New Risk • May 11
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 7.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Reported Earnings • May 09
Full year 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2026 results: EPS: JP¥322 (up from JP¥197 in FY 2025). Revenue: JP¥17.0b (up 11% from FY 2025). Net income: JP¥4.20b (up 65% from FY 2025). Profit margin: 25% (up from 17% in FY 2025). Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 28%. Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 3.3% growth forecast for the Telecom industry in Japan. Over the last 3 years on average, earnings per share has increased by 19% 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 • Mar 23
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 25 June 2026. Payout ratio is a comfortable 18% but the company is not cash flow positive. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (3.2%). Reported Earnings • Feb 07
Third quarter 2026 earnings released: EPS: JP¥85.94 (vs JP¥113 in 3Q 2025) Third quarter 2026 results: EPS: JP¥85.94 (down from JP¥113 in 3Q 2025). Revenue: JP¥3.87b (up 11% from 3Q 2025). Net income: JP¥1.12b (down 23% from 3Q 2025). Profit margin: 29% (down from 42% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 3.2% growth forecast for the Telecom 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 only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Dec 03
IPS, Inc. to Report Q3, 2026 Results on Feb 06, 2026 IPS, Inc. announced that they will report Q3, 2026 results on Feb 06, 2026 Declared Dividend • Dec 02
First half dividend of JP¥20.00 announced Dividend of JP¥20.00 is the same as last year. Ex-date: 30th March 2026 Payment date: 25th June 2026 Dividend yield will be 1.2%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (16% 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 32% per year over the past 5 years and payments have been stable during that time. EPS is expected to grow by 53% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Nov 14
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥3,390, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Telecom industry in Japan. Total returns to shareholders of 15% over the past three years. Reported Earnings • Nov 09
Second quarter 2026 earnings released: EPS: JP¥73.60 (vs JP¥23.96 in 2Q 2025) Second quarter 2026 results: EPS: JP¥73.60 (up from JP¥23.96 in 2Q 2025). Revenue: JP¥4.43b (up 8.4% from 2Q 2025). Net income: JP¥955.0m (up 209% from 2Q 2025). Profit margin: 22% (up from 7.6% in 2Q 2025). The increase in margin was primarily driven by higher revenue. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 3.3% growth forecast for the Telecom industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Sep 27
IPS, Inc. to Report Q2, 2026 Results on Nov 07, 2025 IPS, Inc. announced that they will report Q2, 2026 results on Nov 07, 2025 New Risk • Sep 25
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 7.6% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Sep 24
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥3,740, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 14x in the Telecom industry in Japan. Total returns to shareholders of 34% over the past three years. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 03 December 2025. Payout ratio is a comfortable 20% but the company is not cash flow positive. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (3.2%). Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: JP¥50.29 (vs JP¥37.29 in 1Q 2025) First quarter 2026 results: EPS: JP¥50.29 (up from JP¥37.29 in 1Q 2025). Revenue: JP¥3.42b (down 12% from 1Q 2025). Net income: JP¥652.0m (up 36% from 1Q 2025). Profit margin: 19% (up from 12% in 1Q 2025). The increase in margin was driven by lower expenses. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 3.2% growth forecast for the Telecom industry in Japan. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 3% per year. Valuation Update With 7 Day Price Move • Jul 31
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥2,770, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 12x in the Telecom industry in Japan. Total returns to shareholders of 13% over the past three years. Declared Dividend • Jul 09
Final dividend of JP¥20.00 announced Dividend of JP¥20.00 is the same as last year. Ex-date: 29th September 2025 Payment date: 3rd December 2025 Dividend yield will be 1.8%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (12% 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 41% per year over the past 4 years and payments have been stable during that time. EPS is expected to grow by 64% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 25
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥197 (down from JP¥225 in FY 2024). Revenue: JP¥15.3b (up 8.1% from FY 2024). Net income: JP¥2.54b (down 10% from FY 2024). Profit margin: 17% (down from 20% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 7.5%. Earnings per share (EPS) also missed analyst estimates by 15%. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the Telecom industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Jun 18
IPS, Inc. to Report Q1, 2026 Results on Aug 08, 2025 IPS, Inc. announced that they will report Q1, 2026 results on Aug 08, 2025 Reported Earnings • May 10
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥197 (down from JP¥225 in FY 2024). Revenue: JP¥15.3b (up 8.1% from FY 2024). Net income: JP¥2.54b (down 10% from FY 2024). Profit margin: 17% (down from 20% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 7.5%. Earnings per share (EPS) also missed analyst estimates by 15%. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 2.4% growth forecast for the Telecom industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • May 09
IPS, Inc., Annual General Meeting, Jun 24, 2025 IPS, Inc., Annual General Meeting, Jun 24, 2025. New Risk • Apr 08
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.6% 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: Major Risks Debt is not well covered by operating cash flow (5.5% operating cash flow to total debt). Earnings are forecast to decline by an average of 0.7% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (6.6% average weekly change). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥1,790, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 13x in the Telecom industry in Japan. Total loss to shareholders of 10% over the past three years. New Risk • Mar 31
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: 1.9% 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 Risks Debt is not well covered by operating cash flow (5.5% operating cash flow to total debt). Earnings are forecast to decline by an average of 0.7% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 27 June 2025. Payout ratio is a comfortable 12% but the company is not cash flow positive. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (3.3%). Announcement • Mar 13
IPS, Inc. to Report Fiscal Year 2025 Results on May 09, 2025 IPS, Inc. announced that they will report fiscal year 2025 results on May 09, 2025 New Risk • Feb 08
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 5.5% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (5.5% operating cash flow to total debt). Earnings are forecast to decline by an average of 1.4% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (6.0% average weekly change). Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥113 (vs JP¥0.24 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥113 (up from JP¥0.24 loss in 3Q 2024). Revenue: JP¥3.49b (up 13% from 3Q 2024). Net income: JP¥1.46b (up JP¥1.47b from 3Q 2024). Profit margin: 42% (up from net loss in 3Q 2024). The move to profitability was primarily driven by lower expenses. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Telecom industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Announcement • Dec 12
IPS, Inc. to Report Q3, 2025 Results on Feb 07, 2025 IPS, Inc. announced that they will report Q3, 2025 results on Feb 07, 2025 Declared Dividend • Dec 04
First half dividend of JP¥20.00 announced Shareholders will receive a dividend of JP¥20.00. Ex-date: 28th March 2025 Payment date: 27th June 2025 Dividend yield will be 1.5%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (9% 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 41% per year over the past 4 years and payments have been stable during that time. EPS is expected to grow by 38% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 10
Second quarter 2025 earnings released: EPS: JP¥23.96 (vs JP¥25.23 in 2Q 2024) Second quarter 2025 results: EPS: JP¥23.96 (down from JP¥25.23 in 2Q 2024). Revenue: JP¥4.09b (up 48% from 2Q 2024). Net income: JP¥309.0m (down 1.6% from 2Q 2024). Profit margin: 7.6% (down from 11% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Telecom 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 10% per year. New Risk • Nov 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.6% 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 Share price has been volatile over the past 3 months (6.6% average weekly change). Shareholders have been diluted in the past year (3.7% increase in shares outstanding). Upcoming Dividend • Sep 20
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (3.3%). Announcement • Sep 04
IPS, Inc. to Report Q2, 2025 Results on Nov 08, 2024 IPS, Inc. announced that they will report Q2, 2025 results on Nov 08, 2024 Reported Earnings • Aug 11
First quarter 2025 earnings released: EPS: JP¥50.65 (vs JP¥51.45 in 1Q 2024) First quarter 2025 results: EPS: JP¥50.65. Revenue: JP¥3.66b (up 48% from 1Q 2024). Net income: JP¥652.0m (up 1.9% from 1Q 2024). Profit margin: 18% (down from 26% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 2.4% growth forecast for the Telecom industry in Japan. Valuation Update With 7 Day Price Move • Aug 02
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,862, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Telecom industry in Japan. Total loss to shareholders of 25% over the past three years. Declared Dividend • Jul 11
Final dividend of JP¥20.00 announced Shareholders will receive a dividend of JP¥20.00. Ex-date: 27th September 2024 Payment date: 4th December 2024 Dividend yield will be 1.7%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (26% 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 59% per year over the past 3 years and payments have been stable during that time. EPS is expected to grow by 26% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 13
Full year 2024 earnings released: EPS: JP¥225 (vs JP¥184 in FY 2023) Full year 2024 results: EPS: JP¥225 (up from JP¥184 in FY 2023). Revenue: JP¥14.1b (up 14% from FY 2023). Net income: JP¥2.84b (up 24% from FY 2023). Profit margin: 20% (up from 19% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • May 12
IPS, Inc., Annual General Meeting, Jun 26, 2024 IPS, Inc., Annual General Meeting, Jun 26, 2024. Announcement • May 11
IPS, Inc. Proposes Dividend for the Year Ended March 31, 2024 The Board of Directors of IPS, Inc. resolved at its meeting held on May 10, 2024 to submit a proposal to the 33rd Annual General Meeting of Shareholders to be held on 26 June 2024 for the distribution of surplus funds with a record date of 31 March 2024, as follows. Dividends per share: JPY 19.50. Total Dividends: JPY 250 million. Effective Date: June 27, 2024. Announcement • Mar 24
IPS, Inc. to Report Fiscal Year 2024 Results on May 10, 2024 IPS, Inc. announced that they will report fiscal year 2024 results on May 10, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥17.50 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 28 June 2024. Payout ratio is a comfortable 26% but the company is not cash flow positive. Trailing yield: 1.4%. 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: JP¥0.24 loss per share (vs JP¥8.36 loss in 3Q 2023) Third quarter 2024 results: JP¥0.24 loss per share (improved from JP¥8.36 loss in 3Q 2023). Revenue: JP¥3.10b (up 3.0% from 3Q 2023). Net loss: JP¥3.00m (loss narrowed 97% from 3Q 2023). Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. New Risk • Dec 22
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.4% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (62% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.5% average weekly change). Profit margins are more than 30% lower than last year (13% net profit margin). Shareholders have been diluted in the past year (3.4% increase in shares outstanding). Announcement • Dec 08
IPS, Inc. to Report Q3, 2024 Results on Feb 09, 2024 IPS, Inc. announced that they will report Q3, 2024 results on Feb 09, 2024 Valuation Update With 7 Day Price Move • Nov 17
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥2,121, the stock trades at a trailing P/E ratio of 16.6x. Average trailing P/E is 12x in the Telecom industry in Japan. Total returns to shareholders of 7.7% over the past three years. New Risk • Nov 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.1% 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 Share price has been volatile over the past 3 months (6.1% average weekly change). Profit margins are more than 30% lower than last year (13% net profit margin). Reported Earnings • Nov 12
Second quarter 2024 earnings released: EPS: JP¥25.23 (vs JP¥50.96 in 2Q 2023) Second quarter 2024 results: EPS: JP¥25.23 (down from JP¥50.96 in 2Q 2023). Revenue: JP¥2.77b (down 6.5% from 2Q 2023). Net income: JP¥314.0m (down 50% from 2Q 2023). Profit margin: 11% (down from 21% in 2Q 2023). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Sep 24
IPS, Inc. to Report Q2, 2024 Results on Nov 10, 2023 IPS, Inc. announced that they will report Q2, 2024 results on Nov 10, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥17.50 per share at 1.4% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 05 December 2023. Payout ratio is a comfortable 23% but the company is not cash flow positive. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (2.7%). New Risk • Aug 13
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 16% Last year net profit margin: 23% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥51.45 (vs JP¥82.76 in 1Q 2023) First quarter 2024 results: EPS: JP¥51.45 (down from JP¥82.76 in 1Q 2023). Revenue: JP¥2.48b (down 12% from 1Q 2023). Net income: JP¥640.0m (down 38% from 1Q 2023). Profit margin: 26% (down from 36% in 1Q 2023). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Jun 11
IPS, Inc. to Report Q1, 2024 Results on Aug 10, 2023 IPS, Inc. announced that they will report Q1, 2024 results on Aug 10, 2023 Reported Earnings • May 16
Full year 2023 earnings released: EPS: JP¥184 (vs JP¥152 in FY 2022) Full year 2023 results: EPS: JP¥184 (up from JP¥152 in FY 2022). Revenue: JP¥12.3b (up 15% from FY 2022). Net income: JP¥2.29b (up 21% from FY 2022). Profit margin: 19% (up from 18% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • May 14
IPS, Inc., Annual General Meeting, Jun 27, 2023 IPS, Inc., Annual General Meeting, Jun 27, 2023. Buying Opportunity • May 10
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 11%. The fair value is estimated to be JP¥3,219, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Earnings per share has grown by 49%. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥17.50 per share at 1.5% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 29 June 2023. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.9%). Buying Opportunity • Feb 22
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 18%. The fair value is estimated to be JP¥3,213, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Earnings per share has grown by 49%. Reported Earnings • Feb 12
Third quarter 2023 earnings released: JP¥8.36 loss per share (vs JP¥35.17 profit in 3Q 2022) Third quarter 2023 results: JP¥8.36 loss per share (down from JP¥35.17 profit in 3Q 2022). Revenue: JP¥3.01b (up 28% from 3Q 2022). Net loss: JP¥104.0m (down 124% from profit in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Announcement • Feb 11
IPS, Inc. Provides Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2023 IPS, Inc. provided consolidated earnings guidance for the fiscal year ending March 31, 2023. For the year, the company expects net sales of JPY 12,000 million, operating profit of JPY 3,300 million, profit attributable to owners of parent of JPY 2,200 million and basic earnings per share of JPY 177.05. Announcement • Dec 04
IPS, Inc. to Report Q3, 2023 Results on Feb 10, 2023 IPS, Inc. announced that they will report Q3, 2023 results on Feb 10, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥50.96 (vs JP¥24.22 in 2Q 2022) Second quarter 2023 results: EPS: JP¥50.96 (up from JP¥24.22 in 2Q 2022). Revenue: JP¥2.96b (up 40% from 2Q 2022). Net income: JP¥633.0m (up 111% from 2Q 2022). Profit margin: 21% (up from 14% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 6 new directors. 3 experienced directors. 1 highly experienced director. 2 independent directors (5 non-independent directors). Senior Managing Director, GM of Business Promotion Division & Director Masako Uemori is the most experienced director on the board, commencing their role in 2007. Independent Outside Director Kazutaka Muraguchi was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 13
Second quarter 2023 earnings released: EPS: JP¥50.96 (vs JP¥24.22 in 2Q 2022) Second quarter 2023 results: EPS: JP¥50.96 (up from JP¥24.22 in 2Q 2022). Revenue: JP¥2.96b (up 40% from 2Q 2022). Net income: JP¥633.0m (up 111% from 2Q 2022). Profit margin: 21% (up from 14% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. Announcement • Aug 28
IPS, Inc. to Report Q2, 2023 Results on Nov 11, 2022 IPS, Inc. announced that they will report Q2, 2023 results on Nov 11, 2022 Reported Earnings • Aug 15
First quarter 2023 earnings released: EPS: JP¥82.76 (vs JP¥17.61 in 1Q 2022) First quarter 2023 results: EPS: JP¥82.76 (up from JP¥17.61 in 1Q 2022). Revenue: JP¥2.82b (up 44% from 1Q 2022). Net income: JP¥1.03b (up 371% from 1Q 2022). Profit margin: 36% (up from 11% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 33% per year, which means it is significantly lagging earnings growth. Announcement • Jun 29
IPS, Inc. to Report Q1, 2023 Results on Aug 12, 2022 IPS, Inc. announced that they will report Q1, 2023 results on Aug 12, 2022 Valuation Update With 7 Day Price Move • May 31
Investor sentiment improved over the past week After last week's 23% share price gain to JP¥2,428, the stock trades at a trailing P/E ratio of 16x. Average trailing P/E is 15x in the Telecom industry in Japan. Total returns to shareholders of 155% over the past three years. Reported Earnings • May 16
Full year 2022 earnings released: EPS: JP¥152 (vs JP¥120 in FY 2021) Full year 2022 results: EPS: JP¥152 (up from JP¥120 in FY 2021). Revenue: JP¥10.7b (up 13% from FY 2021). Net income: JP¥1.89b (up 27% from FY 2021). Profit margin: 18% (up from 16% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Announcement • May 14
IPS, Inc., Annual General Meeting, Jun 28, 2022 IPS, Inc., Annual General Meeting, Jun 28, 2022. Board Change • Apr 27
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 7 new directors. 2 experienced directors. 1 highly experienced director. 2 independent directors (5 non-independent directors). Senior Managing Director, GM of Business Promotion Division & Director Masako Uemori is the most experienced director on the board, commencing their role in 2007. Independent Outside Director Kazutaka Muraguchi was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors.