Announcement • Mar 13
SCSK Corporation(TSE:9719) dropped from FTSE All-World Index (USD) SCSK Corporation(TSE:9719) dropped from FTSE All-World Index (USD) Reported Earnings • Jan 31
Third quarter 2026 earnings: EPS in line with expectations, revenues disappoint Third quarter 2026 results: EPS: JP¥46.89 (up from JP¥33.79 in 3Q 2025). Revenue: JP¥191.8b (up 44% from 3Q 2025). Net income: JP¥14.7b (up 39% from 3Q 2025). Profit margin: 7.6% (down from 7.9% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the IT industry in Japan. 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 42% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 24
SCSK Corporation to Report Q3, 2026 Results on Jan 30, 2026 SCSK Corporation announced that they will report Q3, 2026 results on Jan 30, 2026 Valuation Update With 7 Day Price Move • Nov 05
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to JP¥5,673, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 19x in the IT industry in Japan. Total returns to shareholders of 186% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,779 per share. Announcement • Oct 31
Scsk Corporation Announces Not to Distribute the Year-End Dividend for the Fiscal Year Ending March 31, 2026 SCSK Corporation announced that at the board meeting held on October 29, 2025, the Board of Directors, decided to revise the dividend forecast for the fiscal year ending March 31, 2026 and not to distribute the year-end dividend for the fiscal year ending March 31, 2026 considering that a tender offer (hereinafter referred to as the "Tender Offer") by SC Investments Management Inc. (hereinafter referred to as the "Tender Offeror"), in which the Company's controlling shareholder (parent company) Sumitomo Corporation (hereinafter referred to as "Sumitomo") holds 100% of the shares, for the Company's common shares (hereinafter referred to as the "Company's Shares") and the Stock Acquisition Rights (hereinafter referred to as the "Stock Acquisition Rights") is planned to be conducted, as stated in "Notice Concerning the [Expression of an Opinion in Favor of and Recommendation to Tender] for the Tender Offer for the Company's Shares, etc. by SC Investments Management Inc., a Subsidiary of Sumitomo Corporation, the Company's Parent Company" separately released today (hereinafter referred to as the "Company's Press Release Expressing Opinion"). New Risk • Oct 30
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 6.3% 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 High level of debt (58% net debt to equity). Share price has been volatile over the past 3 months (6.3% average weekly change). Announcement • Oct 29
Sumitomo Corporation (TSE:8053) proposed to acquire remaining 49.46% stake in SCSK Corporation (TSE:9719) for approximately ¥880 billion. Sumitomo Corporation (TSE:8053) proposed to acquire remaining 49.46% stake in SCSK Corporation (TSE:9719) for approximately ¥880 billion on October 29, 2025. Under the terms of the acquisition, Sumitomo Corporation will pay ¥5700 in cash per share or a total value of ¥881.7 billion ($5.85 billion). Upon completion, will own 100% stake in SCSK Corporation and a subsequent series of procedures aimed at delisting the shares of SCSK Corporation from Tokyo Stock Exchange.
