Reported Earnings • Aug 14
Second quarter 2026 earnings released: EPS: JP¥12.43 (vs JP¥18.34 in 2Q 2025) Second quarter 2026 results: EPS: JP¥12.43 (down from JP¥18.34 in 2Q 2025). Revenue: JP¥5.52b (up 9.7% from 2Q 2025). Net income: JP¥142.5m (down 32% from 2Q 2025). Profit margin: 2.6% (down from 4.2% in 2Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the IT 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 5% per year, which means it is significantly lagging earnings. Reported Earnings • May 19
First quarter 2026 earnings released: EPS: JP¥30.25 (vs JP¥17.63 in 1Q 2025) First quarter 2026 results: EPS: JP¥30.25 (up from JP¥17.63 in 1Q 2025). Revenue: JP¥5.57b (up 13% from 1Q 2025). Net income: JP¥347.0m (up 71% from 1Q 2025). Profit margin: 6.2% (up from 4.1% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Announcement • Apr 21
GMO GlobalSign Holdings K.K. (TSE:3788) agreed to acquire 94.36% stake in Strategit Co., Ltd. from HEROZ, Inc. (TSE:4382) for approximately ¥420 million. GMO GlobalSign Holdings K.K. (TSE:3788) agreed to acquire 94.36% stake in Strategit Co., Ltd. from HEROZ, Inc. (TSE:4382) for approximately ¥420 million on April 20, 2026. A cash consideration of ¥424.6 million will be paid by GMO GlobalSign Holdings K.K.
HEROZ, Inc. (TSE:4382) will transfer 79,499 shares of StrategIT to GMO GlobalSign HD. The transaction is expected to complete on or around April 30, 2026. Buy Or Sell Opportunity • Apr 13
Now 24% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to JP¥1,991. The fair value is estimated to be JP¥2,618, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.6% over the last 3 years. Earnings per share has grown by 10%. For the next 3 years, revenue is forecast to grow by 6.3% per annum. Earnings are also forecast to grow by 14% per annum over the same time period. Buy Or Sell Opportunity • Feb 22
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 17% to JP¥2,058. The fair value is estimated to be JP¥2,629, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.6% over the last 3 years. Earnings per share has grown by 10%. Revenue is forecast to grow by 14% in 2 years. Earnings are forecast to grow by 13% in the next 2 years. Announcement • Feb 16
GMO GlobalSign Holdings K.K. Proposes Dividend for the Fiscal Year Ended December 31, 2025, Effective March 23, 2026 GMO GlobalSign Holdings K.K. (the Company) has resolved at the Board of Directors meeting held on February 16, 2026, to propose the distribution of retained earnings as dividends as of the record date of December 31, 2025. This matter will be submitted to the agenda for voting at the Annual Meeting of Shareholders scheduled to be held on March 17, 2026. Dividend Per Share of ¥56.91; Total Dividend Amount of ¥653 million; Source of Dividend: Retained Earnings; Effective Date March 23, 2026; Dividend (Fiscal Year 2024) of ¥37.22. Reported Earnings • Feb 11
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥87.53 (up from JP¥74.17 in FY 2024). Revenue: JP¥20.7b (up 7.8% from FY 2024). Net income: JP¥1.01b (up 18% from FY 2024). Profit margin: 4.9% (up from 4.5% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 18%. Revenue is forecast to grow 6.3% p.a. on average during the next 2 years, compared to a 5.2% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Announcement • Feb 10
GMO GlobalSign Holdings K.K., Annual General Meeting, Mar 17, 2026 GMO GlobalSign Holdings K.K., Annual General Meeting, Mar 17, 2026. New Risk • Feb 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 5.3% 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. This is currently the only risk that has been identified for the company. Announcement • Dec 27
GMO GlobalSign Holdings K.K. to Report Fiscal Year 2025 Results on Feb 10, 2026 GMO GlobalSign Holdings K.K. announced that they will report fiscal year 2025 results on Feb 10, 2026 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥49.84 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 24 March 2026. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.2%). Reported Earnings • Nov 15
Third quarter 2025 earnings released: EPS: JP¥25.26 (vs JP¥1.82 in 3Q 2024) Third quarter 2025 results: EPS: JP¥25.26 (up from JP¥1.82 in 3Q 2024). Revenue: JP¥5.16b (up 15% from 3Q 2024). Net income: JP¥290.0m (up JP¥269.0m from 3Q 2024). Profit margin: 5.6% (up from 0.5% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the IT 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 18% per year, which means it is significantly lagging earnings. Declared Dividend • Nov 14
