Major Estimate Revision • May 30
Consensus EPS estimates fall by 18%, revenue upgraded The consensus outlook for fiscal year 2027 has been updated. 2027 revenue forecast increased from JP¥269.5b to JP¥279.0b. EPS estimate fell from JP¥203 to JP¥167 per share. Net income forecast to grow 41% next year vs 11% growth forecast for Hospitality industry in Japan. Consensus price target of JP¥2,740 unchanged from last update. Share price fell 2.5% to JP¥1,942 over the past week. Direktnyheter • May 16
Heiwa to Launch Holding Company Structure in 2026 After Surpassing FY2026 Profit Forecasts Heiwa plans to shift to a pure holding company structure on October 1, 2026, under the new name HEIWA HOLDINGS INC., separating group oversight from day‑to‑day operations.
The pachinko and pachi slot machine operations will move into a new subsidiary, Olympia Co., Ltd., which will be led by current Representative Director Toshinobu Moromizato after his retirement from the board.
The company reported FY2026 results that came in above its initial sales and profit forecasts, supported by lower R&D spending in machines, gains on asset sales, reduced disaster recovery costs, and lower impairment losses in the golf business, while keeping dividends and the balance sheet steady.
This combination of a holding company transition and stronger‑than‑planned FY2026 earnings points to a management focus on clearer governance, capital allocation and steady shareholder returns.
Investors may want to watch how the new structure affects decision‑making speed in core pachinko operations and whether items such as asset sales and tax adjustments recur or fade in future profit figures. Reported Earnings • May 15
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥118 (down from JP¥132 in FY 2025). Revenue: JP¥258.1b (up 77% from FY 2025). Net income: JP¥11.7b (down 11% from FY 2025). Profit margin: 4.5% (down from 9.0% in FY 2025). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 44%. Revenue is forecast to grow 4.4% p.a. on average during the next 2 years, compared to a 8.4% growth forecast for the Hospitality industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% per year whereas the company’s share price has fallen by 10% per year. Tillkännagivande • May 13
Heiwa Corporation, Annual General Meeting, Jun 26, 2026 Heiwa Corporation, Annual General Meeting, Jun 26, 2026. Tillkännagivande • May 10
Heiwa Corporation to Report Fiscal Year 2026 Results on May 13, 2026 Heiwa Corporation announced that they will report fiscal year 2026 results on May 13, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 30 June 2026. Payout ratio and cash payout ratio are on the higher end at 83% and 88% respectively. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (0.9%). Tillkännagivande • Mar 23
Heiwa Corporation(TSE:6412) dropped from FTSE All-World Index (USD) Heiwa Corporation(TSE:6412) dropped from FTSE All-World Index (USD) Major Estimate Revision • Mar 10
Consensus EPS estimates fall by 59% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from JP¥270.4b to JP¥258.0b. EPS estimate also fell from JP¥197 per share to JP¥80.10 per share. Net income forecast to grow 89% next year vs 18% growth forecast for Hospitality industry in Japan. Consensus price target of JP¥2,860 unchanged from last update. Share price was steady at JP¥1,992 over the past week. Reported Earnings • Feb 11
Third quarter 2026 earnings released: EPS: JP¥73.50 (vs JP¥103 in 3Q 2025) Third quarter 2026 results: EPS: JP¥73.50 (down from JP¥103 in 3Q 2025). Revenue: JP¥75.1b (up 60% from 3Q 2025). Net income: JP¥7.25b (down 29% from 3Q 2025). Profit margin: 9.7% (down from 22% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.3% p.a. on average during the next 3 years, compared to a 9.3% growth forecast for the Hospitality industry in Japan. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Declared Dividend • Dec 11
