Major Estimate Revision • Jun 18
Consensus EPS estimates increase by 26% The consensus outlook for earnings per share (EPS) in fiscal year 2027 has improved. 2027 revenue forecast increased from JP¥56.4b to JP¥61.9b. EPS estimate increased from JP¥96.68 to JP¥122 per share. Net income forecast to grow 36% next year vs 7.5% growth forecast for Electronic industry in Japan. Consensus price target up from JP¥1,340 to JP¥3,025. Share price was steady at JP¥4,445 over the past week. Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment improves as stock rises 38% After last week's 38% share price gain to JP¥4,805, the stock trades at a forward P/E ratio of 50x. Average forward P/E is 17x in the Electronic industry in Japan. Total returns to shareholders of 295% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,004 per share. Buy Or Sell Opportunity • Jun 01
Now 30% overvalued after recent price rise Over the last 90 days, the stock has risen 188% to JP¥3,720. The fair value is estimated to be JP¥2,859, however this is not to be taken as a sell 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 49%. Revenue is forecast to grow by 7.1% in 2 years. Earnings are forecast to grow by 36% in the next 2 years. Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to JP¥3,015, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 18x in the Electronic industry in Japan. Total returns to shareholders of 142% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,700 per share. Reported Earnings • May 19
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥89.70 (up from JP¥77.71 in FY 2025). Revenue: JP¥54.6b (up 2.9% from FY 2025). Net income: JP¥2.07b (up 15% from FY 2025). Profit margin: 3.8% (up from 3.4% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) also surpassed analyst estimates by 9.7%. Revenue is forecast to grow 3.4% p.a. on average during the next 2 years, compared to a 7.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Announcement • May 18
Nihon Dempa Kogyo Co., Ltd. to Report First Half, 2027 Results on Nov 09, 2026 Nihon Dempa Kogyo Co., Ltd. announced that they will report first half, 2027 results on Nov 09, 2026 Announcement • May 14
Nihon Dempa Kogyo Co., Ltd., Annual General Meeting, Jun 29, 2026 Nihon Dempa Kogyo Co., Ltd., Annual General Meeting, Jun 29, 2026. Announcement • May 10
Nihon Dempa Kogyo Co., Ltd. to Report Fiscal Year 2026 Results on May 14, 2026 Nihon Dempa Kogyo Co., Ltd. announced that they will report fiscal year 2026 results on May 14, 2026 Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥2,188, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 92% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,278 per share. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,417, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 27% over the past three years. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥15.00 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 78% but the company is not cash flow positive. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,389, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 17x in the Electronic industry in Japan. Total returns to shareholders of 15% over the past three years. Valuation Update With 7 Day Price Move • Feb 19
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥1,216, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 17x in the Electronic industry in Japan. Total loss to shareholders of 5.2% over the past three years. Reported Earnings • Feb 11
Third quarter 2026 earnings released: EPS: JP¥12.47 (vs JP¥25.63 in 3Q 2025) Third quarter 2026 results: EPS: JP¥12.47 (down from JP¥25.63 in 3Q 2025). Revenue: JP¥13.2b (down 1.3% from 3Q 2025). Net income: JP¥287.0m (down 51% from 3Q 2025). Profit margin: 2.2% (down from 4.4% in 3Q 2025). Revenue is forecast to grow 4.7% 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 fallen by 61% 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. Price Target Changed • Jan 22
Price target increased by 14% to JP¥1,085 Up from JP¥950, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of JP¥1,035. Stock is up 20% over the past year. The company is forecast to post earnings per share of JP¥79.78 for next year compared to JP¥77.71 last year. Major Estimate Revision • Jan 20
Consensus EPS estimates fall by 15%, revenue upgraded The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast increased from JP¥53.3b to JP¥54.0b. EPS estimate fell from JP¥95.41 to JP¥81.36 per share. Net income forecast to grow 91% next year vs 11% growth forecast for Electronic industry in Japan. Consensus price target broadly unchanged at JP¥935. Share price was steady at JP¥1,012 over the past week. Declared Dividend • Dec 16
First half dividend of JP¥15.00 announced Dividend of JP¥15.00 is the same as last year. Ex-date: 30th March 2026 Payment date: 29th June 2026 Dividend yield will be 3.3%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (58% earnings payout ratio) and cash flows (26% cash payout ratio). The dividend has increased by an average of 4.1% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 127% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Nov 14
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 21% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.5% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.2% net profit margin). Reported Earnings • Nov 14
Second quarter 2026 earnings released: EPS: JP¥14.37 (vs JP¥31.87 in 2Q 2025) Second quarter 2026 results: EPS: JP¥14.37 (down from JP¥31.87 in 2Q 2025). Revenue: JP¥14.0b (up 2.1% from 2Q 2025). Net income: JP¥331.0m (down 55% from 2Q 2025). Profit margin: 2.4% (down from 5.4% in 2Q 2025). Revenue is forecast to grow 3.9% 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 fallen by 57% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Oct 07
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,087, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 15x in the Electronic industry in Japan. Total loss to shareholders of 22% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,629 per share. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 09 December 2025. Payout ratio is a comfortable 43% and the cash payout ratio is 96%. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: JP¥20.43 (vs JP¥29.14 in 1Q 2025) First quarter 2026 results: EPS: JP¥20.43 (down from JP¥29.14 in 1Q 2025). Revenue: JP¥12.7b (flat on 1Q 2025). Net income: JP¥471.0m (down 30% from 1Q 2025). Profit margin: 3.7% (down from 5.3% in 1Q 2025). Revenue is forecast to grow 3.6% 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 53% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Declared Dividend • Jul 09
Final dividend of JP¥15.00 announced Dividend of JP¥15.00 is the same as last year. Ex-date: 29th September 2025 Payment date: 9th December 2025 Dividend yield will be 4.0%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (29% earnings payout ratio) and cash flows (47% cash payout ratio). The dividend has increased by an average of 4.1% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 83% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 27
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥77.71 (down from JP¥101 in FY 2024). Revenue: JP¥53.1b (up 5.5% from FY 2024). Net income: JP¥1.79b (down 23% from FY 2024). Profit margin: 3.4% (down from 4.6% 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 34%. Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jun 13
Consensus EPS estimates fall by 42% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from JP¥56.2b to JP¥53.0b. EPS estimate also fell from JP¥143 per share to JP¥82.40 per share. Net income forecast to grow 6.0% next year vs 7.0% growth forecast for Electronic industry in Japan. Consensus price target down from JP¥1,070 to JP¥950. Share price was steady at JP¥704 over the past week. Buy Or Sell Opportunity • Jun 02
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 14% to JP¥712. The fair value is estimated to be JP¥900, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.3% over the last 3 years. Earnings per share has declined by 46%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 105% in the next 2 years. Buy Or Sell Opportunity • May 15
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 19% to JP¥706. The fair value is estimated to be JP¥896, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.3% over the last 3 years. Earnings per share has declined by 46%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 105% in the next 2 years. Reported Earnings • May 15
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥77.71 (down from JP¥101 in FY 2024). Revenue: JP¥53.1b (up 5.5% from FY 2024). Net income: JP¥1.79b (down 23% from FY 2024). Profit margin: 3.4% (down from 4.6% 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 34%. Revenue is forecast to grow 5.1% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Announcement • May 13
Nihon Dempa Kogyo Co., Ltd., Annual General Meeting, Jun 26, 2025 Nihon Dempa Kogyo Co., Ltd., Annual General Meeting, Jun 26, 2025. New Risk • Apr 07
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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.3% average weekly change). Market cap is less than US$100m (JP¥14.2b market cap, or US$97.0m). Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to JP¥704, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 11x in the Electronic industry in Japan. Total loss to shareholders of 39% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,348 per share. Announcement • Mar 27
Nihon Dempa Kogyo Co., Ltd. Announces Resignation of Executives Nihon Dempa Kogyo Co., Ltd. announced changes of Directors and Corporate Officers effective as of June 26, 2025 as follows, following a resolution made at the Board of Directors Meeting held on March 26, 2025. Resigning Director: Toshiaki Takeuchi: Resign from the Director and Chairman of the Board due to expiration of term and will become an special advisor and Yorihisa Suwa: Resign from the Outside Director due to expiration of term. Resigning Corporate Officer: Michio Aoyama: Resign from the Corporate Officer due to expiration of term and Tamahiko Masukawa: Resign from the Corporate Officer due to expiration of term and will become an advisor. Announcement • Mar 26
Nihon Dempa Kogyo Co., Ltd. to Report Fiscal Year 2025 Results on May 13, 2025 Nihon Dempa Kogyo Co., Ltd. announced that they will report fiscal year 2025 results on May 13, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 27 June 2025. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.7%). Reported Earnings • Feb 16
Third quarter 2025 earnings released: EPS: JP¥25.63 (vs JP¥33.48 in 3Q 2024) Third quarter 2025 results: EPS: JP¥25.63 (down from JP¥33.48 in 3Q 2024). Revenue: JP¥13.4b (up 4.2% from 3Q 2024). Net income: JP¥591.0m (down 23% from 3Q 2024). Profit margin: 4.4% (down from 6.0% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Price Target Changed • Jan 25
Price target decreased by 23% to JP¥1,070 Down from JP¥1,385, the current price target is an average from 2 analysts. New target price is 23% above last closing price of JP¥872. Stock is down 31% over the past year. The company is forecast to post earnings per share of JP¥116 for next year compared to JP¥101 last year. Declared Dividend • Dec 10
First half dividend of JP¥15.00 announced Dividend of JP¥15.00 is the same as last year. Ex-date: 28th March 2025 Payment date: 27th June 2025 Dividend yield will be 3.3%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (27% earnings payout ratio) and cash flows (67% cash payout ratio). The dividend has increased by an average of 4.1% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 65% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 10
Second quarter 2025 earnings released: EPS: JP¥31.87 (vs JP¥44.83 in 2Q 2024) Second quarter 2025 results: EPS: JP¥31.87 (down from JP¥44.83 in 2Q 2024). Revenue: JP¥13.7b (up 4.7% from 2Q 2024). Net income: JP¥735.0m (down 29% from 2Q 2024). Profit margin: 5.4% (down from 7.9% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 11 December 2024. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.5%). Reported Earnings • Aug 09
First quarter 2025 earnings released: EPS: JP¥29.14 (vs JP¥6.66 in 1Q 2024) First quarter 2025 results: EPS: JP¥29.14 (up from JP¥6.66 in 1Q 2024). Revenue: JP¥12.6b (up 8.8% from 1Q 2024). Net income: JP¥672.0m (up 336% from 1Q 2024). Profit margin: 5.3% (up from 1.3% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. New Risk • Aug 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.5% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.5% average weekly change). Minor Risks High level of debt (41% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (4.6% net profit margin). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 30% After last week's 30% share price decline to JP¥992, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 30% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,630 per share. Buy Or Sell Opportunity • Aug 02
Now 26% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.3% to JP¥1,231. The fair value is estimated to be JP¥1,661, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.9% over the last 3 years. Earnings per share has declined by 6.7%. For the next 3 years, revenue is forecast to grow by 6.6% per annum. Earnings are also forecast to grow by 26% per annum over the same time period. Declared Dividend • Jul 11
Final dividend of JP¥15.00 announced Shareholders will receive a dividend of JP¥15.00. Ex-date: 27th September 2024 Payment date: 11th December 2024 Dividend yield will be 2.0%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (16% earnings payout ratio) and cash flows (14% cash payout ratio). The dividend has increased by an average of 4.1% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 99% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,419, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 47% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,238 per share. Major Estimate Revision • Jun 13
Consensus EPS estimates fall by 22% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥166 to JP¥130 per share. Revenue forecast steady at JP¥53.4b. Net income forecast to grow 47% next year vs 13% growth forecast for Electronic industry in Japan. Consensus price target down from JP¥1,695 to JP¥1,550. Share price rose 4.4% to JP¥1,120 over the past week. Reported Earnings • May 16
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥101 (down from JP¥266 in FY 2023). Revenue: JP¥50.3b (down 4.2% from FY 2023). Net income: JP¥2.33b (down 62% from FY 2023). Profit margin: 4.6% (down from 12% in FY 2023). The decrease in margin was primarily driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 14%. Revenue is forecast to grow 6.2% p.a. on average during the next 2 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 7% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Announcement • Mar 27
Nihon Dempa Kogyo Co., Ltd. to Report Fiscal Year 2024 Results on May 13, 2024 Nihon Dempa Kogyo Co., Ltd. announced that they will report fiscal year 2024 results on May 13, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 28 June 2024. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.2%). In line with average of industry peers (1.4%). Major Estimate Revision • Feb 28
Consensus EPS estimates increase by 10% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥104 to JP¥115. Revenue forecast unchanged at JP¥50.0b. Net income forecast to grow 17% next year vs 9.6% growth forecast for Electronic industry in Japan. Consensus price target of JP¥1,900 unchanged from last update. Share price rose 5.6% to JP¥1,426 over the past week. Reported Earnings • Feb 09
Third quarter 2024 earnings released: EPS: JP¥33.48 (vs JP¥79.25 in 3Q 2023) Third quarter 2024 results: EPS: JP¥33.48 (down from JP¥79.25 in 3Q 2023). Revenue: JP¥12.8b (down 5.1% from 3Q 2023). Net income: JP¥772.0m (down 58% from 3Q 2023). Profit margin: 6.0% (down from 14% in 3Q 2023). Revenue is forecast to grow 6.1% 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 increased by 19% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Feb 08
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 6.9% 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 (43% net debt to equity). Share price has been volatile over the past 3 months (6.9% average weekly change). Profit margins are more than 30% lower than last year (7.8% net profit margin). Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,385, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 15x in the Electronic industry in Japan. Total returns to shareholders of 110% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥658 per share. Price Target Changed • Jan 17
Price target decreased by 24% to JP¥1,900 Down from JP¥2,500, the current price target is provided by 1 analyst. New target price is 61% above last closing price of JP¥1,180. Stock is down 19% over the past year. The company is forecast to post earnings per share of JP¥104 for next year compared to JP¥266 last year. Major Estimate Revision • Dec 09
Consensus EPS estimates increase by 17%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from JP¥51.8b to JP¥49.8b. EPS estimate rose from JP¥95.40 to JP¥111. Net income forecast to shrink 19% next year vs 8.9% growth forecast for Electronic industry in Japan . Consensus price target of JP¥2,125 unchanged from last update. Share price fell 9.7% to JP¥1,111 over the past week. Major Estimate Revision • Dec 02
Consensus EPS estimates increase by 23%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from JP¥51.8b to JP¥49.8b. EPS estimate rose from JP¥95.40 to JP¥117. Net income forecast to shrink 7.8% next year vs 9.0% growth forecast for Electronic industry in Japan . Consensus price target down from JP¥2,475 to JP¥2,125. Share price fell 3.7% to JP¥1,230 over the past week. Price Target Changed • Dec 01
Price target decreased by 13% to JP¥2,125 Down from JP¥2,450, the current price target is an average from 2 analysts. New target price is 73% above last closing price of JP¥1,230. Stock is down 34% over the past year. The company is forecast to post earnings per share of JP¥117 for next year compared to JP¥266 last year. Major Estimate Revision • Nov 15
Consensus EPS estimates fall by 46% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥53.7b to JP¥52.2b. EPS estimate also fell from JP¥177 per share to JP¥95.40 per share. Net income forecast to grow 11% next year vs 9.5% growth forecast for Electronic industry in Japan. Consensus price target of JP¥2,475 unchanged from last update. Share price was steady at JP¥1,227 over the past week. Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥44.87 (vs JP¥84.49 in 2Q 2023) Second quarter 2024 results: EPS: JP¥44.87 (down from JP¥84.49 in 2Q 2023). Revenue: JP¥13.1b (down 6.7% from 2Q 2023). Net income: JP¥1.04b (down 47% from 2Q 2023). Profit margin: 7.9% (down from 14% in 2Q 2023). Revenue is forecast to grow 7.5% 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 56% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥10.00 per share at 1.4% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 12 December 2023. Payout ratio is a comfortable 9.5% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.3%). In line with average of industry peers (1.4%). Buying Opportunity • Sep 04
Now 22% undervalued Over the last 90 days, the stock is up 17%. The fair value is estimated to be JP¥1,988, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 15% in 2 years. Earnings is forecast to grow by 13% in the next 2 years. Valuation Update With 7 Day Price Move • Aug 14
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥1,425, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 13x in the Electronic industry in Japan. Total returns to shareholders of 350% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,913 per share. New Risk • Aug 09
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: 9.5% Last year net profit margin: 14% 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: Minor Risks High level of debt (48% net debt to equity). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (9.5% net profit margin). Reported Earnings • Aug 08
First quarter 2024 earnings released: EPS: JP¥6.66 (vs JP¥61.72 in 1Q 2023) First quarter 2024 results: EPS: JP¥6.66 (down from JP¥61.72 in 1Q 2023). Revenue: JP¥11.6b (down 7.2% from 1Q 2023). Net income: JP¥154.0m (down 89% from 1Q 2023). Profit margin: 1.3% (down from 11% in 1Q 2023). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 6.7% 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 83% per year but the company’s share price has only increased by 59% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jun 02
Consensus EPS estimates fall by 18% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from JP¥223 to JP¥183 per share. Revenue forecast steady at JP¥54.0b. Net income forecast to shrink 26% next year vs 5.3% growth forecast for Electronic industry in Japan . Consensus price target broadly unchanged at JP¥2,500. Share price was steady at JP¥1,349 over the past week. Reported Earnings • May 14
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥266. Revenue: JP¥52.5b (up 16% from FY 2022). Net income: JP¥6.12b (up 12% from FY 2022). Profit margin: 12% (in line with FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.5%. Revenue is forecast to grow 4.8% p.a. on average during the next 2 years, compared to a 6.7% growth forecast for the Electronic industry in Japan. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥10.00 per share at 1.6% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 29 June 2023. Payout ratio is a comfortable 4.3% and this is well supported by cash flows. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.6%). Price Target Changed • Feb 25
Price target decreased by 7.0% to JP¥2,650 Down from JP¥2,850, the current price target is an average from 2 analysts. New target price is 88% above last closing price of JP¥1,407. Stock is up 23% over the past year. The company is forecast to post earnings per share of JP¥270 for next year compared to JP¥278 last year. Announcement • Feb 08
Nihon Dempa Kogyo Co., Ltd. Revises Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2023 Nihon Dempa Kogyo Co., Ltd. revised consolidated earnings guidance for the fiscal year ending March 31, 2023. For the fiscal year ending March 31, 2023, the company now expects to report net sales of JPY 52,100 million, operating income of JPY 7,600 million, net income of JPY 5,700 million, and basic earnings per share of JPY 247.77, compared with previous guidance of net sales of JPY 54,000 million, operating income of JPY 8,000 million, net income of JPY 6,100 million, and basic earnings per share of JPY 265.15.