Buy Or Sell Opportunity • Jun 09
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.3% to JP¥8,517. The fair value is estimated to be JP¥10,651, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.9% over the last 3 years. Earnings per share has grown by 17%. For the next 3 years, revenue is forecast to grow by 2.5% per annum. Earnings are also forecast to grow by 5.1% per annum over the same time period. Announcement • May 30
Sankyu Inc. to Report Q1, 2027 Results on Jul 31, 2026 Sankyu Inc. announced that they will report Q1, 2027 results on Jul 31, 2026 Reported Earnings • May 16
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥614 (up from JP¥571 in FY 2025). Revenue: JP¥631.6b (up 4.1% from FY 2025). Net income: JP¥31.5b (up 2.5% from FY 2025). Profit margin: 5.0% (in line with FY 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.6%. Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Logistics industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 22% per year. Live News • May 15
Sankyu Unveils Stock Split and Expanded Share Authorization With Higher Dividend Proposal Sankyu plans a 5-for-1 stock split of its common shares effective October 1, 2026, while increasing authorized shares from 200 million to 1 billion to allow more flexibility for future equity measures.
For the year ended March 31, 2026, Sankyu reported higher sales and net profit and plans to raise its year-end dividend to ¥128 per share, bringing total annual dividends to ¥246 per share, subject to shareholder approval.
The company has revised its Vision 2030 roadmap and Medium-Term Management Plan 2026, resetting financial and non-financial targets and aiming to expand its consolidated investment scope through new partnerships.
These moves indicate a company that is actively refining its long-term plan, adjusting its capital structure and returning more cash to shareholders, while maintaining flexibility for future investments.
Investors may want to pay close attention to how the share split, dividend policy and expanded authorized share count interact over time, particularly in relation to potential dilution risk and the execution of the updated Vision 2030 targets. Announcement • May 09
Sankyu Inc. to Report Fiscal Year 2026 Results on May 14, 2026 Sankyu Inc. announced that they will report fiscal year 2026 results on May 14, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥118 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 29 June 2026. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.8%). Buy Or Sell Opportunity • Feb 20
Now 20% undervalued Over the last 90 days, the stock has risen 14% to JP¥9,790. The fair value is estimated to be JP¥12,260, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.2% over the last 3 years. Earnings per share has grown by 15%. For the next 3 years, revenue is forecast to grow by 3.3% per annum. Earnings are also forecast to grow by 4.0% per annum over the same time period. Reported Earnings • Jan 31
Third quarter 2026 earnings released: EPS: JP¥198 (vs JP¥170 in 3Q 2025) Third quarter 2026 results: EPS: JP¥198 (up from JP¥170 in 3Q 2025). Revenue: JP¥156.8b (flat on 3Q 2025). Net income: JP¥10.1b (up 12% from 3Q 2025). Profit margin: 6.4% (up from 5.8% in 3Q 2025). Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Logistics industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jan 30
Sankyu Inc. Provides Year End Dividend Guidance for the Fiscal Year Ending March 31, 2026 Sankyu Inc. provided year end dividend guidance for the Fiscal year ending March 31, 2026. For the period, the company expects year end dividend of JPY 118.00 per share against JPY 130.00 per share paid last year. Declared Dividend • Dec 09
First half dividend of JP¥118 announced Shareholders will receive a dividend of JP¥118. Ex-date: 30th March 2026 Payment date: 29th June 2026 Dividend yield will be 2.8%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (22% earnings payout ratio) and cash flows (45% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 29% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Dec 02
Sankyu Inc. to Report Q3, 2026 Results on Jan 30, 2026 Sankyu Inc. announced that they will report Q3, 2026 results on Jan 30, 2026 Reported Earnings • Nov 01
Second quarter 2026 earnings released: EPS: JP¥140 (vs JP¥140 in 2Q 2025) Second quarter 2026 results: EPS: JP¥140 (down from JP¥140 in 2Q 2025). Revenue: JP¥161.6b (up 3.5% from 2Q 2025). Net income: JP¥7.21b (down 4.8% from 2Q 2025). Profit margin: 4.5% (down from 4.9% in 2Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Logistics industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 18% per year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥116 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 05 December 2025. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.6%). Announcement • Sep 03
Sankyu Inc. to Report Q2, 2026 Results on Oct 31, 2025 Sankyu Inc. announced that they will report Q2, 2026 results on Oct 31, 2025 Price Target Changed • Aug 21
Price target increased by 9.6% to JP¥9,167 Up from JP¥8,367, the current price target is an average from 6 analysts. New target price is 9.7% above last closing price of JP¥8,359. Stock is up 84% over the past year. The company is forecast to post earnings per share of JP¥589 for next year compared to JP¥571 last year. Reported Earnings • Aug 02
First quarter 2026 earnings released: EPS: JP¥120 (vs JP¥102 in 1Q 2025) First quarter 2026 results: EPS: JP¥120 (up from JP¥102 in 1Q 2025). Revenue: JP¥154.0b (up 7.6% from 1Q 2025). Net income: JP¥6.30b (up 11% from 1Q 2025). Profit margin: 4.1% (up from 4.0% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Logistics industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Jul 09
Final dividend increased to JP¥116 Dividend of JP¥116 is 14% higher than last year. Ex-date: 29th September 2025 Payment date: 5th December 2025 Dividend yield will be 3.0%, which is higher than the industry average of 2.7%. Sustainability & Growth Dividend is covered by both earnings (37% earnings payout ratio) and cash flows (63% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 31% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 29
Sankyu Inc. to Report Q1, 2026 Results on Jul 31, 2025 Sankyu Inc. announced that they will report Q1, 2026 results on Jul 31, 2025 Price Target Changed • Jun 12
Price target increased by 7.0% to JP¥7,850 Up from JP¥7,333, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of JP¥7,491. Stock is up 36% over the past year. The company is forecast to post earnings per share of JP¥589 for next year compared to JP¥571 last year. Announcement • May 13
Sankyu Inc. (TSE:9065) announces an Equity Buyback for 5,000,000 shares, representing 9.52% for ¥20,000 million. Sankyu Inc. (TSE:9065) announces a share repurchase program. Under the program, the company will repurchase up to 5,000,000 shares, representing 9.52% of its total shares outstanding (excluding treasury shares), for a total of ¥20,000 million. The purpose of repurchase program is to enhance corporate value through the optimization of capital structure and strengthening of shareholder returns. The repurchase program is valid till February 27, 2026. As of April 30, 2025, the company had 52,541,459 shares outstanding (excluding treasury shares) and 2,928,798 shares in treasury. Reported Earnings • May 13
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥571 (up from JP¥429 in FY 2024). Revenue: JP¥606.8b (up 7.7% from FY 2024). Net income: JP¥30.7b (up 26% from FY 2024). Profit margin: 5.1% (up from 4.3% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.8%. Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Logistics industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Mar 25
Price target increased by 7.1% to JP¥6,917 Up from JP¥6,460, the current price target is an average from 6 analysts. New target price is 8.5% above last closing price of JP¥6,374. Stock is up 18% over the past year. The company is forecast to post earnings per share of JP¥535 for next year compared to JP¥429 last year. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥102 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 27 June 2025. Payout ratio is a comfortable 37% but the company is paying out more than the cash it is generating. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.9%). Announcement • Mar 01
Sankyu Inc. to Report Fiscal Year 2025 Results on May 12, 2025 Sankyu Inc. announced that they will report fiscal year 2025 results on May 12, 2025 Reported Earnings • Feb 01
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: EPS: JP¥170 (up from JP¥126 in 3Q 2024). Revenue: JP¥156.6b (up 8.2% from 3Q 2024). Net income: JP¥9.05b (up 28% from 3Q 2024). Profit margin: 5.8% (up from 4.9% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) also surpassed analyst estimates by 34%. Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Logistics industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 10% per year. Announcement • Dec 04
Sankyu Inc. to Report Q3, 2025 Results on Jan 31, 2025 Sankyu Inc. announced that they will report Q3, 2025 results on Jan 31, 2025 Reported Earnings • Nov 02
Second quarter 2025 earnings released: EPS: JP¥140 (vs JP¥99.03 in 2Q 2024) Second quarter 2025 results: EPS: JP¥140 (up from JP¥99.03 in 2Q 2024). Revenue: JP¥156.1b (up 12% from 2Q 2024). Net income: JP¥7.58b (up 34% from 2Q 2024). Profit margin: 4.9% (up from 4.1% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 4.1% growth forecast for the Logistics industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 2% per year. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥90.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 05 December 2024. Payout ratio is a comfortable 40% but the company is paying out more than the cash it is generating. Trailing yield: 3.7%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (3.2%). Announcement • Aug 28
Sankyu Inc. to Report Q2, 2025 Results on Oct 31, 2024 Sankyu Inc. announced that they will report Q2, 2025 results on Oct 31, 2024 Buy Or Sell Opportunity • Aug 15
Now 20% overvalued Over the last 90 days, the stock has fallen 20% to JP¥4,349. The fair value is estimated to be JP¥3,610, however this is not to be taken as a sell 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 2.7%. Revenue is forecast to grow by 4.5% in 2 years. Earnings are forecast to grow by 12% in the next 2 years. Valuation Update With 7 Day Price Move • Aug 07
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥4,218, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 11x in the Logistics industry in Japan. Total loss to shareholders of 6.6% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,606 per share. Reported Earnings • Aug 02
First quarter 2025 earnings released: EPS: JP¥102 (vs JP¥99.34 in 1Q 2024) First quarter 2025 results: EPS: JP¥102. Revenue: JP¥143.0b (up 4.0% from 1Q 2024). Net income: JP¥5.65b (down 2.3% from 1Q 2024). Profit margin: 4.0% (down from 4.2% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Logistics industry in Japan. Reported Earnings • May 16
Full year 2024 earnings: Revenues and EPS in line with analyst expectations Full year 2024 results: EPS: JP¥429. Revenue: JP¥563.5b (down 2.7% from FY 2023). Net income: JP¥24.4b (down 2.3% from FY 2023). Profit margin: 4.3% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 1.5% p.a. on average during the next 2 years, compared to a 3.9% growth forecast for the Logistics industry in Japan. Announcement • May 15
Sankyu Inc. (TSE:9065) announces an Equity Buyback for 3,750,000 shares, representing 6.76% for ¥15,000 million. Sankyu Inc. (TSE:9065) announces a share repurchase program. Under the program, the company will repurchase up to 3,750,000 shares, representing 6.76% of its total shares outstanding (excluding treasury shares), for a total of ¥15,000 million. The purpose of repurchase program is increasing return of profits to shareholders and improving corporate value. The repurchase program is valid till February 28, 2025. As of April 30, 2024, the company had 55,484,475 shares outstanding (excluding treasury shares) and 3,088,294 shares in treasury. Announcement • Mar 28
Sankyu Inc. to Report Fiscal Year 2024 Results on May 13, 2024 Sankyu Inc. announced that they will report fiscal year 2024 results on May 13, 2024 Announcement • Mar 27
Sankyu Inc., Annual General Meeting, Jun 26, 2024 Sankyu Inc., Annual General Meeting, Jun 26, 2024. Agenda: To approve the amendment to the Articles of Incorporation; and to transact such other business matters. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥84.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 58% but the company is paying out more than the cash it is generating. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.2%). In line with average of industry peers (2.9%). Reported Earnings • Feb 02
Third quarter 2024 earnings released: EPS: JP¥126 (vs JP¥107 in 3Q 2023) Third quarter 2024 results: EPS: JP¥126 (up from JP¥107 in 3Q 2023). Revenue: JP¥144.7b (down 1.7% from 3Q 2023). Net income: JP¥7.07b (up 13% from 3Q 2023). Profit margin: 4.9% (up from 4.2% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 2.3% growth forecast for the Logistics industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 9% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Nov 27
Sankyu Inc. to Report Q3, 2024 Results on Jan 30, 2024 Sankyu Inc. announced that they will report Q3, 2024 results on Jan 30, 2024 Reported Earnings • Nov 02
Second quarter 2024 earnings released: EPS: JP¥99.03 (vs JP¥134 in 2Q 2023) Second quarter 2024 results: EPS: JP¥99.03 (down from JP¥134 in 2Q 2023). Revenue: JP¥139.7b (down 5.4% from 2Q 2023). Net income: JP¥5.68b (down 27% from 2Q 2023). Profit margin: 4.1% (down from 5.3% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Logistics industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 7% per year. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥84.00 per share at 3.2% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 05 December 2023. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.6%). Announcement • Aug 30
Sankyu Inc. to Report Q2, 2024 Results on Oct 31, 2023 Sankyu Inc. announced that they will report Q2, 2024 results on Oct 31, 2023 Reported Earnings • Aug 01
First quarter 2024 earnings released: EPS: JP¥99.34 (vs JP¥104 in 1Q 2023) First quarter 2024 results: EPS: JP¥99.34 (down from JP¥104 in 1Q 2023). Revenue: JP¥137.5b (down 3.0% from 1Q 2023). Net income: JP¥5.78b (down 4.6% from 1Q 2023). Profit margin: 4.2% (in line with 1Q 2023). Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 2.0% growth forecast for the Logistics industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 7% per year. Announcement • May 13
Sankyu Inc., Annual General Meeting, Jun 23, 2023 Sankyu Inc., Annual General Meeting, Jun 23, 2023. Reported Earnings • May 12
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: JP¥427 (up from JP¥382 in FY 2022). Revenue: JP¥579.2b (up 4.6% from FY 2022). Net income: JP¥25.0b (up 10% from FY 2022). Profit margin: 4.3% (up from 4.1% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 5.4%. Revenue is forecast to grow 2.4% p.a. on average during the next 2 years, compared to a 1.2% growth forecast for the Logistics industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 8% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 11
Sankyu Inc. (TSE:9065) announces an Equity Buyback for 3,750,000 shares, representing 6.41% for ¥15,000 million. Sankyu Inc. (TSE:9065) announces a share repurchase program. Under the program, the company will repurchase up to 3,750,000 shares, representing 6.41% of its total shares outstanding (excluding treasury shares), for a total of ¥15,000 million. The purpose of repurchase program is to expand the profit returns to shareholders and improve corporate value. The repurchase program is valid till May 10, 2024. As of March 31, 2023, the company had 58,495,025 shares outstanding (excluding treasury shares) and 3,262,953 shares in treasury. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥70.00 per share at 2.9% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.8%). Reported Earnings • Jan 31
Third quarter 2023 earnings released: EPS: JP¥107 (vs JP¥85.26 in 3Q 2022) Third quarter 2023 results: EPS: JP¥107 (up from JP¥85.26 in 3Q 2022). Revenue: JP¥147.3b (up 6.9% from 3Q 2022). Net income: JP¥6.24b (up 25% from 3Q 2022). Profit margin: 4.2% (up from 3.6% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 2% per year. Announcement • Nov 27
Sankyu Inc. to Report Q3, 2023 Results on Jan 30, 2023 Sankyu Inc. announced that they will report Q3, 2023 results on Jan 30, 2023 Reported Earnings • Nov 17
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: JP¥147.6b (up 7.9% from 2Q 2022). Net income: JP¥7.82b (up 21% from 2Q 2022). Profit margin: 5.3% (up from 4.7% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Transportation industry in Japan. Board Change • Nov 16
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. 3 experienced directors. 8 highly experienced directors. 1 independent director (8 non-independent directors). Independent External Director Makoto Ogawa was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 02
Second quarter 2023 earnings released: EPS: JP¥134 (vs JP¥109 in 2Q 2022) Second quarter 2023 results: EPS: JP¥134 (up from JP¥109 in 2Q 2022). Revenue: JP¥147.6b (up 7.9% from 2Q 2022). Net income: JP¥7.82b (up 21% from 2Q 2022). Profit margin: 5.3% (up from 4.7% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 6% per year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥55.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 06 December 2022. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.2%). Reported Earnings • Jul 31
First quarter 2023 earnings released: EPS: JP¥104 (vs JP¥91.86 in 1Q 2022) First quarter 2023 results: EPS: JP¥104 (up from JP¥91.86 in 1Q 2022). Revenue: JP¥141.7b (up 3.5% from 1Q 2022). Net income: JP¥6.06b (up 9.6% from 1Q 2022). Profit margin: 4.3% (up from 4.0% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 3.2%, compared to a 21% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 8% per year. Reported Earnings • May 11
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: JP¥382 (down from JP¥389 in FY 2021). Revenue: JP¥553.8b (up 3.7% from FY 2021). Net income: JP¥22.6b (down 3.8% from FY 2021). Profit margin: 4.1% (down from 4.4% 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 5.2%. Over the next year, revenue is forecast to grow 3.4%, compared to a 23% growth forecast for the industry in Japan. 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 13% per year, which means it is performing significantly worse than earnings. 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 External Director Makoto Ogawa was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥55.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 28 June 2022. Payout ratio is a comfortable 31% but the company is not cash flow positive. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.3%). Reported Earnings • Jan 30
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥85.25 (down from JP¥121 in 3Q 2021). Revenue: JP¥137.8b (up 5.1% from 3Q 2021). Net income: JP¥5.00b (down 32% from 3Q 2021). Profit margin: 3.6% (down from 5.6% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the next year, revenue is forecast to grow 5.0%, compared to a 18% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 7% per year. Reported Earnings • Oct 31
Second quarter 2022 earnings released: EPS JP¥109 (vs JP¥103 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¥136.8b (up 3.6% from 2Q 2021). Net income: JP¥6.49b (up 3.7% from 2Q 2021). Profit margin: 4.7% (in line with 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has fallen by 3% per year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥55.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 07 December 2021. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.2%). Reported Earnings • Aug 03
First quarter 2022 earnings released: EPS JP¥91.86 (vs JP¥78.76 in 1Q 2021) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were flat. First quarter 2022 results: Revenue: JP¥136.9b (flat on 1Q 2021). Net income: JP¥5.53b (up 16% from 1Q 2021). Profit margin: 4.0% (up from 3.5% in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Price Target Changed • May 27
Price target increased to JP¥5,787 Up from JP¥5,400, the current price target is an average from 6 analysts. New target price is 21% above last closing price of JP¥4,790. Stock is up 9.0% over the past year. Reported Earnings • May 12
Full year 2021 earnings released: EPS JP¥389 (vs JP¥423 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥533.9b (down 6.2% from FY 2020). Net income: JP¥23.5b (down 8.1% from FY 2020). Profit margin: 4.4% (down from 4.5% in FY 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥55.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 26 June 2021. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.1%). Is New 90 Day High Low • Mar 01
New 90-day high: JP¥4,550 The company is up 15% from its price of JP¥3,940 on 01 December 2020. The Japanese market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Transportation industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥5,672 per share. Reported Earnings • Feb 20
Third quarter 2021 earnings released: EPS JP¥121 (vs JP¥109 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: JP¥131.1b (down 7.8% from 3Q 2020). Net income: JP¥7.34b (up 11% from 3Q 2020). Profit margin: 5.6% (up from 4.7% in 3Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Feb 20
Revenue and earnings miss expectations Revenue missed analyst estimates by 6.0%. Earnings per share (EPS) also missed analyst estimates by 2.0%. Over the next year, revenue is forecast to grow 2.6%, compared to a 15% growth forecast for the Transportation industry in Japan. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥4,470, the stock is trading at a trailing P/E ratio of 11x, up from the previous P/E ratio of 9.5x. This compares to an average P/E of 13x in the Transportation industry in Japan. Total return to shareholders over the past three years is a loss of 7.3%. Is New 90 Day High Low • Feb 05
New 90-day high: JP¥4,310 The company is up 9.0% from its price of JP¥3,955 on 06 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Transportation industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥5,993 per share. Reported Earnings • Feb 02
Third quarter 2021 earnings released: EPS JP¥121 (vs JP¥109 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: JP¥131.1b (down 7.8% from 3Q 2020). Net income: JP¥7.34b (up 11% from 3Q 2020). Profit margin: 5.6% (up from 4.7% in 3Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings.