Valuation Update With 7 Day Price Move • Jul 13
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥1,970, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 14x in the IT industry in Japan. Total returns to shareholders of 16% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,684 per share. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥24.00 per share Eligible shareholders must have bought the stock before 29 June 2026. Payment date: 16 September 2026. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.9%). Higher than average of industry peers (2.0%). Announcement • Jun 19
Future Corporation to Report Q2, 2026 Results on Jul 29, 2026 Future Corporation announced that they will report Q2, 2026 results on Jul 29, 2026 Price Target Changed • Jun 04
Price target decreased by 7.2% to JP¥2,567 Down from JP¥2,767, the current price target is an average from 3 analysts. New target price is 68% above last closing price of JP¥1,530. Stock is down 30% over the past year. The company is forecast to post earnings per share of JP¥139 for next year compared to JP¥132 last year. Reported Earnings • Apr 29
First quarter 2026 earnings released: EPS: JP¥26.58 (vs JP¥22.53 in 1Q 2025) First quarter 2026 results: EPS: JP¥26.58 (up from JP¥22.53 in 1Q 2025). Revenue: JP¥18.3b (up 5.4% from 1Q 2025). Net income: JP¥2.36b (up 18% from 1Q 2025). Profit margin: 13% (up from 12% in 1Q 2025). 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 5.0% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Apr 21
Future Corporation to Report Q1, 2026 Results on Apr 28, 2026 Future Corporation announced that they will report Q1, 2026 results on Apr 28, 2026 Declared Dividend • Apr 11
Final dividend of JP¥24.00 announced Shareholders will receive a dividend of JP¥24.00. Ex-date: 29th June 2026 Payment date: 16th September 2026 Dividend yield will be 2.9%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (35% earnings payout ratio) and cash flows (64% cash payout ratio). The dividend has increased by an average of 18% 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 35% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 07
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥132 (up from JP¥116 in FY 2024). Revenue: JP¥76.0b (up 8.8% from FY 2024). Net income: JP¥11.7b (up 14% from FY 2024). Profit margin: 15% (in line with FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.5%. Revenue is forecast to grow 12% 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 7% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Feb 06
Future Corporation, Annual General Meeting, Mar 26, 2026 Future Corporation, Annual General Meeting, Mar 26, 2026. Announcement • Jan 07
Future Corporation to Report Fiscal Year 2025 Results on Feb 05, 2026 Future Corporation announced that they will report fiscal year 2025 results on Feb 05, 2026 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥23.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 26 March 2026. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.2%). Reported Earnings • Oct 23
Third quarter 2025 earnings released: EPS: JP¥37.73 (vs JP¥35.45 in 3Q 2024) Third quarter 2025 results: EPS: JP¥37.73 (up from JP¥35.45 in 3Q 2024). Revenue: JP¥19.6b (up 3.6% from 3Q 2024). Net income: JP¥3.35b (up 6.5% from 3Q 2024). Profit margin: 17% (in line with 3Q 2024). Revenue is forecast to grow 12% 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 5% per year but the company’s share price has increased by 12% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Oct 22
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.3% to JP¥2,150. The fair value is estimated to be JP¥2,718, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 6.1%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings are also forecast to grow by 14% per annum over the same time period. Buy Or Sell Opportunity • Oct 02
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.5% to JP¥2,185. The fair value is estimated to be JP¥2,745, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 6.1%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings are also forecast to grow by 14% per annum over the same time period. Announcement • Sep 27
Future Corporation to Report Q3, 2025 Results on Oct 22, 2025 Future Corporation announced that they will report Q3, 2025 results on Oct 22, 2025 Declared Dividend • Sep 17
First half dividend of JP¥23.00 announced Shareholders will receive a dividend of JP¥23.00. Ex-date: 29th December 2025 Payment date: 26th March 2026 Dividend yield will be 2.0%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (39% earnings payout ratio) and cash flows (40% cash payout ratio). The dividend has increased by an average of 19% 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 49% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Sep 02
Now 21% undervalued The stock has been flat over the last 90 days, currently trading at JP¥2,184. The fair value is estimated to be JP¥2,768, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 6.1%. Revenue is forecast to grow by 25% in 2 years. Earnings are forecast to grow by 42% in the next 2 years. Reported Earnings • Jul 25
