Reported Earnings • May 18
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥270 (down from JP¥275 in FY 2025). Revenue: JP¥70.0b (up 4.1% from FY 2025). Net income: JP¥5.88b (down 2.1% from FY 2025). Profit margin: 8.4% (down from 8.9% in FY 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.1%. Earnings per share (EPS) also surpassed analyst estimates by 9.3%. Revenue is forecast to grow 3.9% 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 increased by 15% per year whereas the company’s share price has increased by 17% per year. Announcement • May 14
Espec Corp., Annual General Meeting, Jun 26, 2026 Espec Corp., Annual General Meeting, Jun 26, 2026. Announcement • Apr 06
Espec Corp. to Report Fiscal Year 2026 Results on May 14, 2026 Espec Corp. announced that they will report fiscal year 2026 results on May 14, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥70.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 23 June 2026. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Buy Or Sell Opportunity • Mar 03
Now 23% undervalued Over the last 90 days, the stock has risen 10% to JP¥3,645. The fair value is estimated to be JP¥4,715, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.5% over the last 3 years. Earnings per share has grown by 19%. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to grow by 28% in the next 2 years. Reported Earnings • Feb 16
Third quarter 2026 earnings released: EPS: JP¥64.65 (vs JP¥63.80 in 3Q 2025) Third quarter 2026 results: EPS: JP¥64.65 (up from JP¥63.80 in 3Q 2025). Revenue: JP¥16.8b (up 6.0% from 3Q 2025). Net income: JP¥1.41b (up 1.1% from 3Q 2025). Profit margin: 8.4% (down from 8.8% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.8% 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 19% per year whereas the company’s share price has increased by 23% per year. Announcement • Jan 06
Espec Corp. to Report Q3, 2026 Results on Feb 12, 2026 Espec Corp. announced that they will report Q3, 2026 results on Feb 12, 2026 Declared Dividend • Dec 12
First half dividend of JP¥70.00 announced Shareholders will receive a dividend of JP¥70.00. Ex-date: 30th March 2026 Payment date: 23rd June 2026 Dividend yield will be 3.4%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (42% earnings payout ratio) and cash flows (49% cash payout ratio). 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 grow by 47% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 16
Second quarter 2026 earnings released: EPS: JP¥82.48 (vs JP¥77.69 in 2Q 2025) Second quarter 2026 results: EPS: JP¥82.48 (up from JP¥77.69 in 2Q 2025). Revenue: JP¥18.0b (up 7.3% from 2Q 2025). Net income: JP¥1.81b (up 6.4% from 2Q 2025). Profit margin: 10.0% (in line with 2Q 2025). Revenue is forecast to grow 1.7% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Announcement • Nov 13
Espec Corp. (TSE:6859) announces an Equity Buyback for 900,000 shares, representing 4.05% for $3,500 million. Espec Corp. (TSE:6859) announces a share repurchase program. Under the program, the company will repurchase up to 900,000 shares, representing 4.05% of its issued share capital for ¥3,500 million. The shares will be repurchased at a price of ¥3,888.88 per share. The purpose of the program is raising enterprise value is the key element in ensuring improved shareholder returns. The Program is valid till July 31, 2026. As of September 30, 2025, the company has 22,208,030 issued shares excluding treasury shares and 1,573,364 shares in treasury. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 10 December 2025. Payout ratio is a comfortable 39% but the company is paying out more than the cash it is generating. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Announcement • Sep 17
Espec Corp. to Report Q2, 2026 Results on Nov 13, 2025 Espec Corp. announced that they will report Q2, 2026 results on Nov 13, 2025 Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥4.90 (vs JP¥34.63 in 1Q 2025) First quarter 2026 results: EPS: JP¥4.90 (down from JP¥34.63 in 1Q 2025). Revenue: JP¥12.3b (down 10.0% from 1Q 2025). Net income: JP¥107.0m (down 86% from 1Q 2025). Profit margin: 0.9% (down from 5.5% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 2.1% 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 increased by 31% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Declared Dividend • Jul 09
Final dividend of JP¥45.00 announced Shareholders will receive a dividend of JP¥45.00. Ex-date: 29th September 2025 Payment date: 10th December 2025 Dividend yield will be 3.3%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by earnings (35% earnings payout ratio) but not covered by cash flows (111% cash payout ratio). 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 grow by 26% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 26
Espec Corp. to Report Q1, 2026 Results on Aug 07, 2025 Espec Corp. announced that they will report Q1, 2026 results on Aug 07, 2025 Reported Earnings • Jun 20
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥275 (up from JP¥228 in FY 2024). Revenue: JP¥67.3b (up 8.3% from FY 2024). Net income: JP¥6.00b (up 21% from FY 2024). Profit margin: 8.9% (up from 8.0% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 3.5%. Revenue is forecast to grow 1.6% 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 37% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 21
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥275 (up from JP¥228 in FY 2024). Revenue: JP¥67.3b (up 8.3% from FY 2024). Net income: JP¥6.00b (up 21% from FY 2024). Profit margin: 8.9% (up from 8.0% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 3.5%. Revenue is forecast to grow 2.8% p.a. on average during the next 2 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 increased by 37% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Announcement • May 15
Espec Corp., Annual General Meeting, Jun 20, 2025 Espec Corp., Annual General Meeting, Jun 20, 2025. Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥2,701, 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 66% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,623 per share. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,953, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 10x in the Electronic industry in Japan. Total returns to shareholders of 20% over the past three years. Upcoming Dividend • Mar 24
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 24 June 2025. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.7%). Announcement • Mar 04
Espec Corp. to Report Fiscal Year 2025 Results on May 15, 2025 Espec Corp. announced that they will report fiscal year 2025 results on May 15, 2025 Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: JP¥63.80 (vs JP¥65.59 in 3Q 2024) Third quarter 2025 results: EPS: JP¥63.80 (down from JP¥65.59 in 3Q 2024). Revenue: JP¥15.8b (up 6.0% from 3Q 2024). Net income: JP¥1.39b (down 2.7% from 3Q 2024). Profit margin: 8.8% (in line with 3Q 2024). Revenue is forecast to grow 4.5% 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 increased by 40% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Declared Dividend • Dec 11
First half dividend of JP¥45.00 announced Shareholders will receive a dividend of JP¥45.00. Ex-date: 28th March 2025 Payment date: 24th June 2025 Dividend yield will be 3.0%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (32% earnings payout ratio) and cash flows (69% cash payout ratio). 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 grow by 13% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Dec 03
Espec Corp. to Report Q3, 2025 Results on Feb 13, 2025 Espec Corp. announced that they will report Q3, 2025 results on Feb 13, 2025 Reported Earnings • Nov 15
Second quarter 2025 earnings released: EPS: JP¥77.68 (vs JP¥49.84 in 2Q 2024) Second quarter 2025 results: EPS: JP¥77.68 (up from JP¥49.84 in 2Q 2024). Revenue: JP¥16.8b (up 12% from 2Q 2024). Net income: JP¥1.70b (up 56% from 2Q 2024). Profit margin: 10% (up from 7.3% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.0% 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 43% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Price Target Changed • Oct 25
Price target increased by 11% to JP¥4,000 Up from JP¥3,600, the current price target is an average from 2 analysts. New target price is 56% above last closing price of JP¥2,559. Stock is up 16% over the past year. The company is forecast to post earnings per share of JP¥249 for next year compared to JP¥228 last year. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 11 December 2024. Payout ratio is a comfortable 32% but the company is paying out more than the cash it is generating. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.5%). Announcement • Aug 28
Espec Corp. to Report Q2, 2025 Results on Nov 12, 2024 Espec Corp. announced that they will report Q2, 2025 results on Nov 12, 2024 New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (351% cash payout ratio). Share price has been volatile over the past 3 months (6.5% average weekly change). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to JP¥2,147, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 5.7% over the past three years. Declared Dividend • Jul 11
Final dividend of JP¥35.00 announced Shareholders will receive a dividend of JP¥35.00. Ex-date: 27th September 2024 Payment date: 11th December 2024 Dividend yield will be 2.8%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by earnings (32% earnings payout ratio) but not covered by cash flows (351% cash payout ratio). 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 grow by 22% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Jul 02
