Valuation Update With 7 Day Price Move • Jul 08
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥6,820, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 22x in the Semiconductor industry in Japan. Total returns to shareholders of 308% over the past three years. Buy Or Sell Opportunity • Jul 01
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 45% to JP¥8,270. The fair value is estimated to be JP¥6,734, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 44%. For the next 3 years, revenue is forecast to grow by 8.9% per annum. Earnings are also forecast to grow by 8.1% per annum over the same time period. Buy Or Sell Opportunity • Jun 15
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 27% to JP¥8,330. The fair value is estimated to be JP¥6,741, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 44%. Revenue is forecast to grow by 12% in 2 years. Earnings are forecast to decline by 6.4% in the next 2 years. Announcement • Jun 09
Japan Electronic Materials Corporation to Report Q1, 2027 Results on Aug 07, 2026 Japan Electronic Materials Corporation announced that they will report Q1, 2027 results on Aug 07, 2026 New Risk • May 18
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 3.4% 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 Share price has been highly volatile over the past 3 months (14% average weekly change). Earnings are forecast to decline by an average of 3.4% per year for the foreseeable future. Minor Risk Shareholders have been diluted in the past year (16% increase in shares outstanding). Reported Earnings • May 18
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥426 (up from JP¥273 in FY 2025). Revenue: JP¥29.4b (up 23% from FY 2025). Net income: JP¥5.45b (up 58% from FY 2025). Profit margin: 19% (up from 14% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.0%. Earnings per share (EPS) also surpassed analyst estimates by 22%. Revenue is forecast to grow 5.8% p.a. on average during the next 2 years, compared to a 4.2% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has increased by 69% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 15
Japan Electronic Materials Corporation, Annual General Meeting, Jun 25, 2026 Japan Electronic Materials Corporation, Annual General Meeting, Jun 25, 2026. Valuation Update With 7 Day Price Move • May 11
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥8,070, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 22x in the Semiconductor industry in Japan. Total returns to shareholders of 522% over the past three years. Announcement • May 10
Japan Electronic Materials Corporation to Report Fiscal Year 2026 Results on May 14, 2026 Japan Electronic Materials Corporation announced that they will report fiscal year 2026 results on May 14, 2026 New Risk • Apr 07
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 16% 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 (15% average weekly change). Minor Risk Shareholders have been diluted in the past year (16% increase in shares outstanding). Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥5,250, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 18x in the Semiconductor industry in Japan. Total returns to shareholders of 271% over the past three years. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 11 June 2026. Payout ratio is a comfortable 17% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.0%). Valuation Update With 7 Day Price Move • Mar 03
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥7,640, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 22x in the Semiconductor industry in Japan. Total returns to shareholders of 432% over the past three years. Valuation Update With 7 Day Price Move • Feb 16
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to JP¥7,940, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 22x in the Semiconductor industry in Japan. Total returns to shareholders of 465% over the past three years. New Risk • Feb 07
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.5% 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 Risk Earnings are forecast to decline by an average of 0.5% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (7.5% average weekly change). Reported Earnings • Feb 07
Third quarter 2026 earnings released: EPS: JP¥140 (vs JP¥55.81 in 3Q 2025) Third quarter 2026 results: EPS: JP¥140 (up from JP¥55.81 in 3Q 2025). Revenue: JP¥8.35b (up 71% from 3Q 2025). Net income: JP¥1.77b (up 151% from 3Q 2025). Profit margin: 21% (up from 14% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has increased by 48% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jan 28
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥5,130, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 21x in the Semiconductor industry in Japan. Total returns to shareholders of 285% over the past three years. Buy Or Sell Opportunity • Dec 23
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 5.7% to JP¥3,775. The fair value is estimated to be JP¥3,136, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.4% over the last 3 years. Earnings per share has grown by 16%. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 3.8% in the next 2 years. Announcement • Dec 05
Japan Electronic Materials Corporation to Report Q3, 2026 Results on Feb 06, 2026 Japan Electronic Materials Corporation announced that they will report Q3, 2026 results on Feb 06, 2026 Buy Or Sell Opportunity • Dec 05
