New Risk • 10h
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 173% Dividend yield: 2.5% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (173% cash payout ratio). Market cap is less than US$100m (JP¥15.2b market cap, or US$95.8m). Reported Earnings • May 15
Full year 2026 earnings released: EPS: JP¥109 (vs JP¥102 in FY 2025) Full year 2026 results: EPS: JP¥109 (up from JP¥102 in FY 2025). Revenue: JP¥23.8b (up 5.6% from FY 2025). Net income: JP¥1.22b (up 6.9% from FY 2025). Profit margin: 5.1% (in line with FY 2025). Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 14
SAKURA KCS Corporation (TSE:4761) announces an Equity Buyback for 220,000 shares, representing 1.96% for ¥396 million. SAKURA KCS Corporation (TSE:4761) announces a share repurchase program. Under the program, the company will repurchase up to 220,000 shares, representing 1.96% of its issued share capital (excluding treasury stock), for a total purchase price of ¥396 million. The purpose of the program is enhancement of corporate value over the medium to long term as one of its critical management priorities, and moving forward, the company intends to work toward enriching shareholder returns and improving capital efficiency..As of March 31, 2026, the company had 11,199,211 issued shares (excluding treasury stock) and 789 treasury shares. Announcement • May 13
SAKURA KCS Corporation, Annual General Meeting, Jun 26, 2026 SAKURA KCS Corporation, Annual General Meeting, Jun 26, 2026. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥31.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 30 June 2026. Payout ratio is a comfortable 43% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.8%). Reported Earnings • Jan 30
Third quarter 2026 earnings released: EPS: JP¥17.95 (vs JP¥20.72 in 3Q 2025) Third quarter 2026 results: EPS: JP¥17.95 (down from JP¥20.72 in 3Q 2025). Revenue: JP¥5.60b (up 4.5% from 3Q 2025). Net income: JP¥201.0m (down 13% from 3Q 2025). Profit margin: 3.6% (down from 4.3% in 3Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 14% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 18
SAKURA KCS Corporation to Report Q3, 2026 Results on Jan 29, 2026 SAKURA KCS Corporation announced that they will report Q3, 2026 results on Jan 29, 2026 Reported Earnings • Nov 01
Second quarter 2026 earnings released: EPS: JP¥17.95 (vs JP¥35.90 in 2Q 2025) Second quarter 2026 results: EPS: JP¥17.95 (down from JP¥35.90 in 2Q 2025). Revenue: JP¥5.50b (up 3.9% from 2Q 2025). Net income: JP¥201.0m (down 50% from 2Q 2025). Profit margin: 3.7% (down from 7.6% in 2Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥17.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 08 December 2025. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.2%). Board Change • Sep 18
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 2 experienced directors. 1 highly experienced director. Independent Outside Director Yoshihiko Norikura is the most experienced director on the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Sep 17
SAKURA KCS Corporation to Report Q2, 2026 Results on Oct 31, 2025 SAKURA KCS Corporation announced that they will report Q2, 2026 results on Oct 31, 2025 New Risk • Sep 11
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.6b (US$98.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.2% average weekly change). Market cap is less than US$100m (JP¥14.6b market cap, or US$98.8m). Reported Earnings • Aug 02
First quarter 2026 earnings released: EPS: JP¥8.22 (vs JP¥2.77 in 1Q 2025) First quarter 2026 results: EPS: JP¥8.22 (up from JP¥2.77 in 1Q 2025). Revenue: JP¥4.96b (up 5.9% from 1Q 2025). Net income: JP¥92.0m (up 197% from 1Q 2025). Profit margin: 1.9% (up from 0.7% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Jul 09
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.9% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (7.9% average weekly change). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Jun 25
Full year 2025 earnings released: EPS: JP¥102 (vs JP¥79.92 in FY 2024) Full year 2025 results: EPS: JP¥102 (up from JP¥79.92 in FY 2024). Revenue: JP¥22.5b (down 1.0% from FY 2024). Net income: JP¥1.15b (up 28% from FY 2024). Profit margin: 5.1% (up from 3.9% in FY 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 17% per year. Announcement • Jun 19
