Upcoming Dividend • Jun 22
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 29 June 2026. Payment date: 14 September 2026. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of Japanese dividend payers (3.9%). Higher than average of industry peers (2.0%). Announcement • Jun 05
Densan System Holdings Co., Ltd. to Report Q2, 2026 Results on Aug 12, 2026 Densan System Holdings Co., Ltd. announced that they will report Q2, 2026 results on Aug 12, 2026 Reported Earnings • May 15
First quarter 2026 earnings released: EPS: JP¥82.90 (vs JP¥76.86 in 1Q 2025) First quarter 2026 results: EPS: JP¥82.90 (up from JP¥76.86 in 1Q 2025). Revenue: JP¥17.2b (up 11% from 1Q 2025). Net income: JP¥888.0m (up 8.3% from 1Q 2025). Profit margin: 5.2% (down from 5.3% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.3% 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 4% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Declared Dividend • Apr 11
Final dividend of JP¥50.00 announced Shareholders will receive a dividend of JP¥50.00. Ex-date: 29th June 2026 Payment date: 14th September 2026 Dividend yield will be 3.4%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (33% earnings payout ratio) and cash flows (30% cash payout ratio). The dividend has increased by an average of 16% 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 13% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 30
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥271 (up from JP¥174 in FY 2024). Revenue: JP¥68.1b (up 11% from FY 2024). Net income: JP¥2.90b (up 56% from FY 2024). Profit margin: 4.3% (up from 3.0% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.0%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the IT industry in Japan. 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 2% per year. Reported Earnings • Feb 10
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥271 (up from JP¥174 in FY 2024). Revenue: JP¥68.1b (up 11% from FY 2024). Net income: JP¥2.90b (up 56% from FY 2024). Profit margin: 4.3% (up from 3.0% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.0%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 5.5% 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 fallen by 1% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • Feb 09
Densan System Holdings Co., Ltd., Annual General Meeting, Mar 25, 2026 Densan System Holdings Co., Ltd., Annual General Meeting, Mar 25, 2026. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 26 March 2026. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.2%). Announcement • Dec 05
Densan System Holdings Co., Ltd. to Report Fiscal Year 2025 Results on Feb 09, 2026 Densan System Holdings Co., Ltd. announced that they will report fiscal year 2025 results on Feb 09, 2026 Announcement • Nov 18
Densan System Holdings Co., Ltd. (TSE:4072) acquired Unyte Co., Ltd. Densan System Holdings Co., Ltd. (TSE:4072) acquired Unyte Co., Ltd. on November 18, 2025. As part of the acquisition, Densan System Holdings Co., Ltd. acquired all of the outstanding shares of Unyte Co., Ltd.
Densan System Holdings Co., Ltd. (TSE:4072) completed the acquisition of Unyte Co., Ltd. on November 18, 2025. Reported Earnings • Nov 14
Third quarter 2025 earnings released: EPS: JP¥91.92 (vs JP¥22.45 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥91.92 (up from JP¥22.45 loss in 3Q 2024). Revenue: JP¥17.9b (up 21% from 3Q 2024). Net income: JP¥983.0m (up JP¥1.22b from 3Q 2024). Profit margin: 5.5% (up from net loss in 3Q 2024). The move to profitability was driven by higher revenue. Revenue is forecast to grow 6.6% 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 fallen by 5% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Price Target Changed • Sep 19
Price target increased by 27% to JP¥4,200 Up from JP¥3,300, the current price target is provided by 1 analyst. New target price is 10% above last closing price of JP¥3,815. Stock is up 46% over the past year. The company is forecast to post earnings per share of JP¥243 for next year compared to JP¥174 last year. Valuation Update With 7 Day Price Move • Sep 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥3,815, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 20x in the IT industry in Japan. Total returns to shareholders of 83% over the past three years. Declared Dividend • Sep 13
First half dividend of JP¥40.00 announced Shareholders will receive a dividend of JP¥40.00. Ex-date: 29th December 2025 Payment date: 26th March 2026 Dividend yield will be 2.4%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (42% earnings payout ratio) and cash flows (47% 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 82% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Sep 02
Densan System Holdings Co., Ltd. to Report Q3, 2025 Results on Nov 11, 2025 Densan System Holdings Co., Ltd. announced that they will report Q3, 2025 results on Nov 11, 2025 Buy Or Sell Opportunity • Aug 26
Now 28% undervalued Over the last 90 days, the stock has risen 63% to JP¥4,090. The fair value is estimated to be JP¥5,660, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.4% over the last 3 years. Earnings per share has declined by 11%. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 71% in the next 2 years. Announcement • Aug 23
An undisclosed buyer acquired Micro Research Ltd. from Densan System Holdings Co., Ltd. (TSE:4072). An undisclosed buyer acquired Micro Research Ltd. from Densan System Holdings Co., Ltd. (TSE:4072) on August 22, 2025. Micro Research Ltd. will no longer be a consolidated subsidiary of Densan System Holdings Co., Ltd. after the completion.