Now 21% undervalued Over the last 90 days, the stock has risen 4.5% to JP¥3,130. The fair value is estimated to be JP¥3,953, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 40%. For the next 3 years, revenue is forecast to grow by 4.9% per annum. Earnings are also forecast to grow by 6.8% per annum over the same time period. Announcement • Jun 30
Espec Corp. to Report Q1, 2025 Results on Aug 08, 2024 Espec Corp. announced that they will report Q1, 2025 results on Aug 08, 2024 Reported Earnings • Jun 28
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥228 (up from JP¥150 in FY 2023). Revenue: JP¥62.1b (up 18% from FY 2023). Net income: JP¥4.97b (up 49% from FY 2023). Profit margin: 8.0% (up from 6.3% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Announcement • May 29
Espec Corp. Proposes Dividend for the Fiscal Year Ended March 31, 2024, Effective June 24, 2024 ESPEC CORP. announced that it has resolved, at a meeting of the Board of Directors held on May 15, 2024, to pay dividends of surplus with a record date of March 31, 2024. Details of dividend:Record date is March 31, 2024; Dividend per share of JPY 50.00 as compared to dividend of JPY 43.00 per share a year ago. Total amount of dividends: JPY 1,103 million; Effective date is June 24, 2024; Source of dividends: Retained earnings. The Company plans to submit this proposal to the Ordinary General Meeting of Shareholders scheduled for June 21, 2024. Major Estimate Revision • May 29
Consensus EPS estimates increase by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥62.5b to JP¥67.0b. EPS estimate increased from JP¥222 to JP¥252 per share. Net income forecast to grow 11% next year vs 13% growth forecast for Electronic industry in Japan. Consensus price target up from JP¥3,600 to JP¥3,850. Share price was steady at JP¥3,180 over the past week. Reported Earnings • May 21
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥228 (up from JP¥150 in FY 2023). Revenue: JP¥62.1b (up 18% from FY 2023). Net income: JP¥4.97b (up 49% from FY 2023). Profit margin: 8.0% (up from 6.3% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 3.2% 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 increased by 40% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. New Risk • May 21
New major risk - Revenue and earnings growth Earnings have declined by 1.5% per year over the past 5 years. 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 declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. 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 have declined by 1.5% per year over the past 5 years. Minor Risk Paying a dividend despite having no free cash flows. Announcement • May 17
Espec Corp., Annual General Meeting, Jun 21, 2024 Espec Corp., Annual General Meeting, Jun 21, 2024. Buy Or Sell Opportunity • May 02
Now 21% undervalued Over the last 90 days, the stock has risen 15% to JP¥2,930. The fair value is estimated to be JP¥3,687, however this is not to be taken as a buy 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 38%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 12% in the next 2 years. Buy Or Sell Opportunity • Apr 17
Now 21% undervalued Over the last 90 days, the stock has risen 16% to JP¥2,935. The fair value is estimated to be JP¥3,718, however this is not to be taken as a buy 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 38%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 12% in the next 2 years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 32% but the company is not cash flow positive. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.4%). Price Target Changed • Mar 14
Price target increased by 13% to JP¥3,600 Up from JP¥3,200, the current price target is an average from 2 analysts. New target price is 29% above last closing price of JP¥2,785. Stock is up 40% over the past year. The company is forecast to post earnings per share of JP¥201 for next year compared to JP¥150 last year. Buy Or Sell Opportunity • Mar 11
Now 21% undervalued Over the last 90 days, the stock has risen 25% to JP¥2,830. The fair value is estimated to be JP¥3,564, however this is not to be taken as a buy 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 38%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 11% in the next 2 years. Announcement • Mar 02
Espec Corp. to Report Fiscal Year 2024 Results on May 15, 2024 Espec Corp. announced that they will report fiscal year 2024 results on May 15, 2024 Announcement • Feb 20
Espec Corp. Provides Dividend Guidance for the Fiscal Year Ending March 31, 2024 Espec Corp. provided dividend guidance for the fiscal year ending March 31, 2024. For the year ending, company expects to pay dividend of JPY 45.00 per share against JPY 43.00 per share for the previous period. Reported Earnings • Feb 14