Second quarter 2025 earnings released: EPS: JP¥29.04 (vs JP¥30.19 in 2Q 2024) Second quarter 2025 results: EPS: JP¥29.04 (down from JP¥30.19 in 2Q 2024). Revenue: JP¥18.3b (up 2.2% from 2Q 2024). Net income: JP¥2.57b (down 3.8% from 2Q 2024). Profit margin: 14% (in line with 2Q 2024). Revenue is forecast to grow 11% 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 6% per year whereas the company’s share price has increased by 11% per year. Price Target Changed • Jul 02
Price target increased by 13% to JP¥2,767 Up from JP¥2,450, the current price target is an average from 3 analysts. New target price is 19% above last closing price of JP¥2,319. Stock is up 51% over the past year. The company is forecast to post earnings per share of JP¥131 for next year compared to JP¥116 last year. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥23.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 17 September 2025. Payout ratio is a comfortable 37% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (4.0%). Higher than average of industry peers (1.2%). Announcement • Jun 19
Future Corporation to Report Q2, 2025 Results on Jul 23, 2025 Future Corporation announced that they will report Q2, 2025 results on Jul 23, 2025 Reported Earnings • Apr 24
First quarter 2025 earnings released: EPS: JP¥22.53 (vs JP¥24.71 in 1Q 2024) First quarter 2025 results: EPS: JP¥22.53 (down from JP¥24.71 in 1Q 2024). Revenue: JP¥17.3b (up 15% from 1Q 2024). Net income: JP¥2.00b (down 8.8% from 1Q 2024). Profit margin: 12% (down from 15% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.6% 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 8% 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¥23.00 announced Shareholders will receive a dividend of JP¥23.00. Ex-date: 27th June 2025 Payment date: 17th September 2025 Dividend yield will be 2.6%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (36% earnings payout ratio) and cash flows (43% cash payout ratio). The dividend has increased by an average of 19% 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 41% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 20
Future Corporation to Report Q1, 2025 Results on Apr 23, 2025 Future Corporation announced that they will report Q1, 2025 results on Apr 23, 2025 Reported Earnings • Feb 05
Full year 2024 earnings: Revenues and EPS in line with analyst expectations Full year 2024 results: EPS: JP¥116 (up from JP¥104 in FY 2023). Revenue: JP¥69.9b (up 18% from FY 2023). Net income: JP¥10.3b (up 12% from FY 2023). Profit margin: 15% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 8.9% 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 increased by 11% per year whereas the company’s share price has increased by 10% per year. Announcement • Feb 04
Future Corporation, Annual General Meeting, Mar 25, 2025 Future Corporation, Annual General Meeting, Mar 25, 2025. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥21.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 28 March 2025. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.4%). Announcement • Dec 03
Future Corporation to Report Fiscal Year 2024 Results on Feb 04, 2025 Future Corporation announced that they will report fiscal year 2024 results on Feb 04, 2025 Reported Earnings • Oct 24
Third quarter 2024 earnings released: EPS: JP¥35.45 (vs JP¥31.61 in 3Q 2023) Third quarter 2024 results: EPS: JP¥35.45 (up from JP¥31.61 in 3Q 2023). Revenue: JP¥19.0b (up 19% from 3Q 2023). Net income: JP¥3.14b (up 12% from 3Q 2023). Profit margin: 17% (in line with 3Q 2023). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 5.0% 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 only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Oct 11
Future Corporation to Report Q3, 2024 Results on Oct 23, 2024 Future Corporation announced that they will report Q3, 2024 results on Oct 23, 2024 Reported Earnings • Jul 26
Second quarter 2024 earnings released: EPS: JP¥30.19 (vs JP¥24.03 in 2Q 2023) Second quarter 2024 results: EPS: JP¥30.19 (up from JP¥24.03 in 2Q 2023). Revenue: JP¥17.9b (up 25% from 2Q 2023). Net income: JP¥2.68b (up 26% from 2Q 2023). Profit margin: 15% (in line with 2Q 2023). 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 19% per year whereas the company’s share price has increased by 21% per year. Declared Dividend • Jul 25
Dividend of JP¥21.00 announced Shareholders will receive a dividend of JP¥21.00. Ex-date: 27th December 2024 Payment date: 28th March 2025 Dividend yield will be 2.5%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (38% earnings payout ratio) and cash flows (61% cash payout ratio). The dividend has increased by an average of 19% 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 • Jun 02
Future Corporation to Report Q2, 2024 Results on Jul 23, 2024 Future Corporation announced that they will report Q2, 2024 results on Jul 23, 2024 Price Target Changed • May 28
Price target decreased by 10% to JP¥2,175 Down from JP¥2,425, the current price target is an average from 2 analysts. New target price is 46% above last closing price of JP¥1,492. Stock is down 15% over the past year. The company is forecast to post earnings per share of JP¥113 for next year compared to JP¥104 last year. Reported Earnings • Apr 25
First quarter 2024 earnings released: EPS: JP¥24.71 (vs JP¥24.74 in 1Q 2023) First quarter 2024 results: EPS: JP¥24.71 (down from JP¥24.74 in 1Q 2023). Revenue: JP¥15.0b (up 7.6% from 1Q 2023). Net income: JP¥2.19b (flat on 1Q 2023). Profit margin: 15% (down from 16% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the IT industry in Japan. 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 17% per year, which means it is significantly lagging earnings growth. Declared Dividend • Apr 11
Final dividend of JP¥21.00 announced Shareholders will receive a dividend of JP¥21.00. Ex-date: 27th June 2024 Payment date: 17th September 2024 Dividend yield will be 2.3%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (55% earnings payout ratio) and cash flows (61% cash payout ratio). The dividend has increased by an average of 19% 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 34% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 24
Future Corporation to Report Q1, 2024 Results on Apr 24, 2024 Future Corporation announced that they will report Q1, 2024 results on Apr 24, 2024 Announcement • Feb 10
Future Corporation, Annual General Meeting, Mar 27, 2024 Future Corporation, Annual General Meeting, Mar 27, 2024. Reported Earnings • Feb 08
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥104 (down from JP¥104 in FY 2022). Revenue: JP¥59.3b (up 10% from FY 2022). Net income: JP¥9.22b (flat on FY 2022). Profit margin: 16% (down from 17% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 6.0%. Revenue is forecast to grow 9.3% 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 29% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥20.00 per share at 2.4% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 24 March 2024. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.5%). Announcement • Dec 05
Future Corporation to Report Fiscal Year 2023 Results on Feb 06, 2024 Future Corporation announced that they will report fiscal year 2023 results on Feb 06, 2024 Price Target Changed • Nov 17
Price target increased by 9.0% to JP¥2,425 Up from JP¥2,225, the current price target is an average from 2 analysts. New target price is 34% above last closing price of JP¥1,806. Stock is up 11% over the past year. The company is forecast to post earnings per share of JP¥111 for next year compared to JP¥104 last year. Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: JP¥31.61 (vs JP¥30.24 in 3Q 2022) Third quarter 2023 results: EPS: JP¥31.61 (up from JP¥30.24 in 3Q 2022). Revenue: JP¥15.9b (up 16% from 3Q 2022). Net income: JP¥2.80b (up 4.6% from 3Q 2022). Profit margin: 18% (down from 20% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.6% 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 32% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Announcement • Aug 27
Future Corporation to Report Q3, 2023 Results on Oct 25, 2023 Future Corporation announced that they will report Q3, 2023 results on Oct 25, 2023 Valuation Update With 7 Day Price Move • Aug 03
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,528, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 18x in the IT industry in Japan. Total returns to shareholders of 91% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,398 per share. Reported Earnings • Jul 28
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: JP¥24.03 (down from JP¥24.07 in 2Q 2022). Revenue: JP¥14.4b (up 7.8% from 2Q 2022). Net income: JP¥2.13b (flat on 2Q 2022). Profit margin: 15% (down from 16% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) also missed analyst estimates by 10%. Revenue is forecast to grow 8.9% 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 33% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Jun 28
Future Corporation to Report Q2, 2023 Results on Jul 27, 2023 Future Corporation announced that they will report Q2, 2023 results on Jul 27, 2023 Upcoming Dividend • Jun 22
Upcoming dividend of JP¥20.00 per share at 2.2% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 19 September 2023. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.6%). Buying Opportunity • Apr 22
Now 21% undervalued Over the last 90 days, the stock is up 15%. The fair value is estimated to be JP¥2,365, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.5% over the last 3 years. Earnings per share has grown by 30%. For the next 3 years, revenue is forecast to grow by 8.7% per annum. Earnings is also forecast to grow by 11% per annum over the same time period. Price Target Changed • Apr 07