An undisclosed buyer completed the acquisition of Micro Research Ltd. from Densan System Holdings Co., Ltd. (TSE:4072) on August 22, 2025. Valuation Update With 7 Day Price Move • Aug 19
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥3,205, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 20x in the IT industry in Japan. Total returns to shareholders of 43% over the past three years. New Risk • Aug 18
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. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 13
Second quarter 2025 earnings released: EPS: JP¥40.44 (vs JP¥28.20 in 2Q 2024) Second quarter 2025 results: EPS: JP¥40.44 (up from JP¥28.20 in 2Q 2024). Revenue: JP¥16.7b (up 7.3% from 2Q 2024). Net income: JP¥432.0m (up 44% from 2Q 2024). Profit margin: 2.6% (up from 1.9% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.9% 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 fallen by 11% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 10 September 2025. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (4.0%). Higher than average of industry peers (1.2%). Announcement • Jun 03
Densan System Holdings Co., Ltd. to Report Q2, 2025 Results on Aug 12, 2025 Densan System Holdings Co., Ltd. announced that they will report Q2, 2025 results on Aug 12, 2025 Reported Earnings • May 17
First quarter 2025 earnings released: EPS: JP¥76.86 (vs JP¥73.96 in 1Q 2024) First quarter 2025 results: EPS: JP¥76.86 (up from JP¥73.96 in 1Q 2024). Revenue: JP¥15.5b (up 6.0% from 1Q 2024). Net income: JP¥820.0m (up 4.3% from 1Q 2024). Profit margin: 5.3% (down from 5.4% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.0% 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 fallen by 10% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Declared Dividend • Apr 11
Final dividend of JP¥40.00 announced Shareholders will receive a dividend of JP¥40.00. Ex-date: 27th June 2025 Payment date: 10th September 2025 Dividend yield will be 3.4%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (53% earnings payout ratio) and cash flows (36% 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 78% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥2,160, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 17x in the IT industry in Japan. Total loss to shareholders of 13% over the past three years. Announcement • Mar 01
Densan System Holdings Co., Ltd. to Report Q1, 2025 Results on May 13, 2025 Densan System Holdings Co., Ltd. announced that they will report Q1, 2025 results on May 13, 2025 Buy Or Sell Opportunity • Feb 17
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.5% to JP¥2,437. The fair value is estimated to be JP¥3,080, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.6% over the last 3 years. Earnings per share has declined by 8.1%. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 73% in the next 2 years. Reported Earnings • Feb 12
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥174 (down from JP¥188 in FY 2023). Revenue: JP¥61.3b (up 2.8% from FY 2023). Net income: JP¥1.85b (down 7.7% from FY 2023). Profit margin: 3.0% (down from 3.4% in FY 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 31%. Revenue is forecast to grow 7.4% p.a. on average during the next 2 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 8% per year whereas the company’s share price has fallen by 3% per year. Announcement • Feb 10
Densan System Holdings Co., Ltd., Annual General Meeting, Mar 25, 2025 Densan System Holdings Co., Ltd., Annual General Meeting, Mar 25, 2025. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 27 March 2025. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.4%). Announcement • Dec 03
Densan System Holdings Co., Ltd. to Report Fiscal Year 2024 Results on Feb 10, 2025 Densan System Holdings Co., Ltd. announced that they will report fiscal year 2024 results on Feb 10, 2025 Reported Earnings • Nov 13
