Announcement • Jun 04
Ryomo Systems Co.,Ltd. to Report Q1, 2027 Results on Jul 28, 2026 Ryomo Systems Co.,Ltd. announced that they will report Q1, 2027 results on Jul 28, 2026 Reported Earnings • May 18
Full year 2026 earnings released: EPS: JP¥616 (vs JP¥449 in FY 2025) Full year 2026 results: EPS: JP¥616 (up from JP¥449 in FY 2025). Revenue: JP¥25.7b (up 14% from FY 2025). Net income: JP¥2.16b (up 37% from FY 2025). Profit margin: 8.4% (up from 7.0% in FY 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has increased by 37% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 16
Mitsuba Corporation (TSE:7280) and Chubu Electric Power Company, Incorporated (TSE:9502) proposed to acquire an remaining 48.7% stake in Ryomo Systems Co.,Ltd. (TSE:9691) for ¥8.9 billion. Mitsuba Corporation (TSE:7280) and Chubu Electric Power Company, Incorporated (TSE:9502) proposed to acquire an remaining 48.7% stake in Ryomo Systems Co.,Ltd. (TSE:9691) for ¥8.9 billion on May 14, 2026. A cash consideration valued at ¥5200 per share will be paid by Mitsuba Corporation and Chubu Electric Power Company, Incorporated. The lower limit of the tender offer acceptance is 0.53726 million shares, which will increase the ownership of tender offerors to 66.67% stake. The sellers in the transaction include Sadami Hino, Custody Bank of Japan, Ltd., Hikari Tsushin Investments Okinawa Co., Ltd., Tomohiro Yoshida, Secom General Insurance Co., Ltd., Sunfield Industry Co., Ltd., Kiryu Gas Company and Ryuei Seiko, K.K. If the Tender Offer is successfully completed, but the Offerors are unable to acquire all of the Target Company Shares (excluding the Target Company Shares held by MITSUBA and the treasury shares held by the Target Company) in the Tender Offer, then the Offerors intend to request the Target Company to carry out a series of procedures (the “Squeeze Out Procedures”) for making the Offerors the only shareholders of the Target Company. the Offerors, MITSUBA plans to purchase up to 1,003,800 shares (ownership percentage: 28.69%) out of the total number of Tendered Share Certificates, Etc. in which 80% of the voting rights represented by the Target Company Shares will be held by MITSUBA after purchase, and Chubu Electric Power plans to purchase the remaining 20% shares.
The transaction is subject to minimum tender. The Board of Directors of Ryomo Systems Co.,Ltd. formed a special committee for the transaction. The expected completion of the transaction is July 8, 2026. The transaction was recommended by board of directors of Ryomo Systems on May 14, 2026.
Mizuho Securities Co., Ltd. acted as financial advisor for Mitsuba Corporation. YAMADA Consulting Group Co.,Ltd. acted as financial advisor for Chubu Electric Power Company, Incorporated. Mori Hamada & Matsumoto LPC acted as legal advisor for Mitsuba Corporation and Chubu Electric Power Company, Incorporated. Nishimura & Asahi acted as legal advisor for Ryomo Systems Co.,Ltd. Announcement • May 15
Ryomo Systems Co.,Ltd., Annual General Meeting, Jun 24, 2026 Ryomo Systems Co.,Ltd., Annual General Meeting, Jun 24, 2026. New Risk • May 15
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 8.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to JP¥4,970, the stock trades at a trailing P/E ratio of 8.3x. Average trailing P/E is 14x in the IT industry in Japan. Total returns to shareholders of 159% over the past three years. Announcement • May 10
Ryomo Systems Co.,Ltd. to Report Fiscal Year 2026 Results on May 14, 2026 Ryomo Systems Co.,Ltd. announced that they will report fiscal year 2026 results on May 14, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥22.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 10 June 2026. Payout ratio is a comfortable 7.3% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (1.8%). New Risk • Feb 24
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.5b (US$99.2m) 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 28
