Valuation Update With 7 Day Price Move • 23h
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥6,640, 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 593% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,398 per share. Declared Dividend • Jun 12
Final dividend increased to JP¥80.00 Dividend of JP¥80.00 is 6.7% higher than last year. Ex-date: 28th August 2026 Payment date: 11th November 2026 Dividend yield will be 2.9%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (30% earnings payout ratio) and cash flows (31% cash payout ratio). The dividend has increased by an average of 35% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 3.6% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Board Change • May 25
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 External Director Masako Kubo was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 10
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥530 (up from JP¥363 in FY 2025). Revenue: JP¥140.6b (up 11% from FY 2025). Net income: JP¥16.7b (up 46% from FY 2025). Profit margin: 12% (up from 9.0% in FY 2025). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.4%. Revenue is forecast to grow 6.1% 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 increased by 62% per year but the company’s share price has increased by 100% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 09
Furuno Electric Co., Ltd., Annual General Meeting, May 21, 2026 Furuno Electric Co., Ltd., Annual General Meeting, May 21, 2026. Announcement • Apr 02
Furuno Electric Co., Ltd. to Report Fiscal Year 2026 Results on Apr 09, 2026 Furuno Electric Co., Ltd. announced that they will report fiscal year 2026 results on Apr 09, 2026 Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥6,730, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 18x in the Electronic industry in Japan. Total returns to shareholders of 663% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,946 per share. Upcoming Dividend • Feb 19
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 26 February 2026. Payment date: 25 May 2026. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.5%). Valuation Update With 7 Day Price Move • Jan 22
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥7,370, 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 782% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,806 per share. New Risk • Jan 12
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.8% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining 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 Share price has been highly volatile over the past 3 months (9.0% average weekly change). Earnings are forecast to decline by an average of 0.7% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Jan 10
Third quarter 2026 earnings released: EPS: JP¥98.71 (vs JP¥110 in 3Q 2025) Third quarter 2026 results: EPS: JP¥98.71 (down from JP¥110 in 3Q 2025). Revenue: JP¥34.1b (up 11% from 3Q 2025). Net income: JP¥3.12b (down 10% from 3Q 2025). Profit margin: 9.1% (down from 11% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.3% 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 68% per year but the company’s share price has increased by 109% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Nov 12
First half dividend of JP¥75.00 announced Shareholders will receive a dividend of JP¥75.00. Ex-date: 26th February 2026 Payment date: 25th May 2026 Dividend yield will be 1.9%, 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 (37% cash payout ratio). The dividend has increased by an average of 30% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 9.9% over the next 3 years. However, it would need to fall by 68% to increase the payout ratio to a potentially unsustainable range. Valuation Update With 7 Day Price Move • Oct 24
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥9,310, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 910% over the past three years. Major Estimate Revision • Oct 19
Consensus EPS estimates increase by 64% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥129.0b to JP¥140.0b. EPS estimate increased from JP¥309 to JP¥506 per share. Net income forecast to shrink 18% next year vs 16% growth forecast for Electronic industry in Japan . Consensus price target of JP¥5,950 unchanged from last update. Share price rose 12% to JP¥8,090 over the past week. Reported Earnings • Oct 11
Second quarter 2026 earnings released: EPS: JP¥211 (vs JP¥120 in 2Q 2025) Second quarter 2026 results: EPS: JP¥211 (up from JP¥120 in 2Q 2025). Revenue: JP¥37.4b (up 8.0% from 2Q 2025). Net income: JP¥6.66b (up 76% from 2Q 2025). Profit margin: 18% (up from 11% in 2Q 2025). Revenue is forecast to grow 1.5% p.a. on average during the next 3 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 increased by 72% per year but the company’s share price has increased by 89% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Oct 06
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 Risks Share price has been highly volatile over the past 3 months (8.5% average weekly change). Earnings are forecast to decline by an average of 9.6% per year for the foreseeable future. Valuation Update With 7 Day Price Move • Oct 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥6,600, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 15x in the Electronic industry in Japan. Total returns to shareholders of 550% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,003 per share. Upcoming Dividend • Aug 21
