Board Change • Jul 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. 2 highly experienced directors. Senior Operating Officer, Div. Chief of Innovation Promotion Div. & Director Makoto Tai was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Jun 23
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥151 (up from JP¥119 in FY 2025). Revenue: JP¥56.5b (up 13% from FY 2025). Net income: JP¥5.00b (up 26% from FY 2025). Profit margin: 8.8% (up from 8.0% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 9.7% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 36% per year whereas the company’s share price has increased by 35% per year. Valuation Update With 7 Day Price Move • Jun 18
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥2,524, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 17x in the Electronic industry in Japan. Total returns to shareholders of 171% over the past three years. Valuation Update With 7 Day Price Move • May 07
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥2,237, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 110% over the past three years. Reported Earnings • May 01
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥151 (up from JP¥119 in FY 2025). Revenue: JP¥56.5b (up 13% from FY 2025). Net income: JP¥5.00b (up 26% from FY 2025). Profit margin: 8.8% (up from 8.0% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Revenue is forecast to grow 5.5% p.a. on average during the next 2 years, compared to a 7.7% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Apr 30
Arisawa Mfg. Co., Ltd., Annual General Meeting, Jun 18, 2026 Arisawa Mfg. Co., Ltd., Annual General Meeting, Jun 18, 2026. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥53.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 29 June 2026. Payout ratio is on the higher end at 83%, and the cash payout ratio is above 100%. Trailing yield: 4.1%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). New Risk • Mar 19
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 6.5% 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 Dividend is not well covered by cash flows (dividend per share is over 6x cash flows per share). Share price has been volatile over the past 3 months (6.5% average weekly change). Reported Earnings • Feb 07
Third quarter 2026 earnings released: EPS: JP¥42.54 (vs JP¥26.53 in 3Q 2025) Third quarter 2026 results: EPS: JP¥42.54 (up from JP¥26.53 in 3Q 2025). Revenue: JP¥14.7b (up 17% from 3Q 2025). Net income: JP¥1.42b (up 61% from 3Q 2025). Profit margin: 9.6% (up from 7.0% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 06
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥2,126, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 94% over the past three years. Declared Dividend • Dec 03
First half dividend of JP¥44.00 announced Shareholders will receive a dividend of JP¥44.00. Ex-date: 30th March 2026 Payment date: 29th June 2026 Dividend yield will be 5.3%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by earnings (53% earnings payout ratio) but not covered by cash flows (dividend approximately 5x free cash flows). The dividend has increased by an average of 9.7% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 10% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Dec 02
Arisawa Mfg. Co., Ltd. to Report Q3, 2026 Results on Feb 05, 2026 Arisawa Mfg. Co., Ltd. announced that they will report Q3, 2026 results on Feb 05, 2026 Buy Or Sell Opportunity • Nov 14
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 4.1% to JP¥1,618. The fair value is estimated to be JP¥1,341, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.1% over the last 3 years. Earnings per share has grown by 7.6%. Revenue is forecast to grow by 8.9% in 2 years. Earnings are forecast to grow by 4.1% in the next 2 years. New Risk • Nov 13
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 96% Dividend per share is over 5x cash flows per share. Dividend yield: 5.5% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 08
Second quarter 2026 earnings released: EPS: JP¥25.07 (vs JP¥34.62 in 2Q 2025) Second quarter 2026 results: EPS: JP¥25.07 (down from JP¥34.62 in 2Q 2025). Revenue: JP¥13.9b (up 6.2% from 2Q 2025). Net income: JP¥833.8m (down 28% from 2Q 2025). Profit margin: 6.0% (down from 8.8% in 2Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Electronic 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. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥44.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 03 December 2025. Payout ratio is on the higher end at 86%, and the cash payout ratio is above 100%. Trailing yield: 5.3%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥21.92 (vs JP¥29.28 in 1Q 2025) First quarter 2026 results: EPS: JP¥21.92 (down from JP¥29.28 in 1Q 2025). Revenue: JP¥12.6b (up 4.6% from 1Q 2025). Net income: JP¥728.0m (down 25% from 1Q 2025). Profit margin: 5.8% (down from 8.0% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Declared Dividend • Jul 09
Final dividend of JP¥44.00 announced Shareholders will receive a dividend of JP¥44.00. Ex-date: 29th September 2025 Payment date: 3rd December 2025 Dividend yield will be 6.7%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by earnings (74% earnings payout ratio) but not covered by cash flows (127% cash payout ratio). The dividend has increased by an average of 19% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 8.1% over the next 3 years. However, it would need to fall by 17% to increase the payout ratio to a potentially unsustainable range. Announcement • May 22
Arisawa Mfg. Co., Ltd. (TSE:5208) agreed to acquire Arisawa Kenko Ltd from the Arisawa family for approximately ¥930 million. Arisawa Mfg. Co., Ltd. (TSE:5208) agreed to acquire Arisawa Kenko Ltd from the Arisawa family for approximately ¥930 million on May 22, 2025. The transaction will be financed through internal funds.
