Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥1,941, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 14x in the Software industry in Japan. Total returns to shareholders of 174% over the past three years. Buy Or Sell Opportunity • Jun 03
Now 20% undervalued Over the last 90 days, the stock has risen 26% to JP¥1,651. The fair value is estimated to be JP¥2,068, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.6% over the last 3 years. Earnings per share has grown by 34%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings are also forecast to grow by 24% per annum over the same time period. Announcement • May 08
CELSYS, Inc. to Report Q1, 2026 Results on May 08, 2026 CELSYS, Inc. announced that they will report Q1, 2026 results on May 08, 2026 Declared Dividend • Apr 11
Dividend of JP¥18.00 announced Shareholders will receive a dividend of JP¥18.00. Ex-date: 29th June 2026 Payment date: 29th September 2026 Dividend yield will be 2.3%, which is higher than the industry average of 1.4%. Sustainability & Growth The dividend has increased by an average of 44% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 87% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 13
CELSYS, Inc., Annual General Meeting, Mar 30, 2026 CELSYS, Inc., Annual General Meeting, Mar 30, 2026. Buy Or Sell Opportunity • Jan 05
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 10% to JP¥1,611. The fair value is estimated to be JP¥2,084, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.5% over the last 3 years. Earnings per share has grown by 32%. Revenue is forecast to grow by 20% in 2 years. Earnings are forecast to grow by 65% in the next 2 years. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 31 March 2026. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.7%). Buy Or Sell Opportunity • Dec 11
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 13% to JP¥1,625. The fair value is estimated to be JP¥2,033, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.5% over the last 3 years. Earnings per share has grown by 32%. Revenue is forecast to grow by 20% in 2 years. Earnings are forecast to grow by 65% in the next 2 years. Buy Or Sell Opportunity • Nov 20
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.5% to JP¥1,618. The fair value is estimated to be JP¥2,046, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.3% over the last 3 years. Earnings per share has grown by 27%. Revenue is forecast to grow by 24% in 2 years. Earnings are forecast to grow by 88% in the next 2 years. Announcement • Nov 14
CELSYS, Inc. (TSE:3663) announces an Equity Buyback for 1,000,000 shares, representing 3.31% for ¥1,000 million. CELSYS, Inc. (TSE:3663) announces a share repurchase program. Under the program, the company will repurchase up to 1,000,000 shares, representing 3.31% of its issued share capital (excluding treasury stock) for ¥1,000 million. The purpose of the program is to further enhance capital efficiency and execute flexible capital policy in line with the business environment. The program will be valid till December 31, 2025. As of November 14, 2025, the company had 30,233,416 shares issued, excluding treasury shares, and 6,037,764 shares in treasury. Buy Or Sell Opportunity • Nov 05
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at JP¥1,623. The fair value is estimated to be JP¥2,035, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.3% over the last 3 years. Earnings per share has grown by 27%. Revenue is forecast to grow by 24% in 2 years. Earnings are forecast to grow by 88% in the next 2 years. Announcement • Oct 07
CELSYS, Inc. to Report Q3, 2025 Results on Nov 14, 2025 CELSYS, Inc. announced that they will report Q3, 2025 results on Nov 14, 2025 Declared Dividend • Sep 30
First half dividend of JP¥14.00 announced Shareholders will receive a dividend of JP¥14.00. Ex-date: 29th December 2025 Payment date: 31st March 2026 Dividend yield will be 1.9%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (56% earnings payout ratio) and cash flows (28% cash payout ratio). The dividend has increased by an average of 44% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 93% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,793, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 25x in the Software industry in Japan. Total returns to shareholders of 101% over the past three years. Reported Earnings • Aug 12
First half 2025 earnings released: EPS: JP¥28.43 (vs JP¥29.43 in 1H 2024) First half 2025 results: EPS: JP¥28.43 (down from JP¥29.43 in 1H 2024). Revenue: JP¥4.74b (up 17% from 1H 2024). Net income: JP¥870.7m (down 7.7% from 1H 2024). Profit margin: 18% (down from 23% in 1H 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.8% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Announcement • Aug 08
CELSYS, Inc. (TSE:3663) announces an Equity Buyback for 500,000 shares, representing 1.64% for ¥500 million. CELSYS, Inc. (TSE:3663) announces a share repurchase program. Under the program, the company will repurchase up to 500,000 shares, representing 1.64% of its issued share capital (excluding treasury stock) for ¥500 million. The purpose of the program is to further improve capital efficiency and execute a flexible capital policy in response to changes in the business environment. The program will be valid till October 31, 2025. As of August 7, 2025, the company had 30,503,456 shares issued, excluding treasury shares, and 5,767,724 shares in treasury. Announcement • Jul 26
CELSYS, Inc. to Report Q2, 2025 Results on Aug 08, 2025 CELSYS, Inc. announced that they will report Q2, 2025 results on Aug 08, 2025 Announcement • Jul 09
CELSYS, Inc. Revises Earnings Guidance for the Six Months Ended June 30, 2025 CELSYS, Inc. revised earnings guidance for the six months ended June 30, 2025. For the period, the company expected net sales to be JPY 4,738 million compared to JPY 4,504 million previously expected, operating profit of JPY 1,518 million compared to JPY 1,108 million previously expected, profit of JPY 845 million compared to JPY 809 million previously expected. Basic earnings per share of JPY 27.59 compared to JPY 26.19 previously expected. Net sales are expected to exceed previously announced forecasts due to factors such as sales of one-time purchase version and subscription contracts of CLIP STUDIO PAINT, for which major version upgrade was made in March 2025, exceeding the initial plan. Profits are expected to exceed previously announced forecasts in terms of both operating profit and ordinary profit, as sales exceeded the plan and costs trended as initially planned. Meanwhile, for the profit for the six months ended June 30, 2025, although gain on extinguishment of tie-in shares, etc. was recorded as a result of the simplified absorption-type merger of a subsidiary conducted for development of the management structure to advance toward the next stage of growth, and loss on valuation of investment securities is to be recorded as described in "2. Recording of extraordinary losses" below, it is expected to exceed previously announced forecasts. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥22.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 30 September 2025. Payout ratio is a comfortable 54% and this is well supported by cash flows. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (4.0%). Higher than average of industry peers (1.5%). Declared Dividend • May 15
Final dividend increased to JP¥22.00 Dividend of JP¥22.00 is 83% higher than last year. Ex-date: 27th June 2025 Payment date: 30th September 2025 Dividend yield will be 2.3%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (54% earnings payout ratio) and cash flows (26% cash payout ratio). The dividend has increased by an average of 48% per year over the past 9 years and payments have been stable during that time. Earnings per share has grown by 42% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • May 09
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,486, the stock trades at a trailing P/E ratio of 32.4x. Average trailing P/E is 21x in the Software industry in Japan. Total returns to shareholders of 96% over the past three years. Announcement • Apr 26
CELSYS, Inc. to Report Q1, 2025 Results on May 09, 2025 CELSYS, Inc. announced that they will report Q1, 2025 results on May 09, 2025 Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to JP¥1,301, the stock trades at a trailing P/E ratio of 28.3x. Average trailing P/E is 19x in the Software industry in Japan. Total returns to shareholders of 52% over the past three years. Reported Earnings • Apr 05
Full year 2024 earnings released: EPS: JP¥44.24 (vs JP¥18.45 in FY 2023) Full year 2024 results: EPS: JP¥44.24 (up from JP¥18.45 in FY 2023). Revenue: JP¥8.20b (up 1.4% from FY 2023). Net income: JP¥1.40b (up 124% from FY 2023). Profit margin: 17% (up from 7.7% in FY 2023). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Feb 17
CELSYS, Inc., Annual General Meeting, Mar 28, 2025 CELSYS, Inc., Annual General Meeting, Mar 28, 2025. Reported Earnings • Feb 16
Full year 2024 earnings released: EPS: JP¥44.24 (vs JP¥18.45 in FY 2023) Full year 2024 results: EPS: JP¥44.24 (up from JP¥18.45 in FY 2023). Revenue: JP¥8.20b (up 1.4% from FY 2023). Net income: JP¥1.40b (up 124% from FY 2023). Profit margin: 17% (up from 7.7% in FY 2023). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Jan 29
Now 33% overvalued after recent price rise Over the last 90 days, the stock has risen 19% to JP¥1,454. The fair value is estimated to be JP¥1,090, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.9% over the last 3 years, while earnings per share has been flat. Announcement • Jan 22
CELSYS, Inc. to Report Fiscal Year 2024 Results on Feb 14, 2025 CELSYS, Inc. announced that they will report fiscal year 2024 results on Feb 14, 2025 Announcement • Dec 20
CELSYS, Inc. (TSE:3663) announces an Equity Buyback for 600,000 shares, representing 1.94% for ¥500 million. CELSYS, Inc. (TSE:3663) announces a share repurchase program. Under the program, the company will repurchase up to 600,000 shares, representing 1.94% of its issued share capital (excluding treasury stock) for ¥500 million. The purpose of the program is to further improve capital efficiency and execute a flexible capital policy in response to changes in the business environment. The program will be valid till March 31, 2025. As of December 19, 2024, the company had 30,885,799 shares issued, excluding treasury shares, and 5,385,381 shares in treasury. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥12.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 31 March 2025. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.3%). Buy Or Sell Opportunity • Nov 28
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 42% to JP¥1,354. The fair value is estimated to be JP¥1,109, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.9% over the last 3 years, while earnings per share has been flat. Announcement • Nov 15
CELSYS, Inc. (TSE:3663) announces an Equity Buyback for 600,000 shares, representing 1.92% for ¥500 million. CELSYS, Inc. (TSE:3663) announces a share repurchase program. Under the program, the company will repurchase up to 600,000 shares, representing 1.92% of its issued share capital (excluding treasury stock) for ¥500 million. The purpose of the program is to further improve capital efficiency and execute a flexible capital policy in response to changes in the business environment. The program will be valid till December 31, 2024. As of September 30, 2024, the company had 31,249,749 shares issued, excluding treasury shares, and 5,021,431 shares in treasury. Reported Earnings • Nov 09
Third quarter 2024 earnings released: EPS: JP¥8.97 (vs JP¥4.78 in 3Q 2023) Third quarter 2024 results: EPS: JP¥8.97 (up from JP¥4.78 in 3Q 2023). Revenue: JP¥1.97b (up 1.9% from 3Q 2023). Net income: JP¥280.4m (up 75% from 3Q 2023). Profit margin: 14% (up from 8.3% in 3Q 2023). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 10% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Nov 08
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 69% to JP¥1,352. The fair value is estimated to be JP¥1,121, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.5% over the last 3 years, while earnings per share has been flat. Announcement • Oct 06
CELSYS, Inc. to Report Q3, 2024 Results on Nov 08, 2024 CELSYS, Inc. announced that they will report Q3, 2024 results on Nov 08, 2024 Valuation Update With 7 Day Price Move • Sep 20
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,150, the stock trades at a trailing P/E ratio of 21.6x. Average trailing P/E is 22x in the Software industry in Japan. Total returns to shareholders of 33% over the past three years. Buy Or Sell Opportunity • Sep 02
Now 20% undervalued Over the last 90 days, the stock has risen 11% to JP¥921. The fair value is estimated to be JP¥1,153, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.5% over the last 3 years, while earnings per share has been flat. Reported Earnings • Aug 07