SAKURA KCS Corporation to Report Q1, 2026 Results on Jul 31, 2025 SAKURA KCS Corporation announced that they will report Q1, 2026 results on Jul 31, 2025 Reported Earnings • May 17
Full year 2025 earnings released: EPS: JP¥102 (vs JP¥79.92 in FY 2024) Full year 2025 results: EPS: JP¥102 (up from JP¥79.92 in FY 2024). Revenue: JP¥22.5b (down 1.0% from FY 2024). Net income: JP¥1.15b (up 28% from FY 2024). Profit margin: 5.1% (up from 3.9% in FY 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 13
SAKURA KCS Corporation, Annual General Meeting, Jun 27, 2025 SAKURA KCS Corporation, Annual General Meeting, Jun 27, 2025. Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to JP¥1,348, the stock trades at a trailing P/E ratio of 17.3x. Average trailing P/E is 18x in the IT industry in Japan. Total returns to shareholders of 86% over the past three years. New Risk • Apr 07
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.7% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (7.7% average weekly change). Minor Risks Dividend is not well covered by cash flows (202% cash payout ratio). Large one-off items impacting financial results. Market cap is less than US$100m (JP¥10.7b market cap, or US$72.9m). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥950, the stock trades at a trailing P/E ratio of 12.2x. Average trailing P/E is 15x in the IT industry in Japan. Total returns to shareholders of 29% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥16.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 35% but the company is paying out more than the cash it is generating. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.4%). Announcement • Mar 20
SAKURA KCS Corporation to Report Fiscal Year 2025 Results on May 13, 2025 SAKURA KCS Corporation announced that they will report fiscal year 2025 results on May 13, 2025 New Risk • Mar 03
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (202% cash payout ratio). Share price has been volatile over the past 3 months (7.0% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (JP¥14.2b market cap, or US$94.0m). Valuation Update With 7 Day Price Move • Mar 03
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥1,248, the stock trades at a trailing P/E ratio of 16x. Average trailing P/E is 17x in the IT industry in Japan. Total returns to shareholders of 70% over the past three years. Reported Earnings • Jan 31
Third quarter 2025 earnings released: EPS: JP¥20.72 (vs JP¥20.27 in 3Q 2024) Third quarter 2025 results: EPS: JP¥20.72 (up from JP¥20.27 in 3Q 2024). Revenue: JP¥5.36b (down 4.9% from 3Q 2024). Net income: JP¥232.0m (up 2.2% from 3Q 2024). Profit margin: 4.3% (up from 4.0% in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 11% per year. Announcement • Dec 17
SAKURA KCS Corporation to Report Q3, 2025 Results on Jan 30, 2025 SAKURA KCS Corporation announced that they will report Q3, 2025 results on Jan 30, 2025 Reported Earnings • Nov 02
Second quarter 2025 earnings released: EPS: JP¥35.90 (vs JP¥26.07 in 2Q 2024) Second quarter 2025 results: EPS: JP¥35.90 (up from JP¥26.07 in 2Q 2024). Revenue: JP¥5.30b (down 4.5% from 2Q 2024). Net income: JP¥402.0m (up 38% from 2Q 2024). Profit margin: 7.6% (up from 5.3% in 2Q 2024). Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Sep 21
SAKURA KCS Corporation to Report Q2, 2025 Results on Oct 31, 2024 SAKURA KCS Corporation announced that they will report Q2, 2025 results on Oct 31, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥12.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 09 December 2024. Payout ratio is a comfortable 36% 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 (1.4%). New Risk • Sep 12
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 10% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (10% average weekly change). Minor Risk Market cap is less than US$100m (JP¥13.7b market cap, or US$95.8m). Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to JP¥1,084, the stock trades at a trailing P/E ratio of 16.1x. Average trailing P/E is 14x in the IT industry in Japan. Total returns to shareholders of 39% over the past three years. Reported Earnings • Aug 01
First quarter 2025 earnings released: EPS: JP¥2.77 (vs JP¥15.18 in 1Q 2024) First quarter 2025 results: EPS: JP¥2.77 (down from JP¥15.18 in 1Q 2024). Revenue: JP¥4.69b (down 12% from 1Q 2024). Net income: JP¥31.0m (down 82% from 1Q 2024). Profit margin: 0.7% (down from 3.2% in 1Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 16% per year and the company’s share price has also increased by 16% per year. New Risk • Jul 26