Price target increased by 7.5% to JP¥2,150 Up from JP¥2,000, the current price target is an average from 2 analysts. New target price is 21% above last closing price of JP¥1,780. Stock is up 4.1% over the past year. The company is forecast to post earnings per share of JP¥115 for next year compared to JP¥104 last year. Reported Earnings • Mar 29
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: JP¥104 (up from JP¥71.96 in FY 2021). Revenue: JP¥53.7b (up 10% from FY 2021). Net income: JP¥9.24b (up 45% from FY 2021). Profit margin: 17% (up from 13% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.2%. Earnings per share (EPS) exceeded analyst estimates by 6.2%. Revenue is forecast to grow 7.9% 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 30% per year but the company’s share price has increased by 39% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Feb 12
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: JP¥104 (up from JP¥71.96 in FY 2021). Revenue: JP¥53.7b (up 10% from FY 2021). Net income: JP¥9.24b (up 45% from FY 2021). Profit margin: 17% (up from 13% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.2%. Earnings per share (EPS) exceeded analyst estimates by 6.2%. Revenue is forecast to grow 7.9% 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 30% per year whereas the company’s share price has increased by 25% per year. Buying Opportunity • Jan 26
Now 20% undervalued Over the last 90 days, the stock is up 3.2%. The fair value is estimated to be JP¥2,080, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.2% over the last 3 years. Earnings per share has grown by 27%. For the next 3 years, revenue is forecast to grow by 8.0% per annum. Earnings is also forecast to grow by 9.1% per annum over the same time period. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥17.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 24 March 2023. Payout ratio is a comfortable 14% 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%). Announcement • Dec 06
Future Corporation to Report Fiscal Year 2022 Results on Feb 07, 2023 Future Corporation announced that they will report fiscal year 2022 results on Feb 07, 2023 Price Target Changed • Nov 16
Price target increased to JP¥2,000 Up from JP¥1,450, the current price target is provided by 1 analyst. New target price is 28% above last closing price of JP¥1,559. Stock is down 27% over the past year. The company is forecast to post earnings per share of JP¥98.24 for next year compared to JP¥71.96 last year. Board Change • Nov 16
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 9 non-independent directors. Director Noriyuki Ichihara was the last director to join the board, commencing their role in 2020. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: JP¥30.24 (vs JP¥22.08 in 3Q 2021) Third quarter 2022 results: EPS: JP¥30.24 (up from JP¥22.08 in 3Q 2021). Revenue: JP¥13.7b (up 7.9% from 3Q 2021). Net income: JP¥2.68b (up 37% from 3Q 2021). Profit margin: 20% (up from 15% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.0% 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 27% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 30
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: EPS: JP¥24.07 (up from JP¥16.43 in 2Q 2021). Revenue: JP¥13.3b (up 11% from 2Q 2021). Net income: JP¥2.13b (up 47% from 2Q 2021). Profit margin: 16% (up from 12% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 4.6%. Earnings per share (EPS) exceeded analyst estimates by 29%. Over the next year, revenue is forecast to grow 4.1%, compared to a 11% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 20% per year. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 20 September 2022. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.7%). Buying Opportunity • May 06
Now 20% undervalued Over the last 90 days, the stock is up 20%. The fair value is estimated to be JP¥2,272, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.0% over the last 3 years. Earnings per share has grown by 43%. Revenue is forecast to grow by 7.4% in 2 years. Earnings is forecast to decline by 7.8% in the next 2 years. Valuation Update With 7 Day Price Move • May 04
Investor sentiment improved over the past week After last week's 21% share price gain to JP¥1,843, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 19x in the IT industry in Japan. Total returns to shareholders of 89% over the past three years. Reported Earnings • Apr 30
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: EPS: JP¥26.95 (up from JP¥14.04 in 1Q 2021). Revenue: JP¥12.6b (up 14% from 1Q 2021). Net income: JP¥2.39b (up 92% from 1Q 2021). Profit margin: 19% (up from 11% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.2%. Over the next year, revenue is forecast to grow 7.3%, compared to a 7.4% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 10 non-independent directors. Director Kaoru Suzuki was the last director to join the board, commencing their role in 2021. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 09
