New Risk • May 13
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.9% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.9% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (7.0% average weekly change). Announcement • May 12
Business Engineering Corporation, Annual General Meeting, Jun 19, 2026 Business Engineering Corporation, Annual General Meeting, Jun 19, 2026. Announcement • May 09
Business Engineering Corporation to Report Fiscal Year 2026 Results on May 12, 2026 Business Engineering Corporation announced that they will report fiscal year 2026 results on May 12, 2026 Buy Or Sell Opportunity • Apr 15
Now 23% overvalued Over the last 90 days, the stock has fallen 22% to JP¥1,285. The fair value is estimated to be JP¥1,041, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.1% over the last 3 years. Earnings per share has grown by 24%. Revenue is forecast to grow by 5.1% in 2 years. Earnings are forecast to grow by 8.1% in the next 2 years. Buy Or Sell Opportunity • Mar 24
Now 21% overvalued Over the last 90 days, the stock has fallen 25% to JP¥1,234. The fair value is estimated to be JP¥1,019, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.1% over the last 3 years. Earnings per share has grown by 24%. Revenue is forecast to grow by 5.1% in 2 years. Earnings are forecast to grow by 8.1% in the next 2 years. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥26.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 23 June 2026. Payout ratio is a comfortable 36% and the cash payout ratio is 88%. Trailing yield: 4.4%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.8%). Buy Or Sell Opportunity • Feb 09
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 4.5% to JP¥1,365. The fair value is estimated to be JP¥1,096, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.1% over the last 3 years. Earnings per share has grown by 45%. Revenue is forecast to grow by 17% in 2 years. Earnings are forecast to grow by 13% in the next 2 years. Reported Earnings • Feb 07
Third quarter 2026 earnings released Third quarter 2026 results: Revenue: JP¥6.30b (up 22% from 3Q 2025). Net income: JP¥1.21b (up 44% from 3Q 2025). Profit margin: 19% (up from 16% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the IT industry in Japan. New Risk • Dec 28
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 372% Dividend yield: 13% 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 (372% cash payout ratio). Share price has been volatile over the past 3 months (5.7% average weekly change). Announcement • Dec 27
Business Engineering Corporation to Report Q3, 2026 Results on Feb 06, 2026 Business Engineering Corporation announced that they will report Q3, 2026 results on Feb 06, 2026 Buy Or Sell Opportunity • Dec 18
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 28% to JP¥8,000. The fair value is estimated to be JP¥6,516, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.0% over the last 3 years. Earnings per share has grown by 22%. Revenue is forecast to grow by 21% in 2 years. Earnings are forecast to grow by 20% in the next 2 years. Buy Or Sell Opportunity • Dec 03
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 36% to JP¥7,930. The fair value is estimated to be JP¥6,546, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.0% over the last 3 years. Earnings per share has grown by 22%. Revenue is forecast to grow by 21% in 2 years. Earnings are forecast to grow by 20% in the next 2 years. Declared Dividend • Dec 03
First half dividend of JP¥110 announced Shareholders will receive a dividend of JP¥110. Ex-date: 30th March 2026 Payment date: 23rd June 2026 Dividend yield will be 2.4%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (39% earnings payout ratio) and cash flows (74% cash payout ratio). The dividend has increased by an average of 41% 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 28% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 08
Second quarter 2026 earnings released: EPS: JP¥93.32 (vs JP¥71.40 in 2Q 2025) Second quarter 2026 results: EPS: JP¥93.32 (up from JP¥71.40 in 2Q 2025). Revenue: JP¥6.24b (up 24% from 2Q 2025). Net income: JP¥1.12b (up 31% from 2Q 2025). Profit margin: 18% (in line with 2Q 2025). Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has increased by 43% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Oct 29
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. Announcement • Sep 26
Business Engineering Corporation to Report Q2, 2026 Results on Nov 07, 2025 Business Engineering Corporation announced that they will report Q2, 2026 results on Nov 07, 2025 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥78.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 03 December 2025. Payout ratio is a comfortable 31% and the cash payout ratio is 78%. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.2%). Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: JP¥114 (vs JP¥67.06 in 1Q 2025) First quarter 2026 results: EPS: JP¥114 (up from JP¥67.06 in 1Q 2025). Revenue: JP¥6.04b (up 20% from 1Q 2025). Net income: JP¥1.37b (up 71% from 1Q 2025). Profit margin: 23% (up from 16% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.2% 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 19% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥5,940, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 21x in the IT industry in Japan. Total returns to shareholders of 156% over the past three years. New Risk • Jul 17
