Reported Earnings • May 16
Third quarter 2026 earnings released: EPS: JP¥25.06 (vs JP¥22.70 in 3Q 2025) Third quarter 2026 results: EPS: JP¥25.06 (up from JP¥22.70 in 3Q 2025). Revenue: JP¥7.50b (up 5.3% from 3Q 2025). Net income: JP¥518.0m (up 10% from 3Q 2025). Profit margin: 6.9% (up from 6.6% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 14% 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 20% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Declared Dividend • Mar 17
First half dividend of JP¥15.00 announced Shareholders will receive a dividend of JP¥15.00. Ex-date: 29th June 2026 Payment date: 28th September 2026 Dividend yield will be 2.7%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (12% earnings payout ratio) and cash flows (31% cash payout ratio). The dividend has increased by an average of 73% per year over the past 8 years and payments have been stable during that time. EPS is expected to grow by 18% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 20
System Support Holdings Inc. (TSE:4396) announces an Equity Buyback for 100,000 shares, representing 0.48% for ¥150 million. System Support Inc. (TSE:4396) announces a share repurchase program. announces a share repurchase program. Under the program, the company will repurchase up to 100,000 shares, representing 0.48% of its issued share capital (excluding treasury stock), for ¥150 million. The purpose of the program is to further enhance shareholder returns, enable flexible capital management, and improve capital efficiency. The program is valid till April 30, 2026 As of December 31, 2025, the company had 20,710,344 shares in issue (excluding treasury stock) and 89,656 shares in treasury. Reported Earnings • Feb 14
Second quarter 2026 earnings released Second quarter 2026 results: Revenue: JP¥8.03b (up 16% from 2Q 2025). Net income: JP¥658.0m (up 21% from 2Q 2025). Profit margin: 8.2% (up from 7.9% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the IT industry in Japan. New Risk • Feb 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.4% 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. Buy Or Sell Opportunity • Feb 02
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 11% to JP¥1,338. The fair value is estimated to be JP¥1,709, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 37% in 2 years. Earnings are forecast to grow by 40% in the next 2 years. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 17 March 2026. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.2%). Announcement • Nov 29
System Support Holdings Inc. to Report Q2, 2026 Results on Feb 12, 2026 System Support Holdings Inc. announced that they will report Q2, 2026 results on Feb 12, 2026 Reported Earnings • Nov 14
First quarter 2026 earnings released: EPS: JP¥34.08 (vs JP¥24.09 in 1Q 2025) First quarter 2026 results: EPS: JP¥34.08 (up from JP¥24.09 in 1Q 2025). Revenue: JP¥7.52b (up 22% from 1Q 2025). Net income: JP¥353.0m (up 42% from 1Q 2025). Profit margin: 4.7% (up from 4.0% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% 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 21% per year whereas the company’s share price has increased by 22% per year. Declared Dividend • Oct 06
Final dividend increased to JP¥30.00 Dividend of JP¥30.00 is 20% higher than last year. Ex-date: 29th December 2025 Payment date: 17th March 2026 Dividend yield will be 1.6%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (15% earnings payout ratio) and cash flows (25% cash payout ratio). The dividend has increased by an average of 82% per year over the past 7 years and payments have been stable during that time. EPS is expected to grow by 60% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Oct 02
System Support Holdings Inc. to Report Q1, 2026 Results on Nov 12, 2025 System Support Holdings Inc. announced that they will report Q1, 2026 results on Nov 12, 2025 Reported Earnings • Aug 08
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥141 (up from JP¥118 in FY 2024). Revenue: JP¥26.9b (up 22% from FY 2024). Net income: JP¥1.46b (up 19% from FY 2024). Profit margin: 5.4% (down from 5.6% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) also missed analyst estimates by 8.9%. Revenue is forecast to grow 15% p.a. on average during the next 2 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 22% per year but the company’s share price has increased by 30% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 06
System Support Holdings Inc., Annual General Meeting, Sep 25, 2025 System Support Holdings Inc., Annual General Meeting, Sep 25, 2025. Announcement • Jul 02
System Support Holdings Inc. (TSE:4396) completed the acquisition of Echo System co.,ltd from Makoto Ugo. System Support Holdings Inc. (TSE:4396) agreed to acquire Echo System co.,ltd from Makoto Ugo for ¥520 million on June 19, 2025. A cash consideration of ¥520 million will be paid by System Support Holdings Inc. As part of consideration, ¥520 million is paid towards common equity of Echo System co.,ltd.
