan 14, 2025 Pacific Net Co.,Ltd. announced that they will report Q2, 2025 results on Jan 14, 2025 Reported Earnings • Oct 18
First quarter 2025 earnings released: EPS: JP¥16.18 (vs JP¥11.85 in 1Q 2024) First quarter 2025 results: EPS: JP¥16.18 (up from JP¥11.85 in 1Q 2024). Revenue: JP¥1.81b (up 18% from 1Q 2024). Net income: JP¥85.0m (up 39% from 1Q 2024). Profit margin: 4.7% (up from 4.0% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Aug 10
Pacific Net Co.,Ltd. to Report Q1, 2025 Results on Oct 15, 2024 Pacific Net Co.,Ltd. announced that they will report Q1, 2025 results on Oct 15, 2024 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¥1,009, the stock trades at a trailing P/E ratio of 12.3x. Average trailing P/E is 13x in the Specialty Retail industry in Japan. Total loss to shareholders of 60% over the past three years. Reported Earnings • Jul 18
Full year 2024 earnings released: EPS: JP¥82.75 (vs JP¥65.52 in FY 2023) Full year 2024 results: EPS: JP¥82.75 (up from JP¥65.52 in FY 2023). Revenue: JP¥6.92b (up 8.1% from FY 2023). Net income: JP¥432.0m (up 29% from FY 2023). Profit margin: 6.2% (up from 5.2% 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 1% per year but the company’s share price has fallen by 24% per year, which means it is performing significantly worse than earnings. Announcement • Jul 16
Pacific Net Co.,Ltd., Annual General Meeting, Aug 29, 2024 Pacific Net Co.,Ltd., Annual General Meeting, Aug 29, 2024. New Risk • Jun 22
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.0% 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: Major Risk Share price has been highly volatile over the past 3 months (7.6% average weekly change). Minor Risks High level of debt (145% net debt to equity). Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (2.0% increase in shares outstanding). Market cap is less than US$100m (JP¥7.10b market cap, or US$44.5m). New Risk • Jun 09
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 High level of debt (145% net debt to equity). Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (2.1% increase in shares outstanding). Market cap is less than US$100m (JP¥6.36b market cap, or US$40.6m). Upcoming Dividend • May 23
Upcoming dividend of JP¥41.00 per share Eligible shareholders must have bought the stock before 30 May 2024. Payment date: 02 September 2024. Payout ratio is a comfortable 52% but the company is not cash flow positive. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.5%). Announcement • May 18
Pacific Net Co.,Ltd. to Report Fiscal Year 2024 Results on Jul 16, 2024 Pacific Net Co.,Ltd. announced that they will report fiscal year 2024 results on Jul 16, 2024 Valuation Update With 7 Day Price Move • Apr 22
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥1,479, the stock trades at a trailing P/E ratio of 19.6x. Average trailing P/E is 13x in the Specialty Retail industry in Japan. Total loss to shareholders of 59% over the past three years. Reported Earnings • Apr 16
Third quarter 2024 earnings released: EPS: JP¥16.96 (vs JP¥18.68 in 3Q 2023) Third quarter 2024 results: EPS: JP¥16.96 (down from JP¥18.68 in 3Q 2023). Revenue: JP¥1.70b (up 7.1% from 3Q 2023). Net income: JP¥89.0m (down 7.3% from 3Q 2023). Profit margin: 5.2% (down from 6.0% 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 9% per year but the company’s share price has fallen by 26% per year, which means it is performing significantly worse than earnings. Announcement • Feb 17
Pacific Net Co.,Ltd. to Report Q3, 2024 Results on Apr 15, 2024 Pacific Net Co.,Ltd. announced that they will report Q3, 2024 results on Apr 15, 2024 New Risk • Jan 25
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.0% 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: Major Risk High level of non-cash earnings (20% accrual ratio). Minor Risks High level of debt (134% net debt to equity). Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.8% average weekly change). Shareholders have been diluted in the past year (2.0% increase in shares outstanding). Market cap is less than US$100m (JP¥9.48b market cap, or US$64.3m). Valuation Update With 7 Day Price Move • Jan 22
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥1,789, the stock trades at a trailing P/E ratio of 23.3x. Average trailing P/E is 13x in the Specialty Retail industry in Japan. Total loss to shareholders of 36% over the past three years. Reported Earnings • Jan 16
Second quarter 2024 earnings released: EPS: JP¥20.24 (vs JP¥12.07 in 2Q 2023) Second quarter 2024 results: EPS: JP¥20.24 (up from JP¥12.07 in 2Q 2023). Revenue: JP¥1.70b (up 6.3% from 2Q 2023). Net income: JP¥106.0m (up 71% from 2Q 2023). Profit margin: 6.3% (up from 3.9% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 14% per year whereas the company’s share price has fallen by 17% per year. Announcement • Nov 24
Pacific Net Co.,Ltd. to Report Q2, 2024 Results on Jan 15, 2024 Pacific Net Co.,Ltd. announced that they will report Q2, 2024 results on Jan 15, 2024 Valuation Update With 7 Day Price Move • Oct 23
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥1,387, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Specialty Retail industry in Japan. Total loss to shareholders of 38% over the past three years. Reported Earnings • Oct 18
First quarter 2024 earnings released: EPS: JP¥11.85 (vs JP¥7.46 in 1Q 2023) First quarter 2024 results: EPS: JP¥11.85 (up from JP¥7.46 in 1Q 2023). Revenue: JP¥1.54b (down 1.1% from 1Q 2023). Net income: JP¥61.0m (up 61% from 1Q 2023). Profit margin: 4.0% (up from 2.4% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 6.6% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has fallen by 16% per year and the company’s share price has also fallen by 16% per year. Reported Earnings • Sep 05
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: JP¥65.52 (up from JP¥41.26 in FY 2022). Revenue: JP¥6.40b (up 16% from FY 2022). Net income: JP¥336.0m (up 61% from FY 2022). Profit margin: 5.2% (up from 3.8% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) exceeded analyst estimates by 12%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 6.7% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • Aug 24
Pacific Net Co.,Ltd. to Report Q1, 2024 Results on Oct 16, 2023 Pacific Net Co.,Ltd. announced that they will report Q1, 2024 results on Oct 16, 2023 New Risk • Aug 18
New major 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 7.5% 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 High level of debt (109% net debt to equity). Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.5% average weekly change). Market cap is less than US$100m (JP¥7.86b market cap, or US$54.0m). Valuation Update With 7 Day Price Move • Jul 21
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,608, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 12x in the Specialty Retail industry in Japan. Total returns to shareholders of 7.1% over the past three years. Reported Earnings • Jul 16
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: JP¥65.52 (up from JP¥41.26 in FY 2022). Revenue: JP¥6.40b (up 16% from FY 2022). Net income: JP¥336.0m (up 61% from FY 2022). Profit margin: 5.2% (up from 3.8% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) exceeded analyst estimates by 12%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 6.6% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Jul 16
Pacific Net Co.,Ltd., Annual General Meeting, Aug 30, 2023 Pacific Net Co.,Ltd., Annual General Meeting, Aug 30, 2023. Upcoming Dividend • May 23
Upcoming dividend of JP¥37.00 per share at 2.3% yield Eligible shareholders must have bought the stock before 30 May 2023. Payment date: 31 August 2023. Payout ratio is a comfortable 74% but the company is not cash flow positive. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.3%). Announcement • May 17
Pacific Net Co.,Ltd. to Report Fiscal Year 2023 Results on Jul 14, 2023 Pacific Net Co.,Ltd. announced that they will report fiscal year 2023 results on Jul 14, 2023 Reported Earnings • Apr 16
Third quarter 2023 earnings released: EPS: JP¥18.68 (vs JP¥9.04 in 3Q 2022) Third quarter 2023 results: EPS: JP¥18.68 (up from JP¥9.04 in 3Q 2022). Revenue: JP¥1.59b (up 14% from 3Q 2022). Net income: JP¥96.0m (up 109% from 3Q 2022). Profit margin: 6.0% (up from 3.3% in 3Q 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 5.6% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has fallen by 16% 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. Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,500, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 12x in the Specialty Retail industry in Japan. Total returns to shareholders of 1.3% over the past three years. Announcement • Feb 18
Pacific Net Co.,Ltd. to Report Q3, 2023 Results on Apr 14, 2023 Pacific Net Co.,Ltd. announced that they will report Q3, 2023 results on Apr 14, 2023 Reported Earnings • Jan 17
Second quarter 2023 earnings released: EPS: JP¥12.07 (vs JP¥10.10 in 2Q 2022) Second quarter 2023 results: EPS: JP¥12.07 (up from JP¥10.10 in 2Q 2022). Revenue: JP¥1.59b (up 17% from 2Q 2022). Net income: JP¥62.0m (up 22% from 2Q 2022). Profit margin: 3.9% (up from 3.7% 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 5.0% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has fallen by 10% per year whereas the company’s share price has fallen by 7% per year. Announcement • Dec 07
Pacific Net Co.,Ltd. to Report Q2, 2023 Results on Jan 16, 2023 Pacific Net Co.,Ltd. announced that they will report Q2, 2023 results on Jan 16, 2023 Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 8 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Outside Director Tsugio Matsumoto was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Oct 17
First quarter 2023 earnings released: EPS: JP¥7.46 (vs JP¥11.51 in 1Q 2022) First quarter 2023 results: EPS: JP¥7.46 (down from JP¥11.51 in 1Q 2022). Revenue: JP¥1.55b (up 27% from 1Q 2022). Net income: JP¥38.0m (down 35% from 1Q 2022). Profit margin: 2.4% (down from 4.7% in 1Q 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 5.6% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has fallen by 2% per year. Reported Earnings • Sep 04
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: JP¥41.26 (down from JP¥98.45 in FY 2021). Revenue: JP¥5.51b (up 5.4% from FY 2021). Net income: JP¥209.0m (down 58% from FY 2021). Profit margin: 3.8% (down from 9.5% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 16%. Over the next year, revenue is forecast to grow 13%, compared to a 9.0% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% 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 17
Pacific Net Co.,Ltd. to Report Q1, 2023 Results on Oct 14, 2022 Pacific Net Co.,Ltd. announced that they will report Q1, 2023 results on Oct 14, 2022 Announcement • Jul 17
Pacific Net Co.,Ltd., Annual General Meeting, Aug 30, 2022 Pacific Net Co.,Ltd., Annual General Meeting, Aug 30, 2022. Reported Earnings • Jul 17
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: JP¥41.26 (down from JP¥98.45 in FY 2021). Revenue: JP¥5.51b (up 5.4% from FY 2021). Net income: JP¥209.0m (down 58% from FY 2021). Profit margin: 3.8% (down from 9.5% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 16%. Over the next year, revenue is forecast to grow 16%, compared to a 7.7% growth forecast for the retail industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 16% per year. Upcoming Dividend • May 23
Upcoming dividend of JP¥36.00 per share Eligible shareholders must have bought the stock before 30 May 2022. Payment date: 31 August 2022. Payout ratio is a comfortable 55% but the company is not cash flow positive. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.8%). Announcement • May 19
Pacific Net Co.,Ltd. to Report Fiscal Year 2022 Results on Jul 15, 2022 Pacific Net Co.,Ltd. announced that they will report fiscal year 2022 results on Jul 15, 2022 Board Change • Apr 27
Less than half of directors are independent 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. 5 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Outside Director Tsugio Matsumoto was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Apr 15
Third quarter 2022 earnings: EPS misses analyst expectations Third quarter 2022 results: EPS: JP¥9.04 (down from JP¥26.80 in 3Q 2021). Revenue: JP¥1.40b (up 9.5% from 3Q 2021). Net income: JP¥46.0m (down 66% from 3Q 2021). Profit margin: 3.3% (down from 11% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.3%. Over the next year, revenue is forecast to grow 13%, compared to a 6.6% growth forecast for the 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 only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Feb 17
Pacific Net Co.,Ltd. to Report Q3, 2022 Results on Apr 14, 2022 Pacific Net Co.,Ltd. announced that they will report Q3, 2022 results on Apr 14, 2022 Reported Earnings • Jan 16
Second quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2022 results: EPS: JP¥10.10 (down from JP¥27.19 in 2Q 2021). Revenue: JP¥1.37b (up 4.4% from 2Q 2021). Net income: JP¥51.0m (down 63% from 2Q 2021). Profit margin: 3.7% (down from 11% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.8%. Earnings per share (EPS) missed analyst estimates by 6.3%. Earnings per share (EPS) missed analyst estimates by 6.3%. Over the next year, revenue is forecast to grow 14%, compared to a 7.0% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 22
Investor sentiment deteriorated over the past week After last week's 30% share price decline to JP¥1,633, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 14x in the Specialty Retail industry in Japan. Total returns to shareholders of 97% over the past three years. Reported Earnings • Oct 16
First quarter 2022 earnings released: EPS JP¥11.51 (vs JP¥20.05 in 1Q 2021) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2022 results: Revenue: JP¥1.23b (up 5.4% from 1Q 2021). Net income: JP¥58.0m (down 43% from 1Q 2021). Profit margin: 4.7% (down from 8.7% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 16
Full year 2021 earnings released: EPS JP¥98.45 (vs JP¥57.08 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥5.22b (up 14% from FY 2020). Net income: JP¥496.0m (up 72% from FY 2020). Profit margin: 9.5% (up from 6.3% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has increased by 56% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • May 22
Upcoming dividend of JP¥29.00 per share Eligible shareholders must have bought the stock before 28 May 2021. Payment date: 31 August 2021. Trailing yield: 0.7%. Lower than top quartile of Japanese dividend payers (3.0%). Lower than average of industry peers (1.2%). Reported Earnings • Apr 16
Third quarter 2021 earnings released: EPS JP¥26.80 (vs JP¥18.66 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥1.28b (up 6.9% from 3Q 2020). Net income: JP¥135.0m (up 44% from 3Q 2020). Profit margin: 11% (up from 7.9% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has increased by 49% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥3,550, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 17x in the Specialty Retail industry in Japan. Total returns to shareholders of 221% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,383 per share. Announcement • Feb 17
Pacific Net Co.,Ltd. to Report Q3, 2021 Results on Apr 13, 2021 Pacific Net Co.,Ltd. announced that they will report Q3, 2021 results on Apr 13, 2021 Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment improved over the past week After last week's 45% share price gain to JP¥3,325, the stock is trading at a trailing P/E ratio of 42.2x, up from the previous P/E ratio of 29.1x. This compares to an average P/E of 13x in the Specialty Retail industry in Japan. Total returns to shareholders over the past three years are 456%. Is New 90 Day High Low • Jan 18
New 90-day high: JP¥2,758 The company is up 9.0% from its price of JP¥2,530 on 20 October 2020. The Japanese market is up 12% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Specialty Retail industry, which is also up 9.0% over the same period. Reported Earnings • Jan 15
Second quarter 2021 earnings released: EPS JP¥27.19 The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: JP¥1.31b (up 24% from 2Q 2020). Net income: JP¥137.0m (up 185% from 2Q 2020). Profit margin: 11% (up from 4.5% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has increased by 58% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Dec 21
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥2,449, the stock is trading at a trailing P/E ratio of 40.1x, up from the previous P/E ratio of 34.5x. This compares to an average P/E of 13x in the Specialty Retail industry in Japan. Total returns to shareholders over the past three years are 372%. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥2,304, the stock is trading at a trailing P/E ratio of 37.7x, up from the previous P/E ratio of 32.7x. This compares to an average P/E of 13x in the Specialty Retail industry in Japan. Total returns to shareholders over the past three years are 353%. Is New 90 Day High Low • Dec 03
New 90-day low: JP¥1,837 The company is down 15% from its price of JP¥2,151 on 04 September 2020. The Japanese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Specialty Retail industry, which is up 13% over the same period. Announcement • Nov 15
Pacific Net Co.,Ltd. to Report Q2, 2021 Results on Jan 14, 2021 Pacific Net Co.,Ltd. announced that they will report Q2, 2021 results on Jan 14, 2021 Announcement • Aug 31
Pacific Net Co.,Ltd. to Report Q1, 2021 Results on Oct 12, 2020 Pacific Net Co.,Ltd. announced that they will report Q1, 2021 results on Oct 12, 2020