New Risk • Feb 18
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 101% Dividend yield: 3.8% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (101% cash payout ratio). Profit margins are more than 30% lower than last year (3.9% net profit margin). Reported Earnings • Feb 16
Full year 2025 earnings released: EPS: JP¥125 (vs JP¥178 in FY 2024) Full year 2025 results: EPS: JP¥125 (down from JP¥178 in FY 2024). Revenue: JP¥37.0b (up 9.0% from FY 2024). Net income: JP¥1.44b (down 29% from FY 2024). Profit margin: 3.9% (down from 6.0% 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 3% per year but the company’s share price has increased by 15% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 13
ISB Corporation, Annual General Meeting, Mar 27, 2026 ISB Corporation, Annual General Meeting, Mar 27, 2026. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥55.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 31 March 2026. Payout ratio is a comfortable 43% 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 (1.7%). Announcement • Dec 03
ISB Corporation to Report Fiscal Year 2025 Results on Feb 13, 2026 ISB Corporation announced that they will report fiscal year 2025 results on Feb 13, 2026 Reported Earnings • Nov 12
Third quarter 2025 earnings released: EPS: JP¥14.39 (vs JP¥37.66 in 3Q 2024) Third quarter 2025 results: EPS: JP¥14.39 (down from JP¥37.66 in 3Q 2024). Revenue: JP¥9.28b (up 11% from 3Q 2024). Net income: JP¥165.0m (down 62% from 3Q 2024). Profit margin: 1.8% (down from 5.1% in 3Q 2024). 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 whereas the company’s share price has increased by 9% per year. Announcement • Sep 27
ISB Corporation to Report Q3, 2025 Results on Nov 10, 2025 ISB Corporation announced that they will report Q3, 2025 results on Nov 10, 2025 Declared Dividend • Aug 09
Dividend increased to JP¥55.00 Dividend of JP¥55.00 is 1.9% higher than last year. Ex-date: 29th December 2025 Payment date: 31st March 2026 Dividend yield will be 3.7%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (36% earnings payout ratio) and cash flows (69% cash payout ratio). The dividend has increased by an average of 16% 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 • Aug 08
Second quarter 2025 earnings released: EPS: JP¥4.80 (vs JP¥31.49 in 2Q 2024) Second quarter 2025 results: EPS: JP¥4.80 (down from JP¥31.49 in 2Q 2024). Revenue: JP¥8.73b (up 7.2% from 2Q 2024). Net income: JP¥55.0m (down 85% from 2Q 2024). Profit margin: 0.6% (down from 4.4% in 2Q 2024). The decrease in margin was driven by higher expenses. 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 7% per year, which means it is significantly lagging earnings growth. Announcement • Jun 27
ISB Corporation to Report Q2, 2025 Results on Aug 07, 2025 ISB Corporation announced that they will report Q2, 2025 results on Aug 07, 2025 Reported Earnings • May 09
First quarter 2025 earnings released: EPS: JP¥63.48 (vs JP¥66.57 in 1Q 2024) First quarter 2025 results: EPS: JP¥63.48 (down from JP¥66.57 in 1Q 2024). Revenue: JP¥9.71b (up 14% from 1Q 2024). Net income: JP¥726.0m (down 4.5% from 1Q 2024). Profit margin: 7.5% (down from 8.9% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. New Risk • Apr 04
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.3b (US$98.2m) 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. Announcement • Mar 18
ISB Corporation to Report Q1, 2025 Results on May 08, 2025 ISB Corporation announced that they will report Q1, 2025 results on May 08, 2025 Reported Earnings • Feb 16
Full year 2024 earnings released: EPS: JP¥178 (vs JP¥129 in FY 2023) Full year 2024 results: EPS: JP¥178 (up from JP¥129 in FY 2023). Revenue: JP¥34.0b (up 4.8% from FY 2023). Net income: JP¥2.03b (up 38% from FY 2023). Profit margin: 6.0% (up from 4.5% in FY 2023). 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 12% per year, which means it is significantly lagging earnings growth. Announcement • Feb 14
ISB Corporation, Annual General Meeting, Mar 28, 2025 ISB Corporation, Annual General Meeting, Mar 28, 2025. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥46.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 28 March 2025. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.3%). New Risk • Dec 19
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.6b (US$99.4m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (JP¥15.6b market cap, or US$99.4m). Announcement • Dec 03
ISB Corporation to Report Fiscal Year 2024 Results on Feb 14, 2025 ISB Corporation announced that they will report fiscal year 2024 results on Feb 14, 2025 New Risk • Nov 14
