Live News • May 05
DCM Holdings Nears Share Buyback Limit With 2.6 Million Shares Repurchased DCM Holdings is running a board-approved share buyback program of up to 3,000,000 shares through June 2026.
By 30 April 2026, the company had repurchased about 2,600,000 shares under this program.
The buyback is framed as part of the company’s focus on shareholder returns and capital efficiency as it approaches the authorized limit.
For you as an investor, a buyback of this size can matter in a few ways. Reducing the share count can increase your ownership percentage if you hold the stock, and it often reflects a preference for returning cash to shareholders through repurchases rather than alternative uses such as higher cash reserves or other investments. The fact that DCM Holdings has already repurchased most of the authorized amount ahead of the June 2026 deadline highlights management’s stated commitment to this capital allocation policy.
It can also be useful to think about how this fits with your own expectations. Some investors view active buyback programs as a sign that management is comfortable with the company’s financial position and is prioritizing capital efficiency. Others may prefer to see cash directed toward dividends or business expansion. Watching whether DCM Holdings extends, increases, or lets this authorization expire after June 2026 can provide additional information about its capital allocation preferences. Major Estimate Revision • Apr 22
Consensus EPS estimates fall by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2027 has deteriorated. 2027 revenue forecast decreased from JP¥579.5b to JP¥567.2b. EPS estimate also fell from JP¥152 per share to JP¥126 per share. Net income forecast to grow 1.1% next year vs 10% growth forecast for Specialty Retail industry in Japan. Consensus price target up from JP¥1,700 to JP¥1,750. Share price was steady at JP¥1,521 over the past week. Buy Or Sell Opportunity • Apr 22
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.5% to JP¥1,521. The fair value is estimated to be JP¥1,928, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.0% over the last 3 years. Earnings per share has declined by 2.7%. For the next 3 years, revenue is forecast to grow by 1.6% per annum. Earnings are also forecast to grow by 5.9% per annum over the same time period. Reported Earnings • Apr 15
Full year 2026 earnings: EPS and revenues miss analyst expectations Full year 2026 results: EPS: JP¥127. Revenue: JP¥542.3b (flat on FY 2025). Net income: JP¥17.3b (up 1.0% from FY 2025). Profit margin: 3.2% (up from 3.1% in FY 2025). Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) also missed analyst estimates by 8.5%. Revenue is forecast to grow 3.6% p.a. on average during the next 2 years, compared to a 8.2% growth forecast for the Specialty Retail industry in Japan. Announcement • Apr 14
DCM Holdings Co., Ltd., Annual General Meeting, May 28, 2026 DCM Holdings Co., Ltd., Annual General Meeting, May 28, 2026. Announcement • Apr 03
DCM Holdings Co., Ltd. to Report Fiscal Year 2026 Results on Apr 14, 2026 DCM Holdings Co., Ltd. announced that they will report fiscal year 2026 results on Apr 14, 2026 Upcoming Dividend • Feb 19
Upcoming dividend of JP¥23.00 per share Eligible shareholders must have bought the stock before 26 February 2026. Payment date: 01 June 2026. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.4%). Reported Earnings • Dec 27
Third quarter 2026 earnings released: EPS: JP¥23.24 (vs JP¥27.15 in 3Q 2025) Third quarter 2026 results: EPS: JP¥23.24 (down from JP¥27.15 in 3Q 2025). Revenue: JP¥124.7b (down 3.4% from 3Q 2025). Net income: JP¥3.21b (down 12% from 3Q 2025). Profit margin: 2.6% (down from 2.8% in 3Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 10% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 26