Dividend of JP¥49.84 announced Shareholders will receive a dividend of JP¥49.84. Ex-date: 29th December 2025 Payment date: 24th March 2026 Dividend yield will be 2.1%, 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 (68% cash payout ratio). The dividend has increased by an average of 14% 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 56% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Oct 08
GMO GlobalSign Holdings K.K. to Report Q3, 2025 Results on Nov 12, 2025 GMO GlobalSign Holdings K.K. announced that they will report Q3, 2025 results on Nov 12, 2025 Reported Earnings • Aug 08
Second quarter 2025 earnings released: EPS: JP¥18.34 (vs JP¥14.93 in 2Q 2024) Second quarter 2025 results: EPS: JP¥18.34 (up from JP¥14.93 in 2Q 2024). Revenue: JP¥5.03b (up 3.9% from 2Q 2024). Net income: JP¥210.6m (up 22% from 2Q 2024). Profit margin: 4.2% (up from 3.5% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 28% per year, which means it is significantly lagging earnings. Announcement • May 31
GMO GlobalSign Holdings K.K. to Report Q2, 2025 Results on Aug 07, 2025 GMO GlobalSign Holdings K.K. announced that they will report Q2, 2025 results on Aug 07, 2025 Reported Earnings • May 17
First quarter 2025 earnings released: EPS: JP¥17.59 (vs JP¥29.08 in 1Q 2024) First quarter 2025 results: EPS: JP¥17.59 (down from JP¥29.08 in 1Q 2024). Revenue: JP¥4.91b (up 4.0% from 1Q 2024). Net income: JP¥202.0m (down 40% from 1Q 2024). Profit margin: 4.1% (down from 7.1% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.1% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 28% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥2,023, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 18x in the IT industry in Japan. Total loss to shareholders of 64% over the past three years. New Risk • Mar 31
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.3% 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 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 (5.3% average weekly change). Announcement • Mar 29
GMO GlobalSign Holdings K.K. to Report Q1, 2025 Results on May 13, 2025 GMO GlobalSign Holdings K.K. announced that they will report Q1, 2025 results on May 13, 2025 Reported Earnings • Mar 27
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥74.17 (up from JP¥64.15 in FY 2023). Revenue: JP¥19.2b (up 9.5% from FY 2023). Net income: JP¥854.0m (up 16% from FY 2023). Profit margin: 4.5% (up from 4.2% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 15%. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 27% per year, which means it is significantly lagging earnings. New Risk • Feb 20
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.2% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Feb 14
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥74.17 (up from JP¥64.15 in FY 2023). Revenue: JP¥19.2b (up 9.5% from FY 2023). Net income: JP¥854.0m (up 16% from FY 2023). Profit margin: 4.5% (up from 4.2% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 15%. Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Announcement • Feb 12
GMO GlobalSign Holdings K.K., Annual General Meeting, Mar 19, 2025 GMO GlobalSign Holdings K.K., Annual General Meeting, Mar 19, 2025. New Risk • Jan 12
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Share price has been volatile over the past 3 months (5.5% average weekly change). Announcement • Jan 03
GMO GlobalSign Holdings K.K. to Report Fiscal Year 2024 Results on Feb 12, 2025 GMO GlobalSign Holdings K.K. announced that they will report fiscal year 2024 results on Feb 12, 2025 Upcoming Dividend • Dec 20
Upcoming dividend of JP¥36.47 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 25 March 2025. Payout ratio is a comfortable 64% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (1.4%). Major Estimate Revision • Dec 13
Consensus EPS estimates fall by 15% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from JP¥75.50 to JP¥64.30 per share. Revenue forecast steady at JP¥19.1b. Net income forecast to grow 31% next year vs 15% growth forecast for IT industry in Japan. Consensus price target of JP¥2,770 unchanged from last update. Share price fell 4.5% to JP¥2,501 over the past week. Reported Earnings • Nov 16
Third quarter 2024 earnings released: EPS: JP¥1.82 (vs JP¥14.58 in 3Q 2023) Third quarter 2024 results: EPS: JP¥1.82 (down from JP¥14.58 in 3Q 2023). Revenue: JP¥4.51b (up 4.4% from 3Q 2023). Net income: JP¥21.0m (down 88% from 3Q 2023). Profit margin: 0.5% (down from 3.9% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Announcement • Nov 12
GMO GlobalSign Holdings K.K. (TSE:3788) announces an Equity Buyback for 40,000 shares, representing 0.35% for ¥100 million. GMO GlobalSign Holdings K.K. (TSE:3788) announces a share repurchase program. Under the program, the company will repurchase up to 40,000 shares, representing 0.35% of its issued share capital, for ¥100 million. The repurchases are made as part of company's flexible capital policy in response to changes in the business environment and as part of our shareholder return policy. The program is valid till December 31, 2024. As of September 30, 2024, the company had 11,519,242 outstanding shares (excluding treasury stock) and 173,758 treasury shares. Buy Or Sell Opportunity • Nov 08
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 20% to JP¥2,914. The fair value is estimated to be JP¥2,427, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 38% in the next 2 years. Buy Or Sell Opportunity • Sep 26
Now 21% overvalued The stock has been flat over the last 90 days, currently trading at JP¥2,975. The fair value is estimated to be JP¥2,466, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 38% in the next 2 years. Announcement • Sep 06
GMO GlobalSign Holdings K.K. to Report Q3, 2024 Results on Nov 12, 2024 GMO GlobalSign Holdings K.K. announced that they will report Q3, 2024 results on Nov 12, 2024 Buy Or Sell Opportunity • Sep 03
Now 22% overvalued The stock has been flat over the last 90 days, currently trading at JP¥3,010. The fair value is estimated to be JP¥2,466, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 38% in the next 2 years. Valuation Update With 7 Day Price Move • Aug 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,850, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 18x in the IT industry in Japan. Total loss to shareholders of 35% over the past three years. Reported Earnings • Aug 13
Second quarter 2024 earnings released: EPS: JP¥14.93 (vs JP¥9.81 in 2Q 2023) Second quarter 2024 results: EPS: JP¥14.93 (up from JP¥9.81 in 2Q 2023). Revenue: JP¥4.85b (up 13% from 2Q 2023). Net income: JP¥172.0m (up 52% from 2Q 2023). Profit margin: 3.5% (up from 2.6% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. 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 6.7% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 27% After last week's 27% share price decline to JP¥2,246, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 17x in the IT industry in Japan. Total loss to shareholders of 42% over the past three years. Price Target Changed • Jul 05
Price target decreased by 27% to JP¥2,770 Down from JP¥3,790, the current price target is provided by 1 analyst. New target price is 9.3% below last closing price of JP¥3,055. Stock is up 2.5% over the past year. The company is forecast to post earnings per share of JP¥75.50 for next year compared to JP¥64.15 last year. Announcement • Jun 02
GMO GlobalSign Holdings K.K. to Report Q2, 2024 Results on Aug 08, 2024 GMO GlobalSign Holdings K.K. announced that they will report Q2, 2024 results on Aug 08, 2024 Reported Earnings • May 12
First quarter 2024 earnings released: EPS: JP¥29.08 (vs JP¥25.78 in 1Q 2023) First quarter 2024 results: EPS: JP¥29.08 (up from JP¥25.78 in 1Q 2023). Revenue: JP¥4.72b (up 12% from 1Q 2023). Net income: JP¥335.0m (up 13% from 1Q 2023). Profit margin: 7.1% (in line with 1Q 2023). Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 19% per year, which means it is performing significantly worse than earnings. Announcement • Mar 30
GMO GlobalSign Holdings K.K. to Report Q1, 2024 Results on May 10, 2024 GMO GlobalSign Holdings K.K. announced that they will report Q1, 2024 results on May 10, 2024 Reported Earnings • Mar 27
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: JP¥64.15 (down from JP¥73.44 in FY 2022). Revenue: JP¥17.5b (up 9.6% from FY 2022). Net income: JP¥739.0m (down 13% from FY 2022). Profit margin: 4.2% (down from 5.3% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 4.6%. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Feb 22