Upcoming dividend of JP¥55.00 per share Eligible shareholders must have bought the stock before 28 August 2025. Payment date: 13 November 2025. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.8%). Buy Or Sell Opportunity • Aug 15
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 91% to JP¥4,975. The fair value is estimated to be JP¥4,082, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 70%. Revenue is forecast to grow by 2.3% in 2 years. Earnings are forecast to decline by 26% in the next 2 years. New Risk • Jul 11
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 10% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 10% per year for the foreseeable future. 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 (5.7% average weekly change). Reported Earnings • Jul 11
First quarter 2026 earnings released: EPS: JP¥112 (vs JP¥40.52 in 1Q 2025) First quarter 2026 results: EPS: JP¥112 (up from JP¥40.52 in 1Q 2025). Revenue: JP¥31.3b (up 11% from 1Q 2025). Net income: JP¥3.53b (up 176% from 1Q 2025). Profit margin: 11% (up from 4.5% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.9% 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 increased by 70% per year but the company’s share price has only increased by 56% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥3,745, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 13x in the Electronic industry in Japan. Total returns to shareholders of 314% over the past three years. Declared Dividend • Jun 18
Final dividend increased to JP¥55.00 Dividend of JP¥55.00 is 57% higher than last year. Ex-date: 28th August 2025 Payment date: 13th November 2025 Dividend yield will be 4.1%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (30% earnings payout ratio) and cash flows (58% cash payout ratio). The dividend has increased by an average of 30% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 17% over the next 3 years. However, it would need to fall by 66% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Apr 10
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥363 (up from JP¥198 in FY 2024). Revenue: JP¥127.0b (up 11% from FY 2024). Net income: JP¥11.5b (up 84% from FY 2024). Profit margin: 9.0% (up from 5.4% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) also surpassed analyst estimates by 27%. Revenue is forecast to stay flat during the next 2 years compared to a 6.9% growth forecast for the Electronic 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 32% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Apr 10
Now 22% overvalued Over the last 90 days, the stock has fallen 4.2% to JP¥2,348. The fair value is estimated to be JP¥1,926, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 63%. Revenue is forecast to decline by 1.5% in 2 years. Earnings are forecast to decline by 21% in the next 2 years. New Risk • Apr 08
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 Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. 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¥2,119, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 11x in the Electronic industry in Japan. Total returns to shareholders of 136% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,923 per share. Buy Or Sell Opportunity • Feb 27
Now 20% overvalued Over the last 90 days, the stock has fallen 13% to JP¥2,231. The fair value is estimated to be JP¥1,856, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 52%. Revenue is forecast to decline by 0.1% in 2 years. Earnings are forecast to grow by 3.3% in the next 2 years. Upcoming Dividend • Feb 20
Upcoming dividend of JP¥55.00 per share Eligible shareholders must have bought the stock before 27 February 2025. Payment date: 26 May 2025. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.7%). Reported Earnings • Jan 15
Third quarter 2025 earnings released: EPS: JP¥110 (vs JP¥90.19 in 3Q 2024) Third quarter 2025 results: EPS: JP¥110 (up from JP¥90.19 in 3Q 2024). Revenue: JP¥30.8b (up 4.5% from 3Q 2024). Net income: JP¥3.47b (up 22% from 3Q 2024). Profit margin: 11% (up from 9.7% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is expected to decline by 3.7% p.a. on average during the next 3 years, while revenues in the Electronic industry in Japan are expected to grow by 7.2%. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 41% per year, which means it is significantly lagging earnings growth. Declared Dividend • Nov 14
First half dividend of JP¥40.00 announced Dividend of JP¥40.00 is the same as last year. Ex-date: 27th February 2025 Payment date: 26th May 2025 Dividend yield will be 2.8%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (37% earnings payout ratio) and cash flows (73% cash payout ratio). The dividend has increased by an average of 25% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 35% over the next 3 years. However, it would need to fall by 58% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Oct 18
Second quarter 2025 earnings released: EPS: JP¥120 (vs JP¥67.74 in 2Q 2024) Second quarter 2025 results: EPS: JP¥120 (up from JP¥67.74 in 2Q 2024). Revenue: JP¥34.6b (up 19% from 2Q 2024). Net income: JP¥3.79b (up 77% from 2Q 2024). Profit margin: 11% (up from 7.3% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is expected to decline by 2.7% p.a. on average during the next 3 years, while revenues in the Electronic industry in Japan are expected to grow by 7.2%. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 16
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to JP¥2,105, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 86% over the past three years. Upcoming Dividend • Aug 22
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 29 August 2024. Payment date: 11 November 2024. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.5%). Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,591, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 10x in the Electronic industry in Japan. Total returns to shareholders of 59% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥809 per share. Valuation Update With 7 Day Price Move • Jul 23
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,991, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 13x in the Electronic industry in Japan. Total returns to shareholders of 99% over the past three years. Reported Earnings • Jul 18
First quarter 2025 earnings released: EPS: JP¥40.52 (vs JP¥36.15 in 1Q 2024) First quarter 2025 results: EPS: JP¥40.52 (up from JP¥36.15 in 1Q 2024). Revenue: JP¥28.2b (up 18% from 1Q 2024). Net income: JP¥1.28b (up 12% from 1Q 2024). Profit margin: 4.5% (down from 4.8% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 1.0% p.a. on average during the next 3 years, while revenues in the Electronic industry in Japan are expected to grow by 7.3%. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Jul 10
Now 21% overvalued Over the last 90 days, the stock has fallen 2.2% to JP¥2,373. The fair value is estimated to be JP¥1,962, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 0.05% per annum. Earnings are forecast to decline by 14% per annum over the same time period. Buy Or Sell Opportunity • Jun 10
Now 23% overvalued Over the last 90 days, the stock has fallen 5.4% to JP¥2,124. The fair value is estimated to be JP¥1,726, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 0.05% per annum. Earnings are forecast to decline by 14% per annum over the same time period. Declared Dividend • Jun 06
Final dividend of JP¥10.00 announced Shareholders will receive a dividend of JP¥10.00. Ex-date: 29th August 2024 Payment date: 11th November 2024 Dividend yield will be 2.4%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by earnings (18% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 16% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 37% over the next 3 years. However, it would need to fall by 80% to increase the payout ratio to a potentially unsustainable range. Buy Or Sell Opportunity • May 21
Now 20% overvalued Over the last 90 days, the stock has fallen 5.8% to JP¥2,041. The fair value is estimated to be JP¥1,696, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 0.05% per annum. Earnings are forecast to decline by 14% per annum over the same time period. Buy Or Sell Opportunity • Apr 30
Now 23% overvalued Over the last 90 days, the stock has fallen 1.3% to JP¥2,103. The fair value is estimated to be JP¥1,704, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 0.05% per annum. Earnings are forecast to decline by 14% per annum over the same time period. Major Estimate Revision • Apr 24
Consensus EPS estimates fall by 17%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from JP¥111.0b to JP¥112.5b. EPS estimate fell from JP¥171 to JP¥143 per share. Net income forecast to shrink 28% next year vs 8.6% growth forecast for Electronic industry in Japan . Consensus price target of JP¥1,900 unchanged from last update. Share price rose 15% to JP¥1,948 over the past week. Valuation Update With 7 Day Price Move • Apr 22
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥1,826, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 13x in the Electronic industry in Japan. Total returns to shareholders of 81% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,686 per share. Announcement • Apr 17
Furuno Electric Co., Ltd., Annual General Meeting, May 23, 2024 Furuno Electric Co., Ltd., Annual General Meeting, May 23, 2024. New Risk • Apr 17
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 8.6% 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 Risks Share price has been highly volatile over the past 3 months (8.6% average weekly change). Earnings are forecast to decline by an average of 6.0% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Apr 16
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥198 (up from JP¥42.72 in FY 2023). Revenue: JP¥114.9b (up 26% from FY 2023). Net income: JP¥6.24b (up 363% from FY 2023). Profit margin: 5.4% (up from 1.5% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.4%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Revenue is forecast to stay flat during the next 2 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 2% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Feb 21
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 28 February 2024. Payment date: 27 May 2024. Payout ratio is a comfortable 18% but the company is not cash flow positive. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.4%). Buy Or Sell Opportunity • Feb 08
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 20% to JP¥2,121. The fair value is estimated to be JP¥1,726, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.9% over the last 3 years. Earnings per share has declined by 5.8%. Revenue is forecast to grow by 3.4% in 2 years. Earnings are forecast to decline by 11% in the next 2 years. Major Estimate Revision • Jan 22
Consensus EPS estimates increase by 10% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥156 to JP¥171. Revenue forecast steady at JP¥109.0b. Net income forecast to shrink 13% next year vs 9.2% growth forecast for Electronic industry in Japan . Consensus price target of JP¥1,900 unchanged from last update. Share price rose 14% to JP¥2,156 over the past week. New Risk • Jan 16
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 6.0% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 6.0% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.7% average weekly change). Reported Earnings • Jan 16
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: JP¥90.19 (up from JP¥8.27 loss in 3Q 2023). Revenue: JP¥29.5b (up 37% from 3Q 2023). Net income: JP¥2.85b (up JP¥3.11b from 3Q 2023). Profit margin: 9.7% (up from net loss in 3Q 2023). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 10%. Earnings per share (EPS) also surpassed analyst estimates significantly. Revenue is forecast to grow 1.2% 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 fallen by 6% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. New Risk • Dec 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 5.7% 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. This is currently the only risk that has been identified for the company. Major Estimate Revision • Oct 23
Consensus EPS estimates increase by 31% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from JP¥100.0b to JP¥105.0b. EPS estimate increased from JP¥91.35 to JP¥120 per share. Net income forecast to grow 19% next year vs 5.3% growth forecast for Electronic industry in Japan. Consensus price target of JP¥1,450 unchanged from last update. Share price rose 13% to JP¥1,630 over the past week. Reported Earnings • Oct 18
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: JP¥67.74 (up from JP¥33.31 in 2Q 2023). Revenue: JP¥29.2b (up 31% from 2Q 2023). Net income: JP¥2.14b (up 103% from 2Q 2023). Profit margin: 7.3% (up from 4.7% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 101%. Revenue is forecast to grow 3.4% 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 15% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Upcoming Dividend • Aug 23
Upcoming dividend of JP¥10.00 per share at 1.6% yield Eligible shareholders must have bought the stock before 30 August 2023. Payment date: 10 November 2023. Payout ratio is a comfortable 39% but the company is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.4%). Valuation Update With 7 Day Price Move • Jul 21
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,208, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 13x in the Electronic industry in Japan. Total returns to shareholders of 31% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥811 per share. New Risk • Jul 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 5.2% 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 Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.2% average weekly change). Reported Earnings • Jul 16
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: JP¥36.15 (up from JP¥15.41 in 1Q 2023). Revenue: JP¥23.9b (up 13% from 1Q 2023). Net income: JP¥1.14b (up 135% from 1Q 2023). Profit margin: 4.8% (up from 2.3% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 9.9%. Earnings per share (EPS) also surpassed analyst estimates significantly. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 6.6% 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 1% per year, which means it is well ahead of earnings. Reported Earnings • May 30
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: JP¥42.72 (down from JP¥89.23 in FY 2022). Revenue: JP¥91.3b (up 7.7% from FY 2022). Net income: JP¥1.35b (down 52% from FY 2022). Profit margin: 1.5% (down from 3.3% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) missed analyst estimates by 42%. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the Electronic 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 increased by 3% per year, which means it is well ahead of earnings. Major Estimate Revision • Apr 22
Consensus EPS estimates fall by 19%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from JP¥91.0b to JP¥100.0b. EPS estimate fell from JP¥78.15 to JP¥63.40 per share. Net income forecast to grow 48% next year vs 5.8% growth forecast for Electronic industry in Japan. Consensus price target of JP¥1,200 unchanged from last update. Share price fell 6.4% to JP¥901 over the past week. Reported Earnings • Apr 16
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: JP¥42.72 (down from JP¥89.23 in FY 2022). Revenue: JP¥91.3b (up 7.7% from FY 2022). Net income: JP¥1.35b (down 52% from FY 2022). Profit margin: 1.5% (down from 3.3% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) missed analyst estimates by 42%. Revenue is forecast to grow 1.2% 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 fallen by 4% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Upcoming Dividend • Feb 20
Upcoming dividend of JP¥15.00 per share at 2.1% yield Eligible shareholders must have bought the stock before 27 February 2023. Payment date: 29 May 2023. Payout ratio is a comfortable 52% but the company is not cash flow positive. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%).