Upcoming Dividend • Mar 23
Upcoming dividend of JP¥26.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 26 June 2026. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (3.1%). Major Estimate Revision • Feb 21
Consensus EPS estimates increase by 32% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥128.4b to JP¥130.3b. EPS estimate increased from JP¥175 to JP¥231 per share. Net income forecast to shrink 29% next year vs 0.9% growth forecast for Tech industry in Japan . Consensus price target of JP¥2,050 unchanged from last update. Share price rose 7.4% to JP¥1,784 over the past week. New Risk • Feb 17
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 22% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 12% per year for the foreseeable future. High level of non-cash earnings (22% accrual ratio). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: JP¥143 (vs JP¥38.18 in 3Q 2025) Third quarter 2026 results: EPS: JP¥143 (up from JP¥38.18 in 3Q 2025). Revenue: JP¥36.4b (up 19% from 3Q 2025). Net income: JP¥11.2b (up 284% from 3Q 2025). Profit margin: 31% (up from 9.5% in 3Q 2025). Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Tech industry in Japan. 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 8% per year, which means it is significantly lagging earnings growth. Announcement • Feb 14
Elecom Co., Ltd. Revises Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2026 Elecom Co., Ltd. revised consolidated earnings guidance for the Fiscal year ending March 31, 2026. For the year, the company expects net sales of JPY 131,000 million, Operating profit of JPY 14,900 million, Profit attributable to owners of parent of JPY 17,798 million and Basic earnings per share of JPY 230.56. Major Estimate Revision • Jan 22
Consensus EPS estimates increase by 13% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from JP¥138 to JP¥157. Revenue forecast steady at JP¥128.0b. Net income forecast to grow 17% next year vs 4.3% growth forecast for Tech industry in Japan. Consensus price target down from JP¥2,175 to JP¥2,125. Share price was steady at JP¥1,693 over the past week. Announcement • Dec 27
Elecom Co., Ltd. to Report Q3, 2026 Results on Feb 13, 2026 Elecom Co., Ltd. announced that they will report Q3, 2026 results on Feb 13, 2026 Declared Dividend • Dec 09
First half dividend of JP¥26.00 announced Shareholders will receive a dividend of JP¥26.00. Ex-date: 30th March 2026 Payment date: 26th June 2026 Dividend yield will be 2.9%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is well covered by both earnings (38% earnings payout ratio) and cash flows (29% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 22% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Nov 25
Elecom Co., Ltd. (TSE:6750) completed the acquisition of Nippon Antenna Co.,Ltd. (TSE:6930) from a group of shareholders. Elecom Co., Ltd. (TSE:6750) entered into non-binding Memorandum of Understanding to acquire Nippon Antenna Co.,Ltd. (TSE:6930) from a group of shareholders for ¥7.8 billion on April 25, 2024. Elecom Co., Ltd. (TSE:6750) entered into agreement to acquire Nippon Antenna Co.,Ltd. (TSE:6930) from a group of shareholders on August 21, 2025. The transaction is expected to complete on October-November 2024. As of October 25, 2024, Elecom and Nippon Antenna have decided to change the schedule and continue discussions and deliberations with the goal of concluding the Share Exchange Agreement in February or March 2025, taking into consideration the time required for the review of business combination by the Japan Fair Trade Commission. And after proceeding with the procedures to obtain the necessary clearances, permits and the like required under the competition law in Japan, other laws, regulations and approvals, and conducting due diligence, followed by discussions with Nippon Antenna to conclude a legally binding Share Exchange Agreement. In the event that Elecom and Nippon Antenna decide to enter into the Share Exchange Agreement, the details of the agreement will be disclosed, and in the event that the Share Exchange Agreement is not entered into by March 2025, the progress will be announced again. As of March 25, 2025, the parties have decided to set a new target of concluding the share exchange agreement in August or September 2025.
DC Advisory Japan acted as financial advisor and Oh-Ebashi LPC & Partners acted as legal advisor to Elecom Co., Ltd whereas Ozawa & Akiyama acted as legal advisor to Nippon Antenna Co.,Ltd.