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.6b (US$99.9m) 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. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (JP¥15.6b market cap, or US$99.9m). Reported Earnings • Nov 01
Third quarter 2024 earnings released: EPS: JP¥37.59 (vs JP¥41.95 in 3Q 2023) Third quarter 2024 results: EPS: JP¥37.59 (down from JP¥41.95 in 3Q 2023). Revenue: JP¥8.37b (up 2.6% from 3Q 2023). Net income: JP¥430.0m (down 10% from 3Q 2023). Profit margin: 5.1% (down from 5.9% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Sep 28
ISB Corporation to Report Q3, 2024 Results on Oct 30, 2024 ISB Corporation announced that they will report Q3, 2024 results on Oct 30, 2024 Valuation Update With 7 Day Price Move • Aug 07
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,329, the stock trades at a trailing P/E ratio of 8.3x. Average trailing P/E is 19x in the Software industry in Japan. Total returns to shareholders of 21% over the past three years. 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 5.8% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.8% average weekly change). Declared Dividend • Aug 02
Dividend increased to JP¥46.00 Dividend of JP¥46.00 is 9.5% higher than last year. Ex-date: 27th December 2024 Payment date: 28th March 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 (26% earnings payout ratio) and cash flows (30% cash payout ratio). The dividend has increased by an average of 14% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 26% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 01
Second quarter 2024 earnings released: EPS: JP¥31.49 (vs JP¥16.04 in 2Q 2023) Second quarter 2024 results: EPS: JP¥31.49 (up from JP¥16.04 in 2Q 2023). Revenue: JP¥8.14b (up 7.8% from 2Q 2023). Net income: JP¥360.0m (up 97% from 2Q 2023). Profit margin: 4.4% (up from 2.4% in 2Q 2023). The increase in margin was driven by higher revenue. 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 11% per year, which means it is significantly lagging earnings growth. Announcement • Jun 02
ISB Corporation to Report Q2, 2024 Results on Jul 30, 2024 ISB Corporation announced that they will report Q2, 2024 results on Jul 30, 2024 Reported Earnings • May 01
First quarter 2024 earnings released: EPS: JP¥66.56 (vs JP¥50.84 in 1Q 2023) First quarter 2024 results: EPS: JP¥66.56 (up from JP¥50.84 in 1Q 2023). Revenue: JP¥8.53b (up 2.0% from 1Q 2023). Net income: JP¥760.0m (up 31% from 1Q 2023). Profit margin: 8.9% (up from 6.9% in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. New Risk • Apr 03
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.1b (US$99.5m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (JP¥15.1b market cap, or US$99.5m). Announcement • Mar 15
ISB Corporation to Report Q1, 2024 Results on Apr 30, 2024 ISB Corporation announced that they will report Q1, 2024 results on Apr 30, 2024 Reported Earnings • Feb 20
Full year 2023 earnings released: EPS: JP¥129 (vs JP¥125 in FY 2022) Full year 2023 results: EPS: JP¥129 (up from JP¥125 in FY 2022). Revenue: JP¥32.4b (up 12% from FY 2022). Net income: JP¥1.47b (up 3.4% from FY 2022). Profit margin: 4.5% (down from 4.9% 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 13% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Feb 16
ISB Corporation Provides Cash Dividend Guidance for the Year Ending December 31, 2024 ISB Corporation provided cash dividend guidance for the year ending December 31, 2024. For the year, the company expects to pay dividend of JPY 42.00 against JPY 42.00 a year ago. Announcement • Dec 22
ISB Corporation to Report Fiscal Year 2023 Results on Feb 14, 2024 ISB Corporation announced that they will report fiscal year 2023 results on Feb 14, 2024 Upcoming Dividend • Dec 21
Upcoming dividend of JP¥42.00 per share at 2.8% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 01 April 2024. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.5%). Announcement • Nov 01
ISB Corporation Provides Dividend Guidance for the Year Ending December 31, 2023 ISB Corporation provided dividend guidance for the year ending December 31, 2023. For the year, the company expects to pay a dividend of JPY 42.00 per share against JPY 40.00 per share paid a year ago.. Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: JP¥41.95 (vs JP¥31.18 in 3Q 2022) Third quarter 2023 results: EPS: JP¥41.95 (up from JP¥31.18 in 3Q 2022). Revenue: JP¥8.15b (up 12% from 3Q 2022). Net income: JP¥479.0m (up 35% from 3Q 2022). Profit margin: 5.9% (up from 4.9% 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 15% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. New Risk • Oct 24
