Valuation Update With 7 Day Price Move • May 19
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to JP¥1,576, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 18x in the Electronic industry in Japan. Total returns to shareholders of 6.4% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,275 per share. Buy Or Sell Opportunity • May 13
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 4.9% to JP¥1,445. The fair value is estimated to be JP¥1,187, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 2.6% over the last 3 years. Earnings per share has declined by 17%. For the next 3 years, revenue is forecast to grow by 3.8% per annum. Earnings are also forecast to grow by 26% per annum over the same time period. Declared Dividend • Apr 11
Final dividend of JP¥25.00 announced Dividend of JP¥25.00 is the same as last year. Ex-date: 29th June 2026 Payment date: 1st September 2026 Dividend yield will be 3.9%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is not covered by earnings (237% earnings payout ratio) nor is it covered by cash flows (168% cash payout ratio). The dividend has increased by an average of 5.2% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 163% to bring the payout ratio under control. EPS is expected to grow by 110% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Mar 28
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥21.11 (down from JP¥80.14 in FY 2024). Revenue: JP¥194.9b (flat on FY 2024). Net income: JP¥1.00b (down 74% from FY 2024). Profit margin: 0.5% (down from 2.0% in FY 2024). Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) missed analyst estimates by 30%. Revenue is forecast to grow 2.9% 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 fallen by 60% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Announcement • Mar 16
Nissha Co., Ltd. to Report Q1, 2026 Results on May 12, 2026 Nissha Co., Ltd. announced that they will report Q1, 2026 results on May 12, 2026 Reported Earnings • Feb 14
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥21.11 (down from JP¥80.14 in FY 2024). Revenue: JP¥194.9b (flat on FY 2024). Net income: JP¥1.00b (down 74% from FY 2024). Profit margin: 0.5% (down from 2.0% in FY 2024). Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) missed analyst estimates by 30%. Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Announcement • Feb 12
Nissha Co., Ltd., Annual General Meeting, Mar 24, 2026 Nissha Co., Ltd., Annual General Meeting, Mar 24, 2026. Price Target Changed • Jan 07
Price target decreased by 7.6% to JP¥1,420 Down from JP¥1,536, the current price target is an average from 5 analysts. New target price is 10% above last closing price of JP¥1,290. Stock is down 21% over the past year. The company is forecast to post earnings per share of JP¥34.66 for next year compared to JP¥80.14 last year. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 03 March 2026. The company is not currently making a profit and is not cash flow positive. Trailing yield: 4.1%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Announcement • Dec 16
Nissha Co., Ltd. to Report Fiscal Year 2025 Results on Feb 12, 2026 Nissha Co., Ltd. announced that they will report fiscal year 2025 results on Feb 12, 2026 Reported Earnings • Nov 13
Third quarter 2025 earnings released: EPS: JP¥7.94 (vs JP¥1.25 in 3Q 2024) Third quarter 2025 results: EPS: JP¥7.94 (up from JP¥1.25 in 3Q 2024). Revenue: JP¥48.2b (down 1.1% from 3Q 2024). Net income: JP¥376.0m (up JP¥316.0m from 3Q 2024). Profit margin: 0.8% (up from 0.1% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.3% 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, the company's share price growth rate has exceeded its earnings growth rate by 72 percentage points per year, which is a significant difference in performance. Announcement • Sep 14
Nissha Co., Ltd. to Report Q3, 2025 Results on Nov 11, 2025 Nissha Co., Ltd. announced that they will report Q3, 2025 results on Nov 11, 2025 Declared Dividend • Sep 02
First half dividend of JP¥25.00 announced Dividend of JP¥25.00 is the same as last year. Ex-date: 29th December 2025 Payment date: 3rd March 2026 Dividend yield will be 3.6%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having 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 17% per year over the past 10 years. However, payments have been volatile during that time. Reported Earnings • Aug 07
Second quarter 2025 earnings released: EPS: JP¥0.89 (vs JP¥64.56 in 2Q 2024) Second quarter 2025 results: EPS: JP¥0.89 (down from JP¥64.56 in 2Q 2024). Revenue: JP¥49.6b (down 6.3% from 2Q 2024). Net income: JP¥42.0m (down 99% from 2Q 2024). Profit margin: 0.1% (down from 5.9% in 2Q 2024). Revenue is forecast to grow 4.5% 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, the company's share price growth rate has exceeded its earnings growth rate by 75 percentage points per year, which is a significant difference in performance. Price Target Changed • Jul 30
