Upcoming Dividend • May 21
Upcoming dividend of JP¥34.00 per share Eligible shareholders must have bought the stock before 28 May 2026. Payment date: 25 August 2026. Payout ratio is on the higher end at 79%, however this is supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.0%). Buy Or Sell Opportunity • May 12
Now 25% undervalued Over the last 90 days, the stock has risen 38% to JP¥2,065. The fair value is estimated to be JP¥2,764, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 7.6% over the last 3 years. Earnings per share has declined by 10%. Revenue is forecast to grow by 41% in 2 years. Earnings are forecast to grow by 94% in the next 2 years. New Risk • May 11
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 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.9% average weekly change). Profit margins are more than 30% lower than last year (11% net profit margin). Valuation Update With 7 Day Price Move • May 11
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥2,270, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 22x in the Semiconductor industry in Japan. Total returns to shareholders of 85% over the past three years. Announcement • May 10
Inter Action Corporation to Report Fiscal Year 2026 Results on Jul 13, 2026 Inter Action Corporation announced that they will report fiscal year 2026 results on Jul 13, 2026 Reported Earnings • Apr 11
Third quarter 2026 earnings released: EPS: JP¥26.70 (vs JP¥7.02 in 3Q 2025) Third quarter 2026 results: EPS: JP¥26.70 (up from JP¥7.02 in 3Q 2025). Revenue: JP¥1.57b (up 25% from 3Q 2025). Net income: JP¥271.0m (up 252% from 3Q 2025). Profit margin: 17% (up from 6.1% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥1,641, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 21x in the Semiconductor industry in Japan. Total returns to shareholders of 31% over the past three years. Announcement • Apr 03
Inter Action Corporation to Report Q3, 2026 Results on Apr 10, 2026 Inter Action Corporation announced that they will report Q3, 2026 results on Apr 10, 2026 Declared Dividend • Feb 17
First half dividend of JP¥34.00 announced Shareholders will receive a dividend of JP¥34.00. Ex-date: 28th May 2026 Payment date: 25th August 2026 Dividend yield will be 2.9%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is not covered by earnings (122% earnings payout ratio). However, it is well covered by 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. The company's earnings per share (EPS) would need to grow by 35% to bring the payout ratio under control. EPS is expected to grow by 115% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Board Change • Feb 01
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. 3 highly experienced directors. President, CEO & Representative Director Nobuo Kiji is the most experienced director on the board, commencing their role in 2008. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Jan 10
Second quarter 2026 earnings released: EPS: JP¥17.43 (vs JP¥26.97 in 2Q 2025) Second quarter 2026 results: EPS: JP¥17.43 (down from JP¥26.97 in 2Q 2025). Revenue: JP¥1.08b (down 36% from 2Q 2025). Net income: JP¥176.7m (down 40% from 2Q 2025). Profit margin: 16% (down from 18% in 2Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 14% 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 fallen by 2% per year whereas the company’s share price has fallen by 3% per year. Upcoming Dividend • Nov 20
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 27 November 2025. Payment date: 17 February 2026. Payout ratio is on the higher end at 94%, however this is supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.2%). Announcement • Nov 05
Inter Action Corporation to Report Q2, 2026 Results on Jan 09, 2026 Inter Action Corporation announced that they will report Q2, 2026 results on Jan 09, 2026 Board Change • Oct 15
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. 3 highly experienced directors. President, CEO & Representative Director Nobuo Kiji is the most experienced director on the board, commencing their role in 2008. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 11
First quarter 2026 earnings released: EPS: JP¥4.41 (vs JP¥48.62 in 1Q 2025) First quarter 2026 results: EPS: JP¥4.41 (down from JP¥48.62 in 1Q 2025). Revenue: JP¥1.05b (down 56% from 1Q 2025). Net income: JP¥47.0m (down 91% from 1Q 2025). Profit margin: 4.5% (down from 23% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 12% 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 increased by 9% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Declared Dividend • Sep 08
