Announcement • May 10
Business Brain Showa-Ota Inc. to Report Fiscal Year 2026 Results on May 14, 2026 Business Brain Showa-Ota Inc. announced that they will report fiscal year 2026 results on May 14, 2026 New Risk • Mar 29
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥10.5b (US$65.9m) 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. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥66.50 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 24 June 2026. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 4.6%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.8%). Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: JP¥89.23 (vs JP¥83.18 in 3Q 2025) Third quarter 2026 results: EPS: JP¥89.23. Revenue: JP¥10.7b (up 4.6% from 3Q 2025). Net income: JP¥826.0m (down 15% from 3Q 2025). Profit margin: 7.7% (down from 9.5% in 3Q 2025). The decrease in margin was driven by higher expenses. Buy Or Sell Opportunity • Jan 24
Now 21% undervalued Over the last 90 days, the stock has risen 13% to JP¥3,500. The fair value is estimated to be JP¥4,423, 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 declined by 21%. Announcement • Dec 03
Business Brain Showa-Ota Inc. to Report Q3, 2026 Results on Feb 12, 2026 Business Brain Showa-Ota Inc. announced that they will report Q3, 2026 results on Feb 12, 2026 Buy Or Sell Opportunity • Dec 01
Now 21% undervalued Over the last 90 days, the stock has risen 24% to JP¥3,475. The fair value is estimated to be JP¥4,373, 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 declined by 21%. Declared Dividend • Nov 29
First half dividend of JP¥66.50 announced Shareholders will receive a dividend of JP¥66.50. Ex-date: 30th March 2026 Payment date: 24th June 2026 Dividend yield will be 3.8%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (17% earnings payout ratio) and cash flows (46% cash payout ratio). The dividend has increased by an average of 30% 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. Earnings per share has grown by 15% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 12
Second quarter 2026 earnings released: EPS: JP¥62.59 (vs JP¥68.36 in 2Q 2025) Second quarter 2026 results: EPS: JP¥62.59 (down from JP¥68.36 in 2Q 2025). Revenue: JP¥10.4b (up 11% from 2Q 2025). Net income: JP¥676.7m (down 15% from 2Q 2025). Profit margin: 6.5% (down from 8.5% in 2Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. New Risk • Nov 04
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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Nov 04
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥3,595, the stock trades at a trailing P/E ratio of 13.7x. Average trailing P/E is 17x in the IT industry in Japan. Total returns to shareholders of 122% over the past three years. Buy Or Sell Opportunity • Oct 09
Now 20% undervalued Over the last 90 days, the stock has risen 17% to JP¥2,985. The fair value is estimated to be JP¥3,735, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.2% over the last 3 years. Earnings per share has declined by 3.8%. Announcement • Sep 27
Business Brain Showa-Ota Inc. to Report Q2, 2026 Results on Nov 10, 2025 Business Brain Showa-Ota Inc. announced that they will report Q2, 2026 results on Nov 10, 2025 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥37.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 01 December 2025. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.2%). Buy Or Sell Opportunity • Sep 12
Now 20% undervalued Over the last 90 days, the stock has risen 16% to JP¥2,975. The fair value is estimated to be JP¥3,737, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.2% over the last 3 years. Earnings per share has declined by 3.8%. Reported Earnings • Aug 15
First quarter 2026 earnings released: EPS: JP¥50.88 (vs JP¥17.00 in 1Q 2025) First quarter 2026 results: EPS: JP¥50.88 (up from JP¥17.00 in 1Q 2025). Revenue: JP¥10.1b (up 15% from 1Q 2025). Net income: JP¥551.0m (up 180% from 1Q 2025). Profit margin: 5.5% (up from 2.3% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 25% per year, which means it is well ahead of earnings. Declared Dividend • Jul 09
Final dividend of JP¥37.00 announced Shareholders will receive a dividend of JP¥37.00. Ex-date: 29th September 2025 Payment date: 1st December 2025 Dividend yield will be 3.1%, 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 (34% cash payout ratio). The dividend has increased by an average of 23% 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. Earnings per share has grown by 13% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 25