Price target decreased by 15% to JP¥1,603 Down from JP¥1,878, the current price target is an average from 4 analysts. New target price is 22% above last closing price of JP¥1,317. Stock is down 29% over the past year. The company is forecast to post earnings per share of JP¥90.54 for next year compared to JP¥80.14 last year. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 02 September 2025. Payout ratio is on the higher end at 89% but the company is not cash flow positive. Trailing yield: 3.9%. Lower than top quartile of Japanese dividend payers (4.0%). Higher than average of industry peers (1.9%). Announcement • Jun 10
Nissha Co., Ltd. to Report Q2, 2025 Results on Aug 06, 2025 Nissha Co., Ltd. announced that they will report Q2, 2025 results on Aug 06, 2025 Declared Dividend • May 15
Dividend of JP¥25.00 announced Dividend of JP¥25.00 is the same as last year. Ex-date: 27th June 2025 Payment date: 2nd September 2025 Dividend yield will be 3.8%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by earnings (89% 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 26% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 114% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 10
First quarter 2025 earnings released: EPS: JP¥1.83 (vs JP¥25.64 in 1Q 2024) First quarter 2025 results: EPS: JP¥1.83 (down from JP¥25.64 in 1Q 2024). Revenue: JP¥47.4b (up 1.5% from 1Q 2024). Net income: JP¥87.0m (down 93% from 1Q 2024). Profit margin: 0.2% (down from 2.7% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 76 percentage points per year, which is a significant difference in performance. Board Change • Apr 24
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 8 experienced directors. 3 highly experienced directors. 4 independent directors (5 non-independent directors). Independent Outside Director Yukiko Hashitera was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. New Risk • Apr 16
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 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.1% average weekly change). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to JP¥1,096, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 10x in the Electronic industry in Japan. Total loss to shareholders of 14% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,286 per share. Reported Earnings • Mar 27
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥80.14 (up from JP¥61.12 loss in FY 2023). Revenue: JP¥195.6b (up 17% from FY 2023). Net income: JP¥3.86b (up JP¥6.85b from FY 2023). Profit margin: 2.0% (up from net loss in FY 2023). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 27%. Revenue is forecast to grow 3.7% 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, the company's share price growth rate has exceeded its earnings growth rate by 87 percentage points per year, which is a significant difference in performance. Price Target Changed • Mar 19
Price target decreased by 9.0% to JP¥1,878 Down from JP¥2,063, the current price target is an average from 4 analysts. New target price is 27% above last closing price of JP¥1,474. Stock is up 2.6% over the past year. The company is forecast to post earnings per share of JP¥95.14 for next year compared to JP¥80.14 last year. Announcement • Mar 14
Nissha Co., Ltd. to Report Q1, 2025 Results on May 09, 2025 Nissha Co., Ltd. announced that they will report Q1, 2025 results on May 09, 2025 Major Estimate Revision • Feb 22
Consensus EPS estimates increase by 15% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from JP¥85.20 to JP¥98.02. Revenue forecast steady at JP¥193.7b. Net income forecast to grow 21% next year vs 11% growth forecast for Electronic industry in Japan. Consensus price target down from JP¥2,063 to JP¥1,938. Share price fell 7.3% to JP¥1,382 over the past week. Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥1,381, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 13x in the Electronic industry in Japan. Total returns to shareholders of 17% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,398 per share. Reported Earnings • Feb 15
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥80.14 (up from JP¥61.12 loss in FY 2023). Revenue: JP¥195.6b (up 17% from FY 2023). Net income: JP¥3.86b (up JP¥6.85b from FY 2023). Profit margin: 2.0% (up from net loss in FY 2023). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 27%. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 90 percentage points per year, which is a significant difference in performance. Announcement • Feb 13