Third quarter 2026 earnings released: EPS: JP¥153 (vs JP¥111 in 3Q 2025) Third quarter 2026 results: EPS: JP¥153 (up from JP¥111 in 3Q 2025). Revenue: JP¥6.80b (up 38% from 3Q 2025). Net income: JP¥535.0m (up 38% from 3Q 2025). Profit margin: 7.9% (in line with 3Q 2025). 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 38% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Oct 30
Second quarter 2026 earnings released: EPS: JP¥156 (vs JP¥87.21 in 2Q 2025) Second quarter 2026 results: EPS: JP¥156 (up from JP¥87.21 in 2Q 2025). Revenue: JP¥5.82b (up 28% from 2Q 2025). Net income: JP¥546.0m (up 79% from 2Q 2025). Profit margin: 9.4% (up from 6.7% in 2Q 2025). 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 but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Oct 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 5.1% 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: Minor Risks Share price has been volatile over the past 3 months (5.1% average weekly change). Market cap is less than US$100m (JP¥14.5b market cap, or US$94.8m). Upcoming Dividend • Sep 22
Upcoming dividend of JP¥22.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 03 December 2025. Payout ratio is a comfortable 8.6% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.2%). Reported Earnings • Jun 30
Full year 2025 earnings released: EPS: JP¥449 (vs JP¥270 in FY 2024) Full year 2025 results: EPS: JP¥449 (up from JP¥270 in FY 2024). Revenue: JP¥22.5b (up 24% from FY 2024). Net income: JP¥1.57b (up 66% from FY 2024). Profit margin: 7.0% (up from 5.2% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Reported Earnings • May 17
Full year 2025 earnings released: EPS: JP¥448 (vs JP¥270 in FY 2024) Full year 2025 results: EPS: JP¥448 (up from JP¥270 in FY 2024). Revenue: JP¥22.5b (up 24% from FY 2024). Net income: JP¥1.57b (up 66% from FY 2024). Profit margin: 7.0% (up from 5.2% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Announcement • May 13
Ryomo Systems Co.,Ltd., Annual General Meeting, Jun 25, 2025 Ryomo Systems Co.,Ltd., Annual General Meeting, Jun 25, 2025. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥22.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 04 June 2025. Payout ratio is a comfortable 7.7% but the company is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.4%). Announcement • Mar 07
Ryomo Systems Co.,Ltd. to Report Fiscal Year 2025 Results on May 13, 2025 Ryomo Systems Co.,Ltd. announced that they will report fiscal year 2025 results on May 13, 2025 Reported Earnings • Jan 29
Third quarter 2025 earnings released: EPS: JP¥111 (vs JP¥62.89 in 3Q 2024) Third quarter 2025 results: EPS: JP¥111 (up from JP¥62.89 in 3Q 2024). Revenue: JP¥4.94b (up 10.0% from 3Q 2024). Net income: JP¥388.0m (up 76% from 3Q 2024). Profit margin: 7.9% (up from 4.9% in 3Q 2024). 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 18% per year, which means it is well ahead of earnings. New Risk • Oct 24
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). High level of non-cash earnings (21% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (4.1% net profit margin). Market cap is less than US$100m (JP¥7.79b market cap, or US$51.3m). Reported Earnings • Oct 23
Second quarter 2025 earnings released: EPS: JP¥87.18 (vs JP¥90.62 in 2Q 2024) Second quarter 2025 results: EPS: JP¥87.18 (down from JP¥90.62 in 2Q 2024). Revenue: JP¥4.56b (up 1.1% from 2Q 2024). Net income: JP¥305.0m (down 3.8% from 2Q 2024). Profit margin: 6.7% (down from 7.0% in 2Q 2024). Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 4% per year. Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥2,313, the stock trades at a trailing P/E ratio of 10.7x. Average trailing P/E is 17x in the IT industry in Japan. Total returns to shareholders of 28% over the past three years. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.4%). 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 7.2% 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 (22% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.2% average weekly change). Profit margins are more than 30% lower than last year (4.1% net profit margin). Market cap is less than US$100m (JP¥5.77b market cap, or US$40.5m). 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¥1,650, the stock trades at a trailing P/E ratio of 7.7x. Average trailing P/E is 17x in the IT industry in Japan. Total loss to shareholders of 6.6% over the past three years. Reported Earnings • Jul 26