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.8b (US$98.9m) 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. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (JP¥14.8b market cap, or US$98.9m). Announcement • Aug 30
ISB Corporation to Report Q3, 2023 Results on Oct 30, 2023 ISB Corporation announced that they will report Q3, 2023 results on Oct 30, 2023 Reported Earnings • Aug 01
Second quarter 2023 earnings released: EPS: JP¥16.04 (vs JP¥21.88 in 2Q 2022) Second quarter 2023 results: EPS: JP¥16.04 (down from JP¥21.88 in 2Q 2022). Revenue: JP¥7.55b (up 6.1% from 2Q 2022). Net income: JP¥183.0m (down 27% from 2Q 2022). Profit margin: 2.4% (down from 3.5% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • May 31
ISB Corporation to Report Q2, 2023 Results on Jul 31, 2023 ISB Corporation announced that they will report Q2, 2023 results on Jul 31, 2023 Valuation Update With 7 Day Price Move • May 06
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to JP¥1,489, the stock trades at a trailing P/E ratio of 10.9x. Average trailing P/E is 22x in the Software industry in Japan. Total returns to shareholders of 95% over the past three years. Reported Earnings • Apr 29
First quarter 2023 earnings released: EPS: JP¥50.84 (vs JP¥39.16 in 1Q 2022) First quarter 2023 results: EPS: JP¥50.84 (up from JP¥39.16 in 1Q 2022). Revenue: JP¥8.37b (up 19% from 1Q 2022). Net income: JP¥579.0m (up 30% from 1Q 2022). Profit margin: 6.9% (up from 6.3% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 15% per year. Reported Earnings • Mar 01
Full year 2022 earnings released: EPS: JP¥125 (vs JP¥97.75 in FY 2021) Full year 2022 results: EPS: JP¥125 (up from JP¥97.75 in FY 2021). Revenue: JP¥29.0b (up 11% from FY 2021). Net income: JP¥1.42b (up 28% from FY 2021). Profit margin: 4.9% (up from 4.2% 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 18% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Jan 20
ISB Corporation to Report Fiscal Year 2022 Results on Feb 14, 2023 ISB Corporation announced that they will report fiscal year 2022 results on Feb 14, 2023 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥37.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 28 March 2023. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.9%). Reported Earnings • Nov 19
Third quarter 2022 earnings released: EPS: JP¥31.17 (vs JP¥11.99 in 3Q 2021) Third quarter 2022 results: EPS: JP¥31.17 (up from JP¥11.99 in 3Q 2021). Revenue: JP¥7.25b (up 15% from 3Q 2021). Net income: JP¥355.0m (up 161% from 3Q 2021). Profit margin: 4.9% (up from 2.2% in 3Q 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 12% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 8 experienced directors. 3 highly experienced directors. No independent directors (8 non-independent directors). Director Kazushi Wakao was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Nov 02
Third quarter 2022 earnings released: EPS: JP¥31.17 (vs JP¥11.99 in 3Q 2021) Third quarter 2022 results: EPS: JP¥31.17 (up from JP¥11.99 in 3Q 2021). Revenue: JP¥7.25b (up 15% from 3Q 2021). Net income: JP¥355.0m (up 161% from 3Q 2021). Profit margin: 4.9% (up from 2.2% in 3Q 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 whereas the company’s share price has increased by 14% per year. Announcement • Sep 01
ISB Corporation to Report Q3, 2022 Results on Oct 31, 2022 ISB Corporation announced that they will report Q3, 2022 results on Oct 31, 2022 Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment improved over the past week After last week's 20% share price gain to JP¥1,243, the stock trades at a trailing P/E ratio of 12.2x. Average trailing P/E is 24x in the Software industry in Japan. Total returns to shareholders of 85% over the past three years. Reported Earnings • Jul 31
Second quarter 2022 earnings released: EPS: JP¥21.88 (vs JP¥10.20 in 2Q 2021) Second quarter 2022 results: EPS: JP¥21.88 (up from JP¥10.20 in 2Q 2021). Revenue: JP¥7.12b (up 16% from 2Q 2021). Net income: JP¥249.0m (up 115% from 2Q 2021). Profit margin: 3.5% (up from 1.9% 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 20% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • Jun 04
ISB Corporation to Report Q2, 2022 Results on Jul 29, 2022 ISB Corporation announced that they will report Q2, 2022 results on Jul 29, 2022 Announcement • May 03
ISB Corporation Provides Consolidated Earnings Guidance for the Six Months Ending June 30, 2022 and Full Year Ending December 31, 2022 ISB Corporation provided consolidated earnings guidance for the six months ending June 30, 2022 and full year ending December 31, 2022. For six months, the company expected consolidated net sales to be JPY 13,500 million, operating profit to be JPY 890 million, Profit attributable to owners of parent to be JPY 530 million and Earnings per share to be JPY 46.64.For full year, the company expected consolidated net sales to be JPY 28,000 million, operating profit to be JPY 2,070 million, Profit attributable to owners of parent to be JPY 1,240 million and Earnings per share to be JPY 109.13. Reported Earnings • Apr 30
First quarter 2022 earnings released: EPS: JP¥39.16 (vs JP¥46.92 in 1Q 2021) First quarter 2022 results: EPS: JP¥39.16 (down from JP¥46.92 in 1Q 2021). Revenue: JP¥7.06b (up 5.5% from 1Q 2021). Net income: JP¥445.0m (down 16% from 1Q 2021). Profit margin: 6.3% (down from 8.0% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. 3 highly experienced directors. No independent directors (7 non-independent directors). Director Kazushi Wakao was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Buying Opportunity • Apr 11
Now 22% undervalued Over the last 90 days, the stock is up 11%. The fair value is estimated to be JP¥1,398, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 26%. Announcement • Apr 08
ISB Corporation to Report Q1, 2022 Results on Apr 28, 2022 ISB Corporation announced that they will report Q1, 2022 results on Apr 28, 2022 Reported Earnings • Feb 17
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: JP¥97.75 (up from JP¥94.07 in FY 2020). Revenue: JP¥26.2b (up 7.1% from FY 2020). Net income: JP¥1.11b (up 12% from FY 2020). Profit margin: 4.2% (up from 4.1% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥29.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 29 March 2022. Payout ratio is a comfortable 28% 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 (1.5%). Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS JP¥11.99 (vs JP¥19.35 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: JP¥6.29b (up 5.6% from 3Q 2020). Net income: JP¥136.0m (down 33% from 3Q 2020). Profit margin: 2.2% (down from 3.4% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 04
Second quarter 2021 earnings released: EPS JP¥10.21 (vs JP¥17.11 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: JP¥6.16b (up 6.3% from 2Q 2020). Net income: JP¥116.0m (down 34% from 2Q 2020). Profit margin: 1.9% (down from 3.0% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 03
Second quarter 2021 earnings released: EPS JP¥10.21 (vs JP¥17.11 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: JP¥6.16b (up 6.3% from 2Q 2020). Net income: JP¥116.0m (down 34% from 2Q 2020). Profit margin: 1.9% (down from 3.0% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 02
Investor sentiment deteriorated over the past week After last week's 16% share price decline to JP¥1,242, the stock trades at a trailing P/E ratio of 11.2x. Average trailing P/E is 30x in the Software industry in Japan. Total returns to shareholders of 19% over the past three years. Reported Earnings • May 23
First quarter 2021 earnings released: EPS JP¥46.92 (vs JP¥31.54 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: JP¥6.69b (up 5.5% from 1Q 2020). Net income: JP¥532.0m (up 65% from 1Q 2020). Profit margin: 8.0% (up from 5.1% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 01
First quarter 2021 earnings released: EPS JP¥46.91 (vs JP¥31.54 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: JP¥6.69b (up 5.5% from 1Q 2020). Net income: JP¥532.0m (up 65% from 1Q 2020). Profit margin: 8.0% (up from 5.1% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 31
Full year 2020 earnings released: EPS JP¥94.06 (vs JP¥62.00 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥24.4b (up 8.5% from FY 2019). Net income: JP¥994.0m (up 57% from FY 2019). Profit margin: 4.1% (up from 2.8% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Mar 12
ISB Corporation to Report Q1, 2021 Results on Apr 28, 2021 ISB Corporation announced that they will report Q1, 2021 results on Apr 28, 2021 Is New 90 Day High Low • Feb 18
New 90-day low: JP¥1,260 The company is down 2.0% from its price of JP¥1,287 on 20 November 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 6.0% over the same period. Announcement • Feb 17
ISB Corporation, Annual General Meeting, Mar 26, 2021 ISB Corporation, Annual General Meeting, Mar 26, 2021. Reported Earnings • Feb 17
Full year 2020 earnings released: EPS JP¥188 (vs JP¥62.00 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥24.4b (up 8.5% from FY 2019). Net income: JP¥994.0m (up 57% from FY 2019). Profit margin: 4.1% (up from 2.8% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Announcement • Dec 05
ISB Corporation to Report Fiscal Year 2020 Results on Feb 15, 2021 ISB Corporation announced that they will report fiscal year 2020 results on Feb 15, 2021