For the period ending July 31, 2024, Echo System co.,ltd reported total revenue of ¥1.42 billion, EBIT of ¥123 million and net income of ¥74 million. As of July 31, 2024, Echo System co.,ltd reported total assets of ¥777 million and total common equity of ¥286 million.
The expected completion of the transaction is July 1, 2025.
System Support Holdings Inc. (TSE:4396) completed the acquisition of Echo System co.,ltd from Makoto Ugo on July 1, 2025. Announcement • Jun 27
System Support Holdings Inc. to Report Fiscal Year 2025 Results on Aug 06, 2025 System Support Holdings Inc. announced that they will report fiscal year 2025 results on Aug 06, 2025 Upcoming Dividend • Jun 20
Upcoming dividend of JP¥24.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 29 September 2025. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (4.0%). Higher than average of industry peers (1.2%). Announcement • Jun 19
System Support Holdings Inc. (TSE:4396) agreed to acquire Echo System co.,ltd from Makoto Ugo for ¥520 million. System Support Holdings Inc. (TSE:4396) agreed to acquire Echo System co.,ltd from Makoto Ugo for ¥520 million on June 19, 2025. A cash consideration of ¥520 million will be paid by System Support Holdings Inc. As part of consideration, ¥520 million is paid towards common equity of Echo System co.,ltd.
For the period ending July 31, 2024, Echo System co.,ltd reported total revenue of ¥1.42 billion, EBIT of ¥123 million and net income of ¥74 million. As of July 31, 2024, Echo System co.,ltd reported total assets of ¥777 million and total common equity of ¥286 million.
The expected completion of the transaction is July 1, 2025. Announcement • May 16
System Support Holdings Inc. (TSE:4396) agreed to acquire Fuji Engineering Co., Ltd. from Tomiko Nakane and other shareholders. System Support Holdings Inc. (TSE:4396) agreed to acquire Fuji Engineering Co., Ltd. from Tomiko Nakane and other shareholders on May 15, 2025. As part of the acquisition, System Support Holdings Inc will acquire all shares or 0.12 million shares in Fuji Engineering Co., Ltd. Tomiko Nakane will sell his 66.7% stake in Fuji Engineering Co., Ltd to System Support Holdings Inc. The transaction has been approved by the board of directors of System Support Holdings Inc. The transaction is expected to close on June 5, 2025. Declared Dividend • May 12
Dividend of JP¥24.00 announced Shareholders will receive a dividend of JP¥24.00. Ex-date: 27th June 2025 Payment date: 29th September 2025 Dividend yield will be 2.1%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (15% earnings payout ratio) and cash flows (50% cash payout ratio). The dividend has increased by an average of 82% per year over the past 7 years and payments have been stable during that time. EPS is expected to grow by 36% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 08
Third quarter 2025 earnings released: EPS: JP¥45.40 (vs JP¥33.61 in 3Q 2024) Third quarter 2025 results: EPS: JP¥45.40 (up from JP¥33.61 in 3Q 2024). Revenue: JP¥7.12b (up 25% from 3Q 2024). Net income: JP¥470.0m (up 35% from 3Q 2024). Profit margin: 6.6% (up from 6.1% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has increased by 30% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,692, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 17x in the IT industry in Japan. Total returns to shareholders of 68% over the past three years. New Risk • Mar 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 5.3% 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. Reported Earnings • Feb 07