First quarter 2025 earnings released: EPS: JP¥19.72 (vs JP¥74.04 in 1Q 2024) First quarter 2025 results: EPS: JP¥19.72 (down from JP¥74.04 in 1Q 2024). Revenue: JP¥3.92b (up 1.3% from 1Q 2024). Net income: JP¥69.0m (down 73% from 1Q 2024). Profit margin: 1.8% (down from 6.7% in 1Q 2024). Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jun 23
Full year 2024 earnings released: EPS: JP¥270 (vs JP¥347 in FY 2023) Full year 2024 results: EPS: JP¥270 (down from JP¥347 in FY 2023). Revenue: JP¥18.2b (up 5.4% from FY 2023). Net income: JP¥944.0m (down 22% from FY 2023). Profit margin: 5.2% (down from 7.0% in FY 2023). Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. New Risk • May 13
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 35% 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. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (35% accrual ratio). Minor Risk Market cap is less than US$100m (JP¥8.82b market cap, or US$56.6m). Reported Earnings • May 11
Full year 2024 earnings released: EPS: JP¥270 (vs JP¥347 in FY 2023) Full year 2024 results: EPS: JP¥270 (down from JP¥347 in FY 2023). Revenue: JP¥18.2b (up 5.4% from FY 2023). Net income: JP¥944.0m (down 22% from FY 2023). Profit margin: 5.2% (down from 7.0% in FY 2023). Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • May 11
Ryomo Systems Co.,Ltd., Annual General Meeting, Jun 19, 2024 Ryomo Systems Co.,Ltd., Annual General Meeting, Jun 19, 2024. Announcement • Mar 28
Ryomo Systems Co.,Ltd. to Report Fiscal Year 2024 Results on May 09, 2024 Ryomo Systems Co.,Ltd. announced that they will report fiscal year 2024 results on May 09, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 24 June 2024. Payout ratio is a comfortable 9.2% but the company is not cash flow positive. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (1.4%). Reported Earnings • Jan 24
Third quarter 2024 earnings released: EPS: JP¥62.86 (vs JP¥36.02 in 3Q 2023) Third quarter 2024 results: EPS: JP¥62.86 (up from JP¥36.02 in 3Q 2023). Revenue: JP¥4.49b (up 16% from 3Q 2023). Net income: JP¥220.0m (up 75% from 3Q 2023). Profit margin: 4.9% (up from 3.3% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 23
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥2,735, the stock trades at a trailing P/E ratio of 6.9x. Average trailing P/E is 19x in the IT industry in Japan. Total returns to shareholders of 43% over the past three years. Reported Earnings • Oct 26
Second quarter 2024 earnings released: EPS: JP¥90.59 (vs JP¥85.76 in 2Q 2023) Second quarter 2024 results: EPS: JP¥90.59 (up from JP¥85.76 in 2Q 2023). Revenue: JP¥4.51b (up 9.2% from 2Q 2023). Net income: JP¥317.0m (up 5.7% from 2Q 2023). Profit margin: 7.0% (down from 7.3% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥17.00 per share at 1.6% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 04 December 2023. Payout ratio is a comfortable 9.5% but the company is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.3%). In line with average of industry peers (1.5%). New Risk • Jul 28
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 33% 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. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (33% accrual ratio). Minor Risk Market cap is less than US$100m (JP¥8.63b market cap, or US$62.1m). Reported Earnings • Jul 27
First quarter 2024 earnings released: EPS: JP¥74.03 (vs JP¥30.88 in 1Q 2023) First quarter 2024 results: EPS: JP¥74.03 (up from JP¥30.88 in 1Q 2023). Revenue: JP¥3.87b (up 7.5% from 1Q 2023). Net income: JP¥259.0m (up 140% from 1Q 2023). Profit margin: 6.7% (up from 3.0% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,495, the stock trades at a trailing P/E ratio of 7.2x. Average trailing P/E is 19x in the IT industry in Japan. Total returns to shareholders of 47% over the past three years. Reported Earnings • Jun 25