The transaction is subject to approval of offer by the shareholders of SCSK Corporation. The board of directors of SCSK Corporation has expressed an opinion in favor of the Tender Offer, recommending that the shareholders to tender their shares and leave the decision of whether or not to tender in the Tender Offer to the discretion of the holders of the Stock Acquisition Rights. Buy Or Sell Opportunity • Oct 27
Now 20% overvalued The stock has been flat over the last 90 days, currently trading at JP¥4,362. The fair value is estimated to be JP¥3,633, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 11%. For the next 3 years, revenue is forecast to grow by 8.6% per annum. Earnings are also forecast to grow by 10.0% per annum over the same time period. Buy Or Sell Opportunity • Oct 06
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 2.0% to JP¥4,340. The fair value is estimated to be JP¥3,609, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 11%. For the next 3 years, revenue is forecast to grow by 8.6% per annum. Earnings are also forecast to grow by 10.0% per annum over the same time period. Announcement • Sep 26
SCSK Corporation to Report Q2, 2026 Results on Oct 29, 2025 SCSK Corporation announced that they will report Q2, 2026 results on Oct 29, 2025 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥47.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 02 December 2025. Payout ratio is a comfortable 45% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.2%). Declared Dividend • Aug 02
Dividend of JP¥47.00 announced Shareholders will receive a dividend of JP¥47.00. Ex-date: 29th September 2025 Payment date: 2nd December 2025 Dividend yield will be 1.8%, 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 (43% 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 34% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 30
First quarter 2026 earnings released: EPS: JP¥42.93 (vs JP¥29.52 in 1Q 2025) First quarter 2026 results: EPS: JP¥42.93 (up from JP¥29.52 in 1Q 2025). Revenue: JP¥177.5b (up 45% from 1Q 2025). Net income: JP¥13.4b (up 46% from 1Q 2025). Profit margin: 7.6% (up from 7.5% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Jul 30
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 16% to JP¥4,755. The fair value is estimated to be JP¥3,815, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 9.8%. Announcement • Jun 25
SCSK Corporation to Report Q1, 2026 Results on Jul 29, 2025 SCSK Corporation announced that they will report Q1, 2026 results on Jul 29, 2025 Price Target Changed • Jun 04
Price target increased by 7.1% to JP¥4,427 Up from JP¥4,133, the current price target is an average from 9 analysts. New target price is approximately in line with last closing price of JP¥4,352. Stock is up 43% over the past year. The company is forecast to post earnings per share of JP¥184 for next year compared to JP¥144 last year. Reported Earnings • May 31
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥144 (up from JP¥130 in FY 2024). Revenue: JP¥596.1b (up 24% from FY 2024). Net income: JP¥45.0b (up 11% from FY 2024). Profit margin: 7.6% (down from 8.4% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 2.5%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • May 27
Price target increased by 7.7% to JP¥4,215 Up from JP¥3,914, the current price target is an average from 10 analysts. New target price is approximately in line with last closing price of JP¥4,268. Stock is up 43% over the past year. The company is forecast to post earnings per share of JP¥179 for next year compared to JP¥144 last year. Reported Earnings • May 01
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥144 (up from JP¥130 in FY 2024). Revenue: JP¥596.1b (up 24% from FY 2024). Net income: JP¥45.0b (up 11% from FY 2024). Profit margin: 7.6% (down from 8.4% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 2.5%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the IT 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 25% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 30
SCSK Corporation, Annual General Meeting, Jun 24, 2025 SCSK Corporation, Annual General Meeting, Jun 24, 2025. Announcement • Mar 25
SCSK Corporation to Report Fiscal Year 2025 Results on Apr 30, 2025 SCSK Corporation announced that they will report fiscal year 2025 results on Apr 30, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥37.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 03 June 2025. Payout ratio is a comfortable 49% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.4%). Price Target Changed • Feb 27
Price target increased by 7.6% to JP¥3,749 Up from JP¥3,485, the current price target is an average from 11 analysts. New target price is approximately in line with last closing price of JP¥3,783. Stock is up 37% over the past year. The company is forecast to post earnings per share of JP¥148 for next year compared to JP¥130 last year. Price Target Changed • Feb 19