Final dividend of JP¥10.00 announced Shareholders will receive a dividend of JP¥10.00. Ex-date: 27th November 2025 Payment date: 17th February 2026 Dividend yield will be 3.1%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is well covered by both earnings (48% earnings payout ratio) and cash flows (14% 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 decline by 5.7% over the next 3 years. However, it would need to fall by 47% to increase the payout ratio to a potentially unsustainable range. New Risk • Sep 02
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 5.0% 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 Earnings are forecast to decline by an average of 1.8% 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 (5.0% average weekly change). Market cap is less than US$100m (JP¥13.9b market cap, or US$93.3m). Announcement • Aug 06
Inter Action Corporation to Report Q1, 2026 Results on Oct 10, 2025 Inter Action Corporation announced that they will report Q1, 2026 results on Oct 10, 2025 New Risk • Jul 14
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 4.0% 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 4.0% 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. Market cap is less than US$100m (JP¥14.5b market cap, or US$98.5m). Reported Earnings • Jul 14
Full year 2025 earnings: EPS in line with expectations, revenues disappoint Full year 2025 results: EPS: JP¥89.43 (down from JP¥104 in FY 2024). Revenue: JP¥6.67b (down 14% from FY 2024). Net income: JP¥979.0m (down 14% from FY 2024). Profit margin: 15% (in line with FY 2024). Revenue missed analyst estimates by 4.1%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 9.5% p.a. on average during the next 2 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 increased by 20% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. New Risk • Jul 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 Earnings are forecast to decline by an average of 5.0% 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 (7.0% average weekly change). Market cap is less than US$100m (JP¥14.3b market cap, or US$99.0m). Announcement • Jul 03
Chikuho Trading Inc. completed the acquisition of Air Gases Technos Co., Ltd. from Inter Action Corporation (TSE:7725). Chikuho Trading Inc. agreed to acquire Air Gases Technos Co., Ltd. from Inter Action Corporation (TSE:7725) for ¥210 million on June 11, 2025. A cash consideration of ¥210 million will be paid by Chikuho Trading Inc. As part of consideration, ¥210 million is paid towards common equity of Air Gases Technos Co., Ltd.
For the period ending December 31, 2024, Air Gases Technos Co., Ltd. reported total revenue of ¥911 million, EBIT of ¥29 million and net income of ¥43 million. As of December 31, 2024, Air Gases Technos Co., Ltd. reported total assets of ¥682 million and total common equity of ¥288 million.
The expected completion of the transaction is June 30, 2025. As of June 26, 2025, date of execution of share transfer has been revised to July 2, 2025.
Chikuho Trading Inc. completed the acquisition of Air Gases Technos Co., Ltd. from Inter Action Corporation (TSE:7725) on July 2, 2025. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,332, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 13x in the Semiconductor industry in Japan. Total loss to shareholders of 24% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,281 per share. Announcement • Jun 11
Chikuho Trading Inc. agreed to acquire Air Gases Technos Co., Ltd. from Inter Action Corporation (TSE:7725) for ¥210 million. Chikuho Trading Inc. agreed to acquire Air Gases Technos Co., Ltd. from Inter Action Corporation (TSE:7725) for ¥210 million on June 11, 2025. A cash consideration of ¥210 million will be paid by Chikuho Trading Inc. As part of consideration, ¥210 million is paid towards common equity of Air Gases Technos Co., Ltd.
For the period ending December 31, 2024, Air Gases Technos Co., Ltd. reported total revenue of ¥911 million, EBIT of ¥29 million and net income of ¥43 million. As of December 31, 2024, Air Gases Technos Co., Ltd. reported total assets of ¥682 million and total common equity of ¥288 million.
The expected completion of the transaction is June 30, 2025. Upcoming Dividend • May 22
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 29 May 2025. Payment date: 26 August 2025. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (4.0%). Higher than average of industry peers (1.9%). Announcement • May 01
Inter Action Corporation to Report Fiscal Year 2025 Results on Jul 11, 2025 Inter Action Corporation announced that they will report fiscal year 2025 results on Jul 11, 2025 New Risk • Apr 14
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 8.1% 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 8.1% 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. Market cap is less than US$100m (JP¥11.8b market cap, or US$82.2m). Reported Earnings • Apr 12
Third quarter 2025 earnings released: EPS: JP¥7.02 (vs JP¥25.71 in 3Q 2024) Third quarter 2025 results: EPS: JP¥7.02 (down from JP¥25.71 in 3Q 2024). Revenue: JP¥1.26b (down 34% from 3Q 2024). Net income: JP¥77.0m (down 73% from 3Q 2024). Profit margin: 6.1% (down from 15% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to stay flat during the next 3 years compared to a 8.0% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Announcement • Apr 12
Inter Action Corporation Provides Consolidated Earnings Guidance for the Fiscal Year Ending May 31, 2025 Inter Action Corporation provided consolidated earnings guidance for the fiscal year ending May 31, 2025. For the year, the company expects net sales of JPY 6,696 million, operating profit of JPY 1,306 million, profit attributable to owners of parent of JPY 906 million and profit per share of JPY 82.84. New Risk • Apr 07
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: Major Risk Earnings are forecast to decline by an average of 14% 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 (5.8% average weekly change). Market cap is less than US$100m (JP¥11.0b market cap, or US$75.5m). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,014, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Semiconductor industry in Japan. Total loss to shareholders of 43% over the past three years. Declared Dividend • Feb 18
First half dividend of JP¥25.00 announced Dividend of JP¥25.00 is the same as last year. Ex-date: 29th May 2025 Payment date: 26th August 2025 Dividend yield will be 3.1%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is well covered by both earnings (23% earnings payout ratio) and cash flows (22% cash payout ratio). The dividend has increased by an average of 21% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 37% over the next 3 years. However, it would need to fall by 75% to increase the payout ratio to a potentially unsustainable range. Price Target Changed • Feb 05
Price target decreased by 8.3% to JP¥1,650 Down from JP¥1,800, the current price target is provided by 1 analyst. New target price is 50% above last closing price of JP¥1,098. Stock is down 2.4% over the past year. The company is forecast to post earnings per share of JP¥86.60 for next year compared to JP¥104 last year. Announcement • Feb 04
Inter Action Corporation to Report Q3, 2025 Results on Apr 11, 2025 Inter Action Corporation announced that they will report Q3, 2025 results on Apr 11, 2025 New Risk • Feb 04
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 2.0% 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 2.0% 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. Market cap is less than US$100m (JP¥11.8b market cap, or US$76.3m). Reported Earnings • Jan 12
Second quarter 2025 earnings released: EPS: JP¥26.97 (vs JP¥10.94 in 2Q 2024) Second quarter 2025 results: EPS: JP¥26.97 (up from JP¥10.94 in 2Q 2024). Revenue: JP¥1.69b (up 36% from 2Q 2024). Net income: JP¥295.4m (up 148% from 2Q 2024). Profit margin: 18% (up from 9.6% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 9.5% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings. Announcement • Jan 10
Inter Action Corporation Revises Consolidated Earnings Guidance for the Fiscal Year Ending May 31, 2025 Inter Action Corporation revised consolidated earnings guidance for the fiscal year ending May 31, 2025. For the year, the company expects net sales of JPY 6,696 million, operating profit of JPY 1,306 million, profit attributable to owners of parent of JPY 906 million and profit per share of JPY 82.85. Board Change • Dec 06
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. 3 non-independent directors. Independent Outside Director Yuriko Oda was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Nov 21
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 28 November 2024. Payment date: 19 February 2025. Payout ratio is a comfortable 25% but the company is not cash flow positive. Trailing yield: 3.5%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.7%). Announcement • Oct 26
Inter Action Corporation to Report Q2, 2025 Results on Jan 10, 2025 Inter Action Corporation announced that they will report Q2, 2025 results on Jan 10, 2025 Major Estimate Revision • Oct 22
Consensus revenue estimates fall by 10% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥7.45b to JP¥6.70b. EPS estimate fell from JP¥89.50 to JP¥84.90 per share. Net income forecast to shrink 35% next year vs 18% growth forecast for Semiconductor industry in Japan . Consensus price target of JP¥1,800 unchanged from last update. Share price fell 9.7% to JP¥1,088 over the past week. Reported Earnings • Oct 15
First quarter 2025 earnings released: EPS: JP¥48.62 (vs JP¥13.84 in 1Q 2024) First quarter 2025 results: EPS: JP¥48.62 (up from JP¥13.84 in 1Q 2024). Revenue: JP¥2.35b (up 35% from 1Q 2024). Net income: JP¥529.6m (up 253% from 1Q 2024). Profit margin: 23% (up from 8.6% in 1Q 2024). The increase in margin was driven by higher revenue. 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 increased by 6% per year but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings. Declared Dividend • Sep 19
Final dividend of JP¥10.00 announced Dividend of JP¥10.00 is the same as last year. Ex-date: 28th November 2024 Payment date: 19th February 2025 Dividend yield will be 3.0%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is covered by earnings (34% 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 21% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 46% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • Aug 07
Consensus revenue estimates fall by 11% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥8.57b to JP¥7.60b. EPS estimate fell from JP¥111 to JP¥84.05 per share. Net income forecast to shrink 19% next year vs 21% growth forecast for Semiconductor industry in Japan . Consensus price target of JP¥2,300 unchanged from last update. Share price fell 16% to JP¥1,146 over the past week. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,141, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 14x in the Semiconductor industry in Japan. Total loss to shareholders of 54% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥468 per share. Announcement • Jul 27
Inter Action Corporation to Report Q1, 2025 Results on Oct 11, 2024 Inter Action Corporation announced that they will report Q1, 2025 results on Oct 11, 2024 Valuation Update With 7 Day Price Move • Jul 22
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,329, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 20x in the Semiconductor industry in Japan. Total loss to shareholders of 39% over the past three years. Reported Earnings • Jul 16
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥104 (up from JP¥90.11 in FY 2023). Revenue: JP¥7.75b (up 13% from FY 2023). Net income: JP¥1.13b (up 15% from FY 2023). Profit margin: 15% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.5%. Revenue is forecast to grow 8.9% p.a. on average during the next 2 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 6% per year but the company’s share price has fallen by 15% per year, which means it is performing significantly worse than earnings. Announcement • Jul 13
Inter Action Corporation, Annual General Meeting, Aug 23, 2024 Inter Action Corporation, Annual General Meeting, Aug 23, 2024. Upcoming Dividend • May 23
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 30 May 2024. Payment date: 26 August 2024. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.1%). Announcement • May 03
Inter Action Corporation to Report Fiscal Year 2024 Results on Jul 12, 2024 Inter Action Corporation announced that they will report fiscal year 2024 results on Jul 12, 2024 Valuation Update With 7 Day Price Move • Apr 19
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to JP¥1,588, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 21x in the Semiconductor industry in Japan. Total loss to shareholders of 35% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,117 per share. Major Estimate Revision • Apr 19
Consensus revenue estimates increase by 11% The consensus outlook for revenues in fiscal year 2024 has improved. 2024 revenue forecast increased from JP¥7.03b to JP¥7.80b. EPS estimate increased from JP¥63.53 to JP¥101 per share. Net income forecast to grow 52% next year vs 18% growth forecast for Semiconductor industry in Japan. Consensus price target of JP¥1,550 unchanged from last update. Share price rose 24% to JP¥1,588 over the past week. Buy Or Sell Opportunity • Apr 15
Now 36% overvalued after recent price rise Over the last 90 days, the stock has risen 38% to JP¥1,512. The fair value is estimated to be JP¥1,108, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 15%. Revenue is forecast to grow by 21% in 2 years. Earnings are forecast to grow by 35% in the next 2 years. Reported Earnings • Apr 14
Third quarter 2024 earnings released: EPS: JP¥25.68 (vs JP¥35.02 in 3Q 2023) Third quarter 2024 results: EPS: JP¥25.68 (down from JP¥35.02 in 3Q 2023). Revenue: JP¥1.90b (down 7.8% from 3Q 2023). Net income: JP¥279.7m (down 27% from 3Q 2023). Profit margin: 15% (down from 19% in 3Q 2023). The decrease in margin was driven by lower 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 15% per year whereas the company’s share price has fallen by 20% per year. Price Target Changed • Mar 29
Price target increased by 11% to JP¥1,550 Up from JP¥1,400, the current price target is an average from 2 analysts. New target price is 17% above last closing price of JP¥1,325. Stock is down 13% over the past year. The company is forecast to post earnings per share of JP¥63.53 for next year compared to JP¥90.11 last year. Announcement • Jan 28
Inter Action Corporation to Report Q3, 2024 Results on Apr 12, 2024 Inter Action Corporation announced that they will report Q3, 2024 results on Apr 12, 2024 New Risk • Jan 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks 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 (5.6% average weekly change). Market cap is less than US$100m (JP¥12.5b market cap, or US$85.5m). Reported Earnings • Jan 14
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: JP¥10.94 (up from JP¥7.16 in 2Q 2023). Revenue: JP¥1.24b (up 10% from 2Q 2023). Net income: JP¥119.1m (up 53% from 2Q 2023). Profit margin: 9.6% (up from 6.9% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 13%. Revenue is forecast to grow 7.8% 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 fallen by 12% per year but the company’s share price has fallen by 24% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Dec 29
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,083, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 17x in the Semiconductor industry in Japan. Total loss to shareholders of 41% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,082 per share. Announcement • Oct 29
Inter Action Corporation to Report Q2, 2024 Results on Jan 12, 2024 Inter Action Corporation announced that they will report Q2, 2024 results on Jan 12, 2024 Buying Opportunity • Oct 26
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be JP¥1,247, 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 declined by 8.0%. Revenue is forecast to grow by 17% in 2 years. Earnings is forecast to grow by 16% in the next 2 years. Price Target Changed • Oct 25
Price target decreased by 17% to JP¥1,450 Down from JP¥1,750, the current price target is an average from 2 analysts. New target price is 43% above last closing price of JP¥1,012. Stock is down 30% over the past year. The company is forecast to post earnings per share of JP¥63.00 for next year compared to JP¥90.11 last year. Reported Earnings • Oct 13
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: JP¥13.84 (down from JP¥32.31 in 1Q 2023). Revenue: JP¥1.74b (down 8.8% from 1Q 2023). Net income: JP¥150.0m (down 57% from 1Q 2023). Profit margin: 8.6% (down from 18% in 1Q 2023). The decrease in margin was primarily driven by lower revenue. Revenue exceeded analyst estimates by 15%. Earnings per share (EPS) also surpassed analyst estimates by 114%. Revenue is forecast to grow 9.2% p.a. on average during the next 3 years, compared to a 8.4% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has fallen by 16% per year, which means it is performing significantly worse than earnings. Buying Opportunity • Oct 04
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 28%. The fair value is estimated to be JP¥1,234, 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 declined by 5.6%. For the next 3 years, revenue is forecast to grow by 7.7% per annum. Earnings is also forecast to grow by 5.9% per annum over the same time period. Announcement • Jul 30
Inter Action Corporation to Report Q1, 2024 Results on Oct 12, 2023 Inter Action Corporation announced that they will report Q1, 2024 results on Oct 12, 2023 Major Estimate Revision • Jul 27
Consensus EPS estimates fall by 45% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥7.47b to JP¥7.00b. EPS estimate also fell from JP¥111 per share to JP¥61.40 per share. Net income forecast to shrink 32% next year vs 5.5% decline forecast for Semiconductor industry in Japan. Consensus price target down from JP¥1,750 to JP¥1,650. Share price was steady at JP¥1,131 over the past week. Valuation Update With 7 Day Price Move • Jul 19
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥1,151, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 17x in the Semiconductor industry in Japan. Total loss to shareholders of 33% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,312 per share.