Full year 2023 earnings released: EPS: JP¥347 (vs JP¥276 in FY 2022) Full year 2023 results: EPS: JP¥347 (up from JP¥276 in FY 2022). Revenue: JP¥17.2b (up 11% from FY 2022). Net income: JP¥1.21b (up 26% from FY 2022). Profit margin: 7.0% (up from 6.2% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • May 10
Full year 2023 earnings released: EPS: JP¥347 (vs JP¥276 in FY 2022) Full year 2023 results: EPS: JP¥347 (up from JP¥276 in FY 2022). Revenue: JP¥17.2b (up 11% from FY 2022). Net income: JP¥1.21b (up 26% from FY 2022). Profit margin: 7.0% (up from 6.2% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥22.00 per share at 1.7% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 23 June 2023. Payout ratio is a comfortable 12% but the company is not cash flow positive. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.7%). Reported Earnings • Jan 26
Third quarter 2023 earnings released: EPS: JP¥36.00 (vs JP¥47.46 in 3Q 2022) Third quarter 2023 results: EPS: JP¥36.00 (down from JP¥47.46 in 3Q 2022). Revenue: JP¥3.86b (up 5.6% from 3Q 2022). Net income: JP¥126.0m (down 24% from 3Q 2022). Profit margin: 3.3% (down from 4.5% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Outside Director Noboru Kojima 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. Reported Earnings • Oct 27
Second quarter 2023 earnings released: EPS: JP¥85.73 (vs JP¥123 in 2Q 2022) Second quarter 2023 results: EPS: JP¥85.73 (down from JP¥123 in 2Q 2022). Revenue: JP¥4.13b (down 14% from 2Q 2022). Net income: JP¥300.0m (down 30% from 2Q 2022). Profit margin: 7.3% (down from 9.0% in 2Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 02 December 2022. Payout ratio is a comfortable 8.8% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.7%). Reported Earnings • Jul 27
First quarter 2023 earnings released: EPS: JP¥30.87 (vs JP¥34.02 loss in 1Q 2022) First quarter 2023 results: EPS: JP¥30.87 (up from JP¥34.02 loss in 1Q 2022). Revenue: JP¥3.60b (up 23% from 1Q 2022). Net income: JP¥108.0m (up JP¥227.0m from 1Q 2022). Profit margin: 3.0% (up from net loss in 1Q 2022). The move to profitability was driven by higher revenue. 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 4% per year. Reported Earnings • Jun 26
Full year 2022 earnings released Full year 2022 results: Revenue: JP¥15.5b (down 6.9% from FY 2021). Net income: JP¥965.0m (up 18% from FY 2021). Profit margin: 6.2% (up from 4.9% in FY 2021). The increase in margin was driven by lower expenses. Announcement • May 12
Ryomo Systems Co.,Ltd., Annual General Meeting, Jun 22, 2022 Ryomo Systems Co.,Ltd., Annual General Meeting, Jun 22, 2022. Reported Earnings • May 11
Full year 2022 earnings released: EPS: JP¥276 (vs JP¥235 in FY 2021) Full year 2022 results: EPS: JP¥276 (up from JP¥235 in FY 2021). Revenue: JP¥15.5b (down 6.9% from FY 2021). Net income: JP¥965.0m (up 18% from FY 2021). Profit margin: 6.2% (up from 4.9% in FY 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 6% 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. 9 non-independent directors. Outside Director Noboru Kojima was the last director to join the board, commencing their role in 2020. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 08
Ryomo Systems Co.,Ltd. to Report Fiscal Year 2022 Results on May 10, 2022 Ryomo Systems Co.,Ltd. announced that they will report fiscal year 2022 results on May 10, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 25 June 2022. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.5%). Reported Earnings • Jan 26
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥47.42 (up from JP¥43.74 in 3Q 2021). Revenue: JP¥3.66b (down 1.5% from 3Q 2021). Net income: JP¥166.0m (up 8.5% from 3Q 2021). Profit margin: 4.5% (up from 4.1% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. 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 5% per year, which means it is significantly lagging earnings growth. Reported Earnings • Oct 27
Second quarter 2022 earnings released: EPS JP¥123 (vs JP¥54.32 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥4.81b (up 23% from 2Q 2021). Net income: JP¥431.0m (up 127% from 2Q 2021). Profit margin: 9.0% (up from 4.9% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 03
Investor sentiment deteriorated over the past week After last week's 20% share price decline to JP¥1,915, the stock trades at a trailing P/E ratio of 11.2x. Average trailing P/E is 24x in the IT industry in Japan. Total returns to shareholders of 41% over the past three years. Reported Earnings • Jun 29
Full year 2021 earnings released: EPS JP¥235 (vs JP¥246 in FY 2020) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2021 results: Revenue: JP¥16.6b (up 5.0% from FY 2020). Net income: JP¥821.0m (down 4.8% from FY 2020). Profit margin: 4.9% (down from 5.4% in FY 2020). The decrease in margin was driven by higher expenses. 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 15% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 16
Full year 2021 earnings released: EPS JP¥235 (vs JP¥246 in FY 2020) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2021 results: Revenue: JP¥16.6b (up 5.0% from FY 2020). Net income: JP¥821.0m (down 4.8% from FY 2020). Profit margin: 4.9% (down from 5.4% in FY 2020). The decrease in margin was driven by higher expenses. 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 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 26 June 2021. Trailing yield: 0.9%. Lower than top quartile of Japanese dividend payers (2.7%). Lower than average of industry peers (1.3%). Announcement • Mar 04
Ryomo Systems Co.,Ltd. to Report Q4, 2021 Results on May 11, 2021 Ryomo Systems Co.,Ltd. announced that they will report Q4, 2021 results on May 11, 2021 Reported Earnings • Jan 28
Third quarter 2021 earnings released: EPS JP¥43.71 (vs JP¥53.75 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥3.71b (down 1.3% from 3Q 2020). Net income: JP¥153.0m (down 19% from 3Q 2020). Profit margin: 4.1% (down from 5.0% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Dec 14
New 90-day low: JP¥1,892 The company is down 11% from its price of JP¥2,131 on 15 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 6.0% over the same period. Is New 90 Day High Low • Nov 20
New 90-day low: JP¥1,897 The company is down 6.0% from its price of JP¥2,015 on 21 August 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 2.0% over the same period. Reported Earnings • Nov 07
Second quarter 2021 earnings released: EPS JP¥54.32 The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: JP¥3.91b (down 22% from 2Q 2020). Net income: JP¥190.0m (down 51% from 2Q 2020). Profit margin: 4.9% (down from 7.8% in 2Q 2020). The decrease in margin was driven by lower 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 19% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 03
Market pulls back on stock over the past week After last week's 19% share price decline to JP¥1,974, the stock is trading at a trailing P/E ratio of 9.7x, down from the previous P/E ratio of 12x. This compares to an average P/E of 28x in the IT industry in Japan. Total returns to shareholders over the past three years are 64%. Reported Earnings • Oct 28
First half earnings released Over the last 12 months the company has reported total profits of JP¥715.0m, down 9.2% from the prior year. Total revenue was JP¥15.0b over the last 12 months, down 13% from the prior year. Is New 90 Day High Low • Oct 27
New 90-day high: JP¥2,450 The company is up 37% from its price of JP¥1,788 on 29 July 2020. The Japanese market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 1.0% over the same period. Is New 90 Day High Low • Sep 24
New 90-day high: JP¥2,307 The company is up 4.0% from its price of JP¥2,215 on 25 June 2020. The Japanese market is also up 4.0% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it underperformed the IT industry, which is up 8.0% over the same period.