Full year 2025 earnings released: EPS: JP¥214 (vs JP¥1,224 in FY 2024) Full year 2025 results: EPS: JP¥214 (down from JP¥1,224 in FY 2024). Revenue: JP¥38.8b (up 13% from FY 2024). Net income: JP¥2.47b (down 83% from FY 2024). Profit margin: 6.4% (down from 41% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 21% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jun 03
Business Brain Showa-Ota Inc. to Report Q1, 2026 Results on Aug 13, 2025 Business Brain Showa-Ota Inc. announced that they will report Q1, 2026 results on Aug 13, 2025 Reported Earnings • May 15
Full year 2025 earnings released: EPS: JP¥214 (vs JP¥1,224 in FY 2024) Full year 2025 results: EPS: JP¥214 (down from JP¥1,224 in FY 2024). Revenue: JP¥38.8b (up 13% from FY 2024). Net income: JP¥2.47b (down 83% from FY 2024). Profit margin: 6.4% (down from 41% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 13
Business Brain Showa-Ota Inc., Annual General Meeting, Jun 23, 2025 Business Brain Showa-Ota Inc., Annual General Meeting, Jun 23, 2025. Buy Or Sell Opportunity • May 13
Now 21% undervalued Over the last 90 days, the stock has risen 28% to JP¥2,993. The fair value is estimated to be JP¥3,765, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.2% over the last 3 years. Earnings per share has grown by 32%. Announcement • Mar 30
Business Brain Showa-Ota Inc. Announces Management Appointments Business Brain Showa-Ota Inc. announced several leadership changes scheduled for the coming months. On June 23, 2025, Yoshitaka Makimoto will be appointed as a new Managing Director, excluding those serving as Audit and Supervisory Committee members. Additionally, Hideya Namba will be appointed as an Outside Director and will join the Managing Directors who are Audit and Supervisory Committee members, also effective on June 23, 2025. In the executive team, three new appointments will take effect on April 1, 2025. Shinji Kawakami will take on the role of Executive Director and General Manager of the Social Infrastructure Solution Service Division within the Industrial Solution Service. Yutaka Yagyu will be appointed as Executive Director and General Manager of the Account Solution Division in the Product Solution Service, while Kazuyoshi Saida will assume the role of Executive Director and General Manager of the System Service Division within the Industrial Solution Service. These appointments reflect a strategic reshuffling within the company's leadership. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥41.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 24 June 2025. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.4%). Announcement • Mar 04
Business Brain Showa-Ota Inc. to Report Fiscal Year 2025 Results on May 13, 2025 Business Brain Showa-Ota Inc. announced that they will report fiscal year 2025 results on May 13, 2025 Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: JP¥83.18 (vs JP¥28.43 in 3Q 2024) Third quarter 2025 results: EPS: JP¥83.18 (up from JP¥28.43 in 3Q 2024). Revenue: JP¥10.2b (up 27% from 3Q 2024). Net income: JP¥966.7m (up 194% from 3Q 2024). Profit margin: 9.5% (up from 4.1% in 3Q 2024). The increase in margin was driven by higher revenue. 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 17% per year, which means it is significantly lagging earnings growth. Announcement • Feb 14
Business Brain Showa-Ota Inc. (TSE:9658) announces an Equity Buyback for 900,000 shares, representing 7.45% for ¥2,250 million. Business Brain Showa-Ota Inc. (TSE:9658) announces a share repurchase program. Under the program, the company will repurchase up to 900,000 shares, representing 7.45% of its issued share capital (excluding treasury stock), for a total purchase price of ¥2,250 million. The shares will be repurchased at a price of ¥2,329 per share. The purpose of the program is to improve capital efficiency and implement agile capital policies in response to changes in the business environment. As of January 31, 2025, the company has 12,082,346 issued shares (excluding treasury stock) and 642,654 treasury shares. Declared Dividend • Nov 30
First half dividend of JP¥41.00 announced Shareholders will receive a dividend of JP¥41.00. Ex-date: 28th March 2025 Payment date: 24th June 2025 Dividend yield will be 3.8%, 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 (37% cash payout ratio). The dividend has increased by an average of 24% 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. Earnings per share has grown by 12% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Nov 30