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 0% Dividend yield: 2.0% 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: Major Risks Shares are highly illiquid. High level of non-cash earnings (27% accrual ratio). Minor Risk Dividend is not well covered by cash flows (0% cash payout ratio). New Risk • Jul 11
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: Major Risk High level of non-cash earnings (27% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (5.4% average weekly change). Declared Dividend • Jul 09
Final dividend of JP¥78.00 announced Shareholders will receive a dividend of JP¥78.00. Ex-date: 29th September 2025 Payment date: 3rd December 2025 Dividend yield will be 2.6%, 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 (78% cash payout ratio). The dividend has increased by an average of 36% 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. Announcement • Jun 29
Business Engineering Corporation to Report Q1, 2026 Results on Aug 08, 2025 Business Engineering Corporation announced that they will report Q1, 2026 results on Aug 08, 2025 Reported Earnings • Jun 24
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥278 (up from JP¥219 in FY 2024). Revenue: JP¥20.8b (up 6.6% from FY 2024). Net income: JP¥3.33b (up 27% from FY 2024). Profit margin: 16% (up from 14% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.0%. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • May 15
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥278 (up from JP¥219 in FY 2024). Revenue: JP¥20.8b (up 6.6% from FY 2024). Net income: JP¥3.33b (up 27% from FY 2024). Profit margin: 16% (up from 14% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.0%. Revenue is forecast to grow 6.1% p.a. on average during the next 2 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 19% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 13
Business Engineering Corporation, Annual General Meeting, Jun 20, 2025 Business Engineering Corporation, Annual General Meeting, Jun 20, 2025. Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥3,715, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 17x in the IT industry in Japan. Total returns to shareholders of 110% over the past three years. Announcement • Mar 27
Business Engineering Corporation to Report Fiscal Year 2025 Results on May 13, 2025 Business Engineering Corporation announced that they will report fiscal year 2025 results on May 13, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥58.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 24 June 2025. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.4%). Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥70.07 (vs JP¥57.54 in 3Q 2024) Third quarter 2025 results: EPS: JP¥70.07 (up from JP¥57.54 in 3Q 2024). Revenue: JP¥5.17b (up 8.0% from 3Q 2024). Net income: JP¥839.0m (up 22% from 3Q 2024). Profit margin: 16% (up from 14% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.8% 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 19% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jan 03
Business Engineering Corporation to Report Q3, 2025 Results on Feb 07, 2025 Business Engineering Corporation announced that they will report Q3, 2025 results on Feb 07, 2025 Declared Dividend • Dec 04
First half dividend of JP¥42.00 announced Shareholders will receive a dividend of JP¥42.00. Ex-date: 28th March 2025 Payment date: 24th June 2025 Dividend yield will be 2.2%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (19% earnings payout ratio) and cash flows (44% cash payout ratio). The dividend has increased by an average of 28% 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 15% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 15
Second quarter 2025 earnings released: EPS: JP¥71.40 (vs JP¥63.31 in 2Q 2024) Second quarter 2025 results: EPS: JP¥71.40 (up from JP¥63.31 in 2Q 2024). Revenue: JP¥5.05b (down 1.1% from 2Q 2024). Net income: JP¥855.0m (up 13% from 2Q 2024). Profit margin: 17% (up from 15% in 2Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 6.0% 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 22% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Sep 26
Business Engineering Corporation to Report Q2, 2025 Results on Nov 12, 2024 Business Engineering Corporation announced that they will report Q2, 2025 results on Nov 12, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥42.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. Payout ratio is a comfortable 34% 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%). Reported Earnings • Aug 07
First quarter 2025 earnings released: EPS: JP¥67.06 (vs JP¥57.00 in 1Q 2024) First quarter 2025 results: EPS: JP¥67.06 (up from JP¥57.00 in 1Q 2024). Revenue: JP¥5.04b (up 7.2% from 1Q 2024). Net income: JP¥803.0m (up 17% from 1Q 2024). Profit margin: 16% (up from 14% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.4% 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 27% per year whereas the company’s share price has increased by 31% per year. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥3,375, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 17x in the IT industry in Japan. Total returns to shareholders of 127% over the past three years. Buy Or Sell Opportunity • Aug 01
