Announcement • Mar 15
Computer Engineering & Consulting Ltd. Provides Consolidated Financial Guidance for the First Half of Fiscal Year and Full Year Ending January 31, 2027 Computer Engineering & Consulting Ltd. provides consolidated financial guidance for the first half of fiscal year and full year ending January 31, 2027. For the first half, the company expects net sales to be JPY 32,850 million, operating income to be JPY 3,800 million, net income attributable to owners of parent to be JPY 2,600 million or JPY 83.31
per share.
For the full year, the company expects net sales to be JPY 68,000 million, operating income to be JPY 7,750 million, net income attributable to owners of parent to be JPY 5,600 million or JPY 179.43 per share. Reported Earnings • Mar 13
Full year 2026 earnings: EPS in line with analyst expectations despite revenue beat Full year 2026 results: EPS: JP¥166 (up from JP¥122 in FY 2025). Revenue: JP¥65.9b (up 17% from FY 2025). Net income: JP¥5.20b (up 29% from FY 2025). Profit margin: 7.9% (up from 7.2% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 4.1% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Software industry in Japan. 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 15% per year, which means it is well ahead of earnings. Announcement • Mar 12
Computer Engineering & Consulting Ltd., Annual General Meeting, Apr 21, 2026 Computer Engineering & Consulting Ltd., Annual General Meeting, Apr 21, 2026. Upcoming Dividend • Jan 22
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 29 January 2026. Payment date: 23 April 2026. Payout ratio is a comfortable 44% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.8%). Reported Earnings • Dec 11
Third quarter 2026 earnings released: EPS: JP¥38.71 (vs JP¥32.46 in 3Q 2025) Third quarter 2026 results: EPS: JP¥38.71 (up from JP¥32.46 in 3Q 2025). Revenue: JP¥16.4b (up 20% from 3Q 2025). Net income: JP¥1.21b (up 14% from 3Q 2025). Profit margin: 7.4% (down from 7.8% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Announcement • Oct 11
Computer Engineering & Consulting Ltd. to Report Q3, 2026 Results on Dec 09, 2025 Computer Engineering & Consulting Ltd. announced that they will report Q3, 2026 results on Dec 09, 2025 Declared Dividend • Oct 01
First half dividend of JP¥35.00 announced Shareholders will receive a dividend of JP¥35.00. Ex-date: 29th January 2026 Payment date: 23rd April 2026 Dividend yield will be 2.8%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (46% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 21% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 56% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Sep 12
Second quarter 2026 earnings released: EPS: JP¥35.92 (vs JP¥26.94 in 2Q 2025) Second quarter 2026 results: EPS: JP¥35.92 (up from JP¥26.94 in 2Q 2025). Revenue: JP¥16.5b (up 22% from 2Q 2025). Net income: JP¥1.12b (up 25% from 2Q 2025). Profit margin: 6.8% (up from 6.7% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Upcoming Dividend • Jul 23
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 30 July 2025. Payment date: 30 September 2025. Payout ratio is a comfortable 45% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.9%). Higher than average of industry peers (1.6%). Announcement • Jul 20
Computer Engineering & Consulting Ltd. to Report Q2, 2026 Results on Sep 11, 2025 Computer Engineering & Consulting Ltd. announced that they will report Q2, 2026 results on Sep 11, 2025 Reported Earnings • Jun 12
First quarter 2026 earnings released: EPS: JP¥39.51 (vs JP¥39.00 in 1Q 2025) First quarter 2026 results: EPS: JP¥39.51. Revenue: JP¥14.3b (up 2.0% from 1Q 2025). Net income: JP¥1.26b (down 3.9% from 1Q 2025). Profit margin: 8.8% (down from 9.3% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Software industry in Japan. Declared Dividend • May 08
Final dividend of JP¥30.00 announced Shareholders will receive a dividend of JP¥30.00. Ex-date: 30th July 2025 Payment date: 30th September 2025 Dividend yield will be 2.8%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (45% earnings payout ratio) and cash flows (46% cash payout ratio). The dividend has increased by an average of 21% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 56% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 24