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.2b (US$98.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.8% average weekly change). Market cap is less than US$100m (JP¥15.2b market cap, or US$98.6m). Reported Earnings • Jun 26
Full year 2024 earnings released: EPS: JP¥79.92 (vs JP¥66.79 in FY 2023) Full year 2024 results: EPS: JP¥79.92 (up from JP¥66.79 in FY 2023). Revenue: JP¥22.8b (down 3.5% from FY 2023). Net income: JP¥895.0m (up 20% from FY 2023). Profit margin: 3.9% (up from 3.2% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jun 22
SAKURA KCS Corporation to Report Q1, 2025 Results on Jul 30, 2024 SAKURA KCS Corporation announced that they will report Q1, 2025 results on Jul 30, 2024 Valuation Update With 7 Day Price Move • May 20
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,310, the stock trades at a trailing P/E ratio of 28.9x. Average trailing P/E is 18x in the IT industry in Japan. Total returns to shareholders of 204% over the past three years. Reported Earnings • May 16
Full year 2024 earnings released: EPS: JP¥79.92 (vs JP¥66.79 in FY 2023) Full year 2024 results: EPS: JP¥79.92 (up from JP¥66.79 in FY 2023). Revenue: JP¥22.8b (down 3.5% from FY 2023). Net income: JP¥895.0m (up 20% from FY 2023). Profit margin: 3.9% (up from 3.2% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 41% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 15
SAKURA KCS Corporation, Annual General Meeting, Jun 27, 2024 SAKURA KCS Corporation, Annual General Meeting, Jun 27, 2024. Valuation Update With 7 Day Price Move • Apr 12
Investor sentiment improves as stock rises 42% After last week's 42% share price gain to JP¥2,120, the stock trades at a trailing P/E ratio of 22.7x. Average trailing P/E is 19x in the IT industry in Japan. Total returns to shareholders of 158% over the past three years. Buy Or Sell Opportunity • Apr 05
Now 21% undervalued Over the last 90 days, the stock has risen 68% to JP¥1,488. The fair value is estimated to be JP¥1,895, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.5% over the last 3 years. Earnings per share has grown by 18%. New Risk • Mar 29
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 9.2% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Mar 28
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥1,148, the stock trades at a trailing P/E ratio of 12.3x. Average trailing P/E is 20x in the IT industry in Japan. Total returns to shareholders of 41% over the past three years. Announcement • Mar 21
SAKURA KCS Corporation to Report Fiscal Year 2024 Results on May 13, 2024 SAKURA KCS Corporation announced that they will report fiscal year 2024 results on May 13, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥9.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 2.1% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.4%). Reported Earnings • Feb 02
Third quarter 2024 earnings released: EPS: JP¥20.27 (vs JP¥14.02 in 3Q 2023) Third quarter 2024 results: EPS: JP¥20.27 (up from JP¥14.02 in 3Q 2023). Revenue: JP¥5.64b (up 1.6% from 3Q 2023). Net income: JP¥227.0m (up 45% from 3Q 2023). Profit margin: 4.0% (up from 2.8% in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Dec 17
SAKURA KCS Corporation to Report Q3, 2024 Results on Jan 31, 2024 SAKURA KCS Corporation announced that they will report Q3, 2024 results on Jan 31, 2024 Reported Earnings • Nov 02
Second quarter 2024 earnings released: EPS: JP¥26.07 (vs JP¥18.66 in 2Q 2023) Second quarter 2024 results: EPS: JP¥26.07 (up from JP¥18.66 in 2Q 2023). Revenue: JP¥5.54b (flat on 2Q 2023). Net income: JP¥292.0m (up 40% from 2Q 2023). Profit margin: 5.3% (up from 3.8% in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Sep 21
SAKURA KCS Corporation to Report Q2, 2024 Results on Nov 01, 2023 SAKURA KCS Corporation announced that they will report Q2, 2024 results on Nov 01, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥9.00 per share at 2.2% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 08 December 2023. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.5%). Reported Earnings • Aug 01
First quarter 2024 earnings released: EPS: JP¥15.18 (vs JP¥2.23 in 1Q 2023) First quarter 2024 results: EPS: JP¥15.18 (up from JP¥2.23 in 1Q 2023). Revenue: JP¥5.31b (flat on 1Q 2023). Net income: JP¥170.0m (up JP¥145.0m from 1Q 2023). Profit margin: 3.2% (up from 0.5% in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Reported Earnings • Jun 28
Full year 2023 earnings released: EPS: JP¥66.79 (vs JP¥53.75 in FY 2022) Full year 2023 results: EPS: JP¥66.79 (up from JP¥53.75 in FY 2022). Revenue: JP¥23.6b (down 4.9% from FY 2022). Net income: JP¥748.0m (up 24% from FY 2022). Profit margin: 3.2% (up from 2.4% in FY 2022). The increase in margin was driven by lower expenses. 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 2% per year, which means it is significantly lagging earnings. Announcement • Jun 18
SAKURA KCS Corporation to Report Q1, 2024 Results on Jul 31, 2023 SAKURA KCS Corporation announced that they will report Q1, 2024 results on Jul 31, 2023 Reported Earnings • May 13
Full year 2023 earnings released: EPS: JP¥66.79 (vs JP¥53.75 in FY 2022) Full year 2023 results: EPS: JP¥66.79 (up from JP¥53.75 in FY 2022). Revenue: JP¥23.6b (down 4.9% from FY 2022). Net income: JP¥748.0m (up 24% from FY 2022). Profit margin: 3.2% (up from 2.4% in FY 2022). The increase in margin was driven by lower expenses. 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 3% per year, which means it is significantly lagging earnings. Announcement • May 13
SAKURA KCS Corporation, Annual General Meeting, Jun 29, 2023 SAKURA KCS Corporation, Annual General Meeting, Jun 29, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥7.00 per share at 1.7% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.7%). Reported Earnings • Feb 01
Third quarter 2023 earnings released: EPS: JP¥14.02 (vs JP¥0.71 loss in 3Q 2022) Third quarter 2023 results: EPS: JP¥14.02 (up from JP¥0.71 loss in 3Q 2022). Revenue: JP¥5.55b (down 7.5% from 3Q 2022). Net income: JP¥157.0m (up JP¥165.0m from 3Q 2022). Profit margin: 2.8% (up from net loss in 3Q 2022). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Dec 21
SAKURA KCS Corporation to Report Q3, 2023 Results on Jan 31, 2023 SAKURA KCS Corporation announced that they will report Q3, 2023 results on Jan 31, 2023 Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 8 highly experienced directors. No independent directors (6 non-independent directors). Standing Corporate Auditor Hiroharu Matsuda was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Nov 02
Second quarter 2023 earnings released: EPS: JP¥18.66 (vs JP¥13.22 in 2Q 2022) Second quarter 2023 results: EPS: JP¥18.66 (up from JP¥13.22 in 2Q 2022). Revenue: JP¥5.55b (down 5.8% from 2Q 2022). Net income: JP¥209.0m (up 41% from 2Q 2022). Profit margin: 3.8% (up from 2.5% in 2Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥7.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 08 December 2022. Payout ratio is a comfortable 24% but the company is not cash flow positive. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (1.7%). Announcement • Sep 18
SAKURA KCS Corporation to Report Q2, 2023 Results on Oct 31, 2022 SAKURA KCS Corporation announced that they will report Q2, 2023 results on Oct 31, 2022 Reported Earnings • Jul 31
First quarter 2023 earnings released: EPS: JP¥2.23 (vs JP¥2.14 loss in 1Q 2022) First quarter 2023 results: EPS: JP¥2.23 (up from JP¥2.14 loss in 1Q 2022). Revenue: JP¥5.28b (down 9.2% from 1Q 2022). Net income: JP¥25.0m (up JP¥49.0m from 1Q 2022). Profit margin: 0.5% (up from net loss in 1Q 2022). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has fallen by 2% per year. Reported Earnings • Jun 26
Full year 2022 earnings released: EPS: JP¥53.75 (vs JP¥65.72 in FY 2021) Full year 2022 results: EPS: JP¥53.75 (down from JP¥65.72 in FY 2021). Revenue: JP¥24.8b (flat on FY 2021). Net income: JP¥602.0m (down 18% from FY 2021). Profit margin: 2.4% (down from 3.0% in FY 2021). 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 4% per year, which means it is significantly lagging earnings. Announcement • Jun 15
SAKURA KCS Corporation to Report Q1, 2023 Results on Jul 29, 2022 SAKURA KCS Corporation announced that they will report Q1, 2023 results on Jul 29, 2022 Reported Earnings • May 15
Full year 2022 earnings released: EPS: JP¥53.75 (vs JP¥65.72 in FY 2021) Full year 2022 results: EPS: JP¥53.75 (down from JP¥65.72 in FY 2021). Revenue: JP¥24.8b (flat on FY 2021). Net income: JP¥602.0m (down 18% from FY 2021). Profit margin: 2.4% (down from 3.0% in FY 2021). 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 2% per year, which means it is significantly lagging earnings. Announcement • May 14