First half 2024 earnings released: EPS: JP¥29.43 (vs JP¥2.65 loss in 1H 2023) First half 2024 results: EPS: JP¥29.43 (up from JP¥2.65 loss in 1H 2023). Revenue: JP¥4.06b (down 4.5% from 1H 2023). Net income: JP¥943.6m (up JP¥1.04b from 1H 2023). Profit margin: 23% (up from net loss in 1H 2023). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 2% per year. 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 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 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). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (9.9% net profit margin). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥690, the stock trades at a trailing P/E ratio of 27.6x. Average trailing P/E is 20x in the Software industry in Japan. Total loss to shareholders of 20% over the past three years. Announcement • Jul 06
CELSYS, Inc. to Report Q2, 2024 Results on Aug 02, 2024 CELSYS, Inc. announced that they will report Q2, 2024 results on Aug 02, 2024 Announcement • Apr 19
CELSYS, Inc. to Report Q1, 2024 Results on May 10, 2024 CELSYS, Inc. announced that they will report Q1, 2024 results on May 10, 2024 Announcement • Mar 22
CELSYS, Inc. (TSE:3663) announces an Equity Buyback for 1,600,000 shares, representing 4.93% for ¥1,000 million. CELSYS, Inc. (TSE:3663) announces a share repurchase program. Under the program, the company will repurchase up to 1,600,000 shares, representing 4.93% of its total shares outstanding excluding treasury shares, for a total of ¥1,000 million. The purpose of repurchase program is to improve capital efficiency and implement a flexible capital policy in response to the business environment. The repurchase program is valid till June 30, 2024. As of December 31, 2023, the company had 32,443,210 shares outstanding excluding treasury shares and had 3,827,970 shares in treasury. Valuation Update With 7 Day Price Move • Feb 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥788, the stock trades at a trailing P/E ratio of 40.8x. Average trailing P/E is 23x in the Software industry in Japan. Total returns to shareholders of 81% over the past three years. Buy Or Sell Opportunity • Feb 15
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.1% to JP¥744. The fair value is estimated to be JP¥944, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.2% over the last 3 years. Meanwhile, the company has become profitable. Announcement • Feb 11
CELSYS, Inc., Annual General Meeting, Mar 28, 2024 CELSYS, Inc., Annual General Meeting, Mar 28, 2024. Reported Earnings • Feb 11
Full year 2023 earnings released: EPS: JP¥18.45 (vs JP¥29.81 in FY 2022) Full year 2023 results: EPS: JP¥18.45 (down from JP¥29.81 in FY 2022). Revenue: JP¥8.09b (up 7.3% from FY 2022). Net income: JP¥626.0m (down 40% from FY 2022). Profit margin: 7.7% (down from 14% in FY 2022). Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Announcement • Jan 21
CELSYS, Inc. to Report Fiscal Year 2023 Results on Feb 09, 2024 CELSYS, Inc. announced that they will report fiscal year 2023 results on Feb 09, 2024 Upcoming Dividend • Dec 21
Upcoming dividend of JP¥12.00 per share at 1.3% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 31 March 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (1.5%). New Risk • Nov 06
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 6.3% 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 Share price has been volatile over the past 3 months (6.3% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.9% net profit margin). Reported Earnings • Nov 04
Third quarter 2023 earnings released: EPS: JP¥4.78 (vs JP¥5.22 in 3Q 2022) Third quarter 2023 results: EPS: JP¥4.78 (down from JP¥5.22 in 3Q 2022). Revenue: JP¥1.93b (up 7.9% from 3Q 2022). Net income: JP¥160.0m (down 14% from 3Q 2022). Profit margin: 8.3% (down from 10% in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Announcement • Nov 03
CELSYS, Inc. (TSE:3663) announces an Equity Buyback for 1,000,000 shares, representing 3.02% for ¥500 million. CELSYS, Inc. (TSE:3663) announces a share repurchase program. Under the program, the company will repurchase up to 1,000,000 shares, representing 3.02% of its issued share capital, for ¥500 million. The purpose of the program is to improve capital efficiency and implement a flexible capital policy that responds to the business environment. The program will expire on December 31, 2023. As of October 31, 2023, the company had 33,062,810 shares issued (excluding treasury stock) and 3,208,370 shares in treasury. Announcement • Oct 07
CELSYS, Inc. to Report Q3, 2023 Results on Nov 02, 2023 CELSYS, Inc. announced that they will report Q3, 2023 results on Nov 02, 2023 New Risk • Aug 09
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 66% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (7.8% average weekly change). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.3% net profit margin). Reported Earnings • Aug 09
Second quarter 2023 earnings released: JP¥14.20 loss per share (vs JP¥11.32 profit in 2Q 2022) Second quarter 2023 results: JP¥14.20 loss per share (down from JP¥11.32 profit in 2Q 2022). Revenue: JP¥2.04b (up 6.0% from 2Q 2022). Net loss: JP¥490.0m (down 222% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Announcement • Jul 06
CELSYS, Inc. to Report Q2, 2023 Results on Aug 04, 2023 CELSYS, Inc. announced that they will report Q2, 2023 results on Aug 04, 2023 Valuation Update With 7 Day Price Move • May 23
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥855, the stock trades at a trailing P/E ratio of 25.8x. Average trailing P/E is 24x in the Software industry in Japan. Total returns to shareholders of 435% over the past three years. Announcement • May 12
CELSYS, Inc. (TSE:3663) announces an Equity Buyback for 3,000,000 shares, representing 8.58% for ¥1,500 million. CELSYS, Inc. (TSE:3663) announces a share repurchase program. Under the program, the company will repurchase up to 3,000,000 shares, representing 8.58% for ¥1,500 million. The purpose of the program is to improve capital efficiency and implement a flexible capital policy that responds to the business environment. The program will expire on November 30, 2023. As of March 31, 2023, the company had 34,947,540 shares (excluding treasury stock) in issue and 1,323,640 shares in treasury. Reported Earnings • May 09
First quarter 2023 earnings released: EPS: JP¥11.39 (vs JP¥8.36 in 1Q 2022) First quarter 2023 results: EPS: JP¥11.39 (up from JP¥8.36 in 1Q 2022). Revenue: JP¥2.21b (up 21% from 1Q 2022). Net income: JP¥398.0m (up 39% from 1Q 2022). Profit margin: 18% (up from 16% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 71% per year whereas the company’s share price has increased by 75% per year. Valuation Update With 7 Day Price Move • May 09
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥764, the stock trades at a trailing P/E ratio of 25.5x. Average trailing P/E is 22x in the Software industry in Japan. Total returns to shareholders of 444% over the past three years. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥651, the stock trades at a trailing P/E ratio of 21.7x. Average trailing P/E is 23x in the Software industry in Japan. Total returns to shareholders of 241% over the past three years. Reported Earnings • Feb 12
Full year 2022 earnings released: EPS: JP¥29.81 (vs JP¥37.48 in FY 2021) Full year 2022 results: EPS: JP¥29.81 (down from JP¥37.48 in FY 2021). Revenue: JP¥7.54b (up 9.5% from FY 2021). Net income: JP¥1.05b (down 14% from FY 2021). Profit margin: 14% (down from 18% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 65% per year, which means it is significantly lagging earnings growth. Announcement • Feb 12
CELSYS, Inc., Annual General Meeting, Mar 30, 2023 CELSYS, Inc., Annual General Meeting, Mar 30, 2023. Announcement • Jan 12
ArtSpark Holdings Inc. to Report Fiscal Year 2022 Results on Feb 10, 2023 ArtSpark Holdings Inc. announced that they will report fiscal year 2022 results on Feb 10, 2023 Buying Opportunity • Dec 28
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 28%. The fair value is estimated to be JP¥806, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 69%. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 31 March 2023. Payout ratio is a comfortable 11% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (1.9%). Buying Opportunity • Dec 05
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 29%. The fair value is estimated to be JP¥873, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 69%. Board Change • Nov 16
No independent directors There are 5 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: No independent directors. 8 non-independent directors. Director Yuzo Watanabe was the last director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Reported Earnings • Nov 06
Third quarter 2022 earnings released: EPS: JP¥5.22 (vs JP¥9.54 in 3Q 2021) Third quarter 2022 results: EPS: JP¥5.22 (down from JP¥9.54 in 3Q 2021). Revenue: JP¥1.79b (up 6.2% from 3Q 2021). Net income: JP¥187.0m (down 40% from 3Q 2021). Profit margin: 10% (down from 18% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 61% per year, which means it is significantly lagging earnings growth. Announcement • Oct 06
ArtSpark Holdings Inc. to Report Q3, 2022 Results on Nov 04, 2022 ArtSpark Holdings Inc. announced that they will report Q3, 2022 results on Nov 04, 2022 Valuation Update With 7 Day Price Move • Aug 12
Investor sentiment improved over the past week After last week's 21% share price gain to JP¥964, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 24x in the Software industry in Japan. Total returns to shareholders of 521% over the past three years. Reported Earnings • Aug 07
Second quarter 2022 earnings released: EPS: JP¥11.32 (vs JP¥9.77 in 2Q 2021) Second quarter 2022 results: EPS: JP¥11.32 (up from JP¥9.77 in 2Q 2021). Revenue: JP¥1.93b (up 12% from 2Q 2021). Net income: JP¥402.0m (up 26% from 2Q 2021). Profit margin: 21% (up from 19% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 16%, compared to a 14% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has increased by 72% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 06
ArtSpark Holdings Inc. (TSE:3663) announces an Equity Buyback for 1,600,000 shares, representing 4.44% for ¥1,000 million. ArtSpark Holdings Inc. (TSE:3663) announces a share repurchase program. Under the program, the company will repurchase up to 1,600,000 shares, representing 4.44% for ¥1,000 million. The purpose of the program is to improve capital efficiency and implement a flexible capital policy that responds to the business environment. The program will expire on October 31, 2022. As of June 30, 2022, the company had 36,034,832 shares (excluding treasury stock) in issue and 235,148 shares in treasury. Announcement • Jul 07
ArtSpark Holdings Inc. to Report Q2, 2022 Results on Aug 05, 2022 ArtSpark Holdings Inc. announced that they will report Q2, 2022 results on Aug 05, 2022 Reported Earnings • May 11
First quarter 2022 earnings released: EPS: JP¥8.36 (vs JP¥16.68 in 1Q 2021) First quarter 2022 results: EPS: JP¥8.36 (down from JP¥16.68 in 1Q 2021). Revenue: JP¥1.83b (up 2.7% from 1Q 2021). Net income: JP¥286.0m (down 47% from 1Q 2021). Profit margin: 16% (down from 31% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 15%, compared to a 13% growth forecast for the 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 57% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Apr 27
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 9 non-independent directors. Vice Representative Director Kei Narushima was the last director to join the board, commencing their role in 2021. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 07
ArtSpark Holdings Inc. to Report Q1, 2022 Results on May 06, 2022 ArtSpark Holdings Inc. announced that they will report Q1, 2022 results on May 06, 2022 Valuation Update With 7 Day Price Move • Mar 16
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥765, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 19x in the Software industry in Japan. Total returns to shareholders of 356% over the past three years. Buying Opportunity • Feb 23
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 35%. The fair value is estimated to be JP¥793, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% per annum over the last 3 years. The company has become profitable over the last year. Announcement • Feb 12
ArtSpark Holdings Inc., Annual General Meeting, Mar 30, 2022 ArtSpark Holdings Inc., Annual General Meeting, Mar 30, 2022. Reported Earnings • Feb 12
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: JP¥37.48 (up from JP¥14.57 loss in FY 2020). Revenue: JP¥6.89b (up 8.1% from FY 2020). Net income: JP¥1.22b (up JP¥1.70b from FY 2020). Profit margin: 18% (up from net loss in FY 2020). The move to profitability was primarily driven by lower expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has increased by 44% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 29
ArtSpark Holdings Inc. announced that it has received ¥1.5467152 billion in funding from LINE Digital Frontier Co., Ltd. On December 28, 2021, ArtSpark Holdings Inc. closed the transaction. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥3.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 31 March 2022. Payout ratio is a comfortable 6.0% and this is well supported by cash flows. Trailing yield: 0.3%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (1.5%). Reported Earnings • Nov 07
Third quarter 2021 earnings released: EPS JP¥9.54 (vs JP¥26.31 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥1.69b (up 1.8% from 3Q 2020). Net income: JP¥311.0m (up JP¥1.17b from 3Q 2020). Profit margin: 18% (up from net loss in 3Q 2020). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 53% per year, which means it is well ahead of earnings.