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 37% to JP¥3,895. The fair value is estimated to be JP¥3,153, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.4% over the last 3 years. Earnings per share has grown by 16%. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 3.8% in the next 2 years. Declared Dividend • Dec 02
First half dividend of JP¥30.00 announced Shareholders will receive a dividend of JP¥30.00. Ex-date: 30th March 2026 Payment date: 11th June 2026 Dividend yield will be 1.7%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is well covered by both earnings (22% earnings payout ratio) and cash flows (28% 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 21% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Nov 18
Now 22% undervalued Over the last 90 days, the stock has risen 36% to JP¥3,570. The fair value is estimated to be JP¥4,553, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.4% over the last 3 years. Earnings per share has grown by 16%. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 3.8% in the next 2 years. Reported Earnings • Nov 08
Second quarter 2026 earnings released: EPS: JP¥56.14 (vs JP¥37.92 in 2Q 2025) Second quarter 2026 results: EPS: JP¥56.14 (up from JP¥37.92 in 2Q 2025). Revenue: JP¥6.89b (up 42% from 2Q 2025). Net income: JP¥710.0m (up 48% from 2Q 2025). Profit margin: 10% (in line with 2Q 2025). Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 37% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 30
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥4,345, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 18x in the Semiconductor industry in Japan. Total returns to shareholders of 230% over the past three years. Buy Or Sell Opportunity • Oct 17
Now 24% undervalued Over the last 90 days, the stock has risen 58% to JP¥3,670. The fair value is estimated to be JP¥4,831, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue is forecast to grow by 23% in 2 years. Earnings are forecast to grow by 5.6% in the next 2 years. New Risk • Oct 16
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 7.8% 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. This is currently the only risk that has been identified for the company. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 02 December 2025. Payout ratio is a comfortable 23% but the company is not cash flow positive. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.3%). Valuation Update With 7 Day Price Move • Sep 11
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥3,145, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 14x in the Semiconductor industry in Japan. Total returns to shareholders of 124% over the past three years. Announcement • Sep 02
Japan Electronic Materials Corporation to Report Q2, 2026 Results on Nov 07, 2025 Japan Electronic Materials Corporation announced that they will report Q2, 2026 results on Nov 07, 2025 Valuation Update With 7 Day Price Move • Aug 14
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥2,684, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 14x in the Semiconductor industry in Japan. Total returns to shareholders of 74% over the past three years. Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥78.22 (vs JP¥68.73 in 1Q 2025) First quarter 2026 results: EPS: JP¥78.22 (up from JP¥68.73 in 1Q 2025). Revenue: JP¥5.44b (up 8.9% from 1Q 2025). Net income: JP¥988.0m (up 14% from 1Q 2025). Profit margin: 18% (in line with 1Q 2025). Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Declared Dividend • Jul 09
Final dividend of JP¥25.00 announced Shareholders will receive a dividend of JP¥25.00. Ex-date: 29th September 2025 Payment date: 2nd December 2025 Dividend yield will be 2.8%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is covered by earnings (23% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 20% per year over the past 10 years. However, payments have been volatile during that time. 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 29
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥273 (up from JP¥49.28 in FY 2024). Revenue: JP¥23.8b (up 37% from FY 2024). Net income: JP¥3.45b (up 455% from FY 2024). Profit margin: 14% (up from 3.6% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 13%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Announcement • Jun 14
Japan Electronic Materials Corporation to Report Q1, 2026 Results on Aug 07, 2025 Japan Electronic Materials Corporation announced that they will report Q1, 2026 results on Aug 07, 2025 Major Estimate Revision • May 27
Consensus EPS estimates fall by 28%, revenue upgraded The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast increased from JP¥24.0b to JP¥26.0b. EPS estimate fell from JP¥309 to JP¥222 per share. Net income forecast to shrink 19% next year vs 0.9% decline forecast for Semiconductor industry in Japan. Consensus price target down from JP¥5,200 to JP¥5,000. Share price rose 3.0% to JP¥2,170 over the past week. Reported Earnings • May 19
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥273 (up from JP¥49.28 in FY 2024). Revenue: JP¥23.8b (up 37% from FY 2024). Net income: JP¥3.45b (up 455% from FY 2024). Profit margin: 14% (up from 3.6% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 13%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Revenue is forecast to grow 6.4% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • May 14