Now 21% undervalued Over the last 90 days, the stock has risen 16% to JP¥3,975. The fair value is estimated to be JP¥5,033, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.8% over the last 3 years. Earnings per share has grown by 28%. For the next 3 years, revenue is forecast to grow by 5.5% per annum. Earnings are also forecast to grow by 6.4% per annum over the same time period. Declared Dividend • Jul 11
Final dividend of JP¥42.00 announced Shareholders will receive a dividend of JP¥42.00. Ex-date: 27th September 2024 Payment date: 4th December 2024 Dividend yield will be 2.2%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (33% earnings payout ratio) and cash flows (39% cash payout ratio). The dividend has increased by an average of 28% 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 21% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 27
Business Engineering Corporation to Report Q1, 2025 Results on Aug 02, 2024 Business Engineering Corporation announced that they will report Q1, 2025 results on Aug 02, 2024 Buy Or Sell Opportunity • Jun 12
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.3% to JP¥3,485. The fair value is estimated to be JP¥4,434, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.8% over the last 3 years. Earnings per share has grown by 28%. For the next 3 years, revenue is forecast to grow by 5.5% per annum. Earnings are also forecast to grow by 6.4% per annum over the same time period. Buy Or Sell Opportunity • May 22
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 10% to JP¥3,500. The fair value is estimated to be JP¥4,470, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.8% over the last 3 years. Earnings per share has grown by 28%. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to grow by 12% in the next 2 years. Reported Earnings • May 12
Full year 2024 earnings: EPS in line with analyst expectations despite revenue beat Full year 2024 results: EPS: JP¥219 (up from JP¥194 in FY 2023). Revenue: JP¥19.5b (up 5.3% from FY 2023). Net income: JP¥2.63b (up 13% from FY 2023). Profit margin: 14% (in line with FY 2023). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 4.9% p.a. on average during the next 2 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 28% per year whereas the company’s share price has increased by 27% per year. Announcement • May 12
Business Engineering Corporation, Annual General Meeting, Jun 21, 2024 Business Engineering Corporation, Annual General Meeting, Jun 21, 2024. Announcement • Mar 27
Business Engineering Corporation to Report Fiscal Year 2024 Results on May 10, 2024 Business Engineering Corporation announced that they will report fiscal year 2024 results on May 10, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥44.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.4%). Announcement • Feb 24
Business Engineering Corporation (TSE:4828) agreed to acquire an unknown stake in Aureole Information Technology Inc. Business Engineering Corporation (TSE:4828) agreed to acquire an unknown stake in Aureole Information Technology Inc on February 22, 2024. Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥57.54 (vs JP¥52.08 in 3Q 2023) Third quarter 2024 results: EPS: JP¥57.54 (up from JP¥52.08 in 3Q 2023). Revenue: JP¥4.78b (down 1.9% from 3Q 2023). Net income: JP¥689.0m (up 10% from 3Q 2023). Profit margin: 14% (up from 13% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 5.9% 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 30% per year but the company’s share price has increased by 37% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 28
Business Engineering Corporation to Report Q3, 2024 Results on Feb 09, 2024 Business Engineering Corporation announced that they will report Q3, 2024 results on Feb 09, 2024 New Risk • Nov 29
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 5.5% 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 11
Second quarter 2024 earnings released: EPS: JP¥63.31 (vs JP¥42.92 in 2Q 2023) Second quarter 2024 results: EPS: JP¥63.31 (up from JP¥42.92 in 2Q 2023). Revenue: JP¥5.11b (up 14% from 2Q 2023). Net income: JP¥759.0m (up 47% from 2Q 2023). Profit margin: 15% (up from 12% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.0% 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 30% per year whereas the company’s share price has increased by 28% per year. Announcement • Oct 06
Business Engineering Corporation to Report Q2, 2024 Results on Nov 10, 2023 Business Engineering Corporation announced that they will report Q2, 2024 results on Nov 10, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥32.00 per share at 1.9% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 04 December 2023. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.5%). Reported Earnings • Aug 09
First quarter 2024 earnings released: EPS: JP¥57.00 (vs JP¥47.92 in 1Q 2023) First quarter 2024 results: EPS: JP¥57.00 (up from JP¥47.92 in 1Q 2023). Revenue: JP¥4.70b (up 7.3% from 1Q 2023). Net income: JP¥684.0m (up 19% from 1Q 2023). Profit margin: 14% (up from 13% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 29% per year whereas the company’s share price has increased by 25% per year. Announcement • Jul 07
Business Engineering Corporation to Report Q1, 2024 Results on Aug 04, 2023 Business Engineering Corporation announced that they will report Q1, 2024 results on Aug 04, 2023 Buying Opportunity • Jul 07
