Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥538, the stock trades at a trailing P/E ratio of 12x. Average trailing P/E is 15x in the IT industry in Japan. Total loss to shareholders of 41% over the past three years. Reported Earnings • Apr 16
Second quarter 2026 earnings released: EPS: JP¥17.75 (vs JP¥16.28 in 2Q 2025) Second quarter 2026 results: EPS: JP¥17.75 (up from JP¥16.28 in 2Q 2025). Revenue: JP¥1.37b (up 9.4% from 2Q 2025). Net income: JP¥155.0m (up 9.2% from 2Q 2025). Profit margin: 11% (in line with 2Q 2025). Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Declared Dividend • Apr 16
Dividend of JP¥10.00 announced Shareholders will receive a dividend of JP¥10.00. Ex-date: 28th August 2026 Payment date: 27th November 2026 Dividend yield will be 2.1%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (23% earnings payout ratio) and cash flows (10% cash payout ratio). The company is yet to establish a track record of dividend growth or stability as it hasn't paid a regular dividend for at least 2 years. Earnings per share has grown by 6.0% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Apr 07
Goodpatch, Inc. to Report Q2, 2026 Results on Apr 14, 2026 Goodpatch, Inc. announced that they will report Q2, 2026 results on Apr 14, 2026 Reported Earnings • Jan 15
First quarter 2026 earnings released: EPS: JP¥6.87 (vs JP¥13.10 in 1Q 2025) First quarter 2026 results: EPS: JP¥6.87 (down from JP¥13.10 in 1Q 2025). Revenue: JP¥1.21b (down 2.3% from 1Q 2025). Net income: JP¥60.0m (down 48% from 1Q 2025). Profit margin: 5.0% (down from 9.4% in 1Q 2025). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥651, the stock trades at a trailing P/E ratio of 14x. Average trailing P/E is 17x in the IT industry in Japan. Total returns to shareholders of 18% over the past three years. Announcement • Nov 28
Goodpatch, Inc. to Report Q1, 2026 Results on Jan 14, 2026 Goodpatch, Inc. announced that they will report Q1, 2026 results on Jan 14, 2026 Reported Earnings • Oct 17
Full year 2025 earnings released: EPS: JP¥46.34 (vs JP¥1.21 in FY 2024) Full year 2025 results: EPS: JP¥46.34 (up from JP¥1.21 in FY 2024). Revenue: JP¥5.09b (up 29% from FY 2024). Net income: JP¥407.0m (up JP¥396.0m from FY 2024). Profit margin: 8.0% (up from 0.3% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 16
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥716, the stock trades at a trailing P/E ratio of 17.1x. Average trailing P/E is 17x in the IT industry in Japan. Total returns to shareholders of 4.2% over the past three years. Announcement • Oct 15
Goodpatch, Inc., Annual General Meeting, Nov 26, 2025 Goodpatch, Inc., Annual General Meeting, Nov 26, 2025. Valuation Update With 7 Day Price Move • Aug 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥982, the stock trades at a trailing P/E ratio of 23.5x. Average trailing P/E is 18x in the IT industry in Japan. Total returns to shareholders of 12% over the past three years. Announcement • Aug 01
Goodpatch, Inc. to Report Fiscal Year 2025 Results on Oct 15, 2025 Goodpatch, Inc. announced that they will report fiscal year 2025 results on Oct 15, 2025 Reported Earnings • Jul 17
Third quarter 2025 earnings released: EPS: JP¥15.28 (vs JP¥3.44 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥15.28 (up from JP¥3.44 loss in 3Q 2024). Revenue: JP¥1.37b (up 46% from 3Q 2024). Net income: JP¥133.0m (up JP¥164.0m from 3Q 2024). Profit margin: 9.7% (up from net loss in 3Q 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 29% 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 • Jul 16
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to JP¥890, the stock trades at a trailing P/E ratio of 38.8x. Average trailing P/E is 17x in the IT industry in Japan. Total loss to shareholders of 15% over the past three years. Buy Or Sell Opportunity • Jun 25
Now 20% undervalued Over the last 90 days, the stock has risen 10.0% to JP¥739. The fair value is estimated to be JP¥926, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.5% over the last 3 years. Earnings per share has declined by 21%. Reported Earnings • Apr 15
