New Risk • May 12
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 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. This is currently the only risk that has been identified for the company. Reported Earnings • May 08
Third quarter 2026 earnings released: EPS: JP¥29.42 (vs JP¥22.29 in 3Q 2025) Third quarter 2026 results: EPS: JP¥29.42 (up from JP¥22.29 in 3Q 2025). Revenue: JP¥1.35b (up 16% from 3Q 2025). Net income: JP¥470.0m (up 32% from 3Q 2025). Profit margin: 35% (up from 31% in 3Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Declared Dividend • Mar 14
First half dividend of JP¥10.00 announced Shareholders will receive a dividend of JP¥10.00. Ex-date: 29th June 2026 Payment date: 7th September 2026 Dividend yield will be 1.3%, which is lower than the industry average of 1.4%. Sustainability & Growth The dividend has increased by an average of 71% per year over the past 3 years and payments have been stable during that time. Reported Earnings • Feb 14
Second quarter 2026 earnings released: EPS: JP¥30.23 (vs JP¥21.35 in 2Q 2025) Second quarter 2026 results: EPS: JP¥30.23 (up from JP¥21.35 in 2Q 2025). Revenue: JP¥1.31b (up 17% from 2Q 2025). Net income: JP¥483.4m (up 41% from 2Q 2025). Profit margin: 37% (up from 31% in 2Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Nov 15
First quarter 2026 earnings released: EPS: JP¥26.94 (vs JP¥21.56 in 1Q 2025) First quarter 2026 results: EPS: JP¥26.94 (up from JP¥21.56 in 1Q 2025). Revenue: JP¥1.27b (up 19% from 1Q 2025). Net income: JP¥430.0m (up 23% from 1Q 2025). Profit margin: 34% (up from 33% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 08
Full year 2025 earnings released: EPS: JP¥88.91 (vs JP¥73.91 in FY 2024) Full year 2025 results: EPS: JP¥88.91 (up from JP¥73.91 in FY 2024). Revenue: JP¥4.58b (up 17% from FY 2024). Net income: JP¥1.43b (up 21% from FY 2024). Profit margin: 31% (in line with FY 2024). Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Aug 07
User Local, Inc., Annual General Meeting, Sep 19, 2025 User Local, Inc., Annual General Meeting, Sep 19, 2025. Buy Or Sell Opportunity • Aug 07
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 13% to JP¥2,011. The fair value is estimated to be JP¥1,661, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 21%. New Risk • Jul 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 7.2% 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. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 24 September 2025. Trailing yield: 0.6%. Lower than top quartile of Japanese dividend payers (4.0%). Lower than average of industry peers (1.2%). Reported Earnings • May 09
Third quarter 2025 earnings released: EPS: JP¥22.28 (vs JP¥19.21 in 3Q 2024) Third quarter 2025 results: EPS: JP¥22.28 (up from JP¥19.21 in 3Q 2024). Revenue: JP¥1.17b (up 17% from 3Q 2024). Net income: JP¥357.0m (up 16% from 3Q 2024). Profit margin: 31% (in line with 3Q 2024). Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. 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 5.6% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥1,323, the stock trades at a trailing P/E ratio of 16.5x. Average trailing P/E is 15x in the IT industry in Japan. Total loss to shareholders of 22% over the past three years. Buy Or Sell Opportunity • Apr 04
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to JP¥1,536. The fair value is estimated to be JP¥1,946, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 17%. Declared Dividend • Feb 14
Dividend of JP¥11.00 announced Shareholders will receive a dividend of JP¥11.00. Ex-date: 27th June 2025 Payment date: 24th September 2025 Dividend yield will be 0.6%, which is lower than the industry average of 1.4%. Sustainability & Growth Reported Earnings • Feb 14
Second quarter 2025 earnings released: EPS: JP¥21.35 (vs JP¥19.22 in 2Q 2024) Second quarter 2025 results: EPS: JP¥21.35 (up from JP¥19.22 in 2Q 2024). Revenue: JP¥1.13b (up 17% from 2Q 2024). Net income: JP¥343.5m (up 12% from 2Q 2024). Profit margin: 31% (down from 32% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 19
First quarter 2025 earnings released: EPS: JP¥21.56 (vs JP¥17.81 in 1Q 2024) First quarter 2025 results: EPS: JP¥21.56 (up from JP¥17.81 in 1Q 2024). Revenue: JP¥1.07b (up 16% from 1Q 2024). Net income: JP¥348.5m (up 22% from 1Q 2024). Profit margin: 33% (up from 31% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Nov 13
User Local, Inc. (TSE:3984) announces an Equity Buyback for 180,000 shares, representing 1.11% for ¥300 million. User Local, Inc. (TSE:3984) announces a share repurchase program. Under the program, the company will repurchase 180,000 shares, representing 1.11% of the outstanding shares for ¥300 million. The purpose of the program is to implement a flexible capital policy that responds to changes in the business environment, to improve capital efficiency, and to increase shareholder returns, The repurchased shares will be secured as treasury stock to be issued to employees as restricted stock compensation plans. The program will run until January 31, 2025. As of October 31, 2024, the company had 16,167,044 shares outstanding and 42,256 shares in treasury. Buy Or Sell Opportunity • Nov 01