Japan Electronic Materials Corporation, Annual General Meeting, Jun 25, 2025 Japan Electronic Materials Corporation, Annual General Meeting, Jun 25, 2025. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,877, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 13x in the Semiconductor industry in Japan. Total returns to shareholders of 3.3% over the past three years. New Risk • Apr 04
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 7.7% 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 (7.7% average weekly change). Minor Risk Paying a dividend despite having no free cash flows. Valuation Update With 7 Day Price Move • Apr 03
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥1,692, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 14x in the Semiconductor industry in Japan. Total loss to shareholders of 5.5% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 11 June 2025. Payout ratio is a comfortable 9.3% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.8%). Announcement • Mar 12
Japan Electronic Materials Corporation to Report Fiscal Year 2025 Results on May 14, 2025 Japan Electronic Materials Corporation announced that they will report fiscal year 2025 results on May 14, 2025 Major Estimate Revision • Feb 14
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥20.5b to JP¥21.0b. EPS estimate increased from JP¥214 to JP¥238 per share. Net income forecast to grow 36% next year vs 7.6% growth forecast for Semiconductor industry in Japan. Consensus price target of JP¥5,200 unchanged from last update. Share price fell 7.0% to JP¥2,097 over the past week. Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥55.81 (vs JP¥8.87 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥55.81 (up from JP¥8.87 loss in 3Q 2024). Revenue: JP¥4.90b (up 22% from 3Q 2024). Net income: JP¥705.0m (up JP¥817.0m from 3Q 2024). Profit margin: 14% (up from net loss in 3Q 2024). The move to profitability was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Dec 03
Japan Electronic Materials Corporation to Report Q3, 2025 Results on Feb 07, 2025 Japan Electronic Materials Corporation announced that they will report Q3, 2025 results on Feb 07, 2025 Declared Dividend • Dec 03
First half dividend of JP¥25.00 announced Shareholders will receive a dividend of JP¥25.00. Ex-date: 28th March 2025 Payment date: 11th June 2025 Dividend yield will be 2.5%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is covered by earnings (13% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 20% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 140% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥2,018, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 13x in the Semiconductor industry in Japan. Total loss to shareholders of 5.6% over the past three years. Reported Earnings • Nov 10
Second quarter 2025 earnings released: EPS: JP¥37.92 (vs JP¥11.25 loss in 2Q 2024) Second quarter 2025 results: EPS: JP¥37.92 (up from JP¥11.25 loss in 2Q 2024). Revenue: JP¥4.85b (up 26% from 2Q 2024). Net income: JP¥479.0m (up JP¥621.0m from 2Q 2024). Profit margin: 9.9% (up from net loss in 2Q 2024). The move to profitability was driven by higher revenue. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Major Estimate Revision • Sep 28
Consensus EPS estimates fall by 20% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥22.0b to JP¥21.0b. EPS estimate also fell from JP¥277 per share to JP¥222 per share. Net income forecast to grow 143% next year vs 19% growth forecast for Semiconductor industry in Japan. Consensus price target down from JP¥5,500 to JP¥5,200. Share price rose 9.2% to JP¥2,720 over the past week. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 40% but the company is paying out more than the cash it is generating. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (1.6%). Valuation Update With 7 Day Price Move • Sep 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,373, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 15x in the Semiconductor industry in Japan. Total returns to shareholders of 33% over the past three years. Announcement • Aug 31
Japan Electronic Materials Corporation to Report Q2, 2025 Results on Nov 08, 2024 Japan Electronic Materials Corporation announced that they will report Q2, 2025 results on Nov 08, 2024 Reported Earnings • Aug 09
First quarter 2025 earnings released: EPS: JP¥68.73 (vs JP¥17.92 in 1Q 2024) First quarter 2025 results: EPS: JP¥68.73 (up from JP¥17.92 in 1Q 2024). Revenue: JP¥4.99b (up 21% from 1Q 2024). Net income: JP¥868.0m (up 284% from 1Q 2024). Profit margin: 17% (up from 5.5% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Major Estimate Revision • Aug 09
Consensus EPS estimates increase by 94%, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from JP¥22.0b to JP¥21.0b. EPS estimate rose from JP¥143 to JP¥277. Net income forecast to grow 463% next year vs 27% growth forecast for Semiconductor industry in Japan. Consensus price target up from JP¥4,100 to JP¥5,500. Share price was steady at JP¥2,685 over the past week. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 30% After last week's 30% share price decline to JP¥2,175, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 17x in the Semiconductor industry in Japan. Total returns to shareholders of 35% over the past three years. Valuation Update With 7 Day Price Move • Jul 18