DCM Holdings Co., Ltd. (TSE:3050) announces an Equity Buyback for 3,000,000 shares, representing 2.15% for ¥5,500 million. DCM Holdings Co., Ltd. (TSE:3050) announces a share repurchase program. Under the program, the company will repurchase 3,000,000 shares, representing 2.15% of the outstanding shares, for ¥5,500 million. The purpose of the program is to implement an agile capital policy in response to changes in the business environment and as a measure to return profits to shareholders. The plan will be valid till June 30, 2026. As of November 30, 2025, the company had 139,808,737 shares outstanding (excluding treasury stock) and 6,691,263 shares in treasury. Announcement • Nov 22
DCM Holdings Co., Ltd. to Report Q3, 2026 Results on Dec 26, 2025 DCM Holdings Co., Ltd. announced that they will report Q3, 2026 results on Dec 26, 2025 Declared Dividend • Nov 05
First half dividend of JP¥23.00 announced Dividend of JP¥23.00 is the same as last year. Ex-date: 26th February 2026 Payment date: 1st June 2026 Dividend yield will be 3.2%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (35% earnings payout ratio) and cash flows (45% cash payout ratio). The dividend has increased by an average of 8.7% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 28% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Oct 01
Now 23% undervalued Over the last 90 days, the stock has risen 14% to JP¥1,526. The fair value is estimated to be JP¥1,994, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.6% over the last 3 years. Earnings per share has grown by 3.5%. Revenue is forecast to grow by 4.8% in 2 years. Earnings are forecast to grow by 23% in the next 2 years. Reported Earnings • Sep 27
Second quarter 2026 earnings released: EPS: JP¥46.68 (vs JP¥44.93 in 2Q 2025) Second quarter 2026 results: EPS: JP¥46.68 (up from JP¥44.93 in 2Q 2025). Revenue: JP¥142.0b (down 2.9% from 2Q 2025). Net income: JP¥6.26b (up 3.9% from 2Q 2025). Profit margin: 4.4% (up from 4.1% in 2Q 2025). The increase in margin was driven by lower expenses. Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 10% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 23
DCM Holdings Co., Ltd. to Report Q2, 2026 Results on Sep 26, 2025 DCM Holdings Co., Ltd. announced that they will report Q2, 2026 results on Sep 26, 2025 Upcoming Dividend • Aug 21
Upcoming dividend of JP¥23.00 per share Eligible shareholders must have bought the stock before 28 August 2025. Payment date: 04 November 2025. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.5%). Declared Dividend • Jun 18
Final dividend of JP¥23.00 announced Shareholders will receive a dividend of JP¥23.00. Ex-date: 28th August 2025 Payment date: 4th November 2025 Dividend yield will be 3.5%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (35% earnings payout ratio) and cash flows (31% cash payout ratio). The dividend has increased by an average of 8.7% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 25% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 04
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥128 (down from JP¥159 in FY 2024). Revenue: JP¥544.6b (up 12% from FY 2024). Net income: JP¥17.1b (down 20% from FY 2024). Profit margin: 3.1% (down from 4.4% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates by 3.2%. Revenue is forecast to grow 1.2% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 8% per year. Announcement • May 09
DCM Holdings Co., Ltd. (TSE:3050) agreed to acquire Encho Co.,Ltd. (TSE:8208) for ¥7.8 billion. DCM Holdings Co., Ltd. (TSE:3050) agreed to acquire Encho Co.,Ltd. (TSE:8208) for ¥7.8 billion on May 9, 2025.
The transaction is subject to approval of offer by acquirer shareholders. The expected completion of the transaction is September 1, 2025.
YAMADA Business Consulting Co.,Ltd. acted as financial advisor for DCM Holdings Co., Ltd. SMBC Nikko Securities Inc. acted as financial advisor for Encho Co.,Ltd. Announcement • Apr 26
DCM Holdings Co., Ltd. to Report Q1, 2026 Results on Jun 27, 2025 DCM Holdings Co., Ltd. announced that they will report Q1, 2026 results on Jun 27, 2025 Announcement • Apr 14
DCM Holdings Co., Ltd. Proposes Year End Dividend for the Year Ended February 2025, Payable on May 30, 2025 DCM Holdings Co., Ltd. announced that Board of Directors, at a meeting, resolved to submit a proposal to the 19th Ordinary General Meeting of Shareholders to be held on May 29, 2025, regarding the dividends of surplus with a record date of February 28, 2025. Record date: February 28, 2025, Dividend per share: JPY 23.00, Total amount of dividends: JPY 3,193 million, Effective date: May 30, 2025. Actual results for the previous fiscal year (Fiscal year ended February 2024): JPY 22.00 per share. Reported Earnings • Apr 12
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥128 (down from JP¥159 in FY 2024). Revenue: JP¥544.6b (up 12% from FY 2024). Net income: JP¥17.1b (down 20% from FY 2024). Profit margin: 3.1% (down from 4.4% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates by 3.2%. Revenue is forecast to grow 2.0% 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 increased by 7% per year whereas the company’s share price has increased by 11% per year. Announcement • Feb 27
DCM Holdings Co., Ltd. to Report Fiscal Year 2025 Results on Apr 11, 2025 DCM Holdings Co., Ltd. announced that they will report fiscal year 2025 results on Apr 11, 2025 Upcoming Dividend • Feb 20
Upcoming dividend of JP¥22.00 per share Eligible shareholders must have bought the stock before 27 February 2025. Payment date: 02 June 2025. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.4%). New Risk • Dec 28
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.8% Last year net profit margin: 5.0% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Minor Risk Profit margins are more than 30% lower than last year (2.8% net profit margin). Reported Earnings • Dec 28
Third quarter 2025 earnings released: EPS: JP¥27.15 (vs JP¥80.96 in 3Q 2024) Third quarter 2025 results: EPS: JP¥27.15 (down from JP¥80.96 in 3Q 2024). Revenue: JP¥129.1b (up 14% from 3Q 2024). Net income: JP¥3.64b (down 66% from 3Q 2024). Profit margin: 2.8% (down from 9.5% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 11% per year. Announcement • Nov 23
DCM Holdings Co., Ltd. to Report Q3, 2025 Results on Dec 27, 2024 DCM Holdings Co., Ltd. announced that they will report Q3, 2025 results on Dec 27, 2024 New Risk • Oct 08
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.6% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Earnings are forecast to decline by an average of 0.6% per year for the foreseeable future. Reported Earnings • Sep 28
Second quarter 2025 earnings released: EPS: JP¥44.93 (vs JP¥37.93 in 2Q 2024) Second quarter 2025 results: EPS: JP¥44.93 (up from JP¥37.93 in 2Q 2024). Revenue: JP¥146.3b (up 19% from 2Q 2024). Net income: JP¥6.02b (up 19% from 2Q 2024). Profit margin: 4.1% (in line with 2Q 2024). Revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 13% per year. Announcement • Aug 27
DCM Holdings Co., Ltd. to Report Q2, 2025 Results on Sep 27, 2024 DCM Holdings Co., Ltd. announced that they will report Q2, 2025 results on Sep 27, 2024 Upcoming Dividend • Aug 22
Upcoming dividend of JP¥22.00 per share Eligible shareholders must have bought the stock before 29 August 2024. Payment date: 01 November 2024. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.5%). Buy Or Sell Opportunity • Jul 01
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.6% to JP¥1,401. The fair value is estimated to be JP¥1,814, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.7% over the last 3 years. Earnings per share has grown by 12%. Revenue is forecast to grow by 12% in 2 years. Earnings are forecast to decline by 2.5% in the next 2 years. Buy Or Sell Opportunity • Jun 13
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at JP¥1,490. The fair value is estimated to be JP¥1,864, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 9.0%. For the next 3 years, revenue is forecast to grow by 5.3% per annum. Earnings are also forecast to grow by 0.3% per annum over the same time period. Reported Earnings • Jun 06
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: JP¥159 (up from JP¥125 in FY 2023). Revenue: JP¥488.6b (up 2.5% from FY 2023). Net income: JP¥21.4b (up 18% from FY 2023). Profit margin: 4.4% (up from 3.8% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) exceeded analyst estimates by 10%. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 13% per year. Announcement • May 29
DCM Holdings Co., Ltd. to Report Q1, 2025 Results on Jun 28, 2024 DCM Holdings Co., Ltd. announced that they will report Q1, 2025 results on Jun 28, 2024 Reported Earnings • Apr 14
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: JP¥159 (up from JP¥125 in FY 2023). Revenue: JP¥488.6b (up 2.5% from FY 2023). Net income: JP¥21.4b (up 18% from FY 2023). Profit margin: 4.4% (up from 3.8% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) exceeded analyst estimates by 10%. Revenue is forecast to grow 8.6% p.a. on average during the next 2 years, compared to a 6.8% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year and the company’s share price has also increased by 9% per year. Announcement • Apr 14
DCM Holdings Co., Ltd., Annual General Meeting, May 30, 2024 DCM Holdings Co., Ltd., Annual General Meeting, May 30, 2024. Announcement • Feb 24
DCM Holdings Co., Ltd. to Report Fiscal Year 2024 Results on Apr 12, 2024 DCM Holdings Co., Ltd. announced that they will report fiscal year 2024 results on Apr 12, 2024 Price Target Changed • Feb 23
Price target decreased by 12% to JP¥1,500 Down from JP¥1,700, the current price target is provided by 1 analyst. New target price is 6.2% above last closing price of JP¥1,412. Stock is up 20% over the past year. The company is forecast to post earnings per share of JP¥145 for next year compared to JP¥125 last year. Upcoming Dividend • Feb 21
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 28 February 2024. Payment date: 27 May 2024. Payout ratio is a comfortable 23% and the cash payout ratio is 91%. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.4%). Reported Earnings • Dec 28
Third quarter 2024 earnings released: EPS: JP¥80.96 (vs JP¥24.13 in 3Q 2023) Third quarter 2024 results: EPS: JP¥80.96 (up from JP¥24.13 in 3Q 2023). Revenue: JP¥113.7b (down 3.8% from 3Q 2023). Net income: JP¥10.8b (up 209% from 3Q 2023). Profit margin: 9.5% (up from 3.0% in 3Q 2023). Revenue is forecast to stay flat during the next 3 years compared to a 6.5% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 4% per year. Announcement • Nov 17
DCM Holdings Co., Ltd. to Report Q3, 2024 Results on Dec 27, 2023 DCM Holdings Co., Ltd. announced that they will report Q3, 2024 results on Dec 27, 2023 Reported Earnings • Sep 30
Second quarter 2024 earnings released: EPS: JP¥37.93 (vs JP¥38.55 in 2Q 2023) Second quarter 2024 results: EPS: JP¥37.93 (down from JP¥38.55 in 2Q 2023). Revenue: JP¥123.2b (down 1.3% from 2Q 2023). Net income: JP¥5.07b (down 9.8% from 2Q 2023). Profit margin: 4.1% (down from 4.5% in 2Q 2023). Revenue is forecast to grow 1.7% p.a. on average during the next 3 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 6% per year whereas the company’s share price has fallen by 5% per year. Announcement • Aug 31
DCM Holdings Co., Ltd. to Report Q2, 2024 Results on Sep 29, 2023 DCM Holdings Co., Ltd. announced that they will report Q2, 2024 results on Sep 29, 2023 Upcoming Dividend • Aug 23
Upcoming dividend of JP¥20.00 per share at 3.2% yield Eligible shareholders must have bought the stock before 30 August 2023. Payment date: 01 November 2023. Payout ratio is a comfortable 33% but the company is paying out more than the cash it is generating. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.4%). Reported Earnings • Jul 01
First quarter 2024 earnings released: EPS: JP¥41.40 (vs JP¥44.05 in 1Q 2023) First quarter 2024 results: EPS: JP¥41.40 (down from JP¥44.05 in 1Q 2023). Revenue: JP¥123.9b (up 8.6% from 1Q 2023). Net income: JP¥5.67b (down 13% from 1Q 2023). Profit margin: 4.6% (down from 5.7% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 2% per year. Reported Earnings • May 30
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥125 (down from JP¥126 in FY 2022). Revenue: JP¥476.8b (up 7.2% from FY 2022). Net income: JP¥18.1b (down 3.6% from FY 2022). Profit margin: 3.8% (down from 4.2% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 2.5%. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Price Target Changed • Apr 28
Price target increased by 13% to JP¥1,750 Up from JP¥1,550, the current price target is an average from 2 analysts. New target price is 23% above last closing price of JP¥1,424. Stock is up 33% over the past year. The company is forecast to post earnings per share of JP¥134 for next year compared to JP¥125 last year. Price Target Changed • Apr 26
Price target increased by 13% to JP¥1,750 Up from JP¥1,550, the current price target is an average from 2 analysts. New target price is 24% above last closing price of JP¥1,416. Stock is up 35% over the past year. The company is forecast to post earnings per share of JP¥137 for next year compared to JP¥125 last year. Valuation Update With 7 Day Price Move • Apr 18
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥1,386, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 12x in the Specialty Retail industry in Japan. Total returns to shareholders of 47% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥980 per share. Reported Earnings • Apr 13
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥125 (down from JP¥126 in FY 2022). Revenue: JP¥476.8b (up 7.2% from FY 2022). Net income: JP¥18.1b (down 3.6% from FY 2022). Profit margin: 3.8% (down from 4.2% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 2.5%. Revenue is forecast to grow 3.1% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Upcoming Dividend • Feb 20
Upcoming dividend of JP¥20.00 per share at 3.4% yield Eligible shareholders must have bought the stock before 27 February 2023. Payment date: 29 May 2023. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.5%). Reported Earnings • Dec 29
Third quarter 2023 earnings released: EPS: JP¥24.13 (vs JP¥26.70 in 3Q 2022) Third quarter 2023 results: EPS: JP¥24.13 (down from JP¥26.70 in 3Q 2022). Revenue: JP¥118.2b (up 10% from 3Q 2022). Net income: JP¥3.50b (down 12% from 3Q 2022). Profit margin: 3.0% (down from 3.7% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 4% per year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 7 non-independent directors. Independent External Director Naoki Uno was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 01
Second quarter 2023 earnings released: EPS: JP¥38.55 (vs JP¥39.68 in 2Q 2022) Second quarter 2023 results: EPS: JP¥38.55 (down from JP¥39.68 in 2Q 2022). Revenue: JP¥124.8b (up 7.9% from 2Q 2022). Net income: JP¥5.62b (down 5.0% from 2Q 2022). Profit margin: 4.5% (down from 5.1% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Specialty Retail industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% per year and the company’s share price has also increased by 4% per year. Upcoming Dividend • Aug 23
Upcoming dividend of JP¥17.00 per share Eligible shareholders must have bought the stock before 30 August 2022. Payment date: 01 November 2022. Payout ratio is a comfortable 28% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.5%). Buying Opportunity • Jul 27
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 2.2%. The fair value is estimated to be JP¥1,328, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 7.0%. Revenue is forecast to grow by 16% in 2 years. Earnings is forecast to grow by 14% in the next 2 years. Reported Earnings • Jul 02
First quarter 2023 earnings released: EPS: JP¥44.05 (vs JP¥50.42 in 1Q 2022) First quarter 2023 results: EPS: JP¥44.05 (down from JP¥50.42 in 1Q 2022). Revenue: JP¥114.0b (down 4.5% from 1Q 2022). Net income: JP¥6.51b (down 14% from 1Q 2022). Profit margin: 5.7% (down from 6.4% in 1Q 2022). The decrease in margin was driven by lower revenue. Over the next year, revenue is forecast to grow 13%, compared to a 7.5% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • Jun 02
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: JP¥126. Revenue: JP¥444.8b (down 5.6% from FY 2021). Net income: JP¥18.8b (up 1.2% from FY 2021). Profit margin: 4.2% (up from 3.9% in FY 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) exceeded analyst estimates by 4.1%. Over the next year, revenue is forecast to grow 11%, compared to a 7.5% growth forecast for the retail industry in Japan. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 7 non-independent directors. Independent External Director Naoki Uno was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 14
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: JP¥126. Revenue: JP¥444.8b (down 5.6% from FY 2021). Net income: JP¥18.8b (up 1.2% from FY 2021). Profit margin: 4.2% (up from 3.9% in FY 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) exceeded analyst estimates by 4.1%. Over the next year, revenue is forecast to grow 2.3%, compared to a 6.4% growth forecast for the retail industry in Japan. Upcoming Dividend • Feb 18
Upcoming dividend of JP¥16.00 per share Eligible shareholders must have bought the stock before 25 February 2022. Payment date: 28 May 2022. Payout ratio is a comfortable 27% but the company is paying out more than the cash it is generating. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.6%). Reported Earnings • Dec 29
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: JP¥26.70 (up from JP¥25.86 in 3Q 2021). Revenue: JP¥107.1b (down 3.9% from 3Q 2021). Net income: JP¥3.97b (up 1.1% from 3Q 2021). Profit margin: 3.7% (up from 3.5% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 3.8%. Earnings per share (EPS) also missed analyst estimates by 13%. Earnings per share (EPS) missed analyst estimates by 13%. Over the next year, revenue is forecast to grow 1.3%, compared to a 6.3% growth forecast for the 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 fallen by 2% per year, which means it is significantly lagging earnings. Reported Earnings • Sep 30
Second quarter 2022 earnings released: EPS JP¥39.68 (vs JP¥48.97 in 2Q 2021) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥115.7b (down 9.0% from 2Q 2021). Net income: JP¥5.92b (down 15% from 2Q 2021). Profit margin: 5.1% (down from 5.5% in 2Q 2021). The decrease in margin was driven by lower revenue. 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 1% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 23
Upcoming dividend of JP¥16.00 per share Eligible shareholders must have bought the stock before 30 August 2021. Payment date: 02 November 2021. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.1%). Higher than average of industry peers (1.4%). Price Target Changed • Jul 11
Price target increased to JP¥2,000 Up from JP¥1,600, the current price target is an average from 2 analysts. New target price is 89% above last closing price of JP¥1,060. Stock is down 17% over the past year. Reported Earnings • Jul 02
First quarter 2022 earnings released: EPS JP¥50.42 (vs JP¥59.71 in 1Q 2021) The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥119.3b (down 5.2% from 1Q 2021). Net income: JP¥7.58b (down 7.0% from 1Q 2021). Profit margin: 6.4% (down from 6.5% in 1Q 2021). The decrease in margin was driven by lower revenue. 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 11
Full year 2021 earnings released: EPS JP¥127 (vs JP¥103 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥471.2b (up 7.7% from FY 2020). Net income: JP¥18.6b (up 35% from FY 2020). Profit margin: 3.9% (up from 3.2% 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 23% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Feb 18
Upcoming Dividend of JP¥16.00 Per Share Will be paid on the 29th of May to those who are registered shareholders by the 25th of February. The trailing yield of 2.7% is below the top quartile of Japanese dividend payers (2.8%), but it is higher than industry peers (1.0%). Is New 90 Day High Low • Jan 29
New 90-day low: JP¥1,059 The company is down 18% from its price of JP¥1,294 on 30 October 2020. The Japanese market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Specialty Retail industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥1,165 per share. Is New 90 Day High Low • Jan 12