Price target increased by 7.4% to JP¥3,558 Up from JP¥3,313, the current price target is an average from 11 analysts. New target price is approximately in line with last closing price of JP¥3,658. Stock is up 36% over the past year. The company is forecast to post earnings per share of JP¥147 for next year compared to JP¥130 last year. Reported Earnings • Feb 01
Third quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2025 results: EPS: JP¥33.79 (up from JP¥31.58 in 3Q 2024). Revenue: JP¥133.3b (up 11% from 3Q 2024). Net income: JP¥10.6b (up 7.0% from 3Q 2024). Profit margin: 7.9% (down from 8.2% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.8%. Earnings per share (EPS) missed analyst estimates by 4.8%. Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 21% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jan 03
SCSK Corporation to Report Q3, 2025 Results on Jan 31, 2025 SCSK Corporation announced that they will report Q3, 2025 results on Jan 31, 2025 Announcement • Nov 07
SCSK Corporation (TSE:9719) proposed to acquire Net One Systems Co., Ltd. (TSE:7518) from a group of shareholders for approximately ¥360 billion. SCSK Corporation (TSE:9719) proposed to acquire Net One Systems Co., Ltd. (TSE:7518) from a group of shareholders for approximately ¥360 billion on November 5, 2024. SCSK will purchase 79.4 million shares of Net One at ¥4500 per share. In order to appropriate to the funds required for the Transaction, the Tender Offeror decided to borrow funds amounting to ¥273.5 billion from Sumitomo Mitsui Banking Corporation. The terms and conditions of the Transaction (including the method of implementation (the method of implementing the Squeeze-out Procedures after the completion of the Tender Offer if the Tender Offeror is unable to acquire all of the Net One Systems shares. The transaction is subject to minimum tender. The Board of Directors of Net One Systems Co., Ltd. formed a special committee for the transaction. The expected completion of the transaction is December 18, 2024.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. acted as financial advisor for Net One Systems Co., Ltd. Daiwa Securities Co. Ltd. acted as financial advisor for SCSK Corporation. Nishimura & Asahi acted as legal advisor for SCSK Corporation. Nagashima Ohno & Tsunematsu acted as legal advisor for Net One Systems Co., Ltd. Reported Earnings • Oct 31
Second quarter 2025 earnings: EPS in line with analyst expectations despite revenue beat Second quarter 2025 results: EPS: JP¥32.04 (up from JP¥30.28 in 2Q 2024). Revenue: JP¥129.0b (up 9.5% from 2Q 2024). Net income: JP¥10.0b (up 5.9% from 2Q 2024). Profit margin: 7.8% (down from 8.0% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 10% per year. Announcement • Sep 27
SCSK Corporation to Report Q2, 2025 Results on Oct 29, 2024 SCSK Corporation announced that they will report Q2, 2025 results on Oct 29, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥34.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.4%). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to JP¥2,376, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 17x in the IT industry in Japan. Total returns to shareholders of 15% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,375 per share. Buy Or Sell Opportunity • Aug 05
Now 30% undervalued after recent price drop Over the last 90 days, the stock has fallen 19% to JP¥2,376. The fair value is estimated to be JP¥3,375, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.0% over the last 3 years. Earnings per share has grown by 7.9%. For the next 3 years, revenue is forecast to grow by 5.3% per annum. Earnings are also forecast to grow by 8.5% per annum over the same time period. Reported Earnings • Jul 31
First quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2025 results: EPS: JP¥29.52 (up from JP¥28.84 in 1Q 2024). Revenue: JP¥122.5b (up 8.1% from 1Q 2024). Net income: JP¥9.22b (up 2.4% from 1Q 2024). Profit margin: 7.5% (down from 7.9% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.3%. Earnings per share (EPS) missed analyst estimates by 2.8%. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 11% per year. Announcement • Jun 28
SCSK Corporation to Report Q1, 2025 Results on Jul 29, 2024 SCSK Corporation announced that they will report Q1, 2025 results on Jul 29, 2024 Reported Earnings • Jun 25
Full year 2024 earnings: Revenues and EPS in line with analyst expectations Full year 2024 results: EPS: JP¥130 (up from JP¥119 in FY 2023). Revenue: JP¥480.3b (up 7.7% from FY 2023). Net income: JP¥40.5b (up 8.5% from FY 2023). Profit margin: 8.4% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • May 01
Full year 2024 earnings: Revenues and EPS in line with analyst expectations Full year 2024 results: EPS: JP¥130 (up from JP¥119 in FY 2023). Revenue: JP¥480.3b (up 7.7% from FY 2023). Net income: JP¥40.5b (up 8.5% from FY 2023). Profit margin: 8.4% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 11% per year. Announcement • Apr 29
SCSK Corporation, Annual General Meeting, Jun 20, 2024 SCSK Corporation, Annual General Meeting, Jun 20, 2024. Announcement • Mar 27
SCSK Corporation to Report Fiscal Year 2024 Results on Apr 26, 2024 SCSK Corporation announced that they will report fiscal year 2024 results on Apr 26, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 03 June 2024. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.4%). Reported Earnings • Feb 02
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: JP¥31.58 (up from JP¥29.67 in 3Q 2023). Revenue: JP¥120.2b (up 9.3% from 3Q 2023). Net income: JP¥9.87b (up 6.5% from 3Q 2023). Profit margin: 8.2% (down from 8.4% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) also surpassed analyst estimates by 5.5%. Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 8% per year. Announcement • Dec 27
SCSK Corporation to Report Q3, 2024 Results on Jan 31, 2024 SCSK Corporation announced that they will report Q3, 2024 results on Jan 31, 2024 Reported Earnings • Oct 29
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: JP¥30.28 (up from JP¥29.52 in 2Q 2023). Revenue: JP¥117.8b (up 8.4% from 2Q 2023). Net income: JP¥9.46b (up 2.6% from 2Q 2023). Profit margin: 8.0% (down from 8.5% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) also surpassed analyst estimates by 5.5%. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Sep 29
SCSK Corporation to Report Q2, 2024 Results on Oct 27, 2023 SCSK Corporation announced that they will report Q2, 2024 results on Oct 27, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥28.00 per share at 2.1% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 01 December 2023. Payout ratio is a comfortable 41% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.5%). Reported Earnings • Jul 29
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: JP¥28.84 (up from JP¥22.44 in 1Q 2023). Revenue: JP¥113.4b (up 8.6% from 1Q 2023). Net income: JP¥9.01b (up 29% from 1Q 2023). Profit margin: 7.9% (up from 6.7% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.4%. Earnings per share (EPS) also surpassed analyst estimates by 22%. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 7% per year. Announcement • Jul 06
SCSK Corporation to Report Q1, 2024 Results on Jul 28, 2023 SCSK Corporation announced that they will report Q1, 2024 results on Jul 28, 2023 Reported Earnings • Jun 28
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥119 (up from JP¥107 in FY 2022). Revenue: JP¥445.9b (up 7.7% from FY 2022). Net income: JP¥37.3b (up 11% from FY 2022). Profit margin: 8.4% (up from 8.1% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.7%. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 10% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Apr 29
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥119 (up from JP¥107 in FY 2022). Revenue: JP¥445.9b (up 7.7% from FY 2022). Net income: JP¥37.3b (up 11% from FY 2022). Profit margin: 8.4% (up from 8.1% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.7%. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 9% per year. Buying Opportunity • Mar 23
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 4.3%. The fair value is estimated to be JP¥2,413, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.0% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 4.5% per annum. Earnings is also forecast to grow by 7.0% per annum over the same time period. Reported Earnings • Feb 01
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: JP¥29.67 (up from JP¥27.14 in 3Q 2022). Revenue: JP¥109.9b (up 7.0% from 3Q 2022). Net income: JP¥9.27b (up 9.4% from 3Q 2022). Profit margin: 8.4% (up from 8.2% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 8.7%. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has remained flat. Announcement • Dec 26
SCSK Corporation to Report Q3, 2023 Results on Jan 31, 2023 SCSK Corporation announced that they will report Q3, 2023 results on Jan 31, 2023 Board Change • Nov 16
High number of new directors There are 8 new directors who have joined the board in the last 3 years. Chairman & CEO Hideki Yamano was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 02
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: EPS: JP¥29.52 (up from JP¥25.88 in 2Q 2022). Revenue: JP¥108.7b (up 7.8% from 2Q 2022). Net income: JP¥9.22b (up 14% from 2Q 2022). Profit margin: 8.5% (up from 8.0% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.0%. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 4% per year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥26.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 01 December 2022. Payout ratio is a comfortable 44% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.7%). Board Change • Aug 01
High number of new directors There are 8 new directors who have joined the board in the last 3 years. Chairman & CEO Hideki Yamano was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Jul 31
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: EPS: JP¥22.44 (down from JP¥24.67 in 1Q 2022). Revenue: JP¥104.4b (up 5.2% from 1Q 2022). Net income: JP¥7.01b (down 9.0% from 1Q 2022). Profit margin: 6.7% (down from 7.8% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) also missed analyst estimates by 17%. Over the next year, revenue is forecast to grow 7.0%, compared to a 11% 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 increased by 12% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Jul 10
High number of new directors There are 8 new directors who have joined the board in the last 3 years. Chairman & CEO Hideki Yamano was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 30
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥107 (up from JP¥107 in FY 2021). Revenue: JP¥414.2b (up 4.4% from FY 2021). Net income: JP¥33.5b (flat on FY 2021). Profit margin: 8.1% (down from 8.4% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 2.3%. Over the next year, revenue is forecast to grow 6.1%, compared to a 7.4% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 6% per year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥23.34 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 02 June 2022. Payout ratio is a comfortable 43% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.5%). Reported Earnings • Feb 02
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: JP¥27.14 (down from JP¥28.54 in 3Q 2021). Revenue: JP¥102.7b (up 1.6% from 3Q 2021). Net income: JP¥8.47b (down 4.9% from 3Q 2021). Profit margin: 8.2% (down from 8.8% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 3.3%. Earnings per share (EPS) also missed analyst estimates by 11%. Over the next year, revenue is forecast to grow 6.6%, compared to a 7.5% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year and the company’s share price has also increased by 8% per year. Buying Opportunity • Jan 25
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 16%. The fair value is estimated to be JP¥2,449, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.4% per annum over the last 3 years. Earnings per share has grown by 6.7% per annum over the last 3 years. Reported Earnings • Oct 31
Second quarter 2022 earnings released The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2022 results: Revenue: JP¥100.8b (up 5.7% from 2Q 2021). Net income: JP¥8.08b (up 6.2% from 2Q 2021). Profit margin: 8.0% (in line with 2Q 2021). Over the last 3 years on average, earnings per share has increased by 13% per year and the company’s share price has also increased by 13% per year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥70.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 01 December 2021. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.2%). Reported Earnings • Aug 02
First quarter 2022 earnings released: EPS JP¥74.01 (vs JP¥69.76 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥99.2b (up 5.1% from 1Q 2021). Net income: JP¥7.70b (up 6.1% from 1Q 2021). Profit margin: 7.8% (up from 7.7% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 9% per year. Board Change • Jul 31
High number of new directors Executive VP & Director Koji Tamefusa was the last director to join the board, commencing their role in 2021. Reported Earnings • Jun 27
Full year 2021 earnings released: EPS JP¥321 (vs JP¥300 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥396.9b (up 2.5% from FY 2020). Net income: JP¥33.4b (up 7.2% from FY 2020). Profit margin: 8.4% (up from 8.1% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 9% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Apr 30
Full year 2021 earnings released: EPS JP¥321 (vs JP¥300 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥396.9b (up 2.5% from FY 2020). Net income: JP¥33.4b (up 7.2% from FY 2020). Profit margin: 8.4% (up from 8.1% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 8% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥70.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 02 June 2021. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.3%). Reported Earnings • Feb 02
Third quarter 2021 earnings released: EPS JP¥85.64 (vs JP¥89.12 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¥101.1b (up 8.3% from 3Q 2020). Net income: JP¥8.91b (down 3.7% from 3Q 2020). Profit margin: 8.8% (down from 9.9% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Feb 02
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 7.1%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Over the next year, revenue is forecast to grow 1.7%, compared to a 8.4% growth forecast for the IT industry in Japan. Is New 90 Day High Low • Feb 01
New 90-day high: JP¥6,630 The company is up 25% from its price of JP¥5,290 on 02 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥5,933 per share. Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥6,630, the stock is trading at a trailing P/E ratio of 21.4x, up from the previous P/E ratio of 17.9x. This compares to an average P/E of 27x in the IT industry in Japan. Total returns to shareholders over the past three years are 53%.