New Risk • May 14
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.7b (US$99.4m) 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. This is currently the only risk that has been identified for the company. Announcement • May 10
SERAKU Co., Ltd. to Report Q3, 2026 Results on Jul 15, 2026 SERAKU Co., Ltd. announced that they will report Q3, 2026 results on Jul 15, 2026 Buy Or Sell Opportunity • Apr 27
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to JP¥1,391. The fair value is estimated to be JP¥1,765, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.4% over the last 3 years. Earnings per share has grown by 8.3%. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 22% in the next 2 years. Reported Earnings • Apr 16
Second quarter 2026 earnings released: EPS: JP¥26.58 (vs JP¥32.39 in 2Q 2025) Second quarter 2026 results: EPS: JP¥26.58 (down from JP¥32.39 in 2Q 2025). Revenue: JP¥6.24b (up 2.3% from 2Q 2025). Net income: JP¥352.0m (down 19% from 2Q 2025). Profit margin: 5.6% (down from 7.2% in 2Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.6% 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 8% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Declared Dividend • Apr 16
Dividend of JP¥17.40 announced Shareholders will receive a dividend of JP¥17.40. Ex-date: 28th August 2026 Payment date: 25th November 2026 Dividend yield will be 1.2%, which is lower than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (11% earnings payout ratio) and cash flows (15% cash payout ratio). The dividend has increased by an average of 26% per year over the past 8 years and payments have been stable during that time. EPS is expected to grow by 8.6% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 07
SERAKU Co., Ltd. to Report Q2, 2026 Results on Apr 14, 2026 SERAKU Co., Ltd. announced that they will report Q2, 2026 results on Apr 14, 2026 Reported Earnings • Jan 15
First quarter 2026 earnings released: EPS: JP¥26.86 (vs JP¥35.61 in 1Q 2025) First quarter 2026 results: EPS: JP¥26.86 (down from JP¥35.61 in 1Q 2025). Revenue: JP¥6.25b (flat on 1Q 2025). Net income: JP¥356.0m (down 26% from 1Q 2025). Profit margin: 5.7% (down from 7.8% in 1Q 2025). Revenue is forecast to grow 6.3% 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 12% per year whereas the company’s share price has increased by 7% per year. Announcement • Nov 05
SERAKU Co., Ltd. to Report Q1, 2026 Results on Jan 14, 2026 SERAKU Co., Ltd. announced that they will report Q1, 2026 results on Jan 14, 2026 Buy Or Sell Opportunity • Oct 16
Now 26% undervalued The stock has been flat over the last 90 days, currently trading at JP¥1,506. The fair value is estimated to be JP¥2,027, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10.0% over the last 3 years. Earnings per share has grown by 16%. Revenue is forecast to grow by 21% in 2 years. Earnings are forecast to grow by 35% in the next 2 years. Announcement • Oct 15
SERAKU Co., Ltd., Annual General Meeting, Nov 21, 2025 SERAKU Co., Ltd., Annual General Meeting, Nov 21, 2025. Upcoming Dividend • Aug 21
Upcoming dividend of JP¥13.20 per share Eligible shareholders must have bought the stock before 28 August 2025. Payment date: 25 November 2025. Payout ratio is a comfortable 10% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (1.2%). Announcement • Aug 08
SERAKU Co., Ltd. to Report Fiscal Year 2025 Results on Oct 15, 2025 SERAKU Co., Ltd. announced that they will report fiscal year 2025 results on Oct 15, 2025 Announcement • Aug 07
SERAKU Co., Ltd. (TSE:6199) announces an Equity Buyback for 400,000 shares, representing 2.89% for ¥400 million. SERAKU Co., Ltd. (TSE:6199) announces a share repurchase program. Under the program, the company will repurchase up to 400,000 shares, representing 2.89% of its total shares outstanding excluding treasury shares, for a total of ¥400 million. The purpose of repurchase program is to execute a flexible capital policy in response to changes in the business environment, to be utilized in M&A activities, and for incentive plans, as well as to return profits to shareholders. The repurchase program is valid till July 31, 2026. As of July 31, 2025, the company had 13,835,900 shares outstanding excluding treasury shares and had 349,670 shares in treasury. Reported Earnings • Jul 17