Third quarter 2024 earnings released: JP¥22.45 loss per share (vs JP¥64.11 profit in 3Q 2023) Third quarter 2024 results: JP¥22.45 loss per share (down from JP¥64.11 profit in 3Q 2023). Revenue: JP¥14.9b (up 4.1% from 3Q 2023). Net loss: JP¥239.0m (down 135% from profit in 3Q 2023). Revenue is forecast to grow 7.1% 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 4% per year whereas the company’s share price has remained flat. Price Target Changed • Oct 24
Price target decreased by 8.3% to JP¥3,300 Down from JP¥3,600, the current price target is provided by 1 analyst. New target price is 26% above last closing price of JP¥2,625. Stock is down 0.4% over the past year. The company is forecast to post earnings per share of JP¥254 for next year compared to JP¥188 last year. Announcement • Aug 27
Densan System Holdings Co., Ltd. to Report Q3, 2024 Results on Nov 11, 2024 Densan System Holdings Co., Ltd. announced that they will report Q3, 2024 results on Nov 11, 2024 Reported Earnings • Aug 14
Second quarter 2024 earnings released: EPS: JP¥28.20 (vs JP¥58.13 in 2Q 2023) Second quarter 2024 results: EPS: JP¥28.20 (down from JP¥58.13 in 2Q 2023). Revenue: JP¥15.6b (up 2.0% from 2Q 2023). Net income: JP¥300.0m (down 52% from 2Q 2023). Profit margin: 1.9% (down from 4.1% in 2Q 2023). Revenue is forecast to grow 7.6% 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 increased by 7% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Declared Dividend • Aug 12
Dividend of JP¥40.00 announced Shareholders will receive a dividend of JP¥40.00. Ex-date: 27th December 2024 Payment date: 27th March 2025 Dividend yield will be 2.4%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (20% earnings payout ratio) and cash flows (9% cash payout ratio). The dividend has increased by an average of 7.2% 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 58% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥2,315, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 17x in the IT industry in Japan. Total loss to shareholders of 9.6% over the past three years. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 11 September 2024. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.4%). In line with average of industry peers (1.6%). Reported Earnings • May 16
First quarter 2024 earnings released: EPS: JP¥73.96 (vs JP¥71.65 in 1Q 2023) First quarter 2024 results: EPS: JP¥73.96 (up from JP¥71.65 in 1Q 2023). Revenue: JP¥14.7b (flat on 1Q 2023). Net income: JP¥786.0m (up 1.7% from 1Q 2023). Profit margin: 5.4% (up from 5.3% in 1Q 2023). 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 increased by 13% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Declared Dividend • Apr 11
Final dividend of JP¥20.00 announced Shareholders will receive a dividend of JP¥20.00. Ex-date: 27th June 2024 Payment date: 11th September 2024 Dividend yield will be 1.4%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (13% earnings payout ratio) and cash flows (9% cash payout ratio). The dividend has increased by an average of 6.6% 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 55% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 28
Densan System Holdings Co., Ltd. to Report Q1, 2024 Results on May 13, 2024 Densan System Holdings Co., Ltd. announced that they will report Q1, 2024 results on May 13, 2024 Announcement • Feb 11
Densan System Holdings Co., Ltd., Annual General Meeting, Mar 26, 2024 Densan System Holdings Co., Ltd., Annual General Meeting, Mar 26, 2024. Reported Earnings • Feb 10
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥188 (down from JP¥218 in FY 2022). Revenue: JP¥59.6b (up 11% from FY 2022). Net income: JP¥2.00b (down 15% from FY 2022). Profit margin: 3.4% (down from 4.4% in FY 2022). Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) also missed analyst estimates by 30%. Revenue is forecast to grow 9.6% p.a. on average during the next 2 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 14% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥19.00 per share at 1.4% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 27 March 2024. Payout ratio is a comfortable 6.4% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.5%). In line with average of industry peers (1.5%). Announcement • Dec 05
Densan System Holdings Co., Ltd. to Report Fiscal Year 2023 Results on Feb 09, 2024 Densan System Holdings Co., Ltd. announced that they will report fiscal year 2023 results on Feb 09, 2024 Reported Earnings • Nov 12
Third quarter 2023 earnings released: EPS: JP¥64.11 (vs JP¥44.30 in 3Q 2022) Third quarter 2023 results: EPS: JP¥64.11 (up from JP¥44.30 in 3Q 2022). Revenue: JP¥14.3b (up 11% from 3Q 2022). Net income: JP¥680.0m (up 42% from 3Q 2022). Profit margin: 4.8% (up from 3.7% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Aug 27
Densan System Holdings Co., Ltd. to Report Q3, 2023 Results on Nov 10, 2023 Densan System Holdings Co., Ltd. announced that they will report Q3, 2023 results on Nov 10, 2023 Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥2,672, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 18x in the IT industry in Japan. Total loss to shareholders of 28% over the past three years. Reported Earnings • Aug 12
Second quarter 2023 earnings released: EPS: JP¥58.13 (vs JP¥31.98 in 2Q 2022) Second quarter 2023 results: EPS: JP¥58.13 (up from JP¥31.98 in 2Q 2022). Revenue: JP¥15.3b (up 15% from 2Q 2022). Net income: JP¥622.0m (up 80% from 2Q 2022). Profit margin: 4.1% (up from 2.6% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.3% 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 increased by 11% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥18.00 per share at 1.1% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 12 September 2023. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (1.6%). Announcement • May 28
Densan System Holdings Co., Ltd. to Report Q2, 2023 Results on Aug 10, 2023 Densan System Holdings Co., Ltd. announced that they will report Q2, 2023 results on Aug 10, 2023 Reported Earnings • May 16
First quarter 2023 earnings released: EPS: JP¥71.65 (vs JP¥52.11 in 1Q 2022) First quarter 2023 results: EPS: JP¥71.65 (up from JP¥52.11 in 1Q 2022). Revenue: JP¥14.6b (up 24% from 1Q 2022). Net income: JP¥773.0m (up 38% from 1Q 2022). Profit margin: 5.3% (up from 4.8% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.6% p.a. on average during the next 3 years, compared to a 6.1% 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 1% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥3,115, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 18x in the IT industry in Japan. Total returns to shareholders of 9.4% over the past three years. Reported Earnings • Mar 31
Full year 2022 earnings released: EPS: JP¥218 (vs JP¥183 in FY 2021) Full year 2022 results: EPS: JP¥218 (up from JP¥183 in FY 2021). Revenue: JP¥53.5b (up 6.2% from FY 2021). Net income: JP¥2.35b (up 19% from FY 2021). Profit margin: 4.4% (up from 3.9% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.4% 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 increased by 4% per year but the company’s share price has increased by 10% per year, which means it is tracking significantly ahead of earnings growth. Buying Opportunity • Mar 20
Now 20% undervalued Over the last 90 days, the stock is up 14%. The fair value is estimated to be JP¥3,100, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.1% over the last 3 years. Earnings per share has grown by 4.4%. For the next 3 years, revenue is forecast to grow by 9.4% per annum. Earnings is also forecast to grow by 7.9% per annum over the same time period. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥2,524, the stock trades at a trailing P/E ratio of 11.6x. Average trailing P/E is 18x in the IT industry in Japan. Total returns to shareholders of 1.6% over the past three years. Reported Earnings • Feb 12
Full year 2022 earnings released: EPS: JP¥218 (vs JP¥183 in FY 2021) Full year 2022 results: EPS: JP¥218 (up from JP¥183 in FY 2021). Revenue: JP¥53.5b (up 6.2% from FY 2021). Net income: JP¥2.35b (up 19% from FY 2021). Profit margin: 4.4% (up from 3.9% in FY 2021). 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 8% per year, which means it is significantly lagging earnings. Announcement • Feb 12
Densan System Holdings Co., Ltd., Annual General Meeting, Mar 24, 2023 Densan System Holdings Co., Ltd., Annual General Meeting, Mar 24, 2023. Buying Opportunity • Feb 10
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 10%. The fair value is estimated to be JP¥2,694, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.4% over the last 3 years. Earnings per share has grown by 3.7%. Announcement • Jan 18
Densan System Holdings Co., Ltd. to Report Fiscal Year 2022 Results on Feb 10, 2023 Densan System Holdings Co., Ltd. announced that they will report fiscal year 2022 results on Feb 10, 2023 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 28 March 2023. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (1.7%). Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: JP¥44.30 (vs JP¥32.44 in 3Q 2021) Third quarter 2022 results: EPS: JP¥44.30 (up from JP¥32.44 in 3Q 2021). Revenue: JP¥12.8b (up 9.2% from 3Q 2021). Net income: JP¥478.0m (up 37% from 3Q 2021). Profit margin: 3.7% (up from 3.0% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.1% 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 increased by 4% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. 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. 6 experienced directors. 5 highly experienced directors. 2 independent directors (9 non-independent directors). Head of Business Affairs of Administration Division & Director Haruto Goto was the last director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 12
Third quarter 2022 earnings released: EPS: JP¥44.30 (vs JP¥32.44 in 3Q 2021) Third quarter 2022 results: EPS: JP¥44.30 (up from JP¥32.44 in 3Q 2021). Revenue: JP¥12.8b (up 9.2% from 3Q 2021). Net income: JP¥478.0m (up 37% from 3Q 2021). Profit margin: 3.7% (up from 3.0% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the IT industry in Japan. 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 7% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 12
Second quarter 2022 earnings released: EPS: JP¥31.98 (vs JP¥32.60 in 2Q 2021) Second quarter 2022 results: EPS: JP¥31.98 (down from JP¥32.60 in 2Q 2021). Revenue: JP¥13.3b (up 15% from 2Q 2021). Net income: JP¥345.0m (down 1.9% from 2Q 2021). Profit margin: 2.6% (down from 3.0% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 6.6%, compared to a 11% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Jun 23
Densan System Holdings Co., Ltd. to Report Q2, 2022 Results on Aug 10, 2022 Densan System Holdings Co., Ltd. announced that they will report Q2, 2022 results on Aug 10, 2022 Upcoming Dividend • Jun 22
Upcoming dividend of JP¥17.00 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 01 September 2022. Payout ratio is a comfortable 8.2% and this is well supported by cash flows. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (1.7%). 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. 5 experienced directors. 6 highly experienced directors. 2 independent directors (9 non-independent directors). Head of Business Affairs of Administration Division & Director Haruto Goto was the last director to join the board, commencing their role in 2014. 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
Densan System Holdings Co., Ltd. to Report Q1, 2022 Results on May 11, 2022 Densan System Holdings Co., Ltd. announced that they will report Q1, 2022 results on May 11, 2022 Announcement • Feb 12
Densan System Holdings Co., Ltd., Annual General Meeting, Mar 25, 2022 Densan System Holdings Co., Ltd., Annual General Meeting, Mar 25, 2022. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 26 March 2022. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (1.3%). Reported Earnings • Aug 04
Second quarter 2021 earnings released: EPS JP¥32.60 (vs JP¥31.89 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: JP¥11.6b (up 8.3% from 2Q 2020). Net income: JP¥351.6m (up 13% from 2Q 2020). Profit margin: 3.0% (in line with 2Q 2020). 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 8% per year, which means it is significantly lagging earnings growth.