Buy Or Sell Opportunity • Mar 13
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.4% to JP¥3,555. The fair value is estimated to be JP¥4,458, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.9% over the last 3 years. Earnings per share has grown by 22%. For the next 3 years, revenue is forecast to grow by 6.4% per annum. Earnings are forecast to decline by 8.9% per annum over the same time period. New Risk • Feb 10
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 12% per year for the foreseeable future. High level of non-cash earnings (21% accrual ratio). Minor Risk Dividend is not well covered by cash flows (96% cash payout ratio). Reported Earnings • Feb 07
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥325 (up from JP¥181 in FY 2024). Revenue: JP¥27.3b (up 9.1% from FY 2024). Net income: JP¥7.00b (up 68% from FY 2024). Profit margin: 26% (up from 17% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.5%. Revenue is forecast to grow 6.7% 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 22% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥125 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 10 March 2026. Payout ratio is a comfortable 32% but the company is paying out more than the cash it is generating. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Announcement • Dec 03
Nippon Ceramic Co., Ltd. to Report Fiscal Year 2025 Results on Feb 06, 2026 Nippon Ceramic Co., Ltd. announced that they will report fiscal year 2025 results on Feb 06, 2026 Buy Or Sell Opportunity • Nov 18
Now 21% undervalued Over the last 90 days, the stock has risen 18% to JP¥3,690. The fair value is estimated to be JP¥4,676, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.9% over the last 3 years. Earnings per share has grown by 11%. Revenue is forecast to grow by 8.8% in 2 years. Earnings are forecast to decline by 20% in the next 2 years. New Risk • Nov 12
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 9.6% per year for the foreseeable future. High level of non-cash earnings (21% accrual ratio). Minor Risk Dividend is not well covered by cash flows (101% cash payout ratio). Reported Earnings • Nov 09
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: EPS: JP¥64.91 (up from JP¥35.97 in 3Q 2024). Revenue: JP¥7.11b (up 12% from 3Q 2024). Net income: JP¥1.40b (up 71% from 3Q 2024). Profit margin: 20% (up from 13% in 3Q 2024). Revenue exceeded analyst estimates by 3.2%. Earnings per share (EPS) also surpassed analyst estimates by 47%. Revenue is forecast to grow 5.7% 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 increased by 11% per year whereas the company’s share price has increased by 12% per year. Announcement • Nov 09
Nippon Ceramic Co., Ltd. (TSE:6929) announces an Equity Buyback for 500,000 shares, representing 2.33% for ¥1,500 million. Nippon Ceramic Co., Ltd. (TSE:6929) announces a share repurchase program. Under the program, the company will repurchase up to 500,000 shares, representing 2.33% of its issued share capital, for ¥1,500 million. The purpose of the program is to improve capital efficiency such as ROE, implement flexible capital policies in response to changes in the business environment, and enhancing return of profits to shareholders. The program will expire on January 30, 2026. As of October 31, 2025, the company had 21,481,662 shares in issue (excluding treasury shares) and 5,749,595 shares in treasury. Declared Dividend • Oct 24
Dividend of JP¥125 announced Shareholders will receive a dividend of JP¥125. Ex-date: 29th December 2025 Payment date: 10th March 2026 Dividend yield will be 3.5%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by earnings (35% earnings payout ratio) but not adequately covered by cash flows (91% cash payout ratio). The dividend has increased by an average of 14% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 7.0% over the next 3 years. However, it would need to fall by 61% to increase the payout ratio to a potentially unsustainable range. Price Target Changed • May 12
Price target increased by 7.6% to JP¥3,550 Up from JP¥3,300, the current price target is an average from 2 analysts. New target price is 22% above last closing price of JP¥2,900. Stock is up 15% over the past year. The company is forecast to post earnings per share of JP¥211 for next year compared to JP¥181 last year. Reported Earnings • May 10