Third quarter 2025 earnings released: EPS: JP¥29.52 (vs JP¥27.79 in 3Q 2024) Third quarter 2025 results: EPS: JP¥29.52 (up from JP¥27.79 in 3Q 2024). Revenue: JP¥6.25b (up 11% from 3Q 2024). Net income: JP¥396.2m (up 3.7% from 3Q 2024). Profit margin: 6.3% (down from 6.8% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.0% 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 18% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. New Risk • Jul 09
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 5.7% 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 (47% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (5.7% average weekly change). Announcement • May 02
SERAKU Co., Ltd. to Report Q3, 2025 Results on Jul 15, 2025 SERAKU Co., Ltd. announced that they will report Q3, 2025 results on Jul 15, 2025 Valuation Update With 7 Day Price Move • Apr 21
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,411, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 18x in the IT industry in Japan. Total returns to shareholders of 26% over the past three years. Declared Dividend • Apr 16
Dividend of JP¥13.20 announced Shareholders will receive a dividend of JP¥13.20. Ex-date: 28th August 2025 Payment date: 25th November 2025 Dividend yield will be 0.9%, which is lower than the industry average of 1.4%. Payout Ratios Payout ratio: 10%. Cash payout ratio: 16%. Reported Earnings • Apr 15
Second quarter 2025 earnings released: EPS: JP¥32.39 (vs JP¥33.98 in 2Q 2024) Second quarter 2025 results: EPS: JP¥32.39 (down from JP¥33.98 in 2Q 2024). Revenue: JP¥6.09b (up 12% from 2Q 2024). Net income: JP¥436.7m (down 6.9% from 2Q 2024). Profit margin: 7.2% (down from 8.6% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.9% 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 19% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Feb 13
SERAKU Co., Ltd. to Report Q2, 2025 Results on Apr 14, 2025 SERAKU Co., Ltd. announced that they will report Q2, 2025 results on Apr 14, 2025 Reported Earnings • Jan 15
First quarter 2025 earnings released: EPS: JP¥35.59 (vs JP¥21.48 in 1Q 2024) First quarter 2025 results: EPS: JP¥35.59 (up from JP¥21.48 in 1Q 2024). Revenue: JP¥6.20b (up 16% from 1Q 2024). Net income: JP¥481.0m (up 60% from 1Q 2024). Profit margin: 7.8% (up from 5.6% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the IT industry in Japan. 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. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,543, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 19x in the IT industry in Japan. Total returns to shareholders of 33% over the past three years. Announcement • Nov 22
SERAKU Co., Ltd. to Report Q1, 2025 Results on Jan 14, 2025 SERAKU Co., Ltd. announced that they will report Q1, 2025 results on Jan 14, 2025 Reported Earnings • Oct 17
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥114 (up from JP¥105 in FY 2023). Revenue: JP¥22.2b (up 6.5% from FY 2023). Net income: JP¥1.58b (up 7.0% from FY 2023). Profit margin: 7.1% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.8%. Revenue is forecast to grow 7.3% p.a. on average during the next 2 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 13% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Aug 22
SERAKU Co., Ltd. to Report Fiscal Year 2024 Results on Oct 15, 2024 SERAKU Co., Ltd. announced that they will report fiscal year 2024 results on Oct 15, 2024 Upcoming Dividend • Aug 22
Upcoming dividend of JP¥13.00 per share Eligible shareholders must have bought the stock before 29 August 2024. Payment date: 25 November 2024. Payout ratio is a comfortable 10% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (1.5%). Announcement • Aug 08
SERAKU Co., Ltd. (TSE:6199) announces an Equity Buyback for 400,000 shares, representing 2.92% for ¥400 million. SERAKU Co., Ltd. (TSE:6199) announces a share repurchase program. Under the program, the company will repurchase up to 400,000 shares, representing 2.92% of its total shares outstanding excluding treasury shares, for a total of ¥400 million. The purpose of repurchase program is to implement a flexible capital policy in response to changes in the business environment, utilizing the stock in M&A and incentive plans, and to return profits to shareholders. The repurchase program is valid till July 31, 2025. As of July 31, 2024, the company had 13,692,630 shares outstanding excluding treasury shares and had 305,670 shares in treasury. New Risk • Aug 05