Computer Engineering & Consulting Ltd. to Report Q1, 2026 Results on Jun 11, 2025 Computer Engineering & Consulting Ltd. announced that they will report Q1, 2026 results on Jun 11, 2025 Price Target Changed • Mar 28
Price target increased by 31% to JP¥3,400 Up from JP¥2,600, the current price target is provided by 1 analyst. New target price is 42% above last closing price of JP¥2,396. Stock is up 54% over the past year. The company is forecast to post earnings per share of JP¥154 for next year compared to JP¥122 last year. Valuation Update With 7 Day Price Move • Mar 20
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥2,275, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 21x in the Software industry in Japan. Total returns to shareholders of 99% over the past three years. New Risk • Mar 17
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 5.2% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Mar 14
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥122 (down from JP¥135 in FY 2024). Revenue: JP¥56.2b (up 5.8% from FY 2024). Net income: JP¥4.04b (down 11% from FY 2024). Profit margin: 7.2% (down from 8.5% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.3%. Revenue is forecast to grow 6.5% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% 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 • Jan 23
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 30 January 2025. Payment date: 24 April 2025. Payout ratio is a comfortable 61% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.3%). Announcement • Jan 17
Computer Engineering & Consulting Ltd. to Report Fiscal Year 2025 Results on Mar 13, 2025 Computer Engineering & Consulting Ltd. announced that they will report fiscal year 2025 results on Mar 13, 2025 Major Estimate Revision • Dec 16
Consensus EPS estimates fall by 17% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥138 to JP¥115 per share. Revenue forecast steady at JP¥56.5b. Net income forecast to shrink 1.9% next year vs 20% growth forecast for Software industry in Japan . Consensus price target down from JP¥2,700 to JP¥2,600. Share price fell 4.6% to JP¥1,956 over the past week. Reported Earnings • Dec 12
Third quarter 2025 earnings released: EPS: JP¥32.46 (vs JP¥28.50 in 3Q 2024) Third quarter 2025 results: EPS: JP¥32.46 (up from JP¥28.50 in 3Q 2024). Revenue: JP¥13.7b (up 6.4% from 3Q 2024). Net income: JP¥1.06b (up 11% from 3Q 2024). Profit margin: 7.8% (up from 7.5% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Oct 26
Computer Engineering & Consulting Ltd. to Report Q3, 2025 Results on Dec 09, 2024 Computer Engineering & Consulting Ltd. announced that they will report Q3, 2025 results on Dec 09, 2024 Reported Earnings • Sep 12
Second quarter 2025 earnings released: EPS: JP¥26.94 (vs JP¥34.69 in 2Q 2024) Second quarter 2025 results: EPS: JP¥26.94 (down from JP¥34.69 in 2Q 2024). Revenue: JP¥13.5b (up 2.3% from 2Q 2024). Net income: JP¥902.0m (down 23% from 2Q 2024). Profit margin: 6.7% (down from 8.8% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Declared Dividend • Sep 11
Dividend of JP¥30.00 announced Shareholders will receive a dividend of JP¥30.00. Ex-date: 30th January 2025 Payment date: 24th April 2025 Dividend yield will be 3.2%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (40% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 19% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 25% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥1,548, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 19x in the Software industry in Japan. Total returns to shareholders of 10% over the past three years. New Risk • Aug 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.4% 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. This is currently the only risk that has been identified for the company. Upcoming Dividend • Jul 23
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 30 July 2024. Payment date: 30 September 2024. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.4%). Announcement • Jul 17