Third quarter 2024 earnings released: EPS: JP¥65.59 (vs JP¥32.88 in 3Q 2023) Third quarter 2024 results: EPS: JP¥65.59 (up from JP¥32.88 in 3Q 2023). Revenue: JP¥14.9b (up 15% from 3Q 2023). Net income: JP¥1.43b (up 98% from 3Q 2023). Profit margin: 9.6% (up from 5.6% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.1% 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 38% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Jan 29
Now 20% undervalued Over the last 90 days, the stock has risen 15% to JP¥2,535. The fair value is estimated to be JP¥3,173, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 30%. Revenue is forecast to grow by 12% in 2 years. Earnings are forecast to grow by 26% in the next 2 years. Announcement • Dec 07
Espec Corp. to Report First Half, 2024 Results on Dec 06, 2023 Espec Corp. announced that they will report first half, 2024 results on Dec 06, 2023 Announcement • Nov 30
Espec Corp. to Report Q3, 2024 Results on Feb 13, 2024 Espec Corp. announced that they will report Q3, 2024 results on Feb 13, 2024 Announcement • Nov 18
Espec Corp. Announces Dividend for the Second Quarter End of Fiscal Year 2024, Commences Dividend Payments on December 11, 2023 Espec Corp. announced dividend of JPY 25 per share for the second quarter end of fiscal year 2024. Scheduled date to commence dividend payments on December 11, 2023. Reported Earnings • Nov 12
Second quarter 2024 earnings released: EPS: JP¥49.83 (vs JP¥46.70 in 2Q 2023) Second quarter 2024 results: EPS: JP¥49.83 (up from JP¥46.70 in 2Q 2023). Revenue: JP¥15.0b (up 5.4% from 2Q 2023). Net income: JP¥1.09b (up 4.0% from 2Q 2023). Profit margin: 7.3% (down from 7.4% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.0% 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 30% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥25.00 per share at 3.0% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 12 December 2023. Payout ratio is a comfortable 36% 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 (3.3%). Higher than average of industry peers (1.4%). Announcement • Aug 31
Espec Corp. to Report Q2, 2024 Results on Nov 10, 2023 Espec Corp. announced that they will report Q2, 2024 results on Nov 10, 2023 Reported Earnings • Aug 10
First quarter 2024 earnings released: EPS: JP¥25.88 (vs JP¥2.77 loss in 1Q 2023) First quarter 2024 results: EPS: JP¥25.88 (up from JP¥2.77 loss in 1Q 2023). Revenue: JP¥12.3b (up 41% from 1Q 2023). Net income: JP¥565.0m (up JP¥627.0m from 1Q 2023). Profit margin: 4.6% (up from net loss in 1Q 2023). The move to profitability was driven by higher revenue. Revenue is forecast to grow 4.2% 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 increased by 21% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Aug 09
Now 21% undervalued Over the last 90 days, the stock is up 13%. The fair value is estimated to be JP¥2,893, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.5% over the last 3 years. Earnings per share has grown by 7.9%. For the next 3 years, revenue is forecast to grow by 5.8% per annum. Earnings is also forecast to grow by 11% per annum over the same time period. Price Target Changed • Jul 14
Price target increased by 7.4% to JP¥2,900 Up from JP¥2,700, the current price target is an average from 2 analysts. New target price is 27% above last closing price of JP¥2,281. Stock is up 29% over the past year. The company is forecast to post earnings per share of JP¥179 for next year compared to JP¥150 last year. Reported Earnings • May 18
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: JP¥150 (up from JP¥84.84 in FY 2022). Revenue: JP¥52.9b (up 26% from FY 2022). Net income: JP¥3.33b (up 75% from FY 2022). Profit margin: 6.3% (up from 4.6% in FY 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Revenue is forecast to grow 5.1% p.a. on average 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 8% per year whereas the company’s share price has increased by 6% per year. Announcement • May 17
Espec Corp., Annual General Meeting, Jun 23, 2023 Espec Corp., Annual General Meeting, Jun 23, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥45.00 per share at 3.3% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 26 June 2023. Payout ratio is a comfortable 51% but the company is paying out more than the cash it is generating. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Price Target Changed • Feb 21
Price target increased by 9.8% to JP¥2,800 Up from JP¥2,550, the current price target is an average from 2 analysts. New target price is 40% above last closing price of JP¥1,998. Stock is up 0.9% over the past year. The company is forecast to post earnings per share of JP¥148 for next year compared to JP¥84.84 last year. Reported Earnings • Feb 14