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥13.3b (US$93.3m) 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 (7.0% average weekly change). Market cap is less than US$100m (JP¥13.3b market cap, or US$93.3m). New Risk • Aug 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.5% 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. Valuation Update With 7 Day Price Move • Aug 02
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥1,153, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 19x in the IT industry in Japan. Total loss to shareholders of 36% over the past three years. Reported Earnings • Jul 16
Third quarter 2024 earnings released: EPS: JP¥27.78 (vs JP¥24.23 in 3Q 2023) Third quarter 2024 results: EPS: JP¥27.78 (up from JP¥24.23 in 3Q 2023). Revenue: JP¥5.62b (up 6.0% from 3Q 2023). Net income: JP¥381.9m (up 13% from 3Q 2023). Profit margin: 6.8% (up from 6.4% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.9% 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 10% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Announcement • Jun 06
SERAKU Co., Ltd. to Report Q3, 2024 Results on Jul 12, 2024 SERAKU Co., Ltd. announced that they will report Q3, 2024 results on Jul 12, 2024 Declared Dividend • Apr 15
Dividend of JP¥13.00 announced Shareholders will receive a dividend of JP¥13.00. Ex-date: 29th August 2024 Payment date: 25th November 2024 Dividend yield will be 1.2%, which is lower than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (10% earnings payout ratio) and cash flows (13% cash payout ratio). The dividend has increased by an average of 26% per year over the past 6 years and payments have been stable during that time. EPS is expected to grow by 38% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 14
Second quarter 2024 earnings released: EPS: JP¥33.97 (vs JP¥32.19 in 2Q 2023) Second quarter 2024 results: EPS: JP¥33.97 (up from JP¥32.19 in 2Q 2023). Revenue: JP¥5.46b (up 6.5% from 2Q 2023). Net income: JP¥468.8m (up 4.2% from 2Q 2023). Profit margin: 8.6% (down from 8.8% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.7% 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 10% per year but the company’s share price has fallen by 21% per year, which means it is significantly lagging earnings. New Risk • Apr 12
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.2b (US$99.4m) 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. This is currently the only risk that has been identified for the company. Announcement • Feb 21
SERAKU Co., Ltd. to Report Q2, 2024 Results on Apr 12, 2024 SERAKU Co., Ltd. announced that they will report Q2, 2024 results on Apr 12, 2024 New Risk • Feb 16
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.8b (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. This is currently the only risk that has been identified for the company. Reported Earnings • Jan 15
First quarter 2024 earnings released: EPS: JP¥21.48 (vs JP¥29.02 in 1Q 2023) First quarter 2024 results: EPS: JP¥21.48 (down from JP¥29.02 in 1Q 2023). Revenue: JP¥5.36b (up 6.6% from 1Q 2023). Net income: JP¥300.0m (down 26% from 1Q 2023). Profit margin: 5.6% (down from 8.1% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.6% 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 12% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Nov 27
SERAKU Co., Ltd. to Report Q1, 2024 Results on Jan 12, 2024 SERAKU Co., Ltd. announced that they will report Q1, 2024 results on Jan 12, 2024 Announcement • Nov 17
SERAKU Co., Ltd. (TSE:6199) announces an Equity Buyback for 400,000 shares, representing 2.86% for ¥400 million. SERAKU Co., Ltd. (TSE:6199) announces a share repurchase program. Under the program, the company will repurchase up to 400,000 shares, representing 2.86% of its issued share capital, for ¥400 million. The purpose of the program is implementation of flexible capital policy in response to changes in the business environment, utilization in M&A, and incentives. The program is valid till October 31, 2024. As of August 31, 2023, the company had 13,988,270 issued shares (excluding treasury stock) and 130 shares in treasury. New Risk • Oct 24
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Reported Earnings • Oct 15
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥105 (up from JP¥69.35 in FY 2022). Revenue: JP¥20.9b (up 17% from FY 2022). Net income: JP¥1.47b (up 52% from FY 2022). Profit margin: 7.1% (up from 5.4% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.1%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 6.0% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 21% per year, which means it is significantly lagging earnings. Announcement • Oct 13
SERAKU Co., Ltd., Annual General Meeting, Nov 22, 2023 SERAKU Co., Ltd., Annual General Meeting, Nov 22, 2023. Upcoming Dividend • Aug 23
Upcoming dividend of JP¥8.60 per share at 0.7% yield Eligible shareholders must have bought the stock before 30 August 2023. Payment date: 28 November 2023. Payout ratio is a comfortable 5.4% and this is well supported by cash flows. Trailing yield: 0.7%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (1.6%). Announcement • Aug 06
SERAKU Co., Ltd. to Report Fiscal Year 2023 Results on Oct 13, 2023 SERAKU Co., Ltd. announced that they will report fiscal year 2023 results on Oct 13, 2023 Reported Earnings • Jul 16
Third quarter 2023 earnings released: EPS: JP¥24.23 (vs JP¥18.65 in 3Q 2022) Third quarter 2023 results: EPS: JP¥24.23 (up from JP¥18.65 in 3Q 2022). Revenue: JP¥5.31b (up 14% from 3Q 2022). Net income: JP¥339.0m (up 30% from 3Q 2022). Profit margin: 6.4% (up from 5.6% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • May 17
SERAKU Co., Ltd. to Report Q3, 2023 Results on Jul 14, 2023 SERAKU Co., Ltd. announced that they will report Q3, 2023 results on Jul 14, 2023 Reported Earnings • Apr 16
Second quarter 2023 earnings released: EPS: JP¥32.19 (vs JP¥20.61 in 2Q 2022) Second quarter 2023 results: EPS: JP¥32.19 (up from JP¥20.61 in 2Q 2022). Revenue: JP¥5.13b (up 17% from 2Q 2022). Net income: JP¥450.0m (up 57% from 2Q 2022). Profit margin: 8.8% (up from 6.6% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 6.4% 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 26% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improved over the past week After last week's 27% share price gain to JP¥1,463, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 18x in the IT industry in Japan. Total returns to shareholders of 14% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥729 per share. Reported Earnings • Jan 14
First quarter 2023 earnings released: EPS: JP¥29.06 (vs JP¥12.23 in 1Q 2022) First quarter 2023 results: EPS: JP¥29.06 (up from JP¥12.23 in 1Q 2022). Revenue: JP¥5.03b (up 22% from 1Q 2022). Net income: JP¥405.6m (up 139% from 1Q 2022). Profit margin: 8.1% (up from 4.1% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Reported Earnings • Dec 04
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥69.35 (down from JP¥89.77 in FY 2021). Revenue: JP¥17.9b (up 17% from FY 2021). Net income: JP¥966.0m (down 22% from FY 2021). Profit margin: 5.4% (down from 8.1% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.9%. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 6.7% 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 16% per year, which means it is significantly lagging earnings growth. Announcement • Nov 19
SERAKU Co., Ltd. to Report Q1, 2023 Results on Jan 13, 2023 SERAKU Co., Ltd. announced that they will report Q1, 2023 results on Jan 13, 2023 Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Outside Director Naoaki Yamazaki was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 17
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥69.35 (down from JP¥89.77 in FY 2021). Revenue: JP¥17.9b (up 17% from FY 2021). Net income: JP¥966.0m (down 22% from FY 2021). Profit margin: 5.4% (down from 8.1% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.9%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 6.8% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 20% per year. Announcement • Oct 16
SERAKU Co., Ltd., Annual General Meeting, Nov 25, 2022 SERAKU Co., Ltd., Annual General Meeting, Nov 25, 2022. Upcoming Dividend • Aug 23
Upcoming dividend of JP¥8.60 per share Eligible shareholders must have bought the stock before 30 August 2022. Payment date: 28 November 2022. Payout ratio is a comfortable 7.8% and this is well supported by cash flows. Trailing yield: 0.5%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (1.6%). Announcement • Aug 21
SERAKU Co., Ltd. to Report Fiscal Year 2022 Results on Oct 14, 2022 SERAKU Co., Ltd. announced that they will report fiscal year 2022 results on Oct 14, 2022 Valuation Update With 7 Day Price Move • Jul 22
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥1,233, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 19x in the IT industry in Japan. Total returns to shareholders of 62% over the past three years. Reported Earnings • Jul 15
Third quarter 2022 earnings released: EPS: JP¥18.62 (vs JP¥18.80 in 3Q 2021) Third quarter 2022 results: EPS: JP¥18.62 (down from JP¥18.80 in 3Q 2021). Revenue: JP¥4.64b (up 15% from 3Q 2021). Net income: JP¥259.5m (flat on 3Q 2021). Profit margin: 5.6% (down from 6.4% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 31%, compared to a 11% growth forecast for the 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 14% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 07
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥1,254, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 18x in the IT industry in Japan. Total returns to shareholders of 91% over the past three years. Announcement • May 15
SERAKU Co., Ltd. to Report Q3, 2022 Results on Jul 14, 2022 SERAKU Co., Ltd. announced that they will report Q3, 2022 results on Jul 14, 2022 Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Outside Director Naoaki Yamazaki was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 14
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: EPS: JP¥20.61 (down from JP¥30.21 in 2Q 2021). Revenue: JP¥4.38b (up 17% from 2Q 2021). Net income: JP¥287.0m (down 31% from 2Q 2021). Profit margin: 6.6% (down from 11% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 5.7%. Earnings per share (EPS) exceeded analyst estimates by 3.8%. Over the next year, revenue is forecast to grow 30%, compared to a 7.8% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. Announcement • Feb 11
SERAKU Co., Ltd. to Report Q2, 2022 Results on Apr 13, 2022 SERAKU Co., Ltd. announced that they will report Q2, 2022 results on Apr 13, 2022 Announcement • Jan 22
SERAKU Co., Ltd. Provides Consolidated Earnings Guidance for the First Half and Full Year of Fiscal Year Ending August 31, 2022 SERAKU Co., Ltd. provided consolidated earnings guidance for the first half and full year of fiscal year ending August 31, 2022. For the first half, the company expects net sales of ¥8,750 million, operating profit of ¥440 million and profit attributable to owners of parent of ¥400 million and net income per share of ¥28.77. For the year, the company expects net sales of ¥19,000 million, operating profit of ¥1,550 million and profit attributable to owners of parent of ¥1,250 million and net income per share of ¥89.91. Reported Earnings • Jan 14
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: EPS: JP¥12.23 (down from JP¥20.77 in 1Q 2021). Revenue: JP¥4.11b (up 17% from 1Q 2021). Net income: JP¥170.0m (down 41% from 1Q 2021). Profit margin: 4.1% (down from 8.1% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.8%. Earnings per share (EPS) surpassed analyst estimates by 3.8%. Over the next year, revenue is forecast to grow 28%, compared to a 7.3% growth forecast for the industry in Japan. Reported Earnings • Dec 05
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: JP¥89.77 (up from JP¥47.50 in FY 2020). Revenue: JP¥15.3b (up 11% from FY 2020). Net income: JP¥1.24b (up 90% from FY 2020). Profit margin: 8.1% (up from 4.7% 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 3.8%. Earnings per share (EPS) surpassed analyst estimates by 3.8%. Over the next year, revenue is forecast to grow 25%, compared to a 7.7% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Reported Earnings • Oct 16
Full year 2021 earnings released: EPS JP¥89.77 (vs JP¥47.50 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥15.3b (up 11% from FY 2020). Net income: JP¥1.24b (up 90% from FY 2020). Profit margin: 8.1% (up from 4.7% 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 46% per year but the company’s share price has only increased by 33% per year, which means it is significantly lagging earnings growth.