Computer Engineering & Consulting Ltd. to Report Q2, 2025 Results on Sep 09, 2024 Computer Engineering & Consulting Ltd. announced that they will report Q2, 2025 results on Sep 09, 2024 Price Target Changed • Jun 13
Price target increased by 17% to JP¥2,700 Up from JP¥2,300, the current price target is provided by 1 analyst. New target price is 29% above last closing price of JP¥2,099. Stock is up 15% over the past year. The company is forecast to post earnings per share of JP¥138 for next year compared to JP¥135 last year. Reported Earnings • Jun 11
First quarter 2025 earnings released: EPS: JP¥39.00 (vs JP¥38.31 in 1Q 2024) First quarter 2025 results: EPS: JP¥39.00 (up from JP¥38.31 in 1Q 2024). Revenue: JP¥14.0b (up 6.3% from 1Q 2024). Net income: JP¥1.31b (up 1.9% from 1Q 2024). Profit margin: 9.3% (in line with 1Q 2024). Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥2,055, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 19x in the Software industry in Japan. Total returns to shareholders of 45% over the past three years. Announcement • Jun 08
Computer Engineering & Consulting Ltd. (TSE:9692) announces an Equity Buyback for 2,000,000 shares, representing 5.95% for ¥3,000 million. Computer Engineering & Consulting Ltd. (TSE:9692) announces a share repurchase program. Under the program, the company will repurchase up to 2,000,000 shares, representing 5.95% of its total shares outstanding excluding treasury shares, for a total of ¥3,000 million. The purpose of repurchase program is to improve capital efficiency and further increase profit returns to shareholders. The repurchased shares will be cancelled. The repurchase program is valid till December 31, 2024. As of April 30, 2024, the company had 33,616,090 shares outstanding excluding treasury shares and had 3,983,910 shares in treasury. Declared Dividend • May 25
Final dividend of JP¥25.00 announced Shareholders will receive a dividend of JP¥25.00. Ex-date: 30th July 2024 Payment date: 30th September 2024 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 (41% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 19% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 17% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • May 10
Computer Engineering & Consulting Ltd. (TSE:9692) acquired ASSO Co., Ltd. Computer Engineering & Consulting Ltd. (TSE:9692) acquired ASSO Co., Ltd. on April 30, 2024.Computer Engineering & Consulting Ltd. (TSE:9692) completed the acquisition of ASSO Co., Ltd. on April 30, 2024. Announcement • Apr 24
Computer Engineering & Consulting Ltd. to Report Q1, 2025 Results on Jun 07, 2024 Computer Engineering & Consulting Ltd. announced that they will report Q1, 2025 results on Jun 07, 2024 Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,566, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 24x in the Software industry in Japan. Total returns to shareholders of 12% over the past three years. Announcement • Mar 10
Computer Engineering & Consulting Ltd., Annual General Meeting, Apr 23, 2024 Computer Engineering & Consulting Ltd., Annual General Meeting, Apr 23, 2024. Reported Earnings • Mar 09
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥135 (down from JP¥152 in FY 2023). Revenue: JP¥53.1b (up 10% from FY 2023). Net income: JP¥4.54b (down 12% from FY 2023). Profit margin: 8.5% (down from 11% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.1%. Revenue is forecast to grow 5.4% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% 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 • Jan 23
Upcoming dividend of JP¥25.00 per share at 2.9% yield Eligible shareholders must have bought the stock before 30 January 2024. Payment date: 26 April 2024. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.4%). Announcement • Jan 20
Computer Engineering & Consulting Ltd. to Report Fiscal Year 2024 Results on Mar 08, 2024 Computer Engineering & Consulting Ltd. announced that they will report fiscal year 2024 results on Mar 08, 2024 Reported Earnings • Dec 14
Third quarter 2024 earnings released: EPS: JP¥28.50 (vs JP¥26.37 in 3Q 2023) Third quarter 2024 results: EPS: JP¥28.50 (up from JP¥26.37 in 3Q 2023). Revenue: JP¥12.8b (up 8.6% from 3Q 2023). Net income: JP¥958.0m (up 8.1% from 3Q 2023). Profit margin: 7.5% (in line with 3Q 2023). Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Oct 15