The transaction is subject to approval of offer by acquirer shareholders. The expected completion of the transaction is June 4, 2025. Reported Earnings • May 08
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥119 (up from JP¥49.48 in FY 2024). Revenue: JP¥49.8b (up 18% from FY 2024). Net income: JP¥3.97b (up 142% from FY 2024). Profit margin: 8.0% (up from 3.9% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 13%. Revenue is forecast to grow 4.5% p.a. on average during the next 2 years, compared to a 6.4% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Announcement • May 07
Arisawa Mfg. Co., Ltd., Annual General Meeting, Jun 26, 2025 Arisawa Mfg. Co., Ltd., Annual General Meeting, Jun 26, 2025. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,172, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 10x in the Electronic industry in Japan. Total returns to shareholders of 56% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥42.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 74% but the company is paying out more than the cash it is generating. Trailing yield: 5.8%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.7%). Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥26.53 (vs JP¥12.61 in 3Q 2024) Third quarter 2025 results: EPS: JP¥26.53 (up from JP¥12.61 in 3Q 2024). Revenue: JP¥12.6b (up 15% from 3Q 2024). Net income: JP¥882.2m (up 111% from 3Q 2024). Profit margin: 7.0% (up from 3.8% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Announcement • Dec 04
Arisawa Mfg. Co., Ltd. to Report Q3, 2025 Results on Feb 06, 2025 Arisawa Mfg. Co., Ltd. announced that they will report Q3, 2025 results on Feb 06, 2025 Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: JP¥34.62 (vs JP¥23.07 in 2Q 2024) Second quarter 2025 results: EPS: JP¥34.62 (up from JP¥23.07 in 2Q 2024). Revenue: JP¥13.1b (up 26% from 2Q 2024). Net income: JP¥1.15b (up 51% from 2Q 2024). Profit margin: 8.8% (up from 7.3% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥42.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. Payout ratio is a comfortable 71% but the company is not cash flow positive. Trailing yield: 5.7%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.5%). Reported Earnings • Aug 13
First quarter 2025 earnings released: EPS: JP¥29.28 (vs JP¥6.08 loss in 1Q 2024) First quarter 2025 results: EPS: JP¥29.28 (up from JP¥6.08 loss in 1Q 2024). Revenue: JP¥12.1b (up 27% from 1Q 2024). Net income: JP¥971.0m (up JP¥1.17b from 1Q 2024). Profit margin: 8.0% (up from net loss in 1Q 2024). The move to profitability was driven by higher revenue. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥1,311, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 82% over the past three years. Reported Earnings • May 11
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: JP¥49.48 (down from JP¥86.45 in FY 2023). Revenue: JP¥42.1b (down 1.4% from FY 2023). Net income: JP¥1.64b (down 43% from FY 2023). Profit margin: 3.9% (down from 6.7% in FY 2023). Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) exceeded analyst estimates by 22%. Revenue is forecast to grow 8.5% p.a. on average during the next 2 years, compared to a 7.0% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. New Risk • Apr 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 7.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 310% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (7.7% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.9% net profit margin). Valuation Update With 7 Day Price Move • Apr 11
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to JP¥1,445, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 80% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.4%). Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥12.61 (vs JP¥2.97 in 3Q 2023) Third quarter 2024 results: EPS: JP¥12.61 (up from JP¥2.97 in 3Q 2023). Revenue: JP¥11.0b (up 3.9% from 3Q 2023). Net income: JP¥418.0m (up 328% from 3Q 2023). Profit margin: 3.8% (up from 0.9% in 3Q 2023). Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Dec 09
Arisawa Mfg. Co., Ltd. to Report Q3, 2024 Results on Feb 08, 2024 Arisawa Mfg. Co., Ltd. announced that they will report Q3, 2024 results on Feb 08, 2024 Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥23.07 (vs JP¥42.28 in 2Q 2023) Second quarter 2024 results: EPS: JP¥23.07 (down from JP¥42.28 in 2Q 2023). Revenue: JP¥10.4b (down 11% from 2Q 2023). Net income: JP¥764.0m (down 45% from 2Q 2023). Profit margin: 7.3% (down from 12% in 2Q 2023). Revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic 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 3% per year. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥20.00 per share at 4.2% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 04 December 2023. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.4%). Announcement • Aug 31
Arisawa Mfg. Co., Ltd. to Report Q2, 2024 Results on Nov 09, 2023 Arisawa Mfg. Co., Ltd. announced that they will report Q2, 2024 results on Nov 09, 2023 New Risk • Aug 04
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.6% Last year net profit margin: 9.9% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 200% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.6% net profit margin). Reported Earnings • Aug 04
First quarter 2024 earnings released: JP¥6.08 loss per share (vs JP¥35.10 profit in 1Q 2023) First quarter 2024 results: JP¥6.08 loss per share (down from JP¥35.10 profit in 1Q 2023). Revenue: JP¥9.49b (down 16% from 1Q 2023). Net loss: JP¥201.0m (down 117% from profit in 1Q 2023). Revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. New Risk • Jul 23
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 104% The company is paying a dividend despite having no free cash flows. Dividend yield: 4.2% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. 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: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 104% Paying a dividend despite having no free cash flows. Earnings are forecast to decline by an average of 3.2% per year for the foreseeable future. Minor Risk Large one-off items impacting financial results. Board Change • Jul 23
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Corporate Board Auditor Hisashi Masumura was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Jun 28
Arisawa Mfg. Co., Ltd. to Report Q1, 2024 Results on Aug 03, 2023 Arisawa Mfg. Co., Ltd. announced that they will report Q1, 2024 results on Aug 03, 2023 Reported Earnings • May 14
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥86.45 (down from JP¥117 in FY 2022). Revenue: JP¥42.7b (flat on FY 2022). Net income: JP¥2.86b (down 27% from FY 2022). Profit margin: 6.7% (down from 9.1% in FY 2022). Revenue missed analyst estimates by 5.1%. Earnings per share (EPS) also missed analyst estimates by 11%. Revenue is forecast to grow 7.8% p.a. on average during the next 2 years, compared to a 6.7% growth forecast for the Electronic industry in Japan. 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 17% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥90.00 per share at 6.8% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 29 June 2023. Payout ratio and cash payout ratio are on the higher end at 83% and 96% respectively. Trailing yield: 6.8%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥2.96 (vs JP¥36.83 in 3Q 2022) Third quarter 2023 results: EPS: JP¥2.96 (down from JP¥36.83 in 3Q 2022). Revenue: JP¥10.5b (down 3.4% from 3Q 2022). Net income: JP¥97.5m (down 92% from 3Q 2022). Profit margin: 0.9% (down from 11% in 3Q 2022). Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • Jan 27
Arisawa Mfg. Co., Ltd., Annual General Meeting, Jun 29, 2023 Arisawa Mfg. Co., Ltd., Annual General Meeting, Jun 29, 2023. Announcement • Dec 01
Arisawa Mfg. Co., Ltd. to Report Q3, 2023 Results on Feb 09, 2023 Arisawa Mfg. Co., Ltd. announced that they will report Q3, 2023 results on Feb 09, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥42.28 (vs JP¥29.05 in 2Q 2022) Second quarter 2023 results: EPS: JP¥42.28 (up from JP¥29.05 in 2Q 2022). Revenue: JP¥11.7b (up 6.5% from 2Q 2022). Net income: JP¥1.40b (up 44% from 2Q 2022). Profit margin: 12% (up from 8.8% in 2Q 2022). Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 2 experienced directors. 3 highly experienced directors. CEO, President & Representative Director Yuta Arisawa is the most experienced director on the board, commencing their role in 2010. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 06
Second quarter 2023 earnings released: EPS: JP¥42.28 (vs JP¥29.05 in 2Q 2022) Second quarter 2023 results: EPS: JP¥42.28 (up from JP¥29.05 in 2Q 2022). Revenue: JP¥11.7b (up 6.5% from 2Q 2022). Net income: JP¥1.40b (up 44% from 2Q 2022). Profit margin: 12% (up from 8.8% in 2Q 2022). Revenue is forecast to grow 9.7% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 05
First quarter 2023 earnings released: EPS: JP¥35.10 (vs JP¥23.31 in 1Q 2022) First quarter 2023 results: EPS: JP¥35.10 (up from JP¥23.31 in 1Q 2022). Revenue: JP¥11.3b (up 5.0% from 1Q 2022). Net income: JP¥1.17b (up 50% from 1Q 2022). Profit margin: 10% (up from 7.2% in 1Q 2022). Over the next year, revenue is forecast to grow 14%, compared to a 9.5% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 63% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥1,217, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 11x in the Electronic industry in Japan. Total returns to shareholders of 65% over the past three years. Valuation Update With 7 Day Price Move • May 19
Investor sentiment improved over the past week After last week's 20% share price gain to JP¥1,078, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 11x in the Electronic industry in Japan. Total returns to shareholders of 73% over the past three years. Reported Earnings • May 17
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥117 (up from JP¥64.92 in FY 2021). Revenue: JP¥43.1b (down 7.2% from FY 2021). Net income: JP¥3.91b (up 81% from FY 2021). Profit margin: 9.1% (up from 4.7% in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 15%. Over the next year, revenue is forecast to grow 6.8%, compared to a 8.0% growth forecast for the industry in Japan. 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 13% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 2 experienced directors. 2 highly experienced directors. CEO, President & Representative Director Yuta Arisawa is the most experienced director on the board, commencing their role in 2010. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥48.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 28 June 2022. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.3%). Reported Earnings • Jan 28
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: JP¥36.83 (up from JP¥15.84 in 3Q 2021). Revenue: JP¥10.9b (down 12% from 3Q 2021). Net income: JP¥1.23b (up 133% from 3Q 2021). Profit margin: 11% (up from 4.2% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 9.0%. Earnings per share (EPS) exceeded analyst estimates by 31%. Over the next year, revenue is forecast to grow 1.9%, compared to a 9.8% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Oct 29
Second quarter 2022 earnings released: EPS JP¥29.05 (vs JP¥12.78 in 2Q 2021) The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker. Second quarter 2022 results: Revenue: JP¥11.0b (down 5.6% from 2Q 2021). Net income: JP¥968.0m (up 128% from 2Q 2021). Profit margin: 8.8% (up from 3.7% in 2Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has increased by 1% per year. Reported Earnings • Jul 30
First quarter 2022 earnings released: EPS JP¥23.31 (vs JP¥12.87 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥10.8b (up 1.8% from 1Q 2021). Net income: JP¥777.0m (up 82% from 1Q 2021). Profit margin: 7.2% (up from 4.0% in 1Q 2021). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Announcement • Jul 20
Arisawa Mfg. Co., Ltd. (TSE:5208) entered into share transfer agreement to acquire remaining 10.5% stake in ThinFlex Corporation (TPEX:3144) for approximately TWD 410 million. Arisawa Mfg. Co., Ltd. (TSE:5208) entered into share transfer agreement to acquire remaining 10.5% stake in ThinFlex Corporation (TPEX:3144) for approximately TWD 410 million on July 19, 2021. Under terms of transaction, Arisawa Mfg agree to pay TWD 40 per share which includes cash dividend of TWD 1.6 so the net offer share is TWD 38.4 per share and it currently hold 89.5% stake in TPEX. Upon the completion of the share transfer,the company will be a 100% owned subsidiary of ARISAWA. Arisawa will fund the transaction from owns funds and Thinflex will reduce management costs and improve competitive advantage and management efficiency. Transaction is subject to Thinflex shareholders approval. The Board of Directors approved the share transfer plan with Arisawa Manufacturing Co. Ltd.The transaction will not affect the net worth per share and earnings per shares. Transaction is expected to be complete on December 10, 2021. Diwan & Company acted as accountant and LU, JUI-WEN acted as lawyer for Thinflex. Reported Earnings • May 08
Full year 2021 earnings released: EPS JP¥64.92 (vs JP¥6.11 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥46.4b (up 1.0% from FY 2020). Net income: JP¥2.16b (up JP¥1.95b from FY 2020). Profit margin: 4.7% (up from 0.5% in FY 2020). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥34.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 26 June 2021. Trailing yield: 3.1%. Within top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.1%). Announcement • Mar 21
Arisawa Mfg. Co., Ltd. to Report Fiscal Year 2021 Results on May 06, 2021 Arisawa Mfg. Co., Ltd. announced that they will report fiscal year 2021 results on May 06, 2021 Is New 90 Day High Low • Mar 09
New 90-day high: JP¥1,030 The company is up 6.0% from its price of JP¥970 on 09 December 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Electronic industry, which is up 3.0% over the same period. Reported Earnings • Jan 30
Third quarter 2021 earnings released: EPS JP¥15.84 (vs JP¥23.22 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¥12.4b (up 5.8% from 3Q 2020). Net income: JP¥527.0m (down 32% from 3Q 2020). Profit margin: 4.2% (down from 6.6% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Jan 30
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 6.0%. Earnings per share (EPS) missed analyst estimates by 55%. Over the next year, revenue is forecast to grow 2.3%, compared to a 6.9% growth forecast for the Electronic industry in Japan. Is New 90 Day High Low • Jan 14
New 90-day high: JP¥1,013 The company is up 10.0% from its price of JP¥922 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 Electronic industry, which is up 22% over the same period. Is New 90 Day High Low • Dec 15
New 90-day high: JP¥1,009 The company is up 2.0% from its price of JP¥991 on 16 September 2020. The Japanese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 15% over the same period. Announcement • Nov 29
Arisawa Mfg. Co., Ltd. to Report Q3, 2021 Results on Jan 28, 2021 Arisawa Mfg. Co., Ltd. announced that they will report Q3, 2021 results on Jan 28, 2021 Announcement • Sep 12
Arisawa Mfg. Co., Ltd. to Report Q2, 2021 Results on Oct 29, 2020 Arisawa Mfg. Co., Ltd. announced that they will report Q2, 2021 results on Oct 29, 2020