Nissha Co., Ltd., Annual General Meeting, Mar 21, 2025 Nissha Co., Ltd., Annual General Meeting, Mar 21, 2025. Price Target Changed • Feb 08
Price target decreased by 14% to JP¥2,063 Down from JP¥2,388, the current price target is an average from 4 analysts. New target price is 27% above last closing price of JP¥1,619. Stock is down 0.1% over the past year. The company is forecast to post earnings per share of JP¥110 next year compared to a net loss per share of JP¥61.12 last year. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 04 March 2025. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.6%). Announcement • Dec 18
Nissha Co., Ltd. to Report Q4, 2024 Results on Feb 13, 2025 Nissha Co., Ltd. announced that they will report Q4, 2024 results on Feb 13, 2025 Major Estimate Revision • Nov 15
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from JP¥134 to JP¥119 per share. Revenue forecast steady at JP¥194.2b. Net income forecast to grow 688% next year vs 14% growth forecast for Electronic industry in Japan. Consensus price target of JP¥2,585 unchanged from last update. Share price fell 12% to JP¥1,700 over the past week. Buy Or Sell Opportunity • Nov 12
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 10.0% to JP¥1,737. The fair value is estimated to be JP¥2,217, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 4.0% per annum. Earnings are also forecast to grow by 29% per annum over the same time period. Reported Earnings • Nov 09
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: JP¥1.25 (up from JP¥4.61 loss in 3Q 2023). Revenue: JP¥48.7b (up 19% from 3Q 2023). Net income: JP¥60.0m (up JP¥285.0m from 3Q 2023). Profit margin: 0.1% (up from net loss in 3Q 2023). Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 96%. Revenue is forecast to grow 4.2% 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, the company's share price growth rate has exceeded its earnings growth rate by 95 percentage points per year, which is a significant difference in performance. Announcement • Nov 08
Nissha Co., Ltd. (TSE:7915) announces an Equity Buyback for 600,000 shares, representing 1.25% for ¥1,000 million. Nissha Co., Ltd. (TSE:7915) announces a share repurchase program. Under the program, the company will repurchase up to 600,000 shares, representing 1.25% of its issued share capital (excluding treasury stock), for a total purchase price of ¥1,000 million. The purpose of the program is to improve shareholder returns and capital efficiency. The program will be valid till March 31, 2025. As of September 30, 2024, the company had 47,896,359 issued shares (excluding treasury stock) and 2,959,279 treasury shares. New Risk • Nov 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 9.1% 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 (9.1% average weekly change). Minor Risks Dividend is not well covered by earnings (423% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.3% net profit margin). Announcement • Sep 13
Nissha Co., Ltd. to Report Q3, 2024 Results on Nov 08, 2024 Nissha Co., Ltd. announced that they will report Q3, 2024 results on Nov 08, 2024 Price Target Changed • Aug 28
Price target increased by 8.7% to JP¥2,460 Up from JP¥2,264, the current price target is an average from 4 analysts. New target price is 21% above last closing price of JP¥2,034. Stock is up 16% over the past year. The company is forecast to post earnings per share of JP¥131 next year compared to a net loss per share of JP¥61.12 last year. Reported Earnings • Aug 08
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: JP¥64.56 (up from JP¥32.47 in 2Q 2023). Revenue: JP¥52.9b (up 31% from 2Q 2023). Net income: JP¥3.12b (up 97% from 2Q 2023). Profit margin: 5.9% (up from 3.9% in 2Q 2023). Revenue exceeded analyst estimates by 6.7%. Earnings per share (EPS) also surpassed analyst estimates by 32%. Revenue is forecast to grow 4.6% 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, the company's share price growth rate has exceeded its earnings growth rate by 85 percentage points per year, which is a significant difference in performance. New Risk • Aug 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 9.0% 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 being loss-making. Share price has been volatile over the past 3 months (9.0% average weekly change). Announcement • Aug 06
Nissha Co., Ltd. (TSE:7915) announces an Equity Buyback for 600,000 shares, representing 1.24% for ¥1,000 million. Nissha Co., Ltd. (TSE:7915) announces a share repurchase program. Under the program, the company will repurchase up to 600,000 shares, representing 1.24% of its issued share capital (excluding treasury stock), for a total purchase price of ¥1,000 million. The purpose of the program is to improve shareholder returns and capital efficiency. The program will be valid till November 30, 2024. As of June 30, 2024, the company had 48,385,013 issued shares (excluding treasury stock) and 2,470,625 treasury shares. Buy Or Sell Opportunity • Jul 18
Now 22% undervalued Over the last 90 days, the stock has risen 27% to JP¥1,991. The fair value is estimated to be JP¥2,552, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 3.6% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Jul 05
Now 20% undervalued Over the last 90 days, the stock has risen 39% to JP¥2,010. The fair value is estimated to be JP¥2,522, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 3.6% over the last 3 years. Meanwhile, the company became loss making. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 02 September 2024. The company is not currently making a profit but it is cash flow positive. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.4%). Announcement • Jun 10
Nissha Co., Ltd. to Report Q2, 2024 Results on Aug 06, 2024 Nissha Co., Ltd. announced that they will report Q2, 2024 results on Aug 06, 2024 Reported Earnings • May 11
First quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2024 results: EPS: JP¥25.64 (up from JP¥15.97 loss in 1Q 2023). Revenue: JP¥46.7b (up 10% from 1Q 2023). Net income: JP¥1.24b (up JP¥2.02b from 1Q 2023). Profit margin: 2.7% (up from net loss in 1Q 2023). Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) missed analyst estimates by 16%. Revenue is forecast to grow 5.5% 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, the company's share price growth rate has exceeded its earnings growth rate by 77 percentage points per year, which is a significant difference in performance. Price Target Changed • Apr 12
Price target increased by 11% to JP¥2,242 Up from JP¥2,015, the current price target is an average from 5 analysts. New target price is 44% above last closing price of JP¥1,558. Stock is down 15% over the past year. The company is forecast to post earnings per share of JP¥106 next year compared to a net loss per share of JP¥61.12 last year. Reported Earnings • Mar 28
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: JP¥61.12 loss per share (down from JP¥204 profit in FY 2022). Revenue: JP¥167.7b (down 14% from FY 2022). Net loss: JP¥2.99b (down 130% from profit in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 5.8% 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 fallen by 49% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Mar 13
Nissha Co., Ltd. to Report Q1, 2024 Results on May 09, 2024 Nissha Co., Ltd. announced that they will report Q1, 2024 results on May 09, 2024 Announcement • Feb 16
Nissha Co., Ltd., Annual General Meeting, Mar 22, 2024 Nissha Co., Ltd., Annual General Meeting, Mar 22, 2024. Reported Earnings • Feb 16
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: JP¥61.11 loss per share (down from JP¥204 profit in FY 2022). Revenue: JP¥167.7b (down 14% from FY 2022). Net loss: JP¥2.99b (down 130% from profit in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. 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 49% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥25.00 per share at 4.2% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 04 March 2024. The company is not currently making a profit and is not cash flow positive. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.5%). Announcement • Dec 17
Nissha Co., Ltd. to Report Fiscal Year 2023 Results on Feb 14, 2024 Nissha Co., Ltd. announced that they will report fiscal year 2023 results on Feb 14, 2024 Announcement • Nov 10
Nissha Co., Ltd. (TSE:7915) announces an Equity Buyback for 700,000 shares, representing 1.43% for ¥1,000 million. Nissha Co., Ltd. (TSE:7915) announces a share repurchase program. Under the program, the company will repurchase up to 700,000 shares, representing 1.43% of its issued share capital (excluding treasury stock), for a total purchase price of ¥1,000 million. The purpose of the program is to improve shareholders return and capital efficiency. A portion of the acquired treasury stock is scheduled to be allocated for stock benefits to directors, officers, etc. and employees. The program will be valid till March 31, 2024. As of September 30, 2023, the company had 48,840,897 issued shares (excluding treasury stock) and 2,014,741 treasury shares. Price Target Changed • Nov 10