Now 20% undervalued Over the last 90 days, the stock is up 2.5%. The fair value is estimated to be JP¥3,915, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 30%. Reported Earnings • May 14
Full year 2023 earnings released: EPS: JP¥194 (vs JP¥137 in FY 2022) Full year 2023 results: EPS: JP¥194 (up from JP¥137 in FY 2022). Revenue: JP¥18.5b (up 4.2% from FY 2022). Net income: JP¥2.33b (up 42% from FY 2022). Profit margin: 13% (up from 9.3% in FY 2022). 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 44% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 12
Business Engineering Corporation, Annual General Meeting, Jun 23, 2023 Business Engineering Corporation, Annual General Meeting, Jun 23, 2023. Buying Opportunity • Apr 04
Now 21% undervalued Over the last 90 days, the stock is up 26%. The fair value is estimated to be JP¥3,832, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 28%. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥43.00 per share at 2.2% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥52.08 (vs JP¥42.90 in 3Q 2022) Third quarter 2023 results: EPS: JP¥52.08 (up from JP¥42.90 in 3Q 2022). Revenue: JP¥4.87b (up 11% from 3Q 2022). Net income: JP¥625.0m (up 22% from 3Q 2022). Profit margin: 13% (up from 12% in 3Q 2022). The increase in margin 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 16% per year, which means it is significantly lagging earnings growth. Announcement • Feb 09
Business Engineering Corporation Provides Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2023 Business Engineering Corporation provided consolidated earnings guidance for the fiscal year ending March 31, 2023. For the period, the company expected net sales of JPY 18,300 million, operating profit of JPY 3,200 million, profit attributable to owners of parent of JPY 2,290 million and basic earnings per share of JPY 190.84. Announcement • Dec 29
Business Engineering Corporation to Report Q3, 2023 Results on Feb 09, 2023 Business Engineering Corporation announced that they will report Q3, 2023 results on Feb 09, 2023 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 not an independent director. The company's board is composed of: 1 new director. 6 experienced directors. 3 highly experienced directors. 4 independent directors (6 non-independent directors). Independent Outside Director Naoki Shimizu was the last independent director to join the board, commencing their role in 2018. 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 13
Second quarter 2023 earnings released: EPS: JP¥42.92 (vs JP¥56.99 in 2Q 2022) Second quarter 2023 results: EPS: JP¥42.92 (down from JP¥56.99 in 2Q 2022). Revenue: JP¥4.48b (down 7.3% from 2Q 2022). Net income: JP¥515.0m (down 24% from 2Q 2022). Profit margin: 12% (down from 14% in 2Q 2022). The decrease in margin was driven by lower 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 12% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥21.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 02 December 2022. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.7%). Buying Opportunity • Aug 15
Now 20% undervalued Over the last 90 days, the stock is up 16%. The fair value is estimated to be JP¥2,977, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 23%. Reported Earnings • Aug 05
First quarter 2023 earnings released: EPS: JP¥47.92 (vs JP¥9.16 in 1Q 2022) First quarter 2023 results: EPS: JP¥47.92 (up from JP¥9.16 in 1Q 2022). Revenue: JP¥4.38b (up 9.0% from 1Q 2022). Net income: JP¥575.0m (up 428% from 1Q 2022). Profit margin: 13% (up from 2.7% in 1Q 2022). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 27% per year. Reported Earnings • May 15
Full year 2022 earnings released: EPS: JP¥275 (vs JP¥233 in FY 2021) Full year 2022 results: EPS: JP¥275 (up from JP¥233 in FY 2021). Revenue: JP¥17.8b (flat on FY 2021). Net income: JP¥1.64b (up 19% from FY 2021). Profit margin: 9.3% (up from 7.7% in FY 2021). 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 24% per year. 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 not an independent director. The company's board is composed of: 1 new director. 6 experienced directors. 4 highly experienced directors. 4 independent directors (7 non-independent directors). Independent Outside Director Naoki Shimizu was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥49.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 28 June 2022. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.5%). Reported Earnings • Feb 12
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥85.80 (up from JP¥44.30 in 3Q 2021). Revenue: JP¥4.39b (up 2.0% from 3Q 2021). Net income: JP¥514.0m (up 96% from 3Q 2021). Profit margin: 12% (up from 6.1% in 3Q 2021). The increase in margin was primarily driven by lower expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Nov 16
Second quarter 2022 earnings released: EPS JP¥114 (vs JP¥51.44 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥4.83b (up 11% from 2Q 2021). Net income: JP¥681.0m (up 124% from 2Q 2021). Profit margin: 14% (up from 7.0% in 2Q 2021). The increase in margin was driven by higher revenue. 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 19% per year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 02 December 2021. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.2%).