First quarter 2025 earnings released: EPS: JP¥49.28 (vs JP¥36.78 in 1Q 2024) First quarter 2025 results: EPS: JP¥49.28 (up from JP¥36.78 in 1Q 2024). Revenue: JP¥6.64b (up 17% from 1Q 2024). Net income: JP¥1.08b (up 25% from 1Q 2024). Profit margin: 16% (up from 15% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.3% 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 fallen by 1% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Price Target Changed • Mar 13
Price target increased by 10% to JP¥3,300 Up from JP¥3,000, the current price target is an average from 2 analysts. New target price is 13% above last closing price of JP¥2,912. Stock is up 9.4% over the past year. The company is forecast to post earnings per share of JP¥197 for next year compared to JP¥181 last year. Reported Earnings • Feb 08
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥181 (up from JP¥157 in FY 2023). Revenue: JP¥25.0b (up 2.4% from FY 2023). Net income: JP¥4.16b (up 13% from FY 2023). Profit margin: 17% (up from 15% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.2%. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has remained flat. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥100.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 08 March 2025. Payout ratio is a comfortable 66% and this is well supported by cash flows. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.6%). Announcement • Dec 03
Nippon Ceramic Co., Ltd. to Report Fiscal Year 2024 Results on Feb 07, 2025 Nippon Ceramic Co., Ltd. announced that they will report fiscal year 2024 results on Feb 07, 2025 Reported Earnings • Nov 10
Third quarter 2024 earnings: EPS misses analyst expectations Third quarter 2024 results: EPS: JP¥35.97 (down from JP¥44.34 in 3Q 2023). Revenue: JP¥6.35b (down 3.4% from 3Q 2023). Net income: JP¥818.0m (down 22% from 3Q 2023). Profit margin: 13% (down from 16% in 3Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 14%. 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 5% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Nov 08
Nippon Ceramic Co., Ltd. (TSE:6929) announces an Equity Buyback for 500,000 shares, representing 2.23% for ¥1,000 million. Nippon Ceramic Co., Ltd. (TSE:6929) announces a share repurchase program. Under the program, the company will repurchase up to 500,000 shares, representing 2.23% of its issued share capital, for ¥1,000 million. The program will expire on January 31, 2025. As of October 31, 2024, the company had 22,417,254 shares in issue (excluding treasury shares) and 4,814,003 shares in treasury. Price Target Changed • Sep 12
Price target decreased by 7.9% to JP¥2,900 Down from JP¥3,150, the current price target is an average from 2 analysts. New target price is 18% above last closing price of JP¥2,462. Stock is down 4.7% over the past year. The company is forecast to post earnings per share of JP¥161 for next year compared to JP¥157 last year. Reported Earnings • Aug 07
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: JP¥49.86 (up from JP¥41.54 in 2Q 2023). Revenue: JP¥6.45b (up 6.0% from 2Q 2023). Net income: JP¥1.16b (up 18% from 2Q 2023). Profit margin: 18% (up from 16% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) also surpassed analyst estimates by 59%. Revenue is forecast to grow 6.9% 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 10% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Declared Dividend • Aug 04
Dividend of JP¥100.00 announced Dividend of JP¥100.00 is the same as last year. Ex-date: 27th December 2024 Payment date: 8th March 2025 Dividend yield will be 4.3%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (66% earnings payout ratio) and cash flows (42% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 27% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Aug 02
Nippon Ceramic Co., Ltd. (TSE:6929) announces an Equity Buyback for 500,000 shares, representing 2.19% for ¥1,000 million. Nippon Ceramic Co., Ltd. (TSE:6929) announces a share repurchase program. Under the program, the company will repurchase 500,000 shares, representing 2.19% of the outstanding shares for ¥1,000 million. The purpose of the program is to improve capital efficiency such as ROE, implementing flexible capital policies in response to changes in the business environment, and enhancing return of profits to shareholders. The program will run until October 31, 2024. As of July 31, 2024, the company had 22,818,904 shares outstanding (excluding treasury stock) and 4,412,353 shares in treasury. Announcement • May 21
Nippon Ceramic Co., Ltd. (TSE:6929) announces an Equity Buyback for 450,000 shares, representing 1.94% for ¥1,000 million. Nippon Ceramic Co., Ltd. (TSE:6929) announces a share repurchase program. Under the program, the company will repurchase 450,000 shares, representing 1.94% of the outstanding shares for ¥1,000 million. The purpose of the program is to improve capital efficiency such as ROE, implementing flexible capital policies in response to changes in the business environment, and enhancing return of profits to shareholders. The program will run until July 31, 2024. As of May 17, 2024, the company had 23,212,680 shares outstanding (excluding treasury stock) and 4,018,577 shares in treasury. Reported Earnings • May 13
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: JP¥36.77 (down from JP¥41.58 in 1Q 2023). Revenue: JP¥5.68b (down 2.1% from 1Q 2023). Net income: JP¥867.0m (down 12% from 1Q 2023). Profit margin: 15% (down from 17% in 1Q 2023). Revenue missed analyst estimates by 4.7%. Earnings per share (EPS) also missed analyst estimates by 3.3%. Revenue is forecast to grow 7.0% 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 15% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Mar 12
Nippon Ceramic Co., Ltd. (TSE:6929) announces an Equity Buyback for 400,000 shares, representing 1.7% for ¥1,000 million. Nippon Ceramic Co., Ltd. (TSE:6929) announces a share repurchase program. Under the program, the company will repurchase 400,000 shares, representing 1.7% of the outstanding shares for ¥1,000 million. The purpose of the program is to carry out flexible capital policies in response to changes in the business environment and to enhance the return of profits to shareholders. The program will run until June 28, 2024. As of February 29, 2024, the company had 23,591,776 shares outstanding and 3,639,481 shares in treasury. Reported Earnings • Feb 10
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: JP¥157 (down from JP¥206 in FY 2022). Revenue: JP¥24.4b (up 5.1% from FY 2022). Net income: JP¥3.69b (down 27% from FY 2022). Profit margin: 15% (down from 22% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 5.1%. Revenue is forecast to grow 8.1% 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 22% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Feb 09
Nippon Ceramic Co., Ltd., Annual General Meeting, Mar 27, 2024 Nippon Ceramic Co., Ltd., Annual General Meeting, Mar 27, 2024. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥100.00 per share at 3.6% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 07 March 2024. Payout ratio is a comfortable 39% but the company is paying out more than the cash it is generating. Trailing yield: 3.6%. Within top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.5%). Price Target Changed • Dec 08
Price target decreased by 12% to JP¥2,550 Down from JP¥2,900, the current price target is provided by 1 analyst. New target price is 8.8% below last closing price of JP¥2,796. Stock is up 7.7% over the past year. The company is forecast to post earnings per share of JP¥162 for next year compared to JP¥206 last year. Announcement • Dec 05
Nippon Ceramic Co., Ltd. to Report Fiscal Year 2023 Results on Feb 09, 2024 Nippon Ceramic Co., Ltd. announced that they will report fiscal year 2023 results on Feb 09, 2024 Reported Earnings • Nov 04
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: JP¥44.33 (down from JP¥75.04 in 3Q 2022). Revenue: JP¥6.57b (up 7.5% from 3Q 2022). Net income: JP¥1.05b (down 43% from 3Q 2022). Profit margin: 16% (down from 30% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.5%. Earnings per share (EPS) also surpassed analyst estimates by 22%. Revenue is forecast to grow 7.1% 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 28% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Price Target Changed • Nov 03
Price target decreased by 8.7% to JP¥2,900 Down from JP¥3,175, the current price target is an average from 2 analysts. New target price is 9.9% above last closing price of JP¥2,638. Stock is up 2.8% over the past year. The company is forecast to post earnings per share of JP¥160 for next year compared to JP¥206 last year. Reported Earnings • Aug 08
Second quarter 2023 earnings: EPS exceeds analyst expectations Second quarter 2023 results: EPS: JP¥41.54 (down from JP¥91.01 in 2Q 2022). Revenue: JP¥6.09b (up 4.1% from 2Q 2022). Net income: JP¥980.0m (down 56% from 2Q 2022). Profit margin: 16% (down from 38% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 20%. Revenue is forecast to grow 7.4% 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 35% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 16
First quarter 2023 earnings: EPS exceeds analyst expectations First quarter 2023 results: EPS: JP¥41.58 (up from JP¥37.07 in 1Q 2022). Revenue: JP¥5.80b (up 13% from 1Q 2022). Net income: JP¥981.0m (up 6.1% from 1Q 2022). Profit margin: 17% (down from 18% in 1Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 28%. Revenue is forecast to grow 7.6% 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 37% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 29
Full year 2022 earnings: Revenues exceed analyst expectations Full year 2022 results: Revenue: JP¥23.3b (up 8.9% from FY 2021). Net income: JP¥5.02b (up 78% from FY 2021). Profit margin: 22% (up from 13% in FY 2021). Revenue exceeded analyst estimates by 1.1%. Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Electronic industry in Japan. Buying Opportunity • Feb 17
Now 21% undervalued Over the last 90 days, the stock is up 4.2%. The fair value is estimated to be JP¥3,450, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 33%. For the next 3 years, revenue is forecast to grow by 7.1% per annum. Earnings is forecast to decline by 7.7% per annum over the same time period. Reported Earnings • Feb 04
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: JP¥206 (up from JP¥111 in FY 2021). Revenue: JP¥23.3b (up 8.9% from FY 2021). Net income: JP¥5.02b (up 78% from FY 2021). Profit margin: 22% (up from 13% in FY 2021). Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) missed analyst estimates by 18%. Revenue is forecast to grow 7.2% 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 33% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 08 March 2023. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.8%). Announcement • Dec 06
Nippon Ceramic Co., Ltd. to Report Fiscal Year 2022 Results on Feb 03, 2023 Nippon Ceramic Co., Ltd. announced that they will report fiscal year 2022 results on Feb 03, 2023 Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 3 highly experienced directors. 2 independent directors (3 non-independent directors). Independent Outside Director & Member of Audit & Supervisory Board Koichi Ikehara was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 06
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: JP¥75.03 (up from JP¥20.66 in 3Q 2021). Revenue: JP¥6.11b (up 12% from 3Q 2021). Net income: JP¥1.82b (up 248% from 3Q 2021). Profit margin: 30% (up from 9.6% in 3Q 2021). Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) also surpassed analyst estimates by 158%. Revenue is forecast to grow 7.0% 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 27% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Major Estimate Revision • Nov 05
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from JP¥221 to JP¥251. Revenue forecast steady at JP¥22.8b. Net income forecast to grow 6.0% next year vs 5.7% growth forecast for Electronic industry in Japan. Consensus price target up from JP¥2,950 to JP¥3,050. Share price rose 3.2% to JP¥2,567 over the past week. Major Estimate Revision • Aug 19
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from JP¥191 to JP¥218. Revenue forecast unchanged at JP¥22.5b. Net income forecast to shrink 1.6% next year vs 6.7% growth forecast for Electronic industry in Japan . Consensus price target of JP¥2,850 unchanged from last update. Share price rose 5.1% to JP¥2,590 over the past week. Valuation Update With 7 Day Price Move • Aug 12
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥2,465, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 11x in the Electronic industry in Japan. Total returns to shareholders of 2.3% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,191 per share. Reported Earnings • Aug 07
Second quarter 2022 earnings: EPS exceeds analyst expectations Second quarter 2022 results: EPS: JP¥91.00 (up from JP¥31.04 in 2Q 2021). Revenue: JP¥5.85b (up 8.2% from 2Q 2021). Net income: JP¥2.23b (up 180% from 2Q 2021). Profit margin: 38% (up from 15% in 2Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 293%. Over the next year, revenue is forecast to grow 5.3%, compared to a 9.5% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Major Estimate Revision • Aug 06
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from JP¥120 to JP¥191. Revenue forecast steady at JP¥22.3b. Net income forecast to grow 41% next year vs 5.9% growth forecast for Electronic industry in Japan. Consensus price target up from JP¥2,750 to JP¥2,850. Share price rose 2.5% to JP¥2,141 over the past week. Price Target Changed • Jul 15
Price target decreased to JP¥2,750 Down from JP¥3,000, the current price target is an average from 3 analysts. New target price is 35% above last closing price of JP¥2,034. Stock is down 30% over the past year. The company is forecast to post earnings per share of JP¥120 for next year compared to JP¥111 last year. Buying Opportunity • May 16
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 12%. The fair value is estimated to be JP¥2,745, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.4% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 14% in 2 years. Earnings is forecast to grow by 19% in the next 2 years. Reported Earnings • May 11
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: JP¥37.07 (up from JP¥30.19 in 1Q 2021). Revenue: JP¥5.13b (up 3.0% from 1Q 2021). Net income: JP¥925.0m (up 19% from 1Q 2021). Profit margin: 18% (up from 16% in 1Q 2021). Revenue missed analyst estimates by 6.1%. Earnings per share (EPS) exceeded analyst estimates by 14%. Over the next year, revenue is forecast to grow 6.1%, compared to a 8.4% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 3 highly experienced directors. 2 independent directors (3 non-independent directors). Independent Outside Director & Member of Audit & Supervisory Board Koichi Ikehara was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Mar 10
Nippon Ceramic Co Ordinary Shares to Be Deleted from Other OTC Nippon Ceramic Co., Ltd.'s Ordinary Shares will be deleted from other OTC effective from March 8, 2022 due to Inactive Security. Announcement • Feb 25
Nippon Ceramic Co., Ltd. to Report Q3, 2022 Results on Nov 04, 2022 Nippon Ceramic Co., Ltd. announced that they will report Q3, 2022 results on Nov 04, 2022 Announcement • Feb 07
Nippon Ceramic Co., Ltd. (TSE:6929) announces an Equity Buyback for 700,000 shares, representing 2.79% for ¥2,000 million. Nippon Ceramic Co., Ltd. (TSE:6929) announces a share repurchase program. Under the program, the company will repurchase 700,000 shares, representing 2.79% of the outstanding shares for ¥2,000 million. The purpose of the program is to implement a flexible capital policy in response to changes in the business environment, enhance capital efficiency and improve shareholder returns. The program will run until December 31, 2022. As of January 31, 2022, the company had 25,072,318 shares outstanding and 2,158,939 shares in treasury. Reported Earnings • Feb 07
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: JP¥111 (up from JP¥82.16 in FY 2020). Revenue: JP¥21.4b (up 25% from FY 2020). Net income: JP¥2.82b (up 32% from FY 2020). Profit margin: 13% (in line with FY 2020). Revenue exceeded analyst estimates by 3.4%. Earnings per share (EPS) also surpassed analyst estimates by 3.2%. Over the next year, revenue is forecast to grow 7.0%, compared to a 7.8% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has fallen by 1% per year. Announcement • Feb 06
Nippon Ceramic Co., Ltd., Annual General Meeting, Mar 25, 2022 Nippon Ceramic Co., Ltd., Annual General Meeting, Mar 25, 2022. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 09 March 2022. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.1%). Reported Earnings • Nov 07
Third quarter 2021 earnings released: EPS JP¥20.66 (vs JP¥20.46 in 3Q 2020) The company reported a mediocre third quarter result with weaker profit margins, although earnings were flat and revenues improved. Third quarter 2021 results: Revenue: JP¥5.45b (up 18% from 3Q 2020). Net income: JP¥523.0m (flat on 3Q 2020). Profit margin: 9.6% (down from 11% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has remained flat. Reported Earnings • Aug 09
Second quarter 2021 earnings released: EPS JP¥31.04 (vs JP¥11.22 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: JP¥5.40b (up 48% from 2Q 2020). Net income: JP¥795.0m (up 174% from 2Q 2020). Profit margin: 15% (up from 8.0% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has remained flat. Reported Earnings • May 10
First quarter 2021 earnings released: EPS JP¥30.19 (vs JP¥22.85 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were flat. First quarter 2021 results: Revenue: JP¥4.98b (up 27% from 1Q 2020). Net income: JP¥778.0m (up 29% from 1Q 2020). Profit margin: 16% (in line with 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 1% per year. Reported Earnings • Apr 01
Full year 2020 earnings released: EPS JP¥82.16 (vs JP¥101 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥17.1b (down 7.9% from FY 2019). Net income: JP¥2.13b (down 22% from FY 2019). Profit margin: 13% (down from 15% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 2% per year. Is New 90 Day High Low • Feb 26
New 90-day low: JP¥2,639 The company is down 9.0% from its price of JP¥2,908 on 27 November 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥1,590 per share.