Elecom Co., Ltd. (TSE:6750) completed the acquisition of Nippon Antenna Co.,Ltd. (TSE:6930) from a group of shareholders on November 25, 2025. Reported Earnings • Nov 15
Second quarter 2026 earnings released: EPS: JP¥31.45 (vs JP¥24.05 in 2Q 2025) Second quarter 2026 results: EPS: JP¥31.45 (up from JP¥24.05 in 2Q 2025). Revenue: JP¥30.2b (up 4.1% from 2Q 2025). Net income: JP¥2.40b (up 30% from 2Q 2025). Profit margin: 8.0% (up from 6.4% in 2Q 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 2.5% growth forecast for the Tech 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 6% per year. Announcement • Sep 27
Elecom Co., Ltd. to Report Q2, 2026 Results on Nov 13, 2025 Elecom Co., Ltd. announced that they will report Q2, 2026 results on Nov 13, 2025 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥26.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 08 December 2025. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.9%). Reported Earnings • Aug 15
First quarter 2026 earnings released: EPS: JP¥24.65 (vs JP¥18.85 in 1Q 2025) First quarter 2026 results: EPS: JP¥24.65 (up from JP¥18.85 in 1Q 2025). Revenue: JP¥28.6b (up 3.7% from 1Q 2025). Net income: JP¥1.88b (up 22% from 1Q 2025). Profit margin: 6.6% (up from 5.6% in 1Q 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 2.4% growth forecast for the Tech 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 1% per year. New Risk • Jul 10
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 21% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. 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. Shareholders have been diluted in the past year (21% increase in shares outstanding). Declared Dividend • Jul 09
Final dividend increased to JP¥26.00 Dividend of JP¥26.00 is 8.3% higher than last year. Ex-date: 29th September 2025 Payment date: 8th December 2025 Dividend yield will be 2.7%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is well covered by both earnings (38% earnings payout ratio) and cash flows (29% cash payout ratio). The dividend has increased by an average of 18% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 28% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Board Change • Jul 02
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 6 experienced directors. 3 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Outside Director Takashi Nagaoka was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Jun 29
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥119 (down from JP¥120 in FY 2024). Revenue: JP¥118.0b (up 7.1% from FY 2024). Net income: JP¥9.30b (down 6.9% from FY 2024). Profit margin: 7.9% (down from 9.1% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.2%. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Tech industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 6% per year. Announcement • Jun 27
Elecom Co., Ltd. to Report Q1, 2026 Results on Aug 14, 2025 Elecom Co., Ltd. announced that they will report Q1, 2026 results on Aug 14, 2025 Reported Earnings • May 20
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥119 (down from JP¥120 in FY 2024). Revenue: JP¥118.0b (up 7.1% from FY 2024). Net income: JP¥9.30b (down 6.9% from FY 2024). Profit margin: 7.9% (down from 9.1% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.2%. Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Tech industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year and the company’s share price has also increased by 3% per year. Announcement • May 15
Elecom Co., Ltd., Annual General Meeting, Jun 25, 2025 Elecom Co., Ltd., Annual General Meeting, Jun 25, 2025. Announcement • Mar 27
Elecom Co., Ltd. to Report Fiscal Year 2025 Results on May 15, 2025 Elecom Co., Ltd. announced that they will report fiscal year 2025 results on May 15, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥24.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 27 June 2025. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (2.6%). Reported Earnings • Feb 14
Third quarter 2025 earnings released: EPS: JP¥38.18 (vs JP¥25.89 in 3Q 2024) Third quarter 2025 results: EPS: JP¥38.18 (up from JP¥25.89 in 3Q 2024). Revenue: JP¥30.7b (up 4.5% from 3Q 2024). Net income: JP¥2.93b (up 37% from 3Q 2024). Profit margin: 9.5% (up from 7.3% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Tech industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 2% per year. Declared Dividend • Dec 07
First half dividend of JP¥24.00 announced Shareholders will receive a dividend of JP¥24.00. Ex-date: 28th March 2025 Payment date: 27th June 2025 Dividend yield will be 3.4%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is well covered by both earnings (42% earnings payout ratio) and cash flows (44% 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 grow by 28% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 08