SAKURA KCS Corporation, Annual General Meeting, Jun 29, 2022 SAKURA KCS Corporation, Annual General Meeting, Jun 29, 2022. Board Change • Apr 27
No independent directors 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. No independent directors (7 non-independent directors). Standing Corporate Auditor Hiroharu Matsuda was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Announcement • Apr 08
SAKURA KCS Corporation to Report Fiscal Year 2022 Results on May 12, 2022 SAKURA KCS Corporation announced that they will report fiscal year 2022 results on May 12, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥6.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 30 June 2022. Payout ratio is a comfortable 28% 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 (1.5%). Reported Earnings • Feb 02
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: JP¥0.71 loss per share (down from JP¥7.95 profit in 3Q 2021). Revenue: JP¥6.00b (up 7.3% from 3Q 2021). Net loss: JP¥8.00m (down 109% from profit in 3Q 2021). Revenue was in line with analyst estimates. 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 4% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Dec 13
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥950, the stock trades at a trailing P/E ratio of 18.4x. Average trailing P/E is 20x in the IT industry in Japan. Total returns to shareholders of 10% over the past three years. Reported Earnings • Oct 28
Second quarter 2022 earnings released: EPS JP¥13.22 (vs JP¥28.31 in 2Q 2021) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥5.89b (down 3.0% from 2Q 2021). Net income: JP¥148.0m (down 53% from 2Q 2021). Profit margin: 2.5% (down from 5.2% in 2Q 2021). 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 4% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥6.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 08 December 2021. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.2%). Reported Earnings • Aug 03
First quarter 2022 earnings released: JP¥2.14 loss per share (vs JP¥3.04 loss in 1Q 2021) The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2022 results: Revenue: JP¥5.82b (up 22% from 1Q 2021). Net loss: JP¥24.0m (loss narrowed 29% from 1Q 2021). Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • May 18
Full year 2021 earnings released: EPS JP¥65.72 (vs JP¥42.24 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥24.7b (up 3.5% from FY 2020). Net income: JP¥736.0m (up 56% from FY 2020). Profit margin: 3.0% (up from 2.0% 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 26% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥6.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 29 June 2021. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (2.7%). In line with average of industry peers (1.3%). Announcement • Mar 14
SAKURA KCS Corporation to Report Fiscal Year 2021 Results on May 14, 2021 SAKURA KCS Corporation announced that they will report fiscal year 2021 results on May 14, 2021 Is New 90 Day High Low • Mar 02
New 90-day low: JP¥900 The company is down 2.0% from its price of JP¥915 on 02 December 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is flat over the same period. Reported Earnings • Feb 02
Third quarter 2021 earnings released: EPS JP¥7.95 (vs JP¥6.79 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥5.59b (up 11% from 3Q 2020). Net income: JP¥89.0m (up JP¥165.0m from 3Q 2020). Profit margin: 1.6% (up from net loss in 3Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Dec 19
SAKURA KCS Corporation to Report Q3, 2021 Results on Jan 29, 2021 SAKURA KCS Corporation announced that they will report Q3, 2021 results on Jan 29, 2021 Is New 90 Day High Low • Dec 14
New 90-day high: JP¥983 The company is up 8.0% from its price of JP¥910 on 15 September 2020. The Japanese market is also up 8.0% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it outperformed the IT industry, which is up 6.0% over the same period. Announcement • Sep 24
SAKURA KCS Corporation to Report Q2, 2021 Results on Nov 04, 2020 SAKURA KCS Corporation announced that they will report Q2, 2021 results on Nov 04, 2020 Announcement • Jun 28
SAKURA KCS Corporation to Report Q1, 2021 Results on Jul 31, 2020 SAKURA KCS Corporation announced that they will report Q1, 2021 results on Jul 31, 2020