Computer Engineering & Consulting Ltd. to Report Q3, 2024 Results on Dec 11, 2023 Computer Engineering & Consulting Ltd. announced that they will report Q3, 2024 results on Dec 11, 2023 Reported Earnings • Sep 11
Second quarter 2024 earnings released: EPS: JP¥34.69 (vs JP¥77.52 in 2Q 2023) Second quarter 2024 results: EPS: JP¥34.69 (down from JP¥77.52 in 2Q 2023). Revenue: JP¥13.2b (up 13% from 2Q 2023). Net income: JP¥1.17b (down 56% from 2Q 2023). Profit margin: 8.8% (down from 23% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% 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 • Jul 21
Upcoming dividend of JP¥25.00 per share at 2.9% yield Eligible shareholders must have bought the stock before 28 July 2023. Payment date: 02 October 2023. Payout ratio is a comfortable 24% and the cash payout ratio is 94%. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.6%). Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to JP¥1,834, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 30x in the Software industry in Japan. Total returns to shareholders of 17% over the past three years. New Risk • Jun 13
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 6.2% 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 Earnings are forecast to decline by an average of 4.9% per year for the foreseeable future. Minor Risks Dividend is not well covered by cash flows (102% cash payout ratio). Share price has been volatile over the past 3 months (6.2% average weekly change). Large one-off items impacting financial results. Reported Earnings • Jun 11
First quarter 2024 earnings released: EPS: JP¥38.31 (vs JP¥24.00 in 1Q 2023) First quarter 2024 results: EPS: JP¥38.31 (up from JP¥24.00 in 1Q 2023). Revenue: JP¥13.2b (up 12% from 1Q 2023). Net income: JP¥1.29b (up 54% from 1Q 2023). Profit margin: 9.7% (up from 7.1% in 1Q 2023). Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software industry in Japan. 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 7% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 11
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: JP¥152 (up from JP¥86.85 in FY 2022). Revenue: JP¥48.2b (up 6.6% from FY 2022). Net income: JP¥5.18b (up 70% from FY 2022). Profit margin: 11% (up from 6.7% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.3%. Revenue is forecast to grow 6.6% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Software industry in Japan. 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 7% per year. Announcement • Jan 26
Computer Engineering & Consulting, Ltd. to Report Fiscal Year 2023 Results on Mar 10, 2023 Computer Engineering & Consulting, Ltd. announced that they will report fiscal year 2023 results on Mar 10, 2023 Upcoming Dividend • Jan 23
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 30 January 2023. Payment date: 25 April 2023. Payout ratio is a comfortable 25% but the company is paying out more than the cash it is generating. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.9%). Price Target Changed • Jan 02
Price target increased to JP¥2,500 Up from JP¥2,000, the current price target is provided by 1 analyst. New target price is 64% above last closing price of JP¥1,528. Stock is up 41% over the past year. The company is forecast to post earnings per share of JP¥156 for next year compared to JP¥86.85 last year. Reported Earnings • Dec 11
Third quarter 2023 earnings released: EPS: JP¥26.37 (vs JP¥7.49 in 3Q 2022) Third quarter 2023 results: EPS: JP¥26.37 (up from JP¥7.49 in 3Q 2022). Revenue: JP¥11.8b (up 6.5% from 3Q 2022). Net income: JP¥886.0m (up 238% from 3Q 2022). Profit margin: 7.5% (up from 2.4% in 3Q 2022). Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 12% 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. 8 non-independent directors. Independent Outside Director Eiichiro Nakatani was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Oct 27
Computer Engineering & Consulting, Ltd. to Report Q3, 2023 Results on Dec 09, 2022 Computer Engineering & Consulting, Ltd. announced that they will report Q3, 2023 results on Dec 09, 2022 Major Estimate Revision • Sep 28