Third quarter 2023 earnings released: EPS: JP¥32.87 (vs JP¥27.00 in 3Q 2022) Third quarter 2023 results: EPS: JP¥32.87 (up from JP¥27.00 in 3Q 2022). Revenue: JP¥13.0b (up 23% from 3Q 2022). Net income: JP¥724.0m (up 20% from 3Q 2022). Profit margin: 5.6% (down from 5.7% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.8% 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 11% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Dec 28
Espec Corp. to Report Q3, 2023 Results on Feb 13, 2023 Espec Corp. announced that they will report Q3, 2023 results on Feb 13, 2023 Board Change • Nov 16
Less than half of directors are independent There are 5 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 Kazuo Hirata 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. Lack of board continuity. Reported Earnings • Nov 13
Second quarter 2023 earnings released: EPS: JP¥46.70 (vs JP¥11.35 in 2Q 2022) Second quarter 2023 results: EPS: JP¥46.70 (up from JP¥11.35 in 2Q 2022). Revenue: JP¥14.2b (up 49% from 2Q 2022). Net income: JP¥1.05b (up 312% from 2Q 2022). Profit margin: 7.4% (up from 2.7% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.4% 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 23% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Nov 12
Espec Corp. (TSE:6859) announces an Equity Buyback for 680,000 shares, representing 3.02% for ¥1,324.64 million. Espec Corp. (TSE:6859) announces a share repurchase program. Under the program, the company will repurchase up to 680,000 shares, representing 3.02% of its issued share capital for ¥1,324.64 million. The shares will be repurchased at a price of ¥ 1,948 per share. The purpose of the program is to implement agile capital policy in response to changes in the corporate environment. As of September 30, 2022, the company has 22,549,321 issued shares and 1,232,073 shares in treasury. Announcement • Nov 10
Espec Corp. Revises Consolidated Earnings Guidance for the Six Months Ended September 30, 2022 and for the Fiscal Year Ending March 31, 2023 Espec Corp. revises consolidated earnings guidance for the six months ended September 30, 2022 and for the fiscal year ending March 31, 2023. For the six months, the company now expects net sales to be JPY 22,900 million, Operating profit to be JPY 1,400 million, Profit attributable to owners of parent to be JPY 980 million or JPY 43.78 per basic share, against previous forecast of net sales of JPY 23,500 million, Operating profit of JPY 1,950 million, Profit attributable to owners of parent of JPY 1,300 million or JPY 58.11 per basic share.For the full year, the company now expects net sales to be JPY 52,000 million, Operating profit to be JPY 4,000 million, Profit attributable to owners of parent to be JPY 2,900 million or JPY 129.50 per basic share, against previous forecast of net sales of JPY 50,000 million, Operating profit of JPY 5,000 million, Profit attributable to owners of parent of JPY 3,600 million or JPY 160.92 per basic share. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥24.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 12 December 2022. Payout ratio is a comfortable 72% but the company is paying out more than the cash it is generating. Trailing yield: 3.5%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.6%). Announcement • Sep 09
Espec Corp. (TSE:6859) agreed to acquire Environmental Test Equipment Business of Hitachi-Johnson Controls Air Conditioning, Inc. Espec Corp. (TSE:6859) agreed to acquire Environmental Test Equipment Business of Hitachi-Johnson Controls Air Conditioning, Inc on September 8, 2022. Announcement • Aug 31
Espec Corp. to Report Q2, 2023 Results on Nov 11, 2022 Espec Corp. announced that they will report Q2, 2023 results on Nov 11, 2022 Reported Earnings • Aug 11
First quarter 2023 earnings released: JP¥2.77 loss per share (vs JP¥1.06 loss in 1Q 2022) First quarter 2023 results: JP¥2.77 loss per share (down from JP¥1.06 loss in 1Q 2022). Revenue: JP¥8.73b (up 8.4% from 1Q 2022). Net loss: JP¥62.0m (loss widened 158% from 1Q 2022). Over the next year, revenue is forecast to grow 19%, compared to a 9.6% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Jun 05
Espec Corp. to Report Q1, 2023 Results on Aug 09, 2022 Espec Corp. announced that they will report Q1, 2023 results on Aug 09, 2022 Reported Earnings • May 18
Full year 2022 earnings: Revenues and EPS in line with analyst expectations Full year 2022 results: EPS: JP¥84.84 (down from JP¥85.76 in FY 2021). Revenue: JP¥41.9b (up 8.2% from FY 2021). Net income: JP¥1.91b (down 2.9% from FY 2021). Profit margin: 4.6% (down from 5.1% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the next year, revenue is forecast to grow 7.5%, compared to a 8.0% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings.