Board Change • Jun 30
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. 4 experienced directors. 4 highly experienced directors. 4 independent directors (5 non-independent directors). Independent Outside Director Hiroki Watanabe was the last independent director to join the board, commencing their role in 2026. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Buy Or Sell Opportunity • May 26
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 11% to JP¥2,362. The fair value is estimated to be JP¥1,921, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.6% over the last 3 years. Earnings per share has grown by 13%. New Risk • May 13
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 3.6% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (23% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (JP¥12.9b market cap, or US$81.7m). Reported Earnings • May 09
Full year 2026 earnings released: EPS: JP¥169 (vs JP¥141 in FY 2025) Full year 2026 results: EPS: JP¥169 (up from JP¥141 in FY 2025). Revenue: JP¥18.4b (up 44% from FY 2025). Net income: JP¥995.0m (up 20% from FY 2025). Profit margin: 5.4% (down from 6.5% in FY 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 21% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥79.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 26 June 2026. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 4.1%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (3.2%). Reported Earnings • Feb 11
Third quarter 2026 earnings released: EPS: JP¥47.84 (vs JP¥43.49 in 3Q 2025) Third quarter 2026 results: EPS: JP¥47.84 (up from JP¥43.49 in 3Q 2025). Revenue: JP¥4.88b (up 50% from 3Q 2025). Net income: JP¥281.0m (up 9.8% from 3Q 2025). Profit margin: 5.8% (down from 7.9% in 3Q 2025). The decrease in margin was driven by higher expenses. 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 18% per year. Reported Earnings • Nov 12
Second quarter 2026 earnings released: EPS: JP¥30.51 (vs JP¥33.26 in 2Q 2025) Second quarter 2026 results: EPS: JP¥30.51 (down from JP¥33.26 in 2Q 2025). Revenue: JP¥4.08b (up 27% from 2Q 2025). Net income: JP¥179.0m (down 8.7% from 2Q 2025). Profit margin: 4.4% (down from 6.1% in 2Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 12% per year. Reported Earnings • Aug 10
First quarter 2026 earnings released: EPS: JP¥42.96 (vs JP¥24.11 in 1Q 2025) First quarter 2026 results: EPS: JP¥42.96 (up from JP¥24.11 in 1Q 2025). Revenue: JP¥3.86b (up 28% from 1Q 2025). Net income: JP¥252.0m (up 78% from 1Q 2025). Profit margin: 6.5% (up from 4.7% in 1Q 2025). The increase in margin was driven by higher revenue. 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 3% per year. Announcement • Jul 02
BENEFIT JAPAN Co., Ltd. to Report Q1, 2026 Results on Aug 08, 2025 BENEFIT JAPAN Co., Ltd. announced that they will report Q1, 2026 results on Aug 08, 2025 Reported Earnings • Jun 29
Full year 2025 earnings released: EPS: JP¥141 (vs JP¥124 in FY 2024) Full year 2025 results: EPS: JP¥141 (up from JP¥124 in FY 2024). Revenue: JP¥12.7b (down 2.4% from FY 2024). Net income: JP¥830.0m (up 13% from FY 2024). Profit margin: 6.5% (up from 5.6% in FY 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has fallen by 4% per year. Valuation Update With 7 Day Price Move • Jun 06
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,840, the stock trades at a trailing P/E ratio of 13x. Average trailing P/E is 13x in the Telecom industry in Japan. Total loss to shareholders of 1.6% over the past three years. Valuation Update With 7 Day Price Move • May 16
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥1,522, the stock trades at a trailing P/E ratio of 10.8x. Average trailing P/E is 13x in the Telecom industry in Japan. Total loss to shareholders of 19% over the past three years. New Risk • May 12
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 9.8% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.8% average weekly change). Earnings have declined by 3.4% per year over the past 5 years. Minor Risk Market cap is less than US$100m (JP¥9.38b market cap, or US$63.2m). Reported Earnings • May 11
Full year 2025 earnings released: EPS: JP¥141 (vs JP¥124 in FY 2024) Full year 2025 results: EPS: JP¥141 (up from JP¥124 in FY 2024). Revenue: JP¥12.7b (down 2.4% from FY 2024). Net income: JP¥830.0m (up 13% from FY 2024). Profit margin: 6.5% (up from 5.6% in FY 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 14% per year, which means it is performing significantly worse than earnings. Announcement • May 09
BENEFIT JAPAN Co., Ltd., Annual General Meeting, Jun 25, 2025 BENEFIT JAPAN Co., Ltd., Annual General Meeting, Jun 25, 2025. Valuation Update With 7 Day Price Move • May 02
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,289, the stock trades at a trailing P/E ratio of 9.8x. Average trailing P/E is 13x in the Telecom industry in Japan. Total loss to shareholders of 33% over the past three years. Announcement • Mar 27
BENEFIT JAPAN Co., Ltd. to Report Fiscal Year 2025 Results on May 09, 2025 BENEFIT JAPAN Co., Ltd. announced that they will report fiscal year 2025 results on May 09, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥37.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 27 June 2025. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (3.3%). Reported Earnings • Feb 12
Third quarter 2025 earnings released: EPS: JP¥43.49 (vs JP¥20.14 in 3Q 2024) Third quarter 2025 results: EPS: JP¥43.49 (up from JP¥20.14 in 3Q 2024). Revenue: JP¥3.26b (flat on 3Q 2024). Net income: JP¥256.0m (up 115% from 3Q 2024). Profit margin: 7.9% (up from 3.7% in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has fallen by 18% per year, which means it is performing significantly worse than earnings. Reported Earnings • Nov 10
Second quarter 2025 earnings released: EPS: JP¥33.26 (vs JP¥49.51 in 2Q 2024) Second quarter 2025 results: EPS: JP¥33.26 (down from JP¥49.51 in 2Q 2024). Revenue: JP¥3.21b (down 3.4% from 2Q 2024). Net income: JP¥196.0m (down 33% from 2Q 2024). Profit margin: 6.1% (down from 8.8% in 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has fallen by 27% per year, which means it is performing significantly worse than earnings. Reported Earnings • Aug 14
First quarter 2025 earnings released: EPS: JP¥24.11 (vs JP¥23.17 in 1Q 2024) First quarter 2025 results: EPS: JP¥24.11 (up from JP¥23.17 in 1Q 2024). Revenue: JP¥3.01b (down 6.9% from 1Q 2024). Net income: JP¥142.0m (up 2.9% from 1Q 2024). Profit margin: 4.7% (up from 4.3% in 1Q 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has fallen by 22% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥957, the stock trades at a trailing P/E ratio of 7.7x. Average trailing P/E is 15x in the Telecom industry in Japan. Total loss to shareholders of 52% over the past three years. Buy Or Sell Opportunity • Jul 24
Now 22% undervalued Over the last 90 days, the stock has risen 6.9% to JP¥1,220. The fair value is estimated to be JP¥1,572, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.0% over the last 3 years. Earnings per share has declined by 11%. Buy Or Sell Opportunity • Jul 01
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at JP¥1,257. The fair value is estimated to be JP¥1,572, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.0% over the last 3 years. Earnings per share has declined by 11%. New Risk • Jun 04
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.4% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (JP¥6.93b market cap, or US$44.4m). Reported Earnings • May 13
Full year 2024 earnings released: EPS: JP¥124 (vs JP¥94.09 in FY 2023) Full year 2024 results: EPS: JP¥124 (up from JP¥94.09 in FY 2023). Revenue: JP¥13.1b (up 4.0% from FY 2023). Net income: JP¥734.0m (up 31% from FY 2023). Profit margin: 5.6% (up from 4.5% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 15% per year. Announcement • May 12
BENEFIT JAPAN Co., Ltd., Annual General Meeting, Jun 26, 2024 BENEFIT JAPAN Co., Ltd., Annual General Meeting, Jun 26, 2024. Announcement • Mar 30
BENEFIT JAPAN Co., Ltd. to Report Fiscal Year 2024 Results on May 10, 2024 BENEFIT JAPAN Co., Ltd. announced that they will report fiscal year 2024 results on May 10, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 28 June 2024. Payout ratio is a comfortable 6.2% and this is well supported by cash flows. Trailing yield: 0.7%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (2.6%). Reported Earnings • Feb 11
Third quarter 2024 earnings released: EPS: JP¥20.14 (vs JP¥27.21 in 3Q 2023) Third quarter 2024 results: EPS: JP¥20.14 (down from JP¥27.21 in 3Q 2023). Revenue: JP¥3.26b (up 2.1% from 3Q 2023). Net income: JP¥119.0m (down 27% from 3Q 2023). Profit margin: 3.7% (down from 5.1% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 13% per year. Reported Earnings • Nov 13
Second quarter 2024 earnings released: EPS: JP¥49.51 (vs JP¥4.87 in 2Q 2023) Second quarter 2024 results: EPS: JP¥49.51 (up from JP¥4.87 in 2Q 2023). Revenue: JP¥3.33b (up 4.5% from 2Q 2023). Net income: JP¥294.0m (up JP¥265.0m from 2Q 2023). Profit margin: 8.8% (up from 0.9% in 2Q 2023). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has fallen by 20% per year, which means it is performing significantly worse than earnings. Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥23.17 (vs JP¥10.42 in 1Q 2023) First quarter 2024 results: EPS: JP¥23.17 (up from JP¥10.42 in 1Q 2023). Revenue: JP¥3.23b (up 5.0% from 1Q 2023). Net income: JP¥138.0m (up 123% from 1Q 2023). Profit margin: 4.3% (up from 2.0% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 12% per year whereas the company’s share price has fallen by 14% per year. Announcement • Jun 08
BENEFIT JAPAN Co., Ltd. (TSE:3934) announces an Equity Buyback for 100,000 shares, representing 1.68% for ¥125 million. BENEFIT JAPAN Co., Ltd. (TSE:3934) announces a share repurchase program. Under the program, the company will repurchase up to 100,000 shares, representing 1.68% of its issued share capital (excluding treasury stock), for ¥125 million. The purpose of the program is to return profits to shareholders by improving capital efficiency through execution of a flexible capital policy. The program will run until June 7, 2024. As of March 31, 2023, the company had 5,960,560 shares in issue (excluding treasury stock) and 1,894 shares in treasury. Announcement • May 12
BENEFIT JAPAN Co., Ltd., Annual General Meeting, Jun 27, 2023 BENEFIT JAPAN Co., Ltd., Annual General Meeting, Jun 27, 2023. Reported Earnings • May 12
Full year 2023 earnings released: EPS: JP¥94.09 (vs JP¥177 in FY 2022) Full year 2023 results: EPS: JP¥94.09 (down from JP¥177 in FY 2022). Revenue: JP¥12.6b (up 8.6% from FY 2022). Net income: JP¥560.0m (down 47% from FY 2022). Profit margin: 4.5% (down from 9.1% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 8% per year and the company’s share price has also fallen by 8% per year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥9.00 per share at 0.8% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 29 June 2023. Payout ratio is a comfortable 9.8% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.9%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥27.21 (vs JP¥39.03 in 3Q 2022) Third quarter 2023 results: EPS: JP¥27.21 (down from JP¥39.03 in 3Q 2022). Revenue: JP¥3.19b (up 8.6% from 3Q 2022). Net income: JP¥162.0m (down 30% from 3Q 2022). Profit margin: 5.1% (down from 7.9% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 10% per year, which means it is performing significantly worse than earnings. Announcement • Dec 29
BENEFIT JAPAN Co.,LTD. to Report Q3, 2023 Results on Feb 10, 2023 BENEFIT JAPAN Co.,LTD. announced that they will report Q3, 2023 results on Feb 10, 2023 Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Outside Director Masami Mishima was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 12
Second quarter 2023 earnings released: EPS: JP¥4.87 (vs JP¥49.50 in 2Q 2022) Second quarter 2023 results: EPS: JP¥4.87 (down from JP¥49.50 in 2Q 2022). Revenue: JP¥3.18b (up 8.0% from 2Q 2022). Net income: JP¥29.0m (down 90% from 2Q 2022). Profit margin: 0.9% (down from 10.0% in 2Q 2022). The decrease in margin was driven by higher expenses. 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 • Sep 28
BENEFIT JAPAN Co., Ltd. to Report Q2, 2023 Results on Nov 10, 2022 BENEFIT JAPAN Co., Ltd. announced that they will report Q2, 2023 results on Nov 10, 2022 Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥10.42 (vs JP¥39.03 in 1Q 2022) First quarter 2023 results: EPS: JP¥10.42 (down from JP¥39.03 in 1Q 2022). Revenue: JP¥3.08b (up 9.1% from 1Q 2022). Net income: JP¥62.0m (down 73% from 1Q 2022). Profit margin: 2.0% (down from 8.2% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 7% per year. Announcement • Jun 01
BENEFIT JAPAN Co., Ltd. to Report Q1, 2023 Results on Aug 10, 2022 BENEFIT JAPAN Co., Ltd. announced that they will report Q1, 2023 results on Aug 10, 2022 Announcement • May 12
BENEFIT JAPAN Co., Ltd., Annual General Meeting, Jun 28, 2022 BENEFIT JAPAN Co., Ltd., Annual General Meeting, Jun 28, 2022. Reported Earnings • May 11
Full year 2022 earnings released: EPS: JP¥177 (vs JP¥154 in FY 2021) Full year 2022 results: EPS: JP¥177 (up from JP¥154 in FY 2021). Revenue: JP¥11.6b (up 16% from FY 2021). Net income: JP¥1.05b (up 15% from FY 2021). Profit margin: 9.1% (down from 9.2% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 8 non-independent directors. Independent Outside Director Norimasa Yoshida was the last independent director to join the board, commencing their role in 2016. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 07
BENEFIT JAPAN Co., Ltd. to Report Fiscal Year 2022 Results on May 10, 2022 BENEFIT JAPAN Co., Ltd. announced that they will report fiscal year 2022 results on May 10, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 24 June 2022. Payout ratio is a comfortable 5.1% and this is well supported by cash flows. Trailing yield: 0.4%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (3.3%). Reported Earnings • Feb 12
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥39.03 (down from JP¥48.84 in 3Q 2021). Revenue: JP¥2.94b (up 12% from 3Q 2021). Net income: JP¥232.0m (down 20% from 3Q 2021). Profit margin: 7.9% (down from 11% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 38% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Nov 13
Second quarter 2022 earnings released: EPS JP¥49.50 (vs JP¥42.62 in 2Q 2021) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2022 results: Revenue: JP¥2.95b (up 14% from 2Q 2021). Net income: JP¥294.0m (up 17% from 2Q 2021). Profit margin: 10.0% (in line with 2Q 2021). Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has increased by 50% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 13
First quarter 2022 earnings released: EPS JP¥39.03 (vs JP¥35.09 in 1Q 2021) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were weaker. First quarter 2022 results: Revenue: JP¥2.82b (up 38% from 1Q 2021). Net income: JP¥231.0m (up 12% from 1Q 2021). Profit margin: 8.2% (down from 10% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 13
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥2,367, the stock trades at a trailing P/E ratio of 15.3x. Average trailing P/E is 18x in the Telecom industry in Japan. Total returns to shareholders of 143% over the past three years. Reported Earnings • Jun 30
Full year 2021 earnings released: EPS JP¥154 (vs JP¥127 in FY 2020) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2021 results: Revenue: JP¥9.95b (up 29% from FY 2020). Net income: JP¥912.0m (up 22% from FY 2020). Profit margin: 9.2% (in line with FY 2020). Over the last 3 years on average, earnings per share has increased by 20% per year whereas the company’s share price has increased by 22% per year. Reported Earnings • May 12
Full year 2021 earnings released: EPS JP¥154 (vs JP¥127 in FY 2020) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2021 results: Revenue: JP¥9.95b (up 29% from FY 2020). Net income: JP¥912.0m (up 22% from FY 2020). Profit margin: 9.2% (in line with FY 2020). Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 29 June 2021. Trailing yield: 0.4%. Lower than top quartile of Japanese dividend payers (2.7%). Lower than average of industry peers (3.3%). Is New 90 Day High Low • Mar 04
New 90-day low: JP¥1,652 The company is down 8.0% from its price of JP¥1,805 on 04 December 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Telecom industry, which is up 8.0% over the same period. Reported Earnings • Feb 12
Third quarter 2021 earnings released: EPS JP¥48.84 (vs JP¥29.85 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥2.62b (up 34% from 3Q 2020). Net income: JP¥289.0m (up 64% from 3Q 2020). Profit margin: 11% (up from 9.0% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 07
Market pulls back on stock over the past week After last week's 19% share price decline to JP¥1,678, the stock is trading at a trailing P/E ratio of 12.6x, down from the previous P/E ratio of 15.5x. This compares to an average P/E of 30x in the Telecom industry in Japan. Total returns to shareholders over the past three years are 51%.