New 90-day low: JP¥1,119 The company is down 25% from its price of JP¥1,490 on 14 October 2020. The Japanese market is up 12% 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. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥1,206 per share. Reported Earnings • Dec 29
Third quarter 2021 earnings released: EPS JP¥25.86 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥111.4b (up 1.9% from 3Q 2020). Net income: JP¥3.93b (up 23% from 3Q 2020). Profit margin: 3.5% (up from 2.9% 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 22% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Dec 29
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) exceeded analyst estimates by 15%. Over the next year, revenue is expected to shrink by 2.0% compared to a 11% growth forecast for the Specialty Retail industry in Japan. Is New 90 Day High Low • Dec 01
New 90-day low: JP¥1,176 The company is down 9.0% from its price of JP¥1,293 on 02 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Specialty Retail industry, which is up 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥1,162 per share. Price Target Changed • Dec 01
Price target raised to JP¥2,000 Up from JP¥1,400, the current price target is an average from 2 analysts. The new target price is 70% above the current share price of JP¥1,176. As of last close, the stock is up 11% over the past year. Announcement • Nov 08
DCM Holdings Co., Ltd. to Report Q3, 2021 Results on Dec 28, 2020 DCM Holdings Co., Ltd. announced that they will report Q3, 2021 results on Dec 28, 2020 Announcement • Oct 06
DCM Holdings Co., Ltd. (TSE:3050) reached an agreement to acquire Shimachu Co., Ltd. (TSE:8184) for approximately ¥160 billion. DCM Holdings Co., Ltd. (TSE:3050) reached an agreement to acquire Shimachu Co., Ltd. (TSE:8184) for approximately ¥160 billion on September 29, 2020. DCM Holdings offer price to ¥4200 per share. Upper limit of the tender offer is acquisition of all the outstanding shares and lower limit of the tender offer is 19.5 million shares. If the total number of tendered share is less than the lower limit of the planned number of shares to be purchased, all of the tendered share certificates, etc. will not be purchased. When the total number of tendered shares, etc. is equal to or greater than the minimum number of shares to be purchased, all the tendered shares will be purchased. In the tender offer, there is no upper limit on the number of planned purchases, so the planned number of purchases is the tender offer. Shares less than one unit are also subject to the tender offer. In addition, according to the Companies Act, shareholders if the right to request the purchase of shares less than one unit is exercised, the subject will be subject to the procedure of the law during the tender offer period. The transaction will be financed from term loan to be borrowed from Sumitomo Mitsui Banking Corporation. After completion of the tender offer, Shimachu will operate as a subsidiary of DCM Holdings. Shimachu also has agreed to a business integration agreement related to the business integration. DCM Holdings will appoint one Director of Shimachu.
Independent special committee has been made to review the transaction. The transaction is subject to minimum tender of 50% shares of Shimachu. The Board of Shimachu unanimously approved and recommended shareholders to tender their shares. The tender offer will start at October 5, 2020 and will end on November 16, 2020. The settlement is expected to be on November 20, 2020. Nomura Securities Co., Ltd. and Plutus acted as financial advisors and fairness opinion provider to Shimachu. Mori Hamada & Matsumoto LPC acted as legal advisor to the independent special committee of Shimachu. SMBC Nikko Securities Inc. acted as financial advisor to DCM Holdings. Announcement • Oct 03
DCM May Acquire Rival Shimachu DCM Holdings Co., Ltd. (TSE:3050) is considering acquiring Shimachu Co., Ltd. (TSE:8184), it was learned on September 18, 2020. DCM will launch a tender offer to acquire over half of Shimachu's shares, sources said. Both companies are listed on the first section of the Tokyo Stock Exchange. Announcement • Aug 24
DCM Holdings Co., Ltd. to Report Q2, 2021 Results on Sep 29, 2020 DCM Holdings Co., Ltd. announced that they will report Q2, 2021 results on Sep 29, 2020