Now 21% undervalued Over the last 90 days, the stock has risen 2.7% to JP¥1,828. The fair value is estimated to be JP¥2,315, 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% over the last 3 years. Earnings per share has grown by 3.8%. Buy Or Sell Opportunity • Oct 02
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.8% to JP¥1,851. The fair value is estimated to be JP¥2,321, 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% over the last 3 years. Earnings per share has grown by 3.8%. Buy Or Sell Opportunity • Sep 17
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.5% to JP¥1,866. The fair value is estimated to be JP¥2,339, 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% over the last 3 years. Earnings per share has grown by 3.8%. Buy Or Sell Opportunity • Aug 29
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.5% to JP¥1,872. The fair value is estimated to be JP¥2,344, 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% over the last 3 years. Earnings per share has grown by 3.8%. Reported Earnings • Aug 12
Full year 2024 earnings released: EPS: JP¥73.94 (vs JP¥59.77 in FY 2023) Full year 2024 results: EPS: JP¥73.94 (up from JP¥59.77 in FY 2023). Revenue: JP¥3.91b (up 19% from FY 2023). Net income: JP¥1.19b (up 24% from FY 2023). Profit margin: 30% (up from 29% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Aug 08
User Local, Inc., Annual General Meeting, Sep 20, 2024 User Local, Inc., Annual General Meeting, Sep 20, 2024. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 34% After last week's 34% share price decline to JP¥1,380, the stock trades at a trailing P/E ratio of 18.2x. Average trailing P/E is 17x in the IT industry in Japan. Total loss to shareholders of 20% over the past three years. Buy Or Sell Opportunity • Aug 05
Now 25% undervalued after recent price drop Over the last 90 days, the stock has fallen 36% to JP¥1,380. The fair value is estimated to be JP¥1,845, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years, while earnings per share has been flat. Reported Earnings • May 09
Third quarter 2024 earnings released: EPS: JP¥19.21 (vs JP¥11.13 in 3Q 2023) Third quarter 2024 results: EPS: JP¥19.21 (up from JP¥11.13 in 3Q 2023). Revenue: JP¥999.0m (up 19% from 3Q 2023). Net income: JP¥308.0m (up 74% from 3Q 2023). Profit margin: 31% (up from 21% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has increased by 3% per year. New Risk • Mar 26
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.4% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Declared Dividend • Feb 09
Dividend of JP¥8.00 announced Shareholders will receive a dividend of JP¥8.00. Ex-date: 27th June 2024 Payment date: 26th September 2024 Dividend yield will be 0.4%, which is lower than the industry average of 1.4%. Sustainability & Growth Reported Earnings • Feb 08
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: JP¥959.2m (up 19% from 2Q 2023). Net income: JP¥308.3m (up 27% from 2Q 2023). Profit margin: 32% (up from 30% in 2Q 2023). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Jan 24
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,143, the stock trades at a trailing P/E ratio of 33.5x. Average trailing P/E is 19x in the IT industry in Japan. Negligible returns to shareholders over past three years. Reported Earnings • Nov 09
First quarter 2024 earnings released: EPS: JP¥17.81 (vs JP¥13.42 in 1Q 2023) First quarter 2024 results: EPS: JP¥17.81 (up from JP¥13.42 in 1Q 2023). Revenue: JP¥917.0m (up 20% from 1Q 2023). Net income: JP¥285.0m (up 33% from 1Q 2023). Profit margin: 31% (up from 28% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 6% per year. Buying Opportunity • Sep 14
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 45%. The fair value is estimated to be JP¥2,301, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has declined by 7.8%. Reported Earnings • Aug 11
Full year 2023 earnings released: EPS: JP¥59.77 (vs JP¥45.36 in FY 2022) Full year 2023 results: EPS: JP¥59.77 (up from JP¥45.36 in FY 2022). Revenue: JP¥3.29b (up 23% from FY 2022). Net income: JP¥954.0m (up 32% from FY 2022). Profit margin: 29% (up from 27% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Aug 09
User Local, Inc., Annual General Meeting, Sep 22, 2023 User Local, Inc., Annual General Meeting, Sep 22, 2023. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,759, the stock trades at a trailing P/E ratio of 55.2x. Average trailing P/E is 19x in the IT industry in Japan. Total returns to shareholders of 55% over the past three years. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥4.00 per share at 0.1% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 27 September 2023. Trailing yield: 0.1%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (1.6%). Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,501, the stock trades at a trailing P/E ratio of 50x. Average trailing P/E is 19x in the IT industry in Japan. Total returns to shareholders of 51% over the past three years. Reported Earnings • May 12
Third quarter 2023 earnings released: EPS: JP¥11.13 (vs JP¥10.60 in 3Q 2022) Third quarter 2023 results: EPS: JP¥11.13 (up from JP¥10.60 in 3Q 2022). Revenue: JP¥840.0m (up 22% from 3Q 2022). Net income: JP¥177.0m (up 4.7% from 3Q 2022). Profit margin: 21% (down from 25% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,138, the stock trades at a trailing P/E ratio of 43.1x. Average trailing P/E is 18x in the IT industry in Japan. Total returns to shareholders of 81% over the past three years. Reported Earnings • Feb 10
Second quarter 2023 earnings released: EPS: JP¥15.19 (vs JP¥13.41 in 2Q 2022) Second quarter 2023 results: EPS: JP¥15.19 (up from JP¥13.41 in 2Q 2022). Revenue: JP¥806.0m (up 24% from 2Q 2022). Net income: JP¥243.0m (up 14% from 2Q 2022). Profit margin: 30% (down from 33% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 4% per year. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,544, the stock trades at a trailing P/E ratio of 32.3x. Average trailing P/E is 18x in the IT industry in Japan. Total loss to shareholders of 2.1% over the past three years. Board Change • Nov 16
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 Taku Ito was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 11
First quarter 2023 earnings released: EPS: JP¥13.42 (vs JP¥11.25 in 1Q 2022) First quarter 2023 results: EPS: JP¥13.42 (up from JP¥11.25 in 1Q 2022). Revenue: JP¥763.0m (up 25% from 1Q 2022). Net income: JP¥215.0m (up 21% from 1Q 2022). Profit margin: 28% (in line with 1Q 2022). Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 4% per year. Reported Earnings • Aug 11
Full year 2022 earnings released: EPS: JP¥45.36 (vs JP¥78.54 in FY 2021) Full year 2022 results: EPS: JP¥45.36. Revenue: JP¥2.68b (up 28% from FY 2021). Net income: JP¥721.0m (up 17% from FY 2021). Profit margin: 27% (down from 30% in FY 2021). The decrease in margin was driven by higher expenses. Upcoming Dividend • Jun 22
Inaugural dividend of JP¥3.00 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 26 September 2022. This is the first dividend for User Local since going public. The average dividend yield among industry peers is 1.7%. Reported Earnings • May 13
Third quarter 2022 earnings released: EPS: JP¥10.60 (vs JP¥18.11 in 3Q 2021) Third quarter 2022 results: EPS: JP¥10.60. Revenue: JP¥689.0m (up 28% from 3Q 2021). Net income: JP¥169.0m (up 19% from 3Q 2021). Profit margin: 25% (down from 26% in 3Q 2021). The decrease in margin was driven by higher expenses. Board Change • Apr 27
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 Taku Ito was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Mar 17
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥1,775, the stock trades at a trailing P/E ratio of 38.7x. Average trailing P/E is 17x in the IT industry in Japan. Total returns to shareholders of 65% over the past three years. Reported Earnings • Feb 12
Second quarter 2022 earnings: Revenues and EPS in line with analyst expectations Second quarter 2022 results: EPS: JP¥13.41 (down from JP¥18.80 in 2Q 2021). Revenue: JP¥652.0m (up 29% from 2Q 2021). Net income: JP¥213.0m (up 45% from 2Q 2021). Profit margin: 33% (up from 29% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Reported Earnings • Nov 11
First quarter 2022 earnings released: EPS JP¥11.25 (vs JP¥16.94 in 1Q 2021) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were flat. First quarter 2022 results: Revenue: JP¥611.0m (up 31% from 1Q 2021). Net income: JP¥178.0m (up 35% from 1Q 2021). Profit margin: 29% (in line with 1Q 2021). 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 7% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥2,073, the stock trades at a trailing P/E ratio of 26.4x. Average trailing P/E is 23x in the IT industry in Japan. Total returns to shareholders of 33% over the past three years. Reported Earnings • Aug 12
Full year 2021 earnings released: EPS JP¥78.54 (vs JP¥55.08 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥2.09b (up 25% from FY 2020). Net income: JP¥615.0m (up 47% from FY 2020). Profit margin: 30% (up from 25% in FY 2020). The increase in margin was driven by higher revenue. 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 4% per year, which means it is well ahead of earnings. Reported Earnings • May 14
Third quarter 2021 earnings released: EPS JP¥18.11 (vs JP¥14.44 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were flat. Third quarter 2021 results: Revenue: JP¥539.0m (up 25% from 3Q 2020). Net income: JP¥142.0m (up 29% from 3Q 2020). Profit margin: 26% (in line with 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Reported Earnings • Feb 15
Second quarter 2021 earnings released: EPS JP¥18.80 (vs JP¥13.05 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: JP¥507.0m (up 26% from 2Q 2020). Net income: JP¥147.0m (up 47% from 2Q 2020). Profit margin: 29% (up from 25% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Feb 15
New 90-day high: JP¥4,575 The company is up 22% from its price of JP¥3,760 on 17 November 2020. The Japanese market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 9.0% over the same period. Is New 90 Day High Low • Dec 22
New 90-day low: JP¥3,645 The company is down 17% from its price of JP¥4,405 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.