Second quarter 2025 earnings released: EPS: JP¥24.05 (vs JP¥24.46 in 2Q 2024) Second quarter 2025 results: EPS: JP¥24.05 (down from JP¥24.46 in 2Q 2024). Revenue: JP¥29.0b (up 14% from 2Q 2024). Net income: JP¥1.86b (down 9.3% from 2Q 2024). Profit margin: 6.4% (down from 8.0% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Tech industry in Japan. Over the last 3 years on average, earnings per share has fallen by 2% per year and the company’s share price has also fallen by 2% per year. Announcement • Oct 18
ELECOM's New Gaming Keyboard Feels Like Cheating: Ultra-Fast Magnetic Switch Gaming Keyboard with Rapid Trigger ELECOM announced the launch of the TK-VK720A gaming keyboard. This device is set to redefine the gaming experience with its advanced magnetic switch technology, offering unmatched speed, precision, and customization-all within a sleek, compact design. The keyboard will be available in two color options: black and white. At the core of the TK-VK 720A are its advanced magnetic switches, making ELECOM one of the first in the industry to adopt analog silent switches. These switches provide faster actuation and reset points than traditional mechanical switches, ensuring key presses register at the slightest touch for smoother, more responsive keystrokes. This technology offers a crucial edge in competitive gaming, where every millisecond counts. To further enhance responsiveness, the Rapid Trigger Mode resets keys instantly upon release, enabling lighting-fast reactions and granting players a competitive advantage. Paired with an adjustable actuation point ranging from 0.1mm to 3.8mm, gamers can precisely fine-tune each key's sensitivity through ELECOM's intuitive EG Tool software, customizing the responsiveness to their specific playstyle. Designed for Ultimate Comfort and Adaptability: The development of the TK-VK12A was guided by two key objectives: To provide a comfortable typing experience that doesn't interfere with gameplay. To offer adaptability for a wide range of gaming styles. To support diverse play styles, ELECOM added a swappable spacebar with a customizable button and a function row, enabling extensive macro and command options without increasing the keyboard's footprint. Extensive Customization in a Compact Package: The compact 75% layout maximizes desk space, providing more room for mouse movement-essential for games requiring quick and precise cursor actions. Despite its smaller size, the TK-VK720 A retains full functionality. It includes a programmable dial, fully customizable keys, and up to three onboard profiles, allowing gamers to switch between personalized setups seamlessly. For further personalization, the keyboard features customizable RGB Lighting with over 16.77 million colors, enabling gamers to create dynamic lighting effects using ELECOM's software. The TK-VK720A offers unparalleled customization options: Dual Actuation Keys: Allow users to assign two actions per key-for example, shallow press for walking and deep press for sprinting-offering greater control in various gaming scenarios. Programmable Dial: Easily set up the dial for quick access to favorite functions, macros, or settings across any game or task. Customizable RGB Lighting: With over 16.77 million colors. Switches can be replaced or upgraded effortlessly with the included puller, allowing users to fine-tune the keyboard's performance. Neo Clutch Ergonomic Keycaps: Specially designed to cradle the fingers, these keycaps enhance speed and precision during intense gameplay. With a 30g actuation force and 50g bottom-out force, these switches provide the ideal balance between sensitivity and tactile feedback. The keyboard also features 3 height Adjustments, enabling users to find their perfect typing angle for comfort and precision during long sessions. Crafted for durability and style, the TK-VK 720 A boasts a sturdy aluminum top plate and PBT double-shot keycaps that resist wear and maintain texture over time. The USB Passthrough Port streamlines, allowing gamers to connect peripherals like a wireless mouse receiver directly to the keyboard. Reliability with Full N-Key Rollover and Anti- ghosting: The TK-VK720 A supports full N-key rollover and 100% anti-ghosting, ensuring that all key presses register accurately, even when multiple keys are pressed simultaneously-crucial for executing complex commands in fast-paced games. The TK-VK 720A is priced at an MSRP of $229.99. Gamers who pre-order between October 17 and October 17 and October 23, 2024. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥24.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 09 December 2024. Payout ratio is a comfortable 40% but the company is paying out more than the cash it is generating. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.5%). Reported Earnings • Aug 11
First quarter 2025 earnings released: EPS: JP¥18.85 (vs JP¥29.68 in 1Q 2024) First quarter 2025 results: EPS: JP¥18.85 (down from JP¥29.68 in 1Q 2024). Revenue: JP¥27.6b (up 5.4% from 1Q 2024). Net income: JP¥1.54b (down 39% from 1Q 2024). Profit margin: 5.6% (down from 9.6% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Tech industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 8% per year. Declared Dividend • Jul 11