Second quarter 2025 earnings released: EPS: JP¥16.28 (vs JP¥7.89 in 2Q 2024) Second quarter 2025 results: EPS: JP¥16.28 (up from JP¥7.89 in 2Q 2024). Revenue: JP¥1.25b (up 21% from 2Q 2024). Net income: JP¥142.0m (up 97% from 2Q 2024). Profit margin: 11% (up from 6.9% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has fallen by 32% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to JP¥492, the stock trades at a trailing P/E ratio of 33x. Average trailing P/E is 15x in the IT industry in Japan. Total loss to shareholders of 81% over the past three years. New Risk • Mar 19
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 8.8% 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 Risks Share price has been highly volatile over the past 3 months (8.8% average weekly change). Earnings have declined by 31% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (3.1% net profit margin). Market cap is less than US$100m (JP¥5.89b market cap, or US$39.3m). Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to JP¥676, the stock trades at a trailing P/E ratio of 45.3x. Average trailing P/E is 17x in the IT industry in Japan. Total loss to shareholders of 74% over the past three years. Reported Earnings • Jan 15
First quarter 2025 earnings released: EPS: JP¥9.91 (vs JP¥3.28 loss in 1Q 2024) First quarter 2025 results: EPS: JP¥9.91 (up from JP¥3.28 loss in 1Q 2024). Revenue: JP¥1.21b (up 19% from 1Q 2024). Net income: JP¥89.0m (up JP¥119.0m from 1Q 2024). Profit margin: 7.3% (up from net loss in 1Q 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has only fallen by 38% per year, which means it has not declined as severely as earnings. New Risk • Dec 20
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 5.1% 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 Earnings have declined by 21% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (5.1% average weekly change). Profit margins are more than 30% lower than last year (0.3% net profit margin). Market cap is less than US$100m (JP¥4.23b market cap, or US$26.9m). Announcement • Dec 19
Goodpatch, Inc. Provides Consolidated Earnings Guidance for the Fiscal Year Ending August 31, 2025 Goodpatch, Inc. provided consolidated earnings guidance for the fiscal year ending August 31, 2025. For the year, the company expects net sales of JPY 4,380 million, Operating profit of JPY 204 million, Profit attributable to owners of parent of JPY 113 million and Earnings per share of JPY 12.59. New Risk • Oct 18
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.3% Last year net profit margin: 5.5% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 21% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.9% average weekly change). Profit margins are more than 30% lower than last year (0.3% net profit margin). Market cap is less than US$100m (JP¥3.82b market cap, or US$25.5m). Reported Earnings • Oct 18
Full year 2024 earnings released: EPS: JP¥1.21 (vs JP¥24.97 in FY 2023) Full year 2024 results: EPS: JP¥1.21 (down from JP¥24.97 in FY 2023). Revenue: JP¥3.94b (flat on FY 2023). Net income: JP¥11.0m (down 95% from FY 2023). Profit margin: 0.3% (down from 5.5% in FY 2023). Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has only fallen by 46% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Oct 01
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to JP¥375. The fair value is estimated to be JP¥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 14% over the last 3 years. Earnings per share has declined by 54%. Buy Or Sell Opportunity • Sep 05
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 22% to JP¥374. The fair value is estimated to be JP¥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 14% over the last 3 years. Earnings per share has declined by 54%. New Risk • Sep 04
New major risk - Revenue and earnings growth Earnings have declined by 17% per year over the past 5 years. 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 declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. 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 have declined by 17% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.9% average weekly change). Market cap is less than US$100m (JP¥3.51b market cap, or US$24.2m). New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 7.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.4% average weekly change). Market cap is less than US$100m (JP¥2.75b market cap, or US$19.3m). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 29% After last week's 29% share price decline to JP¥302, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 17x in the IT industry in Japan. Total loss to shareholders of 88% over the past three years. Announcement • Aug 03