Second quarter 2025 earnings released: EPS: JP¥53.22 (vs JP¥32.06 in 2Q 2024) Second quarter 2025 results: EPS: JP¥53.22 (up from JP¥32.06 in 2Q 2024). Revenue: JP¥6.91b (up 23% from 2Q 2024). Net income: JP¥544.2m (up 64% from 2Q 2024). Profit margin: 7.9% (up from 5.9% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 5.5% 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 increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥24.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 17 March 2025. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.4%). New Risk • Nov 10
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. Reported Earnings • Nov 08
First quarter 2025 earnings released: EPS: JP¥24.01 (vs JP¥27.23 in 1Q 2024) First quarter 2025 results: EPS: JP¥24.01 (down from JP¥27.23 in 1Q 2024). Revenue: JP¥6.15b (up 22% from 1Q 2024). Net income: JP¥247.0m (down 12% from 1Q 2024). Profit margin: 4.0% (down from 5.6% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% 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 19% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Reported Earnings • Oct 03
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥118 (up from JP¥97.43 in FY 2023). Revenue: JP¥22.0b (up 14% from FY 2023). Net income: JP¥1.22b (up 21% from FY 2023). Profit margin: 5.6% (up from 5.2% 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 2.0%. Revenue is forecast to grow 13% 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 20% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • Aug 16
System Support Inc. (TSE:4396) announces an Equity Buyback for 150,000 shares, for ¥268.2 million. System Support Inc. (TSE:4396) announces a share repurchase program. announces a share repurchase program. Under the program, the company will repurchase up to 150,000 shares, representing 1.44% of its issued share capital (excluding treasury stock), for ¥268.2 million. The shares will be repurchased at a price of ¥1,788 per share. The purpose of the program is to implemente a flexible capital policy in response to changes in the business environment. As of August 1, 2024, the company had 10,390,000 shares in issue (excluding treasury stock) and 25,026 shares in treasury. Announcement • Aug 07
System Support Inc., Annual General Meeting, Sep 26, 2024 System Support Inc., Annual General Meeting, Sep 26, 2024. 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¥1,463, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 17x in the IT industry in Japan. Total returns to shareholders of 13% over the past three years. New Risk • Aug 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 5.4% 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 (5.4% average weekly change). Announcement • Jul 27
System Support Inc. (TSE:4396) completed the acquisition of Communication Planning Corporation. from Norio Tajima and Naoki Hosoda. System Support Inc. (TSE:4396) agreed to acquire Communication Planning Corporation. from Norio Tajima and Naoki Hosoda for ¥600 million on June 20, 2024. A cash consideration of ¥600 million will be paid by System Support Inc. As part of consideration, ¥600 million is paid towards common equity of Communication Planning Corporation.
For the period ending March 31, 2024, Communication Planning Corporation. reported total revenue of ¥605 million, EBIT of ¥55 million and net income of ¥37 million. As of March 31, 2024, Communication Planning Corporation. reported total assets of ¥702 million and total common equity of ¥496 million.
The expected completion of the transaction is July 26, 2024.