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥3,285, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 22x in the Semiconductor industry in Japan. Total returns to shareholders of 102% over the past three years. Declared Dividend • Jul 11
Final dividend of JP¥20.00 announced Dividend of JP¥20.00 is the same as last year. Ex-date: 27th September 2024 Payment date: 2nd December 2024 Dividend yield will be 1.0%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (61% earnings payout ratio) but not covered by cash flows (127% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 200% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Jun 07
Now 22% undervalued Over the last 90 days, the stock has risen 5.9% to JP¥3,250. The fair value is estimated to be JP¥4,147, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 4.0% over the last 3 years. Earnings per share has declined by 31%. For the next 3 years, revenue is forecast to grow by 15% per annum. Earnings are also forecast to grow by 44% per annum over the same time period. Announcement • Jun 02
Japan Electronic Materials Corporation to Report Q1, 2025 Results on Aug 07, 2024 Japan Electronic Materials Corporation announced that they will report Q1, 2025 results on Aug 07, 2024 Major Estimate Revision • May 25
Consensus revenue estimates increase by 26% The consensus outlook for revenues in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥17.5b to JP¥22.0b. EPS estimate increased from JP¥55.40 to JP¥143 per share. Net income forecast to grow 189% next year vs 17% growth forecast for Semiconductor industry in Japan. Consensus price target up from JP¥1,900 to JP¥4,100. Share price fell 13% to JP¥3,335 over the past week. Reported Earnings • May 18
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥49.28 (down from JP¥207 in FY 2023). Revenue: JP¥17.5b (down 16% from FY 2023). Net income: JP¥622.0m (down 76% from FY 2023). Profit margin: 3.6% (down from 13% in FY 2023). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 8.5%. Earnings per share (EPS) also surpassed analyst estimates by 56%. Revenue is forecast to grow 6.9% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Announcement • May 16
Japan Electronic Materials Corporation, Annual General Meeting, Jun 25, 2024 Japan Electronic Materials Corporation, Annual General Meeting, Jun 25, 2024. Valuation Update With 7 Day Price Move • May 10
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥3,060, the stock trades at a forward P/E ratio of 62x. Average forward P/E is 21x in the Semiconductor industry in Japan. Total returns to shareholders of 65% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 10 June 2024. Payout ratio is a comfortable 61% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (0.9%). Announcement • Mar 07
Japan Electronic Materials Corporation to Report Fiscal Year 2024 Results on May 14, 2024 Japan Electronic Materials Corporation announced that they will report fiscal year 2024 results on May 14, 2024 Valuation Update With 7 Day Price Move • Mar 01
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to JP¥2,852, the stock trades at a forward P/E ratio of 58x. Average forward P/E is 20x in the Semiconductor industry in Japan. Total returns to shareholders of 80% over the past three years. Reported Earnings • Feb 10
Third quarter 2024 earnings released: JP¥8.87 loss per share (vs JP¥53.77 profit in 3Q 2023) Third quarter 2024 results: JP¥8.87 loss per share (down from JP¥53.77 profit in 3Q 2023). Revenue: JP¥4.01b (down 31% from 3Q 2023). Net loss: JP¥112.0m (down 117% from profit in 3Q 2023). Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% 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. Buy Or Sell Opportunity • Feb 09
Now 25% undervalued Over the last 90 days, the stock has risen 28% to JP¥1,775. The fair value is estimated to be JP¥2,353, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.9% over the last 3 years, while earnings per share has been flat. Revenue is forecast to decline by 2.4% in 2 years. Earnings are forecast to decline by 38% in the next 2 years. New Risk • Jan 31
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 5.5% 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: Major Risk Earnings are forecast to decline by an average of 0.4% per year for the foreseeable future. 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 (5.5% average weekly change). Profit margins are more than 30% lower than last year (8.4% net profit margin). Buying Opportunity • Dec 22
Now 20% undervalued Over the last 90 days, the stock is up 18%. The fair value is estimated to be JP¥2,204, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.9% over the last 3 years, while earnings per share has been flat. Revenue is forecast to decline by 2.4% in 2 years. Earnings is forecast to decline by 38% in the next 2 years. Valuation Update With 7 Day Price Move • Dec 20
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥1,808, the stock trades at a forward P/E ratio of 41x. Average forward P/E is 18x in the Semiconductor industry in Japan. Total returns to shareholders of 18% over the past three years. Announcement • Nov 30
Japan Electronic Materials Corporation to Report Q3, 2024 Results on Feb 08, 2024 Japan Electronic Materials Corporation announced that they will report Q3, 2024 results on Feb 08, 2024