Goodpatch, Inc. to Report Fiscal Year 2024 Results on Oct 15, 2024 Goodpatch, Inc. announced that they will report fiscal year 2024 results on Oct 15, 2024 Buy Or Sell Opportunity • Aug 02
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 23% to JP¥382. The fair value is estimated to be JP¥481, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has declined by 54%. For the next 3 years, revenue is forecast to grow by 12% per annum. Earnings are also forecast to grow by 32% per annum over the same time period. Reported Earnings • Jul 16
Third quarter 2024 earnings released: JP¥3.44 loss per share (vs JP¥10.21 profit in 3Q 2023) Third quarter 2024 results: JP¥3.44 loss per share (down from JP¥10.21 profit in 3Q 2023). Revenue: JP¥935.0m (down 11% from 3Q 2023). Net loss: JP¥31.0m (down 135% from profit in 3Q 2023). Revenue is forecast to grow 12% 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 fallen by 54% per year but the company’s share price has only fallen by 46% per year, which means it has not declined as severely as earnings. Reported Earnings • Apr 14
Second quarter 2024 earnings released: EPS: JP¥7.89 (vs JP¥13.12 in 2Q 2023) Second quarter 2024 results: EPS: JP¥7.89 (down from JP¥13.12 in 2Q 2023). Revenue: JP¥1.04b (up 7.3% from 2Q 2023). Net income: JP¥72.0m (down 35% from 2Q 2023). Profit margin: 6.9% (down from 11% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 45% per year whereas the company’s share price has fallen by 43% per year. Reported Earnings • Jan 15
First quarter 2024 earnings released: JP¥3.28 loss per share (vs JP¥1.56 loss in 1Q 2023) First quarter 2024 results: JP¥3.28 loss per share (further deteriorated from JP¥1.56 loss in 1Q 2023). Revenue: JP¥1.02b (up 21% from 1Q 2023). Net loss: JP¥30.0m (loss widened 131% from 1Q 2023). Revenue is forecast to grow 11% 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 fallen by 44% per year whereas the company’s share price has fallen by 39% per year. Announcement • Jan 13
Goodpatch, Inc. (TSE:7351) announces an Equity Buyback for 200,000 shares, representing 2.18% for ¥100 million. Goodpatch, Inc. (TSE:7351) announces a share repurchase program. Under the program, the company will repurchase up to 200,000 shares, representing 2.18% of its issued share capital, for ¥100 million. The purpose of the program is to improve shareholder returns through improved capital efficiency, and enable flexible future capital policy implementation, including utilization in M&A. The program will be valid till April 12, 2024. As of November 30, 2023, the company has 9,163,380 issued shares (excluding treasury stock) and 1,305 treasury shares. Reported Earnings • Dec 06
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: JP¥24.97 (up from JP¥8.85 in FY 2022). Revenue: JP¥3.93b (up 5.5% from FY 2022). Net income: JP¥216.0m (up 200% from FY 2022). Profit margin: 5.5% (up from 1.9% in FY 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Revenue is forecast to grow 11% 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 fallen by 45% per year but the company’s share price has only fallen by 37% per year, which means it has not declined as severely as earnings. Reported Earnings • Oct 15
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: JP¥27.97 (up from JP¥8.85 in FY 2022). Revenue: JP¥3.97b (up 6.5% from FY 2022). Net income: JP¥242.0m (up 236% from FY 2022). Profit margin: 6.1% (up from 1.9% in FY 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Revenue is forecast to grow 11% 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 fallen by 43% per year whereas the company’s share price has fallen by 41% per year. Announcement • Oct 15
Goodpatch, Inc., Annual General Meeting, Nov 28, 2023 Goodpatch, Inc., Annual General Meeting, Nov 28, 2023. Announcement • Aug 03
Goodpatch, Inc. to Report Q4, 2023 Results on Oct 13, 2023 Goodpatch, Inc. announced that they will report Q4, 2023 results on Oct 13, 2023 Reported Earnings • Jul 16