System Support Inc. (TSE:4396) completed the acquisition of Communication Planning Corporation. from Norio Tajima and Naoki Hosoda on July 26, 20024. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 30 September 2024. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.6%). Reported Earnings • May 09
Third quarter 2024 earnings released: EPS: JP¥33.61 (vs JP¥28.29 in 3Q 2023) Third quarter 2024 results: EPS: JP¥33.61 (up from JP¥28.29 in 3Q 2023). Revenue: JP¥5.71b (up 15% from 3Q 2023). Net income: JP¥348.0m (up 19% from 3Q 2023). Profit margin: 6.1% (up from 5.9% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 13% 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 21% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 09
Second quarter 2024 earnings released: EPS: JP¥32.06 (vs JP¥29.26 in 2Q 2023) Second quarter 2024 results: EPS: JP¥32.06 (up from JP¥29.26 in 2Q 2023). Revenue: JP¥5.60b (up 17% from 2Q 2023). Net income: JP¥332.0m (up 9.6% from 2Q 2023). Profit margin: 5.9% (down from 6.3% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% 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 21% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥18.00 per share at 1.8% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 15 March 2024. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.5%). Reported Earnings • Nov 11
First quarter 2024 earnings released: EPS: JP¥27.23 (vs JP¥19.79 in 1Q 2023) First quarter 2024 results: EPS: JP¥27.23 (up from JP¥19.79 in 1Q 2023). Revenue: JP¥5.03b (up 14% from 1Q 2023). Net income: JP¥282.0m (up 38% from 1Q 2023). Profit margin: 5.6% (up from 4.7% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 13% 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 23% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Aug 11
System Support Inc., Annual General Meeting, Sep 27, 2023 System Support Inc., Annual General Meeting, Sep 27, 2023. Reported Earnings • Aug 11
Full year 2023 earnings: Revenues and EPS in line with analyst expectations Full year 2023 results: EPS: JP¥97.43 (up from JP¥75.84 in FY 2022). Revenue: JP¥19.3b (up 19% from FY 2022). Net income: JP¥1.01b (up 28% from FY 2022). Profit margin: 5.2% (up from 4.8% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 10% p.a. on average during the next 2 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 23% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Jun 28
System Support Inc. to Report Fiscal Year 2023 Results on Aug 09, 2023 System Support Inc. announced that they will report fiscal year 2023 results on Aug 09, 2023 Upcoming Dividend • Jun 22
Upcoming dividend of JP¥15.00 per share at 1.3% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 28 September 2023. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (1.6%). Reported Earnings • May 12
Third quarter 2023 earnings released: EPS: JP¥28.29 (vs JP¥28.21 in 3Q 2022) Third quarter 2023 results: EPS: JP¥28.29 (up from JP¥28.21 in 3Q 2022). Revenue: JP¥4.98b (up 20% from 3Q 2022). Net income: JP¥293.0m (flat on 3Q 2022). Profit margin: 5.9% (down from 7.0% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the IT industry in Japan. 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 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 12
Second quarter 2023 earnings released: EPS: JP¥29.26 (vs JP¥22.32 in 2Q 2022) Second quarter 2023 results: EPS: JP¥29.26 (up from JP¥22.32 in 2Q 2022). Revenue: JP¥4.81b (up 18% from 2Q 2022). Net income: JP¥303.0m (up 31% from 2Q 2022). Profit margin: 6.3% (up from 5.7% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Jan 06
System Support Inc. to Report Q2, 2023 Results on Feb 09, 2023 System Support Inc. announced that they will report Q2, 2023 results on Feb 09, 2023 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 15 March 2023. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.7%). Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 6 experienced directors. 1 highly experienced director. 3 independent directors (5 non-independent directors). Independent Outside Director Sakamoto Yuko was the last independent director to join the board, commencing their role in 2021. 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 11
First quarter 2023 earnings released: EPS: JP¥19.79 (vs JP¥15.65 in 1Q 2022) First quarter 2023 results: EPS: JP¥19.79 (up from JP¥15.65 in 1Q 2022). Revenue: JP¥4.40b (up 18% from 1Q 2022). Net income: JP¥205.0m (up 27% from 1Q 2022). Profit margin: 4.7% (up from 4.4% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 21% per year. Announcement • Oct 02
System Support Inc. to Report Q1, 2023 Results on Nov 09, 2022 System Support Inc. announced that they will report Q1, 2023 results on Nov 09, 2022 Announcement • Aug 12
System Support Inc., Annual General Meeting, Sep 27, 2022 System Support Inc., Annual General Meeting, Sep 27, 2022. Reported Earnings • Aug 12
Full year 2022 earnings released: EPS: JP¥75.84 (vs JP¥65.40 in FY 2021) Full year 2022 results: EPS: JP¥75.84 (up from JP¥65.40 in FY 2021). Revenue: JP¥16.2b (up 12% from FY 2021). Net income: JP¥785.0m (up 17% from FY 2021). Profit margin: 4.8% (up from 4.7% 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 26% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Jul 29
Now 20% undervalued Over the last 90 days, the stock is up 24%. The fair value is estimated to be JP¥1,635, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 27%. Buying Opportunity • Jul 29
Now 20% undervalued Over the last 90 days, the stock is up 24%. The fair value is estimated to be JP¥1,635, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 27%. Announcement • Jul 07
System Support Inc. to Report Fiscal Year 2022 Results on Aug 10, 2022 System Support Inc. announced that they will report fiscal year 2022 results on Aug 10, 2022 Upcoming Dividend • Jun 22
Upcoming dividend of JP¥12.00 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 29 September 2022. 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 (3.8%). Higher than average of industry peers (1.7%). Reported Earnings • May 13
Third quarter 2022 earnings released: EPS: JP¥28.21 (vs JP¥18.89 in 3Q 2021) Third quarter 2022 results: EPS: JP¥28.21 (up from JP¥18.89 in 3Q 2021). Revenue: JP¥4.15b (up 13% from 3Q 2021). Net income: JP¥292.0m (up 50% from 3Q 2021). Profit margin: 7.0% (up from 5.3% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 6 experienced directors. 1 highly experienced director. 3 independent directors (5 non-independent directors). Independent Outside Director Sakamoto Yuko was the last independent director to join the board, commencing their role in 2021. 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 08
System Support Inc. to Report Q3, 2022 Results on May 11, 2022 System Support Inc. announced that they will report Q3, 2022 results on May 11, 2022 Reported Earnings • Feb 12
Second quarter 2022 earnings: Revenues and EPS in line with analyst expectations Second quarter 2022 results: EPS: JP¥22.32 (up from JP¥20.15 in 2Q 2021). Revenue: JP¥4.07b (up 12% from 2Q 2021). Net income: JP¥231.0m (up 11% from 2Q 2021). Profit margin: 5.7% (in line with 2Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 11
First quarter 2022 earnings released: EPS JP¥15.65 (vs JP¥13.29 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥3.72b (up 14% from 1Q 2021). Net income: JP¥162.0m (up 19% from 1Q 2021). Profit margin: 4.4% (up from 4.2% in 1Q 2021). The increase in margin was driven by higher revenue. Reported Earnings • Oct 05
Full year 2021 earnings released: EPS JP¥65.40 (vs JP¥44.82 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥14.4b (up 7.9% from FY 2020). Net income: JP¥674.0m (up 50% from FY 2020). Profit margin: 4.7% (up from 3.4% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 12
Full year 2021 earnings released: EPS JP¥65.40 (vs JP¥44.82 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥14.4b (up 7.9% from FY 2020). Net income: JP¥674.0m (up 50% from FY 2020). Profit margin: 4.7% (up from 3.4% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year whereas the company’s share price has increased by 29% per year. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 29 June 2021. Payment date: 30 September 2021. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.0%). In line with average of industry peers (1.4%). Reported Earnings • May 16
Third quarter 2021 earnings released: EPS JP¥18.89 (vs JP¥16.37 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥3.69b (up 7.2% from 3Q 2020). Net income: JP¥195.0m (up 19% from 3Q 2020). Profit margin: 5.3% (up from 4.8% in 3Q 2020). The increase in margin was driven by higher revenue. Is New 90 Day High Low • Feb 22
New 90-day low: JP¥1,450 The company is down 2.0% from its price of JP¥1,475 on 24 November 2020. The Japanese market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 8.0% over the same period. Reported Earnings • Feb 15
Second quarter 2021 earnings released: EPS JP¥20.15 (vs JP¥13.70 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: JP¥3.64b (up 10% from 2Q 2020). Net income: JP¥208.0m (up 51% from 2Q 2020). Profit margin: 5.7% (up from 4.2% in 2Q 2020). The increase in margin was driven by higher revenue.