Final dividend increased to JP¥24.00 Dividend of JP¥24.00 is 9.1% higher than last year. Ex-date: 27th September 2024 Payment date: 9th December 2024 Dividend yield will be 2.7%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by both earnings (41% earnings payout ratio) and cash flows (56% 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 grow by 23% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Board Change • Jul 02
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Takashi Nagaoka was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jun 28
Elecom Co., Ltd. to Report Q1, 2025 Results on Aug 08, 2024 Elecom Co., Ltd. announced that they will report Q1, 2025 results on Aug 08, 2024 Announcement • May 24
Elecom Co., Ltd. (TSE:6750) announces an Equity Buyback for 5,887,200 shares, representing 7.21% for ¥7,706.34 million. Elecom Co., Ltd. (TSE:6750) announces a share repurchase program. Under the program, the company will repurchase up to 5,887,200 shares, representing 7.21% of its share capital, for ¥7,706.34 million. The shares will be repurchased at ¥1,309 per share. The company will repurchase up to 5,352,000 shares, representing 6.55% of its share capital from Justin, Inc. The company will repurchase its shares in order to implement flexible capital policies that respond to changes in the business environment. If the offer is oversubscribed the company may repurchase up to additional 100 shares. The offer will be valid till June 20, 2024. As of March 31, 2024, the company had 81,700,538 shares outstanding (excluding treasury shares) and 10,520,882 shares in treasury. Reported Earnings • May 18
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: JP¥120 (up from JP¥95.32 in FY 2023). Revenue: JP¥110.2b (up 6.2% from FY 2023). Net income: JP¥9.99b (up 23% from FY 2023). Profit margin: 9.1% (up from 7.8% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.0%. Earnings per share (EPS) exceeded analyst estimates by 13%. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Tech industry in Japan. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 10% per year, which means it is performing significantly worse than earnings. Announcement • Apr 26
Elecom Co., Ltd. (TSE:6750) entered into non-binding Memorandum of Understanding to acquire Nippon Antenna Co.,Ltd. (TSE:6930) from Resona Bank, Limited, Hikari Tsushin, Inc. (TSE:9435), Custody Bank of Japan, Ltd. (Trust Account), UH Partners 3 Co., Ltd. and UH Partners 2 Co.,Ltd. Elecom Co., Ltd. (TSE:6750) entered into non-binding Memorandum of Understanding to acquire Nippon Antenna Co.,Ltd. (TSE:6930) from Resona Bank, Limited, Hikari Tsushin, Inc. (TSE:9435), Custody Bank of Japan, Ltd. (Trust Account), UH Partners 3 Co., Ltd. and UH Partners 2 Co.,Ltd. on April 25, 2024. Transaction is expected to complete on October-November 2024. Announcement • Apr 24
Elecom Co., Ltd. to Report Fiscal Year 2024 Results on May 15, 2024 Elecom Co., Ltd. announced that they will report fiscal year 2024 results on May 15, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥22.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 41% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.5%). Buy Or Sell Opportunity • Feb 29
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.8% to JP¥1,601. The fair value is estimated to be JP¥2,009, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 7.3%. For the next 3 years, revenue is forecast to grow by 5.9% per annum. Earnings are also forecast to grow by 8.6% per annum over the same time period. Announcement • Feb 21
Elecom Co., Ltd. Announces Executive Appointments Elecom Co., Ltd. announced that its Board of Directors, upon discussion of the Nomination and Remuneration Committee, has approved the following change in the Company's representative director and president. The decision hence authorized shall take effect on March 1, 2024. From March 1, 2024 until the June 2024 Annual General Meeting of Shareholders: Yukio Shibata's current position is President and representative director (COO) and new position will be Director and co-president. Koichi Iwami's current position is Vice president and executive officer and new position will be Co-president and executive officer (COO). Yukio Shibata will step down from his post at the Company's Annual General Meeting of Shareholders scheduled for June 2024 and assume the position of special advisor. Reported Earnings • Feb 16
Third quarter 2024 earnings released: EPS: JP¥25.89 (vs JP¥23.20 in 3Q 2023) Third quarter 2024 results: EPS: JP¥25.89 (up from JP¥23.20 in 3Q 2023). Revenue: JP¥29.4b (up 12% from 3Q 2023). Net income: JP¥2.15b (up 9.2% from 3Q 2023). Profit margin: 7.3% (down from 7.4% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.1% p.a. on average during the next 3 years, compared to a 2.4% growth forecast for the Tech industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 14% per year, which means it is performing significantly worse than earnings. Buy Or Sell Opportunity • Feb 15