Consensus EPS estimates fall by 13% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from JP¥84.64 to JP¥73.80 per share. Revenue forecast steady at JP¥18.8b. Net income forecast to grow 15% next year vs 18% growth forecast for IT industry in Japan. Consensus price target of JP¥3,790 unchanged from last update. Share price was steady at JP¥2,688 over the past week. Announcement • Feb 15
GMO GlobalSign Holdings K.K., Annual General Meeting, Mar 19, 2024 GMO GlobalSign Holdings K.K., Annual General Meeting, Mar 19, 2024. Reported Earnings • Feb 15
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: JP¥64.15 (down from JP¥73.44 in FY 2022). Revenue: JP¥17.5b (up 9.6% from FY 2022). Net income: JP¥739.0m (down 13% from FY 2022). Profit margin: 4.2% (down from 5.3% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 4.6%. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has fallen by 33% per year, which means it is performing significantly worse than earnings. Buy Or Sell Opportunity • Jan 22
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 9.0% to JP¥2,810. The fair value is estimated to be JP¥2,312, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.2% over the last 3 years. Earnings per share has declined by 18%. For the next 3 years, revenue is forecast to grow by 5.9% per annum. Earnings are also forecast to grow by 19% per annum over the same time period. Announcement • Dec 28
GMO GlobalSign Holdings K.K. to Report Fiscal Year 2023 Results on Feb 13, 2024 GMO GlobalSign Holdings K.K. announced that they will report fiscal year 2023 results on Feb 13, 2024 Upcoming Dividend • Dec 21
Upcoming dividend of JP¥38.46 per share at 1.5% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 25 March 2024. Payout ratio is a comfortable 72% but the company is not cash flow positive. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.5%). In line with average of industry peers (1.5%). Reported Earnings • Nov 16
Third quarter 2023 earnings released: EPS: JP¥14.58 (vs JP¥8.77 in 3Q 2022) Third quarter 2023 results: EPS: JP¥14.58 (up from JP¥8.77 in 3Q 2022). Revenue: JP¥4.32b (up 9.3% from 3Q 2022). Net income: JP¥168.0m (up 66% from 3Q 2022). Profit margin: 3.9% (up from 2.6% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has fallen by 36% per year, which means it is performing significantly worse than earnings. Announcement • Sep 28
GMO GlobalSign Holdings K.K. to Report Q3, 2023 Results on Nov 13, 2023 GMO GlobalSign Holdings K.K. announced that they will report Q3, 2023 results on Nov 13, 2023 New Risk • Aug 19
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 26% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (26% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (3.4% net profit margin). New Risk • Aug 11
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.4% Last year net profit margin: 5.2% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 10
Second quarter 2023 earnings released: EPS: JP¥9.81 (vs JP¥25.61 in 2Q 2022) Second quarter 2023 results: EPS: JP¥9.81 (down from JP¥25.61 in 2Q 2022). Revenue: JP¥4.29b (up 7.8% from 2Q 2022). Net income: JP¥113.0m (down 62% from 2Q 2022). Profit margin: 2.6% (down from 7.4% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has fallen by 29% per year, which means it is performing significantly worse than earnings. Announcement • Jun 30
GMO GlobalSign Holdings K.K. to Report Q2, 2023 Results on Aug 09, 2023 GMO GlobalSign Holdings K.K. announced that they will report Q2, 2023 results on Aug 09, 2023 Reported Earnings • May 13
First quarter 2023 earnings released: EPS: JP¥25.78 (vs JP¥34.99 in 1Q 2022) First quarter 2023 results: EPS: JP¥25.78 (down from JP¥34.99 in 1Q 2022). Revenue: JP¥4.23b (up 7.7% from 1Q 2022). Net income: JP¥297.0m (down 26% from 1Q 2022). Profit margin: 7.0% (down from 10% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 29
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥73.44 (up from JP¥41.93 in FY 2021). Revenue: JP¥16.0b (up 14% from FY 2021). Net income: JP¥846.0m (up 75% from FY 2021). Profit margin: 5.3% (up from 3.4% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) also missed analyst estimates by 25%. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 39% per year, which means it is well ahead of earnings. Major Estimate Revision • Mar 24
Consensus EPS estimates increase by 19% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has improved. 2023 revenue forecast increased from JP¥16.9b to JP¥17.2b. EPS estimate increased from JP¥73.79 to JP¥88.11 per share. Net income forecast to grow 20% next year vs 9.0% growth forecast for IT industry in Japan. Consensus price target down from JP¥5,940 to JP¥5,340. Share price rose 2.7% to JP¥4,220 over the past week. Major Estimate Revision • Feb 22
Consensus EPS estimates fall by 42% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from JP¥17.4b to JP¥16.9b. EPS estimate also fell from JP¥127 per share to JP¥73.79 per share. Net income forecast to grow 0.5% next year vs 10% growth forecast for IT industry in Japan. Consensus price target of JP¥5,940 unchanged from last update. Share price fell 9.9% to JP¥3,885 over the past week. Announcement • Feb 15
GMO GlobalSign Holdings K.K., Annual General Meeting, Mar 23, 2023 GMO GlobalSign Holdings K.K., Annual General Meeting, Mar 23, 2023. Reported Earnings • Feb 14
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥73.44 (up from JP¥41.93 in FY 2021). Revenue: JP¥16.0b (up 14% from FY 2021). Net income: JP¥846.0m (up 75% from FY 2021). Profit margin: 5.3% (up from 3.4% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) also missed analyst estimates by 25%. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Announcement • Dec 28
GMO GlobalSign Holdings K.K. to Report Fiscal Year 2022 Results on Feb 13, 2023 GMO GlobalSign Holdings K.K. announced that they will report fiscal year 2022 results on Feb 13, 2023 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥39.06 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 22 March 2023. Payout ratio is a comfortable 50% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (1.7%). Price Target Changed • Nov 23
Price target decreased to JP¥5,940 Down from JP¥6,690, the current price target is an average from 2 analysts. New target price is 41% above last closing price of JP¥4,205. Stock is down 4.2% over the past year. The company is forecast to post earnings per share of JP¥98.09 for next year compared to JP¥41.93 last year. Reported Earnings • Nov 18
Third quarter 2022 earnings released: EPS: JP¥8.77 (vs JP¥8.94 in 3Q 2021) Third quarter 2022 results: EPS: JP¥8.77 (down from JP¥8.94 in 3Q 2021). Revenue: JP¥3.95b (up 17% from 3Q 2021). Net income: JP¥101.0m (down 1.9% from 3Q 2021). Profit margin: 2.6% (down from 3.1% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Price Target Changed • Nov 16
Price target increased to JP¥6,690 Up from JP¥6,140, the current price target is an average from 2 analysts. New target price is 50% above last closing price of JP¥4,460. Stock is down 1.8% over the past year. The company is forecast to post earnings per share of JP¥102 for next year compared to JP¥41.93 last year. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 6 highly experienced directors. 1 independent director (7 non-independent directors). Director Akihiko Nakajima was the last director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Sep 28
GMO GlobalSign Holdings K.K. to Report Q3, 2022 Results on Nov 14, 2022 GMO GlobalSign Holdings K.K. announced that they will report Q3, 2022 results on Nov 14, 2022 Reported Earnings • Aug 09
Second quarter 2022 earnings released: EPS: JP¥25.61 (vs JP¥15.11 in 2Q 2021) Second quarter 2022 results: EPS: JP¥25.61 (up from JP¥15.11 in 2Q 2021). Revenue: JP¥3.98b (up 15% from 2Q 2021). Net income: JP¥295.0m (up 70% from 2Q 2021). Profit margin: 7.4% (up from 5.0% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 14%, compared to a 11% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 34% per year, which means it is well ahead of earnings. Announcement • Jun 02
GMO GlobalSign Holdings K.K. to Report Q2, 2022 Results on Aug 08, 2022 GMO GlobalSign Holdings K.K. announced that they will report Q2, 2022 results on Aug 08, 2022 Reported Earnings • May 15
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: JP¥34.99 (up from JP¥19.88 in 1Q 2021). Revenue: JP¥3.93b (up 15% from 1Q 2021). Net income: JP¥403.0m (up 76% from 1Q 2021). Profit margin: 10% (up from 6.7% in 1Q 2021). Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) missed analyst estimates by 29%. Over the next year, revenue is forecast to grow 12%, compared to a 8.2% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 6 highly experienced directors. 1 independent director (7 non-independent directors). Director Akihiko Nakajima was the last director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Apr 07
GMO GlobalSign Holdings K.K. to Report Q1, 2022 Results on May 12, 2022 GMO GlobalSign Holdings K.K. announced that they will report Q1, 2022 results on May 12, 2022 Announcement • Feb 16
GMO GlobalSign Holdings K.K., Annual General Meeting, Mar 19, 2022 GMO GlobalSign Holdings K.K., Annual General Meeting, Mar 19, 2022. Reported Earnings • Feb 12
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: JP¥41.93 (down from JP¥102 in FY 2020). Revenue: JP¥14.0b (up 5.4% from FY 2020). Net income: JP¥483.0m (down 59% from FY 2020). Profit margin: 3.4% (down from 8.8% in FY 2020). Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) missed analyst estimates by 29%. Over the next year, revenue is forecast to grow 7.7%, compared to a 7.3% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥33.64 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 22 March 2022. Payout ratio is a comfortable 74% but the company is paying out more than the cash it is generating. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (1.3%). Reported Earnings • Nov 12
Third quarter 2021 earnings released: EPS JP¥8.94 (vs JP¥16.23 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: JP¥3.37b (up 2.9% from 3Q 2020). Net income: JP¥103.0m (down 45% from 3Q 2020). Profit margin: 3.1% (down from 5.7% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 31
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥4,795, the stock trades at a forward P/E ratio of 74x. Average forward P/E is 25x in the IT industry in Japan. Total returns to shareholders of 28% over the past three years. Reported Earnings • Aug 15
Second quarter 2021 earnings released: EPS JP¥15.11 (vs JP¥29.43 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: JP¥3.46b (up 3.6% from 2Q 2020). Net income: JP¥174.0m (down 49% from 2Q 2020). Profit margin: 5.0% (down from 10% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has remained flat. Reported Earnings • May 14
First quarter 2021 earnings released: EPS JP¥19.88 (vs JP¥31.17 in 1Q 2020) The company reported a poor first quarter result with weaker earnings and profit margins, although revenues were flat. First quarter 2021 results: Revenue: JP¥3.42b (flat on 1Q 2020). Net income: JP¥229.0m (down 36% from 1Q 2020). Profit margin: 6.7% (down from 10% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 21% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Feb 24
New 90-day low: JP¥7,790 The company is down 21% from its price of JP¥9,820 on 26 November 2020. The Japanese market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 6.0% over the same period. Analyst Estimate Surprise Post Earnings • Feb 14
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 0.2%. Earnings per share (EPS) exceeded analyst estimates by 19%. Over the next year, revenue is forecast to grow 1.7%, compared to a 8.8% growth forecast for the IT industry in Japan. Reported Earnings • Feb 14
Full year 2020 earnings released: EPS JP¥102 (vs JP¥93.15 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥13.3b (up 1.7% from FY 2019). Net income: JP¥1.17b (up 9.0% from FY 2019). Profit margin: 8.8% (up from 8.2% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 65% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Dec 22
Upcoming Dividend of JP¥49.13 Per Share Will be paid on the 24th of March to those who are registered shareholders by the 29th of December. The trailing yield of 0.6% is below the top quartile of Japanese dividend payers (3.0%), and is lower than industry peers (1.3%). Is New 90 Day High Low • Dec 22
New 90-day low: JP¥8,640 The company is down 7.0% from its price of JP¥9,330 on 23 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 1.0% over the same period. Announcement • Dec 16
GMO GlobalSign Holdings K.K. to Report Fiscal Year 2020 Results on Feb 12, 2021 GMO GlobalSign Holdings K.K. announced that they will report fiscal year 2020 results on Feb 12, 2021 Announcement • Sep 12
GMO GlobalSign Holdings K.K. to Report Q3, 2020 Results on Nov 11, 2020 GMO GlobalSign Holdings K.K. announced that they will report Q3, 2020 results on Nov 11, 2020 Announcement • Jun 29
GMO CLOUD K.K. to Report Q2, 2020 Results on Aug 11, 2020 GMO CLOUD K.K. announced that they will report Q2, 2020 results on Aug 11, 2020