Price target decreased by 9.1% to JP¥2,163 Down from JP¥2,380, the current price target is an average from 4 analysts. New target price is 41% above last closing price of JP¥1,532. Stock is down 9.4% over the past year. The company is forecast to post earnings per share of JP¥49.12 for next year compared to JP¥204 last year. Buying Opportunity • Oct 13
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be JP¥2,089, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 4.1% per annum. Earnings is also forecast to grow by 33% per annum over the same time period. Buying Opportunity • Sep 26
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 3.0%. The fair value is estimated to be JP¥2,085, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 4.4% per annum. Earnings is also forecast to grow by 34% per annum over the same time period. Major Estimate Revision • Sep 23
Consensus EPS estimates fall by 32% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from JP¥77.79 to JP¥52.63 per share. Revenue forecast steady at JP¥175.5b. Net income forecast to grow 56% next year vs 5.2% growth forecast for Electronic industry in Japan. Consensus price target of JP¥2,306 unchanged from last update. Share price was steady at JP¥1,688 over the past week. Announcement • Sep 10
Nissha Co., Ltd. to Report Q3, 2023 Results on Nov 09, 2023 Nissha Co., Ltd. announced that they will report Q3, 2023 results on Nov 09, 2023 New Risk • Aug 10
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 32% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (105% cash payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.6% net profit margin). Reported Earnings • Aug 09
Second quarter 2023 earnings: EPS exceeds analyst expectations Second quarter 2023 results: EPS: JP¥32.44 (down from JP¥92.74 in 2Q 2022). Revenue: JP¥40.6b (down 13% from 2Q 2022). Net income: JP¥1.59b (down 66% from 2Q 2022). Profit margin: 3.9% (down from 9.9% in 2Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) exceeded analyst estimates. Revenue is forecast to grow 5.1% 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 32% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jun 28
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from JP¥77.47 to JP¥67.88 per share. Revenue forecast steady at JP¥176.5b. Net income forecast to shrink 27% next year vs 3.5% growth forecast for Electronic industry in Japan . Consensus price target broadly unchanged at JP¥2,269. Share price rose 5.9% to JP¥1,715 over the past week. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥25.00 per share at 3.1% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 01 September 2023. Payout ratio is a comfortable 41% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.4%). Announcement • Jun 11
Nissha Co., Ltd. to Report Q2, 2023 Results on Aug 08, 2023 Nissha Co., Ltd. announced that they will report Q2, 2023 results on Aug 08, 2023 Major Estimate Revision • May 30
Consensus EPS estimates fall by 16% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from JP¥188.2b to JP¥184.4b. EPS estimate also fell from JP¥133 per share to JP¥112 per share. Net income forecast to grow 12% next year vs 4.0% growth forecast for Electronic industry in Japan. Consensus price target down from JP¥2,275 to JP¥2,217. Share price was steady at JP¥1,635 over the past week. Reported Earnings • May 13
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: JP¥15.97 loss per share (down from JP¥65.84 profit in 1Q 2022). Revenue: JP¥42.4b (up 2.5% from 1Q 2022). Net loss: JP¥784.0m (down 124% from profit in 1Q 2022). Revenue missed analyst estimates by 5.9%. Earnings per share (EPS) were also behind analyst expectations. 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 59% 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 • Mar 28
Full year 2022 earnings: Revenues in line with analyst expectations Full year 2022 results: Revenue: JP¥194.0b (up 2.5% from FY 2021). Net income: JP¥10.1b (down 36% from FY 2021). Profit margin: 5.2% (down from 8.4% in FY 2021). Revenue was in line with analyst estimates. Revenue is forecast to grow 4.5% 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 94% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Mar 08
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from JP¥196.6b to JP¥194.4b. EPS estimate also fell from JP¥197 per share to JP¥169 per share. Net income forecast to shrink 17% next year vs 5.5% growth forecast for Electronic industry in Japan . Consensus price target up from JP¥2,250 to JP¥2,308. Share price rose 2.5% to JP¥1,877 over the past week. Reported Earnings • Feb 19
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: JP¥204 (down from JP¥318 in FY 2021). Revenue: JP¥194.0b (up 2.5% from FY 2021). Net income: JP¥10.1b (down 36% from FY 2021). Profit margin: 5.2% (down from 8.4% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 28%. Revenue is forecast to grow 3.8% 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 81% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Announcement • Feb 16
Nissha Co., Ltd., Annual General Meeting, Mar 23, 2023 Nissha Co., Ltd., Annual General Meeting, Mar 23, 2023. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 03 March 2023. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (1.8%). Announcement • Dec 15
Nissha Co., Ltd. to Report Fiscal Year 2022 Results on Feb 14, 2023 Nissha Co., Ltd. announced that they will report fiscal year 2022 results on Feb 14, 2023 Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Outside Director Juichi Takeuchi was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 12
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: JP¥78.53 (down from JP¥78.93 in 3Q 2021). Revenue: JP¥53.2b (up 11% from 3Q 2021). Net income: JP¥3.92b (flat on 3Q 2021). Profit margin: 7.4% (down from 8.2% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.0%. Earnings per share (EPS) also surpassed analyst estimates by 13%. Revenue is forecast to grow 2.5% 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 increased by 83% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Nov 04
Now 20% undervalued Over the last 90 days, the stock is up 8.9%. The fair value is estimated to be JP¥2,176, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 78%. For the next 3 years, revenue is forecast to grow by 2.7% per annum. Earnings is forecast to decline by 6.4% per annum over the same time period. Price Target Changed • Sep 06
Price target increased to JP¥2,152 Up from JP¥2,010, the current price target is an average from 8 analysts. New target price is 20% above last closing price of JP¥1,793. Stock is down 3.2% over the past year. The company is forecast to post earnings per share of JP¥260 for next year compared to JP¥318 last year. Major Estimate Revision • Aug 27
Consensus EPS estimates increase by 12% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from JP¥181.7b to JP¥185.4b. EPS estimate increased from JP¥216 to JP¥241 per share. Net income forecast to shrink 16% next year vs 6.3% growth forecast for Electronic industry in Japan . Consensus price target up from JP¥2,010 to JP¥2,118. Share price was steady at JP¥1,847 over the past week. Reported Earnings • Aug 09
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: JP¥92.76 (down from JP¥104 in 2Q 2021). Revenue: JP¥46.8b (down 7.2% from 2Q 2021). Net income: JP¥4.62b (down 11% from 2Q 2021). Profit margin: 9.9% (in line with 2Q 2021). Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 52%. Over the next year, revenue is forecast to grow 1.2%, 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 78% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 01 September 2022. Payout ratio is a comfortable 11% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.6%). Major Estimate Revision • May 19
Consensus EPS estimates increase by 14% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from JP¥177.1b to JP¥180.9b. EPS estimate increased from JP¥176 to JP¥201 per share. Net income forecast to shrink 28% next year vs 3.7% growth forecast for Electronic industry in Japan . Consensus price target of JP¥1,995 unchanged from last update. Share price fell 3.1% to JP¥1,446 over the past week. Reported Earnings • May 15
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: JP¥65.84 (down from JP¥109 in 1Q 2021). Revenue: JP¥41.4b (down 12% from 1Q 2021). Net income: JP¥3.28b (down 40% from 1Q 2021). Profit margin: 7.9% (down from 12% in 1Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) exceeded analyst estimates by 99%. Over the next year, revenue is expected to shrink by 1.7% compared to a 8.2% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Price Target Changed • May 02
Price target increased to JP¥1,995 Up from JP¥1,748, the current price target is an average from 8 analysts. New target price is 44% above last closing price of JP¥1,389. Stock is up 8.3% over the past year. The company is forecast to post earnings per share of JP¥176 for next year compared to JP¥318 last year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Outside Director Juichi Takeuchi was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Feb 15
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from JP¥180 to JP¥129 per share. Revenue forecast steady at JP¥174.9b. Net income forecast to shrink 52% next year vs 6.5% growth forecast for Electronic industry in Japan . Consensus price target of JP¥1,858 unchanged from last update. Share price fell 4.0% to JP¥1,414 over the past week.