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.3% to JP¥1,562. The fair value is estimated to be JP¥1,966, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 7.1%. For the next 3 years, revenue is forecast to grow by 6.4% per annum. Earnings are also forecast to grow by 9.3% per annum over the same time period. Reported Earnings • Nov 18
Second quarter 2024 earnings released: EPS: JP¥24.46 (vs JP¥28.29 in 2Q 2023) Second quarter 2024 results: EPS: JP¥24.46 (down from JP¥28.29 in 2Q 2023). Revenue: JP¥25.5b (flat on 2Q 2023). Net income: JP¥2.05b (down 15% from 2Q 2023). Profit margin: 8.0% (down from 9.4% in 2Q 2023). Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Tech industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 11% per year. Announcement • Nov 15
Elecom Co., Ltd. Announces Dividend for the Second Quarter Ended September 30, 2023, Payable on December 8, 2023; Provides Dividend Guidance for the Year Ending March 31, 2024 Elecom Co., Ltd. announced dividend for the second quarter ended September 30, 2023, payable on December 8, 2023; provided dividend guidance for the year ending March 31, 2024. For the year-end, company expects dividend of JPY 22.00 per share compared to JPY 20.00 per share a year ago. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥22.00 per share at 2.5% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 11 December 2023. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.3%). In line with average of industry peers (2.7%). Price Target Changed • Sep 06
Price target increased by 12% to JP¥1,863 Up from JP¥1,660, the current price target is an average from 4 analysts. New target price is 5.5% above last closing price of JP¥1,766. Stock is up 11% over the past year. The company is forecast to post earnings per share of JP¥108 for next year compared to JP¥95.31 last year. Announcement • Aug 10
Elecom Co., Ltd. to Report Q1, 2024 Results on Aug 08, 2023 Elecom Co., Ltd. announced that they will report Q1, 2024 results on Aug 08, 2023 Reported Earnings • Aug 10
First quarter 2024 earnings released: EPS: JP¥29.68 (vs JP¥22.63 in 1Q 2023) First quarter 2024 results: EPS: JP¥29.68 (up from JP¥22.63 in 1Q 2023). Revenue: JP¥26.2b (flat on 1Q 2023). Net income: JP¥2.51b (up 28% from 1Q 2023). Profit margin: 9.6% (up from 7.5% in 1Q 2023). Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 2.4% growth forecast for the Tech industry in Japan. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has fallen by 13% per year, which means it is performing significantly worse than earnings. Price Target Changed • Jun 01
Price target increased by 7.8% to JP¥1,660 Up from JP¥1,540, the current price target is an average from 5 analysts. New target price is 10% above last closing price of JP¥1,504. Stock is down 3.6% over the past year. The company is forecast to post earnings per share of JP¥107 for next year compared to JP¥95.31 last year. Reported Earnings • May 13
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: JP¥95.31 (down from JP¥115 in FY 2022). Revenue: JP¥103.7b (down 3.4% from FY 2022). Net income: JP¥8.13b (down 22% from FY 2022). Profit margin: 7.8% (down from 9.7% in FY 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 9.7%. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 1.7% growth forecast for the Tech industry in Japan. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 16% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Apr 12
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from JP¥104.7b to JP¥102.5b. EPS estimate also fell from JP¥101 per share to JP¥86.90 per share. Net income forecast to shrink 4.7% next year vs 16% growth forecast for Tech industry in Japan . Consensus price target broadly unchanged at JP¥1,540. Share price was steady at JP¥1,244 over the past week. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥20.00 per share at 3.0% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. Payout ratio is a comfortable 37% but the company is paying out more than the cash it is generating. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (3.1%). Price Target Changed • Mar 17
Price target decreased by 8.2% to JP¥1,560 Down from JP¥1,700, the current price target is an average from 5 analysts. New target price is 23% above last closing price of JP¥1,265. Stock is down 17% over the past year. The company is forecast to post earnings per share of JP¥101 for next year compared to JP¥115 last year. Price Target Changed • Mar 02
Price target decreased by 8.6% to JP¥1,600 Down from JP¥1,750, the current price target is an average from 5 analysts. New target price is 22% above last closing price of JP¥1,314. Stock is down 14% over the past year. The company is forecast to post earnings per share of JP¥102 for next year compared to JP¥115 last year. Reported Earnings • Feb 10
Third quarter 2023 earnings released: EPS: JP¥23.20 (vs JP¥33.50 in 3Q 2022) Third quarter 2023 results: EPS: JP¥23.20 (down from JP¥33.50 in 3Q 2022). Revenue: JP¥26.4b (down 6.0% from 3Q 2022). Net income: JP¥1.96b (down 36% from 3Q 2022). Profit margin: 7.4% (down from 11% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Tech industry in Japan. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 13% per year, which means it is performing significantly worse than earnings. Announcement • Dec 28
Elecom Co., Ltd. to Report Q3, 2023 Results on Feb 08, 2023 Elecom Co., Ltd. announced that they will report Q3, 2023 results on Feb 08, 2023 Price Target Changed • Dec 05
Price target decreased to JP¥1,700 Down from JP¥1,840, the current price target is an average from 5 analysts. New target price is 19% above last closing price of JP¥1,429. Stock is down 2.9% over the past year. The company is forecast to post earnings per share of JP¥115 for next year compared to JP¥115 last year. Board Change • Nov 16
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 2 independent directors. 7 non-independent directors. Independent Outside Director Hiroyuki Ikeda was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Nov 10
Second quarter 2023 earnings: EPS exceeds analyst expectations Second quarter 2023 results: EPS: JP¥28.29 (up from JP¥23.77 in 2Q 2022). Revenue: JP¥25.5b (flat on 2Q 2022). Net income: JP¥2.41b (up 11% from 2Q 2022). Profit margin: 9.4% (up from 8.6% in 2Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.1%. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the Tech industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥19.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 12 December 2022. Payout ratio is a comfortable 34% and the cash payout ratio is 80%. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (2.8%). Reported Earnings • Aug 05
First quarter 2023 earnings released: EPS: JP¥22.63 (vs JP¥28.28 in 1Q 2022) First quarter 2023 results: EPS: JP¥22.63 (down from JP¥28.28 in 1Q 2022). Revenue: JP¥26.2b (flat on 1Q 2022). Net income: JP¥1.96b (down 24% from 1Q 2022). Profit margin: 7.5% (down from 9.8% in 1Q 2022). Over the next year, revenue is forecast to grow 5.2%, compared to a 7.9% growth forecast for the 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 fallen by 4% per year, which means it is significantly lagging earnings. Reported Earnings • May 11
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥115 (down from JP¥120 in FY 2021). Revenue: JP¥107.4b (flat on FY 2021). Net income: JP¥10.4b (down 3.3% from FY 2021). Profit margin: 9.7% (in line with FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 11%. Over the next year, revenue is forecast to grow 2.7%, compared to a 5.5% growth forecast for the 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 fallen by 4% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 5 independent directors on the board. The company's board is composed of: 5 independent directors. 6 non-independent directors. Independent Outside Director Hiroyuki Ikeda was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 24 June 2022. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.4%). In line with average of industry peers (2.6%). Reported Earnings • Feb 09
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: JP¥33.50 (up from JP¥33.14 in 3Q 2021). Revenue: JP¥28.1b (flat on 3Q 2021). Net income: JP¥3.05b (up 1.4% from 3Q 2021). Profit margin: 11% (in line with 3Q 2021). Revenue exceeded analyst estimates by 4.5%. Earnings per share (EPS) also surpassed analyst estimates by 59%. Over the next year, revenue is expected to shrink by 1.3% compared to a 5.1% growth forecast for the 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 fallen by 3% per year, which means it is significantly lagging earnings. Price Target Changed • Dec 01
Price target decreased to JP¥2,038 Down from JP¥2,225, the current price target is an average from 4 analysts. New target price is 53% above last closing price of JP¥1,330. Stock is down 44% over the past year. The company is forecast to post earnings per share of JP¥99.12 for next year compared to JP¥120 last year. Price Target Changed • Nov 17
Price target decreased to JP¥2,225 Down from JP¥2,488, the current price target is an average from 4 analysts. New target price is 47% above last closing price of JP¥1,512. Stock is down 30% over the past year. The company is forecast to post earnings per share of JP¥92.20 for next year compared to JP¥120 last year. Reported Earnings • Nov 10
Second quarter 2022 earnings released: EPS JP¥23.77 (vs JP¥29.16 in 2Q 2021) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥25.3b (down 1.2% from 2Q 2021). Net income: JP¥2.17b (down 18% from 2Q 2021). Profit margin: 8.6% (down from 10% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth.