Valuation Update With 7 Day Price Move • Jul 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥8,120, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 22x in the Semiconductor industry in Japan. Total returns to shareholders of 168% over the past three years. Announcement • Jul 07
Ferrotec Corporation to Report Q1, 2027 Results on Aug 14, 2026 Ferrotec Corporation announced that they will report Q1, 2027 results on Aug 14, 2026 Valuation Update With 7 Day Price Move • Jun 17
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥9,420, 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 211% over the past three years. Major Estimate Revision • Jun 12
Consensus revenue estimates increase by 13% The consensus outlook for revenues in fiscal year 2027 has improved. 2027 revenue forecast increased from JP¥326.5b to JP¥370.0b. EPS estimate increased from JP¥439 to JP¥525 per share. Net income forecast to grow 65% next year vs 30% growth forecast for Semiconductor industry in Japan. Consensus price target up from JP¥8,200 to JP¥10,850. Share price was steady at JP¥9,100 over the past week. Price Target Changed • Jun 11
Price target increased by 34% to JP¥10,850 Up from JP¥8,100, the current price target is an average from 2 analysts. New target price is 37% above last closing price of JP¥7,940. Stock is up 190% over the past year. The company is forecast to post earnings per share of JP¥525 for next year compared to JP¥318 last year. Reported Earnings • May 20
Full year 2026 earnings: EPS misses analyst expectations Full year 2026 results: EPS: JP¥318 (down from JP¥334 in FY 2025). Revenue: JP¥288.9b (up 5.3% from FY 2025). Net income: JP¥14.9b (down 5.1% from FY 2025). Profit margin: 5.2% (down from 5.7% in FY 2025). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 13%. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has increased by 41% per year, which means it is well ahead of earnings. New Risk • May 19
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 9.6% 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 (9.6% average weekly change). Minor Risk Paying a dividend despite having no free cash flows. Announcement • May 18
Ferrotec Corporation, Annual General Meeting, Jun 26, 2026 Ferrotec Corporation, Annual General Meeting, Jun 26, 2026. Announcement • May 10
Ferrotec Corporation to Report Fiscal Year 2026 Results on May 15, 2026 Ferrotec Corporation announced that they will report fiscal year 2026 results at 3:00 PM, Tokyo Standard Time on May 15, 2026 Valuation Update With 7 Day Price Move • May 07
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to JP¥9,170, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 21x in the Semiconductor industry in Japan. Total returns to shareholders of 230% over the past three years. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥74.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 30 June 2026. Payout ratio is a comfortable 50% but the company is not cash flow positive. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.0%). Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: JP¥81.94 (vs JP¥72.79 in 3Q 2025) Third quarter 2026 results: EPS: JP¥81.94 (up from JP¥72.79 in 3Q 2025). Revenue: JP¥70.7b (up 5.1% from 3Q 2025). Net income: JP¥3.84b (up 12% from 3Q 2025). Profit margin: 5.4% (up from 5.1% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.8% p.a. on average during the next 3 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 26% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 22
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥6,630, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 20x in the Semiconductor industry in Japan. Total returns to shareholders of 147% over the past three years. Price Target Changed • Jan 07
Price target increased by 20% to JP¥6,500 Up from JP¥5,400, the current price target is an average from 2 analysts. New target price is 25% above last closing price of JP¥5,180. Stock is up 95% over the past year. The company is forecast to post earnings per share of JP¥374 for next year compared to JP¥334 last year. Announcement • Jan 06
Ferrotec Corporation to Report Q3, 2026 Results on Feb 12, 2026 Ferrotec Corporation announced that they will report Q3, 2026 results on Feb 12, 2026 Buy Or Sell Opportunity • Dec 18
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 19% to JP¥4,805. The fair value is estimated to be JP¥3,949, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has declined by 31%. For the next 3 years, revenue is forecast to grow by 8.0% per annum. Earnings are also forecast to grow by 19% per annum over the same time period. Declared Dividend • Dec 11
First half dividend of JP¥74.00 announced Shareholders will receive a dividend of JP¥74.00. Ex-date: 30th March 2026 Payment date: 30th June 2026 Dividend yield will be 3.1%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is covered by earnings (59% 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 34% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 63% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Nov 19
Price target increased by 9.3% to JP¥5,100 Up from JP¥4,667, the current price target is an average from 2 analysts. New target price is 9.6% above last closing price of JP¥4,655. Stock is up 89% over the past year. The company is forecast to post earnings per share of JP¥375 for next year compared to JP¥334 last year. Reported Earnings • Nov 18
Second quarter 2026 earnings released: EPS: JP¥77.60 (vs JP¥92.33 in 2Q 2025) Second quarter 2026 results: EPS: JP¥77.60 (down from JP¥92.33 in 2Q 2025). Revenue: JP¥72.1b (down 2.7% from 2Q 2025). Net income: JP¥3.63b (down 16% from 2Q 2025). Profit margin: 5.0% (down from 5.9% in 2Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 8.5% 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 11% per year, which means it is well ahead of earnings. New Risk • Nov 17
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.5% 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 Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.5% average weekly change). Buy Or Sell Opportunity • Nov 13
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 28% to JP¥4,795. The fair value is estimated to be JP¥3,950, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has declined by 29%. For the next 3 years, revenue is forecast to grow by 7.6% per annum. Earnings are also forecast to grow by 17% per annum over the same time period. Announcement • Oct 30
Ferrotec Corporation to Report Q2, 2026 Results on Nov 14, 2025 Ferrotec Corporation announced that they will report Q2, 2026 results on Nov 14, 2025 Valuation Update With 7 Day Price Move • Oct 29
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥5,030, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 18x in the Semiconductor industry in Japan. Total returns to shareholders of 132% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,967 per share. Buy Or Sell Opportunity • Oct 27
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 32% to JP¥4,800. The fair value is estimated to be JP¥3,967, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has declined by 29%. For the next 3 years, revenue is forecast to grow by 7.6% per annum. Earnings are also forecast to grow by 17% per annum over the same time period. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥74.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 09 December 2025. Payout ratio is a comfortable 49% but the company is not cash flow positive. Trailing yield: 3.6%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.3%). Reported Earnings • Aug 15
First quarter 2026 earnings released: EPS: JP¥57.11 (vs JP¥103 in 1Q 2025) First quarter 2026 results: EPS: JP¥57.11 (down from JP¥103 in 1Q 2025). Revenue: JP¥68.9b (up 13% from 1Q 2025). Net income: JP¥2.67b (down 45% from 1Q 2025). Profit margin: 3.9% (down from 7.9% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Declared Dividend • Jul 09
Final dividend of JP¥74.00 announced Shareholders will receive a dividend of JP¥74.00. Ex-date: 29th September 2025 Payment date: 9th December 2025 Dividend yield will be 5.0%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is covered by earnings (16% 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 34% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 71% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 29
Ferrotec Holdings Corporation to Report Q1, 2026 Results on Aug 14, 2025 Ferrotec Holdings Corporation announced that they will report Q1, 2026 results on Aug 14, 2025 Reported Earnings • May 20
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥334 (up from JP¥323 in FY 2024). Revenue: JP¥274.4b (up 23% from FY 2024). Net income: JP¥15.7b (up 3.6% from FY 2024). Profit margin: 5.7% (down from 6.8% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.7%. Earnings per share (EPS) missed analyst estimates by 1.9%. Revenue is forecast to grow 10% 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 28% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • May 15
Ferrotec Holdings Corporation, Annual General Meeting, Jun 27, 2025 Ferrotec Holdings Corporation, Annual General Meeting, Jun 27, 2025. Valuation Update With 7 Day Price Move • Apr 03
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥2,464, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 14x in the Semiconductor industry in Japan. Total returns to shareholders of 13% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,452 per share. Announcement • Mar 27
Ferrotec Holdings Corporation to Report Fiscal Year 2025 Results on May 15, 2025 Ferrotec Holdings Corporation announced that they will report fiscal year 2025 results on May 15, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥85.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 16% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.8%). Valuation Update With 7 Day Price Move • Mar 12
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,649, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 15x in the Semiconductor industry in Japan. Total returns to shareholders of 24% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,420 per share. Reported Earnings • Feb 16
Third quarter 2025 earnings released: EPS: JP¥72.79 (vs JP¥108 in 3Q 2024) Third quarter 2025 results: EPS: JP¥72.79 (down from JP¥108 in 3Q 2024). Revenue: JP¥67.2b (up 7.1% from 3Q 2024). Net income: JP¥3.42b (down 33% from 3Q 2024). Profit margin: 5.1% (down from 8.1% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Jan 23
Ferrotec Holdings Corporation to Report Q3, 2025 Results on Feb 14, 2025 Ferrotec Holdings Corporation announced that they will report Q3, 2025 results on Feb 14, 2025 Declared Dividend • Dec 10
First half dividend of JP¥55.00 announced Shareholders will receive a dividend of JP¥55.00. Ex-date: 28th March 2025 Payment date: 30th June 2025 Dividend yield will be 4.2%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is covered by earnings (31% 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 29% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 63% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Nov 14
Ferrotec Holdings Corporation (TSE:6890) announces an Equity Buyback for 200,000 shares, representing 0.43% for ¥500 million. Ferrotec Holdings Corporation (TSE:6890) announces a share repurchase program. Under the program, the company will repurchase up to 200,000 shares, representing 0.43% of its issued share capital (excluding treasury stock) for ¥500 million. The purpose of the program is to improve capital efficiency and return profits to shareholders. The program will be valid till March 31, 2025. As of September 30, 2024, the company had 47,018,542 shares outstanding and 99,407 treasury shares. Announcement • Sep 27
Ferrotec Holdings Corporation to Report Q2, 2025 Results on Nov 14, 2024 Ferrotec Holdings Corporation announced that they will report Q2, 2025 results on Nov 14, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 11 December 2024. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 4.5%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.6%). Major Estimate Revision • Aug 16
Consensus EPS estimates increase by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥238.5b to JP¥245.4b. EPS estimate increased from JP¥338 to JP¥381 per share. Net income forecast to grow 12% next year vs 16% growth forecast for Semiconductor industry in Japan. Consensus price target of JP¥3,650 unchanged from last update. Share price rose 24% to JP¥2,476 over the past week. Buy Or Sell Opportunity • Aug 06
Now 31% overvalued Over the last 90 days, the stock has fallen 36% to JP¥1,904. The fair value is estimated to be JP¥1,451, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 31% over the last 3 years. Earnings per share has declined by 3.2%. For the next 3 years, revenue is forecast to grow by 12% per annum. Earnings are also forecast to grow by 18% per annum over the same time period. New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 7.0% 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 High level of non-cash earnings (24% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.0% average weekly change). Profit margins are more than 30% lower than last year (6.8% net profit margin). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 31% After last week's 31% share price decline to JP¥1,736, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 17x in the Semiconductor industry in Japan. Total loss to shareholders of 32% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,448 per share. Price Target Changed • Aug 01
Price target decreased by 22% to JP¥3,650 Down from JP¥4,650, the current price target is an average from 2 analysts. New target price is 45% above last closing price of JP¥2,513. Stock is down 24% over the past year. The company is forecast to post earnings per share of JP¥338 for next year compared to JP¥323 last year. Announcement • Jul 23
Ferrotec Holdings Corporation to Report Q1, 2025 Results on Aug 14, 2024 Ferrotec Holdings Corporation announced that they will report Q1, 2025 results on Aug 14, 2024 Declared Dividend • Jul 11
Final dividend of JP¥50.00 announced Shareholders will receive a dividend of JP¥50.00. Ex-date: 27th September 2024 Payment date: 11th December 2024 Dividend yield will be 3.7%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is covered by earnings (25% 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 29% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 59% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 20
Full year 2024 earnings: EPS in line with analyst expectations despite revenue beat Full year 2024 results: EPS: JP¥323 (down from JP¥645 in FY 2023). Revenue: JP¥222.4b (up 5.5% from FY 2023). Net income: JP¥15.2b (down 49% from FY 2023). Profit margin: 6.8% (down from 14% in FY 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 14% p.a. on average during the next 3 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 3% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • May 17
Ferrotec Holdings Corporation, Annual General Meeting, Jun 27, 2024 Ferrotec Holdings Corporation, Annual General Meeting, Jun 27, 2024. Announcement • Apr 19
Ferrotec Holdings Corporation to Report Fiscal Year 2024 Results on May 15, 2024 Ferrotec Holdings Corporation announced that they will report fiscal year 2024 results on May 15, 2024 New Risk • Apr 12
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.8% average weekly change). Profit margins are more than 30% lower than last year (8.7% net profit margin). Upcoming Dividend • Mar 21
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 25% but the company is not cash flow positive. Trailing yield: 3.5%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (0.9%). Reported Earnings • Feb 16
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: JP¥108 (down from JP¥166 in 3Q 2023). Revenue: JP¥62.8b (up 7.9% from 3Q 2023). Net income: JP¥5.07b (down 35% from 3Q 2023). Profit margin: 8.1% (down from 13% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 9.4%. Earnings per share (EPS) also surpassed analyst estimates by 31%. Revenue is forecast to grow 13% 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 12% per year whereas the company’s share price has increased by 11% per year. Valuation Update With 7 Day Price Move • Jan 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥3,120, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 20x in the Semiconductor industry in Japan. Total returns to shareholders of 98% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,340 per share. New Risk • Jan 24
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 4.4% 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 Earnings are forecast to decline by an average of 4.4% per year for the foreseeable future. High level of non-cash earnings (25% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (10% net profit margin). Announcement • Jan 19
Ferrotec Holdings Corporation to Report Q3, 2024 Results on Feb 14, 2024 Ferrotec Holdings Corporation announced that they will report Q3, 2024 results on Feb 14, 2024 Reported Earnings • Nov 18
Second quarter 2024 earnings: Revenues and EPS in line with analyst expectations Second quarter 2024 results: EPS: JP¥86.14 (down from JP¥188 in 2Q 2023). Revenue: JP¥53.2b (down 1.6% from 2Q 2023). Net income: JP¥4.04b (down 53% from 2Q 2023). Profit margin: 7.6% (down from 16% in 2Q 2023). The decrease in margin was primarily driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has increased by 36% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Oct 25
Ferrotec Holdings Corporation to Report Q2, 2024 Results on Nov 14, 2023 Ferrotec Holdings Corporation announced that they will report Q2, 2024 results on Nov 14, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥50.00 per share at 3.4% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 12 December 2023. Payout ratio is a comfortable 18% but the company is not cash flow positive. Trailing yield: 3.4%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.4%). Reported Earnings • Aug 15
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: JP¥92.63 (down from JP¥165 in 1Q 2023). Revenue: JP¥52.3b (up 21% from 1Q 2023). Net income: JP¥4.35b (down 41% from 1Q 2023). Profit margin: 8.3% (down from 17% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) also surpassed analyst estimates by 9.2%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has increased by 58% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Jun 29
Price target increased by 7.1% to JP¥5,000 Up from JP¥4,667, the current price target is an average from 3 analysts. New target price is 41% above last closing price of JP¥3,540. Stock is up 38% over the past year. The company is forecast to post earnings per share of JP¥400 for next year compared to JP¥645 last year. Announcement • Jun 28
Ferrotec Holdings Corporation to Report Q1, 2024 Results on Aug 14, 2023 Ferrotec Holdings Corporation announced that they will report Q1, 2024 results on Aug 14, 2023 New Risk • Jun 23
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 4.2% per year for the foreseeable future. High level of non-cash earnings (24% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.1% average weekly change). Shareholders have been diluted in the past year (4.7% increase in shares outstanding). Reported Earnings • May 18
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: JP¥645. Revenue: JP¥210.8b (up 57% from FY 2022). Net income: JP¥29.7b (up 11% from FY 2022). Profit margin: 14% (down from 20% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.1%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Revenue is forecast to grow 9.0% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Semiconductor industry in Japan. Announcement • May 16
Ferrotec Holdings Corporation, Annual General Meeting, Jun 29, 2023 Ferrotec Holdings Corporation, Annual General Meeting, Jun 29, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥50.00 per share at 3.1% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 2.8% but the company is not cash flow positive. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.2%). Reported Earnings • Feb 15
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: JP¥166 (up from JP¥104 in 3Q 2022). Revenue: JP¥58.2b (up 70% from 3Q 2022). Net income: JP¥7.76b (up 86% from 3Q 2022). Profit margin: 13% (up from 12% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 9.5%. Earnings per share (EPS) also surpassed analyst estimates by 41%. Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 62% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jan 31
Price target increased by 8.9% to JP¥4,467 Up from JP¥4,100, the current price target is an average from 3 analysts. New target price is 39% above last closing price of JP¥3,215. Stock is up 17% over the past year. The company is forecast to post earnings per share of JP¥540 for next year compared to JP¥668 last year. Valuation Update With 7 Day Price Move • Dec 22
Investor sentiment deteriorated over the past week After last week's 16% share price decline to JP¥2,837, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 8x in the Semiconductor industry in Japan. Total returns to shareholders of 224% over the past three years. Major Estimate Revision • Dec 10
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in 2023 has improved. 2023 revenue forecast increased from JP¥198.0b to JP¥203.0b. EPS estimate increased from JP¥463 to JP¥513 per share. Net income forecast to shrink 11% next year vs 1.7% decline forecast for Semiconductor industry in Japan. Consensus price target of JP¥4,100 unchanged from last update. Share price was steady at JP¥3,230 over the past week.