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: JP¥144 (up from JP¥42.74 in FY 2020). Revenue: JP¥48.7b (up 9.9% from FY 2020). Net income: JP¥6.37b (up 68% from FY 2020). Profit margin: 13% (up from 8.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.2%. Over the next year, revenue is forecast to grow 11%, compared to a 7.4% growth forecast for the industry in Japan. 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. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥23.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 25 March 2022. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.3%). In line with average of industry peers (1.3%). Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS JP¥44.17 (vs JP¥10.53 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥12.7b (up 23% from 3Q 2020). Net income: JP¥1.96b (up 320% from 3Q 2020). Profit margin: 15% (up from 4.5% in 3Q 2020). 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 increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 23
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥2,409, the stock trades at a trailing P/E ratio of 25.8x. Average trailing P/E is 21x in the IT industry in Japan. Total returns to shareholders of 47% over the past three years. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥2,121, the stock trades at a trailing P/E ratio of 22.7x. Average trailing P/E is 23x in the IT industry in Japan. Total returns to shareholders of 37% over the past three years. Reported Earnings • Aug 03
Second quarter 2021 earnings released: EPS JP¥32.86 (vs JP¥27.47 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: JP¥12.0b (up 8.3% from 2Q 2020). Net income: JP¥1.45b (up 19% from 2Q 2020). Profit margin: 12% (up from 11% 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 1% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥21.00 per share Eligible shareholders must have bought the stock before 29 June 2021. Payment date: 18 September 2021. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.4%). Reported Earnings • May 20
First quarter 2021 earnings released: EPS JP¥28.07 (vs JP¥25.65 in 1Q 2020) The company reported a solid first quarter result with improved earnings, although revenues and profit margins were flat. First quarter 2021 results: Revenue: JP¥11.1b (flat on 1Q 2020). Net income: JP¥1.24b (up 8.3% from 1Q 2020). Profit margin: 11% (in line with 1Q 2020). 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 12% per year, which means it is well ahead of earnings. Reported Earnings • May 01
First quarter 2021 earnings released: EPS JP¥28.07 (vs JP¥25.65 in 1Q 2020) The company reported a solid first quarter result with improved earnings, although revenues and profit margins were flat. First quarter 2021 results: Revenue: JP¥11.1b (flat on 1Q 2020). Net income: JP¥1.24b (up 8.3% from 1Q 2020). Profit margin: 11% (in line with 1Q 2020). 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 11% per year, which means it is well ahead of earnings. Reported Earnings • Mar 30
Full year 2020 earnings released: EPS JP¥85.49 (vs JP¥102 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥44.3b (down 2.4% from FY 2019). Net income: JP¥3.80b (down 17% from FY 2019). Profit margin: 8.6% (down from 10.0% in FY 2019). Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Feb 06
Full year 2020 earnings released: EPS JP¥85.49 (vs JP¥102 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥44.3b (down 2.4% from FY 2019). Net income: JP¥3.80b (down 17% from FY 2019). Profit margin: 8.6% (down from 10.0% in FY 2019). Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Feb 06
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 0.7%. Earnings per share (EPS) also surpassed analyst estimates by 1.9%. Over the next year, revenue is forecast to grow 4.3%, compared to a 8.6% growth forecast for the IT industry in Japan. Valuation Update With 7 Day Price Move • Feb 03
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥2,049, the stock is trading at a trailing P/E ratio of 21.8x, up from the previous P/E ratio of 18.9x. This compares to an average P/E of 28x in the IT industry in Japan. Total returns to shareholders over the past three years are 102%. Is New 90 Day High Low • Feb 03
New 90-day high: JP¥2,049 The company is up 14% from its price of JP¥1,800 on 05 November 2020. The Japanese market is also up 14% over the last 90 days, indicating the company’s price trend is similar to the market over that time. Its price trend is also similar to the IT industry, which is up 14% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of JP¥20.00 Per Share Will be paid on the 26th of March to those who are registered shareholders by the 29th of December. The trailing yield of 2.3% is below the top quartile of Japanese dividend payers (3.0%), but it is higher than industry peers (1.3%). Price Target Changed • Dec 01
Price target lowered to JP¥2,300 Down from JP¥2,900, the current price target is provided by 1 analyst. The new target price is 28% above the current share price of JP¥1,801. As of last close, the stock is down 3.1% over the past year.