Third quarter 2023 earnings released: EPS: JP¥10.21 (vs JP¥1.21 in 3Q 2022) Third quarter 2023 results: EPS: JP¥10.21 (up from JP¥1.21 in 3Q 2022). Revenue: JP¥1.05b (up 11% from 3Q 2022). Net income: JP¥89.0m (up JP¥79.0m from 3Q 2022). Profit margin: 8.5% (up from 1.1% in 3Q 2022). Revenue is forecast to grow 8.1% 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 fallen by 56% per year but the company’s share price has only fallen by 22% per year, which means it has not declined as severely as earnings. Announcement • May 09
Goodpatch, Inc. announced that it has received ¥499.9581 million in funding from CyberAgent, Inc. On May 8, 2023, Goodpatch, Inc. closed the transaction. Reported Earnings • Apr 16
Second quarter 2023 earnings released: EPS: JP¥13.12 (vs JP¥7.09 in 2Q 2022) Second quarter 2023 results: EPS: JP¥13.12 (up from JP¥7.09 in 2Q 2022). Revenue: JP¥970.0m (up 10% from 2Q 2022). Net income: JP¥110.0m (up 93% from 2Q 2022). Profit margin: 11% (up from 6.5% in 2Q 2022). Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the IT industry in Japan. Buying Opportunity • Mar 23
Now 21% undervalued Over the last 90 days, the stock is up 13%. The fair value is estimated to be JP¥793, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last year. Meanwhile, the company became loss making. Buying Opportunity • Feb 10
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 1.8%. The fair value is estimated to be JP¥843, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last year. Meanwhile, the company became loss making. Buying Opportunity • Jan 21
Now 24% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be JP¥876, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last year. Meanwhile, the company became loss making. Reported Earnings • Jan 14
First quarter 2023 earnings released: JP¥1.56 loss per share (vs JP¥20.31 profit in 1Q 2022) First quarter 2023 results: JP¥1.56 loss per share (down from JP¥20.31 profit in 1Q 2022). Revenue: JP¥848.0m (down 13% from 1Q 2022). Net loss: JP¥13.0m (down 108% from profit in 1Q 2022). Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the IT industry in Japan. Reported Earnings • Dec 04
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥8.85 (down from JP¥43.25 in FY 2021). Revenue: JP¥3.72b (up 36% from FY 2021). Net income: JP¥72.0m (down 78% from FY 2021). Profit margin: 1.9% (down from 12% in FY 2021). Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) also missed analyst estimates by 80%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the IT industry in Japan. Announcement • Nov 30
Goodpatch, Inc. to Report Q3, 2023 Results on Jul 14, 2023 Goodpatch, Inc. announced that they will report Q3, 2023 results on Jul 14, 2023 Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 4 non-independent directors. Independent Outside Director Takumi Yamaguchi was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Oct 22
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 revenue forecast fell from JP¥4.43b to JP¥3.90b. EPS estimate increased from JP¥56.65 to JP¥77.10 per share. Net income forecast to grow 775% next year vs 15% growth forecast for IT industry in Japan. Consensus price target of JP¥3,000 unchanged from last update. Share price fell 5.1% to JP¥664 over the past week. Reported Earnings • Oct 17
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥8.85 (down from JP¥43.25 in FY 2021). Revenue: JP¥3.72b (up 36% from FY 2021). Net income: JP¥72.0m (down 78% from FY 2021). Profit margin: 1.9% (down from 12% in FY 2021). Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) also missed analyst estimates by 80%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the IT industry in Japan. Announcement • Oct 16
Goodpatch, Inc., Annual General Meeting, Nov 25, 2022 Goodpatch, Inc., Annual General Meeting, Nov 25, 2022. Agenda: general meeting of shareholders. Major Estimate Revision • Jul 26
Consensus EPS estimates fall by 24% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from JP¥3.94b to JP¥3.81b. EPS estimate also fell from JP¥57.55 per share to JP¥43.85 per share. Net income forecast to grow 49% next year vs 13% growth forecast for IT industry in Japan. Consensus price target of JP¥3,000 unchanged from last update. Share price fell 2.6% to JP¥1,019 over the past week. Valuation Update With 7 Day Price Move • Jul 22
Investor sentiment deteriorated over the past week After last week's 27% share price decline to JP¥1,014, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 19x in the IT industry in Japan. Total loss to shareholders of 63% over the past year. Reported Earnings • Jul 18
Third quarter 2022 earnings released: EPS: JP¥1.21 (vs JP¥9.50 in 3Q 2021) Third quarter 2022 results: EPS: JP¥1.21 (down from JP¥9.50 in 3Q 2021). Revenue: JP¥951.0m (up 39% from 3Q 2021). Net income: JP¥10.0m (down 87% from 3Q 2021). Profit margin: 1.1% (down from 11% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 33%, compared to a 11% growth forecast for the industry in Japan. Announcement • Jun 01
Goodpatch Common Stock to Be Deleted from OTC Equity Goodpatch, Inc. Common Stock (Japan) will be deleted from OTC Equity effective from June 01, 2022, due to Inactive Security. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥1,521, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 19x in the IT industry in Japan. Total loss to shareholders of 44% over the past year. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,594 per share. Price Target Changed • May 04
Price target decreased to JP¥3,300 Down from JP¥3,725, the current price target is an average from 3 analysts. New target price is 99% above last closing price of JP¥1,658. Stock is down 35% over the past year. The company is forecast to post earnings per share of JP¥55.20 for next year compared to JP¥43.25 last year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 4 non-independent directors. Independent Outside Director Takumi Yamaguchi was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Apr 21
Investor sentiment deteriorated over the past week After last week's 25% share price decline to JP¥1,985, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 18x in the IT industry in Japan. Total loss to shareholders of 28% over the past year. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,350 per share. Reported Earnings • Apr 15
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: EPS: JP¥7.09 (down from JP¥12.29 in 2Q 2021). Revenue: JP¥879.0m (up 27% from 2Q 2021). Net income: JP¥57.0m (down 37% from 2Q 2021). Profit margin: 6.5% (down from 13% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 4.7%. Earnings per share (EPS) exceeded analyst estimates by 14%. Over the next year, revenue is forecast to grow 36%, compared to a 7.7% growth forecast for the industry in Japan. Buying Opportunity • Apr 07
Now 20% undervalued Over the last 90 days, the stock is up 16%. The fair value is estimated to be JP¥3,355, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last year. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 19% per annum. Earnings is also forecast to grow by 26% per annum over the same time period. Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥2,544, the stock trades at a forward P/E ratio of 40x. Average forward P/E is 20x in the IT industry in Japan. Total loss to shareholders of 23% over the past year. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,335 per share. Reported Earnings • Jan 16
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: JP¥20.31 (up from JP¥13.34 in 1Q 2021). Revenue: JP¥978.0m (up 50% from 1Q 2021). Net income: JP¥161.0m (up 66% from 1Q 2021). Profit margin: 17% (up from 15% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 14%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Earnings per share (EPS) surpassed analyst estimates by 14%. Over the next year, revenue is forecast to grow 29%, compared to a 7.3% growth forecast for the industry in Japan. Announcement • Dec 24
Goodpatch, Inc. (TSE:7351) acquired Studio Details Inc. from Hiroshi Kaibe and Tomoatsu Hattori. Goodpatch, Inc. (TSE:7351) acquired Studio Details Inc. from Hiroshi Kaibe and Tomoatsu Hattori on December 22, 2021. For the year ending September 2021, total asset, net asset, sales, operating profit and net profit of Studio Details Inc. was ¥229.177 million, ¥61.081 million, ¥567.343, ¥17.718 and ¥23.621 respectively.
Goodpatch, Inc. (TSE:7351) completed the acquisition of Studio Details Inc. from Hiroshi Kaibe and Tomoatsu Hattori on December 22, 2021. Reported Earnings • Dec 05
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: JP¥43.25 (up from JP¥31.04 in FY 2020). Revenue: JP¥2.74b (up 28% from FY 2020). Net income: JP¥327.0m (up 52% from FY 2020). Profit margin: 12% (up from 10.0% 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 14%. Earnings per share (EPS) surpassed analyst estimates by 14%. Over the next year, revenue is forecast to grow 35%, compared to a 7.7% growth forecast for the industry in Japan. Valuation Update With 7 Day Price Move • Oct 27
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥2,960, the stock trades at a forward P/E ratio of 59x. Average forward P/E is 24x in the IT industry in Japan. Total loss to shareholders of 3.4% over the past year. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,092 per share. Reported Earnings • Oct 17
Full year 2021 earnings released: EPS JP¥43.25 (vs JP¥31.04 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥2.74b (up 28% from FY 2020). Net income: JP¥327.0m (up 52% from FY 2020). Profit margin: 12% (up from 10.0% in FY 2020). The increase in margin was driven by higher revenue. Reported Earnings • Jul 18
Third quarter 2021 earnings released: EPS JP¥9.50 (vs JP¥6.89 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥683.0m (up 28% from 3Q 2020). Net income: JP¥74.0m (up 51% from 3Q 2020). Profit margin: 11% (up from 9.2% in 3Q 2020). The increase in margin was driven by higher revenue. Announcement • Feb 04
Goodpatch, Inc. to Report Q2, 2021 Results on Apr 14, 2021 Goodpatch, Inc. announced that they will report Q2, 2021 results on Apr 14, 2021 Valuation Update With 7 Day Price Move • Jan 29
Investor sentiment deteriorated over the past week After last week's 23% share price decline to JP¥2,548, the stock is trading at a trailing P/E ratio of 78.9x, down from the previous P/E ratio of 102.2x. This compares to an average P/E of 28x in the IT industry in Japan. Announcement • Jan 24
Goodpatch, Inc. announced that it expects to receive ¥8.20783 million in funding from Nomura Securities Co. Ltd., Investment Arm Goodpatch, Inc. (TSE:7351) announced a private placement of 5,090 6th stock acquisition rights and 2,180 7th stock acquisition rights at a price of ¥1,129 each for gross proceeds of ¥8,207,830 on January 22, 2021. The company will issue securities through third party allotment to Nomura Securities Co. Ltd., Investment Arm. Each stock acquisition right is exercisable into 100 common shares of the company at an initial exercise price of ¥3,420 per share from February 10, 2021 to February 9, 2024. The transaction has been approved by the board of directors of the company, and is expected to close on February 9, 2021. Analyst Estimate Surprise Post Earnings • Jan 19
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 4.2%. Earnings per share (EPS) also surpassed analyst estimates by 2.4%. Over the next year, revenue is forecast to grow 27%, compared to a 7.9% growth forecast for the IT industry in Japan. Analyst Estimate Surprise Post Earnings • Jan 16
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 4.2%. Earnings per share (EPS) also surpassed analyst estimates by 2.4%. Over the next year, revenue is forecast to grow 27%, compared to a 7.9% growth forecast for the IT industry in Japan. Valuation Update With 7 Day Price Move • Dec 09
Market pulls back on stock over the past week After last week's 16% share price decline to JP¥2,452, the stock is trading at a trailing P/E ratio of 79x, down from the previous P/E ratio of 94.4x. This compares to an average P/E of 30x in the IT industry in Japan. Reported Earnings • Dec 04
Full year 2020 earnings released: EPS JP¥31.04 The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥2.14b (up 27% from FY 2019). Net income: JP¥215.0m (up 277% from FY 2019). Profit margin: 10.0% (up from 3.4% in FY 2019). The increase in margin was driven by higher revenue. Analyst Estimate Surprise Post Earnings • Dec 04
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 4.3%. Earnings per share (EPS) exceeded analyst estimates by 2.4%. Over the next year, revenue is forecast to grow 27%, compared to a 8.5% growth forecast for the IT industry in Japan.