Announcement • Jun 04
Osaka Gas Co., Ltd. to Report Q1, 2027 Results on Jul 30, 2026 Osaka Gas Co., Ltd. announced that they will report Q1, 2027 results on Jul 30, 2026 Buy Or Sell Opportunity • May 28
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 18% to JP¥5,367. The fair value is estimated to be JP¥6,816, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 4.2% over the last 3 years. Earnings per share has grown by 17%. For the next 3 years, revenue is forecast to grow by 0.5% per annum. Earnings are also forecast to grow by 0.7% per annum over the same time period. Reported Earnings • May 09
Full year 2026 earnings: EPS and revenues miss analyst expectations Full year 2026 results: EPS: JP¥391 (up from JP¥333 in FY 2025). Revenue: JP¥2.03t (down 1.9% from FY 2025). Net income: JP¥152.8b (up 14% from FY 2025). Profit margin: 7.5% (up from 6.5% in FY 2025). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 4.4%. Revenue is forecast to stay flat during the next 3 years, in line with the revenue forecast for the Gas Utilities industry in Japan. 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 37% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 09
Osaka Gas Co., Ltd. to Report Fiscal Year 2026 Results on May 08, 2026 Osaka Gas Co., Ltd. announced that they will report fiscal year 2026 results on May 08, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 02 June 2026. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.8%). Price Target Changed • Feb 16
Price target increased by 8.5% to JP¥6,160 Up from JP¥5,677, the current price target is an average from 6 analysts. New target price is 5.6% below last closing price of JP¥6,522. Stock is up 104% over the past year. The company is forecast to post earnings per share of JP¥402 for next year compared to JP¥333 last year. Announcement • Feb 03
Osaka Gas Co., Ltd. Provides Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2026 Osaka Gas Co., Ltd. provided consolidated earnings guidance for the fiscal year ending March 31, 2026. For the year, the company expects net sales of JPY 2,050,000 million; operating profit of JPY 160,000 million; profit attributable to owners of parent of JPY 142,000 million; earnings per share of JPY 363.17. Reported Earnings • Feb 03
Third quarter 2026 earnings: EPS and revenues miss analyst expectations Third quarter 2026 results: EPS: JP¥117 (up from JP¥99.66 in 3Q 2025). Revenue: JP¥479.7b (down 2.9% from 3Q 2025). Net income: JP¥45.5b (up 14% from 3Q 2025). Profit margin: 9.5% (up from 8.1% in 3Q 2025). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 5.4%. Earnings per share (EPS) also missed analyst estimates by 44%. Revenue is forecast to stay flat during the next 3 years compared to a 3.1% growth forecast for the Gas Utilities industry in Asia. 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 42% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Jan 28
Price target increased by 8.9% to JP¥5,677 Up from JP¥5,212, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of JP¥5,736. Stock is up 87% over the past year. The company is forecast to post earnings per share of JP¥397 for next year compared to JP¥333 last year. Announcement • Dec 06
Osaka Gas Co., Ltd. to Report Q3, 2026 Results on Feb 02, 2026 Osaka Gas Co., Ltd. announced that they will report Q3, 2026 results on Feb 02, 2026 Declared Dividend • Nov 29
First half dividend of JP¥60.00 announced Shareholders will receive a dividend of JP¥60.00. Ex-date: 30th March 2026 Payment date: 2nd June 2026 Dividend yield will be 2.2%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (24% earnings payout ratio) and cash flows (34% cash payout ratio). The dividend has increased by an average of 10% 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 decline by 2.8% over the next 3 years. However, it would need to fall by 73% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Oct 31
Second quarter 2026 earnings: EPS and revenues exceed analyst expectations Second quarter 2026 results: EPS: JP¥118 (up from JP¥49.43 in 2Q 2025). Revenue: JP¥488.2b (up 1.9% from 2Q 2025). Net income: JP¥46.3b (up 132% from 2Q 2025). Profit margin: 9.5% (up from 4.2% in 2Q 2025). The increase in margin was primarily driven by lower expenses. Revenue exceeded analyst estimates by 11%. Earnings per share (EPS) also surpassed analyst estimates by 116%. Revenue is forecast to stay flat during the next 3 years compared to a 2.1% growth forecast for the Gas Utilities industry in Asia. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Oct 31
Osaka Gas Co., Ltd. Announces Interim Dividend for the Fiscal Year Ending March 31, 2026, Payable on November 28, 2025 and Revises Dividend Guidance for the Fiscal Year Ending March 31, 2026 Osaka Gas Co., Ltd. announced interim dividend for the fiscal year ending March 31, 2026, payable on November 28, 2025 and revised dividend guidance for the fiscal year ending March 31, 2026. The company announced interim dividend of JPY 60.0 per share compared to JPY 47.5 per share paid a year ago period. Dividend source: Retained earnings. Total dividend payment: JPY 23,421 million. Record Date: September 30, 2025.
For the year, the company now expects dividend of JPY 60.0 per share compared to JPY 52.5 per share a year ago. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥52.50 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 01 December 2025. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.2%). Price Target Changed • Sep 17
Price target increased by 8.6% to JP¥4,860 Up from JP¥4,475, the current price target is an average from 5 analysts. New target price is 14% above last closing price of JP¥4,276. Stock is up 29% over the past year. The company is forecast to post earnings per share of JP¥355 for next year compared to JP¥333 last year. Announcement • Sep 02
Osaka Gas Co., Ltd. to Report Q2, 2026 Results on Oct 30, 2025 Osaka Gas Co., Ltd. announced that they will report Q2, 2026 results on Oct 30, 2025 Reported Earnings • Aug 01
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: EPS: JP¥123 (up from JP¥75.50 in 1Q 2025). Revenue: JP¥471.0b (flat on 1Q 2025). Net income: JP¥48.5b (up 58% from 1Q 2025). Profit margin: 10% (up from 6.5% in 1Q 2025). Revenue exceeded analyst estimates by 9.6%. Earnings per share (EPS) also surpassed analyst estimates by 32%. Revenue is forecast to stay flat during the next 3 years compared to a 1.6% growth forecast for the Gas Utilities industry in Asia. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 19% per year. Declared Dividend • Jul 09
Final dividend of JP¥52.50 announced Shareholders will receive a dividend of JP¥52.50. Ex-date: 29th September 2025 Payment date: 1st December 2025 Dividend yield will be 2.7%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by both earnings (29% earnings payout ratio) and cash flows (68% cash payout ratio). The dividend has increased by an average of 8.8% 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 10% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 27
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: JP¥333 (up from JP¥321 in FY 2024). Revenue: JP¥2.07t (flat on FY 2024). Net income: JP¥134.4b (up 1.3% from FY 2024). Profit margin: 6.5% (up from 6.4% in FY 2024). Revenue is forecast to stay flat during the next 3 years, in line with the revenue forecast for the Gas Utilities industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 14% per year. Announcement • Jun 04
Osaka Gas Co., Ltd. to Report Q1, 2026 Results on Jul 31, 2025 Osaka Gas Co., Ltd. announced that they will report Q1, 2026 results on Jul 31, 2025 Reported Earnings • May 09
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: JP¥333 (up from JP¥321 in FY 2024). Revenue: JP¥2.07t (flat on FY 2024). Net income: JP¥134.4b (up 1.3% from FY 2024). Profit margin: 6.5% (up from 6.4% in FY 2024). Revenue is forecast to stay flat during the next 3 years compared to a 1.1% growth forecast for the Gas Utilities industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 14% per year. Major Estimate Revision • Apr 22
Consensus EPS estimates increase by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥2.05t to JP¥2.07t. EPS estimate increased from JP¥295 to JP¥332 per share. Net income forecast to grow 30% next year vs 28% growth forecast for Gas Utilities industry in Japan. Consensus price target of JP¥4,186 unchanged from last update. Share price rose 7.1% to JP¥3,577 over the past week. Announcement • Apr 21
Osaka Gas Co., Ltd. Revises Consolidated Financial Results Forecasts for the Fiscal Year Ended March 31, 2025 Osaka Gas Co., Ltd. revised consolidated financial results forecasts for the fiscal year ended March 31, 2025. For the year, the company expects net sales of ¥2,069,000 million compared to previous guidance of ¥1,986,000 million, operating profit of ¥160,500 million compared to previous guidance of ¥123,500 million, profit attributable to owners of the parent of ¥134,000 million compared to previous guidance of ¥112,000 million, Earnings per share of ¥332.28 compared to previous guidance of ¥276.64. Announcement • Mar 28
Osaka Gas Co., Ltd. to Report Fiscal Year 2025 Results on May 08, 2025 Osaka Gas Co., Ltd. announced that they will report fiscal year 2025 results on May 08, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥47.50 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 41% but the company is paying out more than the cash it is generating. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.2%). Announcement • Feb 11
Japanese Investors May Acquire Majority Stake in Pratham The Japanese consortium of Osaka Gas Co., Ltd. (TSE:9532), Sumitomo Corporation (TSE:8053), Japan Bank for International Cooperation (JBIC) and Konoike Transport Co.,Ltd. (TSE:9025) is planning to double its stake in city gas distribution company AG&P Pratham ahead of its IPO planned next year, according to sources aware of the development. This will make the consortium a majority stakeholder in the I-Squared Capital-backed company, which was last year valued at $1.5 billion. Currently, infrastructure investor I-Squared Capital is the majority stakeholder with a 56% stake in AG&P Pratham. Osaka, Sumitomo, JBIC and Konoike Transport together hold 26%. The balance of 18% is with Singapore-based Atlantic Gulf & Pacific (AG&P) LNG, the sources added. “The Japanese consortium including Osaka Gas is very interested and willing to increase their stake in AG&P Pratham. I-Squared Capital will dilute their stake for the Japanese consortium to increase the stake,” said an official aware of the development, adding that AG&P is planning an IPO in the second half of 2026 and the stake dilution will take place before that. Last March, I-Squared Capital decided to merge the operations of its city gas distribution companies in India — AG&P Pratham and Think Gas Distribution. The combined entity is valued at around $1.5 billion. The merger is awaiting regulatory approvals. “The merged entity will operate for a year before filing for an IPO. The management is also planning to rename the company shortly,” said another source, adding that the company's new identity could be unveiled at the India Energy Week to be held in New Delhi next week. “After the regulatory approvals, AG&P Pratham will go for an IPO. I-Squared wants to dilute stake and the Japanese consortium plans to become a majority stake holder. If I-Squared Capital dilutes up to 20% stake and the Japanese consortium decides to pick it up, its shareholding could go up to 46%,” said the official aware of the development. In an emailed response, an Osaka Gas spokesperson said: “Neither our company nor the J-Consortium has made any decisions regarding additional investments or becoming a majority shareholder.” An AG&P Pratham spokesperson said: “At this time, we are unable to provide any comment regarding our future plans.” I-Squared Capital did not respond to an email seeking comment. Reported Earnings • Feb 04
Third quarter 2025 earnings: EPS misses analyst expectations Third quarter 2025 results: EPS: JP¥99.66 (up from JP¥89.51 in 3Q 2024). Revenue: JP¥494.0b (down 4.0% from 3Q 2024). Net income: JP¥40.1b (up 8.2% from 3Q 2024). Profit margin: 8.1% (up from 7.2% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.2%. Revenue is forecast to stay flat during the next 3 years, in line with the revenue forecast for the Gas Utilities 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 14% per year. Announcement • Dec 21
Osaka Gas Co., Ltd. to Report Q3, 2025 Results on Feb 03, 2025 Osaka Gas Co., Ltd. announced that they will report Q3, 2025 results on Feb 03, 2025 Declared Dividend • Nov 30
First half dividend of JP¥47.50 announced Shareholders will receive a dividend of JP¥47.50. Ex-date: 28th March 2025 Payment date: 30th June 2025 Dividend yield will be 2.9%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (42% earnings payout ratio) but not covered by cash flows (dividend approximately 33x free cash flows). The dividend has increased by an average of 7.8% 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 26% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Nov 02
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: 4.6% Last year net profit margin: 7.7% 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. Currently, the following risks have been identified for the company: Minor Risks High level of debt (44% net debt to equity). Profit margins are more than 30% lower than last year (4.6% net profit margin). Reported Earnings • Nov 02
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: JP¥49.43 (down from JP¥69.26 in 2Q 2024). Revenue: JP¥479.2b (flat on 2Q 2024). Net income: JP¥20.0b (down 31% from 2Q 2024). Profit margin: 4.2% (down from 6.0% in 2Q 2024). Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) missed analyst estimates by 43%. Revenue is forecast to stay flat during the next 3 years compared to a 1.6% growth forecast for the Gas Utilities industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 20% per year. Announcement • Nov 01
Osaka Gas Co., Ltd. (TSE:9532) announces an Equity Buyback for 15,000,000 shares, representing 3.71% for ¥20,000 million. Osaka Gas Co., Ltd. (TSE:9532) announces a share repurchase program. Under the program, the company will repurchase up to 15,000,000 shares, representing 3.71% of its share capital for ¥20,000 million. The purpose of the program is to return profits to shareholders and to improve capital efficiency. The repurchased shares will be cancelled. The program will be valid till March 31, 2025. As of October 11, 2024, the company had 404,105,300 issued shares and 896,613 treasury shares. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥47.50 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.5%). Announcement • Sep 19
Osaka Gas Co., Ltd. to Report Q2, 2025 Results on Oct 31, 2024 Osaka Gas Co., Ltd. announced that they will report Q2, 2025 results on Oct 31, 2024 Buy Or Sell Opportunity • Aug 06
Now 28% overvalued Over the last 90 days, the stock has fallen 1.9% to JP¥3,376. The fair value is estimated to be JP¥2,629, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 20%. For the next 3 years, revenue is forecast to grow by 0.8% per annum. Earnings are also forecast to grow by 4.2% per annum over the same time period. Board Change • Aug 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Outside Audit & Supervisory Board Member Eimei Kozai was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Jul 30
First quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2025 results: EPS: JP¥75.50 (down from JP¥146 in 1Q 2024). Revenue: JP¥470.9b (down 8.1% from 1Q 2024). Net income: JP¥30.8b (down 49% from 1Q 2024). Profit margin: 6.5% (down from 12% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 2.7%. Earnings per share (EPS) missed analyst estimates by 4.7%. Revenue is forecast to stay flat during the next 3 years compared to a 1.3% growth forecast for the Gas Utilities industry in Japan. 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 17% per year. Declared Dividend • Jul 11
Final dividend of JP¥47.50 announced Shareholders will receive a dividend of JP¥47.50. Ex-date: 27th September 2024 Payment date: 2nd December 2024 Dividend yield will be 2.9%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (26% earnings payout ratio) and cash flows (31% cash payout ratio). The dividend has increased by an average of 7.8% 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 5.8% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 28
Osaka Gas Co., Ltd. to Report Q1, 2025 Results on Jul 29, 2024 Osaka Gas Co., Ltd. announced that they will report Q1, 2025 results on Jul 29, 2024 Announcement • May 09
Osaka Gas Co., Ltd. Provides Dividend Guidance for the Year Ending March 31, 2025 Osaka Gas Co., Ltd. provided dividend guidance for the year ending March 31, 2025. For the year-end, the company expects to pay dividend of JPY 47.50 per share against JPY 50.00 per share a year ago. Reported Earnings • May 09
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: JP¥321 (up from JP¥137 in FY 2023). Revenue: JP¥2.08t (down 8.4% from FY 2023). Net income: JP¥132.7b (up 132% from FY 2023). Profit margin: 6.4% (up from 2.5% in FY 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.9%. Earnings per share (EPS) exceeded analyst estimates by 3.8%. Revenue is forecast to stay flat during the next 3 years compared to a 1.0% growth forecast for the Gas Utilities industry in Japan. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 18% per year. Announcement • Mar 30
Osaka Gas Co., Ltd. to Report Fiscal Year 2024 Results on May 08, 2024 Osaka Gas Co., Ltd. announced that they will report fiscal year 2024 results on May 08, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.2%). In line with average of industry peers (2.0%). Price Target Changed • Mar 15
Price target increased by 11% to JP¥3,628 Up from JP¥3,268, the current price target is an average from 5 analysts. New target price is 9.5% above last closing price of JP¥3,312. Stock is up 49% over the past year. The company is forecast to post earnings per share of JP¥296 for next year compared to JP¥137 last year. Announcement • Mar 07
Osaka Gas Co., Ltd., Annual General Meeting, Jun 27, 2024 Osaka Gas Co., Ltd., Annual General Meeting, Jun 27, 2024. Agenda: To consider amendments to the Articles of Incorporation. Price Target Changed • Mar 01
Price target increased by 13% to JP¥3,268 Up from JP¥2,900, the current price target is an average from 5 analysts. New target price is 6.7% above last closing price of JP¥3,062. Stock is up 39% over the past year. The company is forecast to post earnings per share of JP¥293 for next year compared to JP¥137 last year. Reported Earnings • Jan 31
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: JP¥89.51 (up from JP¥68.20 in 3Q 2023). Revenue: JP¥514.5b (down 16% from 3Q 2023). Net income: JP¥37.1b (up 31% from 3Q 2023). Profit margin: 7.2% (up from 4.6% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 11%. Earnings per share (EPS) also surpassed analyst estimates by 180%. Revenue is expected to fall by 1.2% p.a. on average during the next 3 years compared to a 1.9% decline forecast for the Gas Utilities industry in Japan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • Dec 14
ITOCHU Corporation (TSE:8001) and Osaka Gas Co., Ltd. (TSE:9532) agreed to acquire 13.56% stake in Everfuel A/S (OB:EFUEL) from Nel ASA (OB:NEL) for NOK 120 million. ITOCHU Corporation (TSE:8001) and Osaka Gas Co., Ltd. (TSE:9532) agreed to acquire 13.56% stake in Everfuel A/S (OB:EFUEL) from Nel ASA (OB:NEL) for NOK 120 million on December 12, 2023. As part of acquisition, Osaka and ITOHCU will acquire 11,698,918 shares for NOK 9.97 per share. The transaction is subject to regulatory approvals. Carnegie AS acted as financial advisor to Nel ASA. Announcement • Dec 13
Osaka Gas Co., Ltd. to Report Q3, 2024 Results on Jan 30, 2024 Osaka Gas Co., Ltd. announced that they will report Q3, 2024 results on Jan 30, 2024 Valuation Update With 7 Day Price Move • Nov 03
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,866, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Gas Utilities industry in Japan. Total returns to shareholders of 53% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,393 per share. Reported Earnings • Oct 29
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: JP¥69.26 (up from JP¥98.50 loss in 2Q 2023). Revenue: JP¥483.1b (down 6.1% from 2Q 2023). Net income: JP¥28.8b (up JP¥69.7b from 2Q 2023). Profit margin: 6.0% (up from net loss in 2Q 2023). The move to profitability was driven by lower expenses. Revenue exceeded analyst estimates by 6.2%. Earnings per share (EPS) also surpassed analyst estimates by 9.9%. Revenue is expected to fall by 2.9% p.a. on average during the next 3 years compared to a 2.7% decline forecast for the Gas Utilities industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Sep 21
Osaka Gas Co., Ltd. to Report Q2, 2024 Results on Oct 27, 2023 Osaka Gas Co., Ltd. announced that they will report Q2, 2024 results on Oct 27, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥32.50 per share at 2.5% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 30 November 2023. Payout ratio is a comfortable 23% but the company is not cash flow positive. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.2%). Announcement • Aug 25
CPC Reportedly Set for Dorado Stake CPC Corporation, Taiwan is being tipped as the most likely buyer of an additional stake in the Dorado oil and gas project off the coast of Western Australia. Owner Santos Limited (ASX:STO) is understood to have had four or five parties in a data room, in a process run by investment bank Goldman Sachs. Among them are believed to be Kufpec (Kuwait Foreign Petroleum Exploration Company K.S.C.) and at least one Japanese suitor, with Mitsui & Co., Ltd. (TSE:8031) and Mitsubishi Corporation (TSE:8058) likely candidates. Other likely parties are Tokyo Gas Co.,Ltd. (TSE:9531), Osaka Gas Co., Ltd. (TSE:9532) and Jadestone Energy plc (AIM:JSE). But the latest chatter in the market is that Santos is pinning its hopes on CPC investing further. CPC recently finalised a deal with Carnarvon, the other owner of the project, to buy a 10% interest in Dorado and its Pavo project for an all-up payment of $146 million. Santos has an 80% interest in Dorado and the thinking in the market is that it remains keen to reduce that exposure to about 60%. Azure Capital-advised Carnarvon Energy was the only other holder before CPC bought in. Dorado, once owned by Woodside Petroleum and later Quadrant Energy before it was purchased by Santos, is an integrated oil and gas project that will be developed in two phases. It is located in the Bedout sub-basin, about 140km off the coast of WA's Port Hedland. New Risk • Aug 02
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 3.3% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (3.9% operating cash flow to total debt). Earnings are forecast to decline by an average of 3.3% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Aug 01
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: JP¥146 (up from JP¥26.95 in 1Q 2023). Revenue: JP¥512.6b (up 9.7% from 1Q 2023). Net income: JP¥60.6b (up 441% from 1Q 2023). Profit margin: 12% (up from 2.4% in 1Q 2023). Revenue exceeded analyst estimates by 21%. Earnings per share (EPS) also surpassed analyst estimates by 50%. Revenue is expected to fall by 3.9% p.a. on average during the next 3 years compared to a 2.6% decline forecast for the Gas Utilities industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% 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 14
Osaka Gas Co., Ltd. to Report Q1, 2024 Results on Jul 31, 2023 Osaka Gas Co., Ltd. announced that they will report Q1, 2024 results on Jul 31, 2023 Major Estimate Revision • May 15
Consensus EPS estimates increase by 11%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from JP¥2.01t to JP¥1.98t. EPS estimate rose from JP¥255 to JP¥284. Net income forecast to grow 107% next year vs 9.7% decline forecast for Gas Utilities industry in Japan. Consensus price target of JP¥2,606 unchanged from last update. Share price rose 2.1% to JP¥2,296 over the past week. Reported Earnings • May 09
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: JP¥137 (down from JP¥308 in FY 2022). Revenue: JP¥2.28t (up 43% from FY 2022). Net income: JP¥57.1b (down 56% from FY 2022). Profit margin: 2.5% (down from 8.1% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) also surpassed analyst estimates by 35%. Revenue is expected to fall by 4.4% p.a. on average during the next 3 years compared to a 2.6% decline forecast for the Gas Utilities industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • May 09
Osaka Gas Co., Ltd. Provides Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2024 Osaka Gas Co., Ltd. provided consolidated earnings guidance for the fiscal year ending March 31, 2024. For the year, the company expects net sales of JPY 2,017,000 million, operating profit of JPY 139,500 million, profit attributable to owners of parent of JPY 116,000 million and earnings per share of JPY 103.1.