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 EPS estimate increased from JP¥94.90 to JP¥153. Revenue forecast unchanged at JP¥48.0b. Net income forecast to shrink 8.9% next year vs 21% growth forecast for Software industry in Japan . Consensus price target of JP¥2,100 unchanged from last update. Share price was steady at JP¥1,428 over the past week. Reported Earnings • Sep 11
Second quarter 2023 earnings released: EPS: JP¥77.52 (vs JP¥16.63 in 2Q 2022) Second quarter 2023 results: EPS: JP¥77.52 (up from JP¥16.63 in 2Q 2022). Revenue: JP¥11.7b (up 6.6% from 2Q 2022). Net income: JP¥2.66b (up 357% from 2Q 2022). Profit margin: 23% (up from 5.3% in 2Q 2022). Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 21
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 28 July 2022. Payment date: 30 September 2022. Payout ratio is a comfortable 48% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.8%). Announcement • Jul 08
Computer Engineering & Consulting, Ltd. to Report Q2, 2023 Results on Sep 09, 2022 Computer Engineering & Consulting, Ltd. announced that they will report Q2, 2023 results on Sep 09, 2022 Reported Earnings • Jun 13
First quarter 2023 earnings released: EPS: JP¥24.00 (vs JP¥27.26 in 1Q 2022) First quarter 2023 results: EPS: JP¥24.00 (down from JP¥27.26 in 1Q 2022). Revenue: JP¥11.8b (up 2.8% from 1Q 2022). Net income: JP¥837.0m (down 12% from 1Q 2022). Profit margin: 7.1% (down from 8.3% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 7.2%, compared to a 14% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 22% per year, which means it is performing significantly worse than earnings. Announcement • May 24
Computer Engineering & Consulting SHS to Be Deleted from Other OTC Computer Engineering & Consulting, Ltd. SHS (Japan) will be deleted from Other OTC effective from May 24, 2022, due to Inactive Security. Board Change • Apr 27
No independent directors There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 8 experienced directors. 2 highly experienced directors. No independent directors (8 non-independent directors). Executive Officer & Director Takashi Himeno was the last director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Announcement • Apr 08
Computer Engineering & Consulting, Ltd., Annual General Meeting, Apr 22, 2022 Computer Engineering & Consulting, Ltd., Annual General Meeting, Apr 22, 2022. Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥1,194, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 20x in the Software industry in Japan. Total loss to shareholders of 39% over the past three years. Reported Earnings • Mar 13
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥86.85 (down from JP¥115 in FY 2021). Revenue: JP¥45.2b (down 5.8% from FY 2021). Net income: JP¥3.04b (down 25% from FY 2021). Profit margin: 6.7% (down from 8.4% in FY 2021). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 19%. Over the next year, revenue is forecast to grow 6.1%, compared to a 14% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jan 21
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 28 January 2022. Payment date: 22 April 2022. Payout ratio is a comfortable 50% and this is well supported by cash flows. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.7%). Major Estimate Revision • Dec 22
Consensus EPS estimates fall by 21% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from JP¥46.0b to JP¥45.5b. EPS estimate also fell from JP¥92.00 per share to JP¥72.90 per share. Net income forecast to grow 12% next year vs 12% growth forecast for Software industry in Japan. Consensus price target down from JP¥2,000 to JP¥1,800. Share price fell 6.3% to JP¥1,054 over the past week. Valuation Update With 7 Day Price Move • Dec 17
Investor sentiment deteriorated over the past week After last week's 16% share price decline to JP¥1,084, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 27x in the Software industry in Japan. Total loss to shareholders of 40% over the past three years. Reported Earnings • Dec 16
Third quarter 2022 earnings: EPS in line with expectations, revenues disappoint Third quarter 2022 results: EPS: JP¥7.49 (down from JP¥19.80 in 3Q 2021). Revenue: JP¥11.1b (down 3.0% from 3Q 2021). Net income: JP¥262.0m (down 62% from 3Q 2021). Profit margin: 2.4% (down from 6.1% in 3Q 2021). Revenue missed analyst estimates by 1.9%. Over the next year, revenue is forecast to grow 5.1%, compared to a 16% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Price Target Changed • Sep 13
Price target decreased to JP¥2,000 Down from JP¥2,200, the current price target is provided by 1 analyst. New target price is 41% above last closing price of JP¥1,416. Stock is down 8.2% over the past year. Reported Earnings • Sep 12
Second quarter 2022 earnings released: EPS JP¥16.63 (vs JP¥37.01 in 2Q 2021) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥11.0b (down 8.2% from 2Q 2021). Net income: JP¥582.0m (down 55% from 2Q 2021). Profit margin: 5.3% (down from 11% in 2Q 2021). 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 fallen by 17% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 22
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 29 July 2021. Payment date: 30 September 2021. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.4%). Reported Earnings • Jun 16
First quarter 2022 earnings released: EPS JP¥27.26 (vs JP¥30.55 in 1Q 2021) The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥11.5b (down 9.0% from 1Q 2021). Net income: JP¥954.0m (down 11% from 1Q 2021). Profit margin: 8.3% (down from 8.5% in 1Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Announcement • Mar 14
Computer Engineering & Consulting, Ltd., Annual General Meeting, Apr 21, 2021 Computer Engineering & Consulting, Ltd., Annual General Meeting, Apr 21, 2021. Reported Earnings • Mar 14
Full year 2021 earnings released: EPS JP¥115 (vs JP¥104 in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: JP¥48.0b (down 7.5% from FY 2020). Net income: JP¥4.04b (up 11% from FY 2020). Profit margin: 8.4% (up from 7.0% in FY 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Mar 14
Revenue misses expectations Revenue missed analyst estimates by 2.4%. Over the next year, revenue is forecast to grow 7.1%, compared to a 13% growth forecast for the Software industry in Japan. Is New 90 Day High Low • Mar 01
New 90-day low: JP¥1,404 The company is down 8.0% from its price of JP¥1,533 on 01 December 2020. The Japanese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is down 7.0% over the same period. Upcoming Dividend • Jan 21
Upcoming Dividend of JP¥20.00 Per Share Will be paid on the 23rd of April to those who are registered shareholders by the 28th of January. The trailing yield of 2.7% is below the top quartile of Japanese dividend payers (3.0%), but it is higher than industry peers (1.3%). Announcement • Jan 14
Computer Engineering & Consulting, Ltd. to Report Fiscal Year 2021 Results on Mar 12, 2021 Computer Engineering & Consulting, Ltd. announced that they will report fiscal year 2021 results on Mar 12, 2021 Is New 90 Day High Low • Jan 14
New 90-day low: JP¥1,456 The company is down 10.0% from its price of JP¥1,626 on 16 October 2020. The Japanese market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 1.0% over the same period. Is New 90 Day High Low • Dec 22
New 90-day low: JP¥1,463 The company is down 11% from its price of JP¥1,649 on 23 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 Software industry, which is up 2.0% over the same period. Reported Earnings • Dec 13
Third quarter 2021 earnings released: EPS JP¥19.80 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥11.4b (down 11% from 3Q 2020). Net income: JP¥693.0m (down 22% from 3Q 2020). Profit margin: 6.1% (down from 6.9% in 3Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Dec 13
Revenue and earnings miss expectations Revenue missed analyst estimates by 6.4%. Earnings per share (EPS) also missed analyst estimates by 9.0%. Over the next year, revenue is forecast to grow 3.5%, compared to a 12% growth forecast for the Software industry in Japan. Price Target Changed • Dec 01
Price target lowered to JP¥2,300 Down from JP¥2,800, the current price target is provided by 1 analyst. The new target price is 50% above the current share price of JP¥1,533. As of last close, the stock is down 33% over the past year.