Business Brain Showa-Ota Inc. to Report Q3, 2025 Results on Feb 13, 2025 Business Brain Showa-Ota Inc. announced that they will report Q3, 2025 results on Feb 13, 2025 Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: JP¥68.36 (vs JP¥41.91 in 2Q 2024) Second quarter 2025 results: EPS: JP¥68.36 (up from JP¥41.91 in 2Q 2024). Revenue: JP¥9.33b (up 10% from 2Q 2024). Net income: JP¥794.0m (up 64% from 2Q 2024). Profit margin: 8.5% (up from 5.7% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥37.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 51% and this is well supported by cash flows. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.4%). Announcement • Aug 27
Business Brain Showa-Ota Inc. to Report Q2, 2025 Results on Nov 08, 2024 Business Brain Showa-Ota Inc. announced that they will report Q2, 2025 results on Nov 08, 2024 Reported Earnings • Aug 15
First quarter 2025 earnings released: EPS: JP¥17.00 (vs JP¥1,099 in 1Q 2024) First quarter 2025 results: EPS: JP¥17.00 (down from JP¥1,099 in 1Q 2024). Revenue: JP¥8.74b (up 2.4% from 1Q 2024). Net income: JP¥197.0m (down 98% from 1Q 2024). Profit margin: 2.3% (down from 148% in 1Q 2024). Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Declared Dividend • Jul 11
Final dividend of JP¥37.00 announced Shareholders will receive a dividend of JP¥37.00. Ex-date: 27th September 2024 Payment date: 2nd December 2024 Dividend yield will be 3.4%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (5% earnings payout ratio) and cash flows (33% cash payout ratio). The dividend has increased by an average of 24% 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. Earnings per share has grown by 70% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 28
Full year 2024 earnings released: EPS: JP¥1,224 (vs JP¥155 in FY 2023) Full year 2024 results: EPS: JP¥1,224 (up from JP¥155 in FY 2023). Revenue: JP¥34.2b (down 7.7% from FY 2023). Net income: JP¥14.1b (up JP¥12.3b from FY 2023). Profit margin: 41% (up from 5.0% in FY 2023). Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Jun 13
Business Brain Showa-Ota Inc. to Report Q1, 2025 Results on Aug 13, 2024 Business Brain Showa-Ota Inc. announced that they will report Q1, 2025 results on Aug 13, 2024 Announcement • May 10
Business Brain Showa-Ota Inc., Annual General Meeting, Jun 21, 2024 Business Brain Showa-Ota Inc., Annual General Meeting, Jun 21, 2024. Reported Earnings • May 09
Full year 2024 earnings released: EPS: JP¥1,224 (vs JP¥155 in FY 2023) Full year 2024 results: EPS: JP¥1,224 (up from JP¥155 in FY 2023). Revenue: JP¥34.2b (down 7.7% from FY 2023). Net income: JP¥14.1b (up JP¥12.3b from FY 2023). Profit margin: 41% (up from 5.0% in FY 2023). Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥39.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 5.1% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.4%). Buy Or Sell Opportunity • Mar 18
Now 21% overvalued The stock has been flat over the last 90 days, currently trading at JP¥2,164. The fair value is estimated to be JP¥1,794, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.1% over the last 3 years. Earnings per share has grown by 91%. Announcement • Mar 13
Business Brain Showa-Ota Inc. to Report Fiscal Year 2024 Results on May 08, 2024 Business Brain Showa-Ota Inc. announced that they will report fiscal year 2024 results on May 08, 2024 New Risk • Feb 18
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 108% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. This is currently the only risk that has been identified for the company. Reported Earnings • Feb 02
Third quarter 2024 earnings released: EPS: JP¥28.44 (vs JP¥48.22 in 3Q 2023) Third quarter 2024 results: EPS: JP¥28.44 (down from JP¥48.22 in 3Q 2023). Revenue: JP¥8.08b (down 13% from 3Q 2023). Net income: JP¥329.0m (down 43% from 3Q 2023). Profit margin: 4.1% (down from 6.1% in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Nov 29
Business Brain Showa-Ota Inc. to Report Q3, 2024 Results on Jan 31, 2024 Business Brain Showa-Ota Inc. announced that they will report Q3, 2024 results on Jan 31, 2024 New Risk • Nov 18
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 104% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 02
Second quarter 2024 earnings released: EPS: JP¥41.99 (vs JP¥45.28 in 2Q 2023) Second quarter 2024 results: EPS: JP¥41.99 (down from JP¥45.28 in 2Q 2023). Revenue: JP¥8.46b (down 8.3% from 2Q 2023). Net income: JP¥485.0m (down 11% from 2Q 2023). Profit margin: 5.7% (down from 5.9% in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥33.00 per share at 2.3% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 30 November 2023. Payout ratio is a comfortable 4.0% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.5%). Announcement • Aug 30
Business Brain Showa-Ota Inc. to Report Q2, 2024 Results on Oct 31, 2023 Business Brain Showa-Ota Inc. announced that they will report Q2, 2024 results on Oct 31, 2023 New Risk • Aug 18
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 104% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. This is currently the only risk that has been identified for the company. New Risk • Aug 01
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 516% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (5.5% average weekly change). Large one-off items impacting financial results. Reported Earnings • Aug 01
First quarter 2024 earnings released: EPS: JP¥1,101 (vs JP¥21.05 in 1Q 2023) First quarter 2024 results: EPS: JP¥1,101 (up from JP¥21.05 in 1Q 2023). Revenue: JP¥8.53b (up 1.5% from 1Q 2023). Net income: JP¥12.7b (up JP¥12.4b from 1Q 2023). Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • Jun 07
Business Brain Showa-Ota Inc. to Report Q1, 2024 Results on Jul 31, 2023 Business Brain Showa-Ota Inc. announced that they will report Q1, 2024 results on Jul 31, 2023 Reported Earnings • Apr 29
Full year 2023 earnings released: EPS: JP¥159 (vs JP¥150 in FY 2022) Full year 2023 results: EPS: JP¥159 (up from JP¥150 in FY 2022). Revenue: JP¥37.1b (up 15% from FY 2022). Net income: JP¥1.88b (up 5.6% from FY 2022). Profit margin: 5.1% (down from 5.5% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 13% per year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥23.00 per share at 2.2% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 26 June 2023. Payout ratio is a comfortable 18% 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%). Buying Opportunity • Feb 10
Now 22% undervalued Over the last 90 days, the stock is up 12%. The fair value is estimated to be JP¥2,605, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.3% over the last 3 years. Earnings per share has grown by 11%. Reported Earnings • Feb 01
Third quarter 2023 earnings released: EPS: JP¥48.31 (vs JP¥39.64 in 3Q 2022) Third quarter 2023 results: EPS: JP¥48.31 (up from JP¥39.64 in 3Q 2022). Revenue: JP¥9.33b (up 12% from 3Q 2022). Net income: JP¥573.0m (up 22% from 3Q 2022). Profit margin: 6.1% (up from 5.7% 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 11% per year whereas the company’s share price has increased by 13% per year. Announcement • Dec 04
Business Brain Showa-Ota Inc. to Report Q3, 2023 Results on Jan 31, 2023 Business Brain Showa-Ota Inc. announced that they will report Q3, 2023 results on Jan 31, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥45.27 (vs JP¥34.57 in 2Q 2022) Second quarter 2023 results: EPS: JP¥45.27 (up from JP¥34.57 in 2Q 2022). Revenue: JP¥9.22b (up 20% from 2Q 2022). Net income: JP¥542.0m (up 32% from 2Q 2022). Profit margin: 5.9% (up from 5.3% in 2Q 2022). The increase in margin was driven by higher revenue. 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 16% per year. Board Change • Nov 16
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 11 non-independent directors. Executive Officer & Director Shinkatsu Suzuki was the last director to join the board, commencing their role in 2021. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 02
Second quarter 2023 earnings released: EPS: JP¥45.35 (vs JP¥34.57 in 2Q 2022) Second quarter 2023 results: EPS: JP¥45.35 (up from JP¥34.57 in 2Q 2022). Revenue: JP¥9.22b (up 20% from 2Q 2022). Net income: JP¥543.0m (up 32% from 2Q 2022). Profit margin: 5.9% (up from 5.3% in 2Q 2022). The increase in margin was driven by higher revenue. 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 11% per year. Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥1,759, the stock trades at a trailing P/E ratio of 12.4x. Average trailing P/E is 18x in the IT industry in Japan. Total returns to shareholders of 44% over the past three years. Announcement • Nov 01
Business Brain Showa-Ota Inc. (TSE:9658) announces an Equity Buyback for 800,000 shares, representing 6.32% for ¥1,000 million. Business Brain Showa-Ota Inc. (TSE:9658) announces a share repurchase program. Under the program, the company will repurchase up to 800,000 shares, representing 6.32% of its total shares outstanding (excluding treasury shares), for a total of ¥1,000 million. The purpose of repurchase program is to execute a flexible capital policy in the future, improve capital efficiency and shareholder returns. The repurchase program is valid till October 31, 2023. As of September 30, 2022, the company had 12,664,524 shares outstanding (excluding treasury shares) and had 60,476 shares in treasury. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥22.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 30 November 2022. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.7%). Announcement • Sep 03
Business Brain Showa-Ota Inc. to Report Q2, 2023 Results on Oct 31, 2022 Business Brain Showa-Ota Inc. announced that they will report Q2, 2023 results on Oct 31, 2022 Reported Earnings • Jul 31
First quarter 2023 earnings released: EPS: JP¥21.05 (vs JP¥28.95 in 1Q 2022) First quarter 2023 results: EPS: JP¥21.05 (down from JP¥28.95 in 1Q 2022). Revenue: JP¥8.41b (up 14% from 1Q 2022). Net income: JP¥251.0m (down 27% from 1Q 2022). Profit margin: 3.0% (down from 4.6% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Jun 23
Business Brain Showa-Ota Inc. to Report Q1, 2023 Results on Jul 29, 2022 Business Brain Showa-Ota Inc. announced that they will report Q1, 2023 results on Jul 29, 2022 Announcement • May 02
Business Brain Showa-Ota Inc., Annual General Meeting, Jun 23, 2022 Business Brain Showa-Ota Inc., Annual General Meeting, Jun 23, 2022. Reported Earnings • Apr 30
Full year 2022 earnings released: EPS: JP¥149 (vs JP¥132 in FY 2021) Full year 2022 results: EPS: JP¥149 (up from JP¥132 in FY 2021). Revenue: JP¥32.3b (up 11% from FY 2021). Net income: JP¥1.76b (up 14% from FY 2021). Profit margin: 5.5% (up from 5.3% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 11% per year. Board Change • Apr 27
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 11 non-independent directors. Executive Officer & Director Shinkatsu Suzuki was the last director to join the board, commencing their role in 2021. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 08
Business Brain Showa-Ota Inc. to Report Fiscal Year 2022 Results on Apr 28, 2022 Business Brain Showa-Ota Inc. announced that they will report fiscal year 2022 results on Apr 28, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥22.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 25 June 2022. Payout ratio is a comfortable 11% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.5%). Buying Opportunity • Feb 07
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 8.4%. The fair value is estimated to be JP¥2,220, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.3% per annum over the last 3 years. Earnings per share has grown by 18% per annum over the last 3 years. Reported Earnings • Feb 02
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥38.12 (up from JP¥37.68 in 3Q 2021). Revenue: JP¥8.32b (up 17% from 3Q 2021). Net income: JP¥453.0m (up 2.0% from 3Q 2021). Profit margin: 5.4% (down from 6.2% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥16.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 30 November 2021. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.2%). Reported Earnings • Aug 09
First quarter 2022 earnings released: EPS JP¥28.95 (vs JP¥26.74 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥7.37b (up 5.8% from 1Q 2021). Net income: JP¥342.0m (up 8.9% from 1Q 2021). Profit margin: 4.6% (up from 4.5% in 1Q 2021). The increase in margin was 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 20% per year. Announcement • Aug 06
Business Brain Showa-Ota Inc. (TSE:9658) agreed to acquire joyworks inc. Business Brain Showa-Ota Inc. (TSE:9658) agreed to acquire joyworks inc., on July 30, 2021. Business Brain Showa-Ota Inc., signed a share transfer agreement to acquire joyworks inc., on August 2, 2021. As a result of the transaction, joyworks inc., will become a subsidiary of Business Brain Showa-Ota Inc. The transaction has been resolved upon by the Board of Directors of Business Brain Showa-Ota Inc., on July 30, 2021. Completion of the transaction is expected to occur on August 12, 2021. Reported Earnings • May 02
Full year 2021 earnings released: EPS JP¥140 (vs JP¥122 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥29.1b (up 2.6% from FY 2020). Net income: JP¥1.65b (up 16% from FY 2020). Profit margin: 5.7% (up from 5.0% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 25 June 2021. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.3%). Announcement • Mar 04
Business Brain Showa-Ota Inc. to Report Fiscal Year 2021 Results on Apr 30, 2021 Business Brain Showa-Ota Inc. announced that they will report fiscal year 2021 results on Apr 30, 2021 Reported Earnings • Feb 03
Third quarter 2021 earnings released: EPS JP¥37.68 (vs JP¥27.08 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥7.12b (up 2.3% from 3Q 2020). Net income: JP¥444.0m (up 40% from 3Q 2020). Profit margin: 6.2% (up from 4.6% in 3Q 2020). 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 27% per year. Is New 90 Day High Low • Feb 01
New 90-day high: JP¥1,792 The company is up 17% from its price of JP¥1,530 on 02 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 12% over the same period.