First half dividend of JP¥40.00 announced Dividend of JP¥40.00 is the same as last year. Ex-date: 30th March 2026 Payment date: 30th June 2026 Dividend yield will be 4.1%, which is higher than the industry average of 0.6%. Sustainability & Growth Dividend is covered by earnings (63% earnings payout ratio) but not covered by cash flows (104% cash payout ratio). The dividend has not increased over the past 10 years but has been stable with no material reductions to payments, indicating a long track record of dividend stability. EPS is expected to grow by 56% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Tillkännagivande • Dec 03
Heiwa Corporation to Report Q3, 2026 Results on Feb 10, 2026 Heiwa Corporation announced that they will report Q3, 2026 results on Feb 10, 2026 Reported Earnings • Nov 16
Second quarter 2026 earnings released: EPS: JP¥16.50 (vs JP¥48.53 in 2Q 2025) Second quarter 2026 results: EPS: JP¥16.50 (down from JP¥48.53 in 2Q 2025). Revenue: JP¥61.2b (up 69% from 2Q 2025). Net income: JP¥1.63b (down 66% from 2Q 2025). Profit margin: 2.7% (down from 13% in 2Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 9.3% growth forecast for the Hospitality industry in Japan. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has fallen by 6% per year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 10 December 2025. Payout ratio is a comfortable 51% and the cash payout ratio is 82%. Trailing yield: 3.7%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (0.8%). Tillkännagivande • Sep 03
Heiwa Corporation to Report Q2, 2026 Results on Nov 13, 2025 Heiwa Corporation announced that they will report Q2, 2026 results on Nov 13, 2025 Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: JP¥82.94 (vs JP¥57.07 in 1Q 2025) First quarter 2026 results: EPS: JP¥82.94 (up from JP¥57.07 in 1Q 2025). Revenue: JP¥70.2b (up 97% from 1Q 2025). Net income: JP¥8.18b (up 45% from 1Q 2025). Profit margin: 12% (down from 16% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Hospitality 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 1% per year, which means it is significantly lagging earnings growth. Declared Dividend • Jul 09
Final dividend of JP¥40.00 announced Dividend of JP¥40.00 is the same as last year. Ex-date: 29th September 2025 Payment date: 10th December 2025 Dividend yield will be 3.9%, which is higher than the industry average of 0.6%. Sustainability & Growth Dividend is covered by earnings (31% earnings payout ratio) but not covered by cash flows (131% cash payout ratio). The dividend has not increased over the past 10 years but has been stable with no material reductions to payments, indicating a long track record of dividend stability. EPS is expected to grow by 61% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Tillkännagivande • Jul 02
Heiwa Corporation to Report Q1, 2026 Results on Aug 08, 2025 Heiwa Corporation announced that they will report Q1, 2026 results on Aug 08, 2025 New Risk • May 22
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 4.0% 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 Risk Debt is not well covered by operating cash flow (4.0% operating cash flow to total debt). Minor Risk Dividend is not well covered by cash flows (131% cash payout ratio). Tillkännagivande • May 14
Heiwa Corporation, Annual General Meeting, Jun 27, 2025 Heiwa Corporation, Annual General Meeting, Jun 27, 2025. Tillkännagivande • Mar 27
Heiwa Corporation to Report Fiscal Year 2025 Results on May 14, 2025 Heiwa Corporation announced that they will report fiscal year 2025 results on May 14, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (0.8%). Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥103 (vs JP¥42.31 in 3Q 2024) Third quarter 2025 results: EPS: JP¥103 (up from JP¥42.31 in 3Q 2024). Revenue: JP¥47.0b (up 30% from 3Q 2024). Net income: JP¥10.2b (up 144% from 3Q 2024). Profit margin: 22% (up from 12% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 30% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the Hospitality industry in Japan. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Declared Dividend • Dec 11
First half dividend of JP¥40.00 announced Dividend of JP¥40.00 is the same as last year. Ex-date: 28th March 2025 Payment date: 30th June 2025 Dividend yield will be 3.8%, which is higher than the industry average of 0.6%. Sustainability & Growth Dividend is covered by earnings (40% earnings payout ratio) but not covered by cash flows (139% cash payout ratio). The dividend has increased by an average of 2.9% 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. Earnings per share has grown by 9.8% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Tillkännagivande • Dec 05
Heiwa Corporation to Report Q3, 2025 Results on Feb 07, 2025 Heiwa Corporation announced that they will report Q3, 2025 results on Feb 07, 2025 Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: JP¥48.53 (vs JP¥25.28 in 2Q 2024) Second quarter 2025 results: EPS: JP¥48.53 (up from JP¥25.28 in 2Q 2024). Revenue: JP¥36.2b (up 14% from 2Q 2024). Net income: JP¥4.79b (up 92% from 2Q 2024). Profit margin: 13% (up from 7.8% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 09 December 2024. Payout ratio is a comfortable 46% but the company is not cash flow positive. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (0.8%). Tillkännagivande • Aug 30
Heiwa Corporation to Report Q2, 2025 Results on Nov 08, 2024 Heiwa Corporation announced that they will report Q2, 2025 results on Nov 08, 2024 Reported Earnings • Aug 09
First quarter 2025 earnings released: EPS: JP¥57.06 (vs JP¥50.12 in 1Q 2024) First quarter 2025 results: EPS: JP¥57.06 (up from JP¥50.12 in 1Q 2024). Revenue: JP¥35.6b (up 1.8% from 1Q 2024). Net income: JP¥5.63b (up 14% from 1Q 2024). Profit margin: 16% (up from 14% in 1Q 2024). Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Declared Dividend • Jul 11
Final dividend of JP¥40.00 announced Dividend of JP¥40.00 is the same as last year. Ex-date: 27th September 2024 Payment date: 9th December 2024 Dividend yield will be 3.8%, which is higher than the industry average of 0.6%. Sustainability & Growth Dividend is covered by earnings (67% earnings payout ratio) but not covered by cash flows (312% cash payout ratio). The dividend has increased by an average of 2.9% 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. Earnings per share has remained steady over the last 5 years. Unless this trend deteriorates, it should provide adequate earnings cover for the dividend. Tillkännagivande • Jun 10
Heiwa Corporation to Report Q1, 2025 Results on Aug 08, 2024 Heiwa Corporation announced that they will report Q1, 2025 results on Aug 08, 2024 Reported Earnings • May 12
Full year 2024 earnings released: EPS: JP¥168 (vs JP¥210 in FY 2023) Full year 2024 results: EPS: JP¥168 (down from JP¥210 in FY 2023). Revenue: JP¥136.4b (down 4.2% from FY 2023). Net income: JP¥16.6b (down 20% from FY 2023). Profit margin: 12% (down from 14% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Tillkännagivande • May 12
Heiwa Corporation, Annual General Meeting, Jun 27, 2024 Heiwa Corporation, Annual General Meeting, Jun 27, 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: 01 July 2024. Payout ratio is a comfortable 67% but the company is paying out more than the cash it is generating. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (0.6%). Tillkännagivande • Mar 02
Heiwa Corporation to Report Fiscal Year 2024 Results on May 10, 2024 Heiwa Corporation announced that they will report fiscal year 2024 results on May 10, 2024 Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥42.31 (vs JP¥98.43 in 3Q 2023) Third quarter 2024 results: EPS: JP¥42.31 (down from JP¥98.43 in 3Q 2023). Revenue: JP¥36.1b (down 20% from 3Q 2023). Net income: JP¥4.17b (down 57% from 3Q 2023). Profit margin: 12% (down from 21% in 3Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Tillkännagivande • Dec 03
Heiwa Corporation to Report Q3, 2024 Results on Feb 09, 2024 Heiwa Corporation announced that they will report Q3, 2024 results on Feb 09, 2024 Price Target Changed • Nov 29
Price target increased by 10% to JP¥3,720 Up from JP¥3,380, the current price target is provided by 1 analyst. New target price is 75% above last closing price of JP¥2,130. Stock is down 13% over the past year. The company is forecast to post earnings per share of JP¥210 for next year compared to JP¥210 last year. Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥25.28 (vs JP¥55.19 in 2Q 2023) Second quarter 2024 results: EPS: JP¥25.28 (down from JP¥55.19 in 2Q 2023). Revenue: JP¥31.8b (down 12% from 2Q 2023). Net income: JP¥2.49b (down 54% from 2Q 2023). Profit margin: 7.8% (down from 15% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Hospitality industry in Japan. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥40.00 per share at 3.6% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 11 December 2023. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 3.6%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (0.5%). Tillkännagivande • Aug 31
Heiwa Corporation to Report Q2, 2024 Results on Nov 09, 2023 Heiwa Corporation announced that they will report Q2, 2024 results on Nov 09, 2023 Major Estimate Revision • Aug 17
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥159.7b to JP¥144.7b. EPS estimate also fell from JP¥211 per share to JP¥184 per share. Net income forecast to shrink 7.6% next year vs 15% growth forecast for Hospitality industry in Japan . Consensus price target down from JP¥3,710 to JP¥3,380. Share price fell 11% to JP¥2,203 over the past week. Price Target Changed • Aug 15
Price target decreased by 11% to JP¥3,380 Down from JP¥3,800, the current price target is provided by 1 analyst. New target price is 50% above last closing price of JP¥2,255. Stock is up 9.0% over the past year. The company is forecast to post earnings per share of JP¥184 for next year compared to JP¥210 last year. Reported Earnings • Aug 10
First quarter 2024 earnings released: EPS: JP¥50.12 (vs JP¥54.29 in 1Q 2023) First quarter 2024 results: EPS: JP¥50.12 (down from JP¥54.29 in 1Q 2023). Revenue: JP¥34.9b (flat on 1Q 2023). Net income: JP¥4.94b (down 7.7% from 1Q 2023). Profit margin: 14% (down from 15% in 1Q 2023). Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 8.5% growth forecast for the Hospitality industry in Japan. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Tillkännagivande • Jun 18
Heiwa Corporation to Report Q1, 2024 Results on Aug 09, 2023 Heiwa Corporation announced that they will report Q1, 2024 results on Aug 09, 2023 Reported Earnings • May 17
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥210 (up from JP¥22.23 in FY 2022). Revenue: JP¥142.3b (up 17% from FY 2022). Net income: JP¥20.7b (up JP¥18.5b from FY 2022). Profit margin: 14% (up from 1.8% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 13%. Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Hospitality industry in Japan. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Tillkännagivande • May 14
Heiwa Corporation, Annual General Meeting, Jun 29, 2023 Heiwa Corporation, Annual General Meeting, Jun 29, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥40.00 per share at 3.2% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 44% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (0.5%). Major Estimate Revision • Feb 18
Consensus EPS estimates increase by 12%, revenue downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from JP¥145.1b to JP¥141.4b. EPS estimate rose from JP¥166 to JP¥186. Net income forecast to grow 21% next year vs 8.4% growth forecast for Hospitality industry in Japan. Consensus price target up from JP¥2,580 to JP¥3,800. Share price was steady at JP¥2,342 over the past week. Price Target Changed • Feb 17
Price target increased by 50% to JP¥3,800 Up from JP¥2,540, the current price target is provided by 1 analyst. New target price is 62% above last closing price of JP¥2,342. Stock is up 21% over the past year. The company is forecast to post earnings per share of JP¥186 for next year compared to JP¥22.23 last year. Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥98.43 (vs JP¥20.90 in 3Q 2022) Third quarter 2023 results: EPS: JP¥98.43 (up from JP¥20.90 in 3Q 2022). Revenue: JP¥45.3b (up 35% from 3Q 2022). Net income: JP¥9.71b (up 371% from 3Q 2022). Profit margin: 21% (up from 6.1% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Hospitality 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 only increased by 1% per year, which means it is significantly lagging earnings growth. Tillkännagivande • Dec 21
Heiwa Corporation to Report Q3, 2023 Results on Feb 08, 2023 Heiwa Corporation announced that they will report Q3, 2023 results on Feb 08, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: JP¥55.19 (up from JP¥0.91 loss in 2Q 2022). Revenue: JP¥36.2b (up 36% from 2Q 2022). Net income: JP¥5.44b (up JP¥5.53b from 2Q 2022). Profit margin: 15% (up from net loss in 2Q 2022). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) also surpassed analyst estimates by 70%. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Hospitality industry in Japan. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 11 highly experienced directors. 1 independent director (10 non-independent directors). Independent External Director Kota Yamaguchi was the last independent director to join the board, commencing their role in 2013. 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 11
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: JP¥55.19 (up from JP¥0.91 loss in 2Q 2022). Revenue: JP¥36.2b (up 36% from 2Q 2022). Net income: JP¥5.44b (up JP¥5.53b from 2Q 2022). Profit margin: 15% (up from net loss in 2Q 2022). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) also surpassed analyst estimates by 70%. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Hospitality industry in Japan. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 12 December 2022. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 3.7%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (0.5%). Reported Earnings • Aug 05
First quarter 2023 earnings released: EPS: JP¥54.29 (vs JP¥26.70 in 1Q 2022) First quarter 2023 results: EPS: JP¥54.29 (up from JP¥26.70 in 1Q 2022). Revenue: JP¥34.7b (up 8.4% from 1Q 2022). Net income: JP¥5.36b (up 103% from 1Q 2022). Profit margin: 15% (up from 8.2% in 1Q 2022). Over the next year, revenue is forecast to grow 17%, compared to a 38% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Reported Earnings • May 19
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥22.23 (up from JP¥8.77 in FY 2021). Revenue: JP¥121.6b (up 13% from FY 2021). Net income: JP¥2.19b (up 154% from FY 2021). Profit margin: 1.8% (up from 0.8% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 57%. Over the next year, revenue is forecast to grow 12%, compared to a 49% growth forecast for the restaurants industry in Japan. Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 6 highly experienced directors. 1 independent director (10 non-independent directors). Independent External Director Kota Yamaguchi was the last independent director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 30 June 2022. Payout ratio is on the higher end at 99%, however this is supported by cash flows. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.2%). Reported Earnings • Feb 10
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: JP¥20.90 (down from JP¥37.02 in 3Q 2021). Revenue: JP¥33.6b (down 12% from 3Q 2021). Net income: JP¥2.06b (down 44% from 3Q 2021). Profit margin: 6.1% (down from 9.5% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 9.1%. Earnings per share (EPS) exceeded analyst estimates. Over the next year, revenue is forecast to grow 6.5%, compared to a 3.6% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Reported Earnings • Nov 11
Second quarter 2022 earnings released: JP¥0.91 loss per share (vs JP¥3.71 loss in 2Q 2021) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2022 results: Revenue: JP¥26.7b (up 24% from 2Q 2021). Net loss: JP¥90.0m (loss narrowed 75% from 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 10 December 2021. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.0%). Reported Earnings • Aug 06
First quarter 2022 earnings released: EPS JP¥26.70 (vs JP¥58.93 loss in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥32.1b (up 98% from 1Q 2021). Net income: JP¥2.63b (up JP¥8.45b from 1Q 2021). Profit margin: 8.2% (up from net loss in 1Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jun 03
Consensus EPS estimates increase to JP¥144 The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from JP¥122.6b to JP¥133.3b. EPS estimate increased from JP¥127 to JP¥144 per share. Net income forecast to grow 1,542% next year vs 33% growth forecast for Leisure industry in Japan. Consensus price target up from JP¥2,520 to JP¥2,600. Share price rose 2.5% to JP¥1,858 over the past week. Reported Earnings • May 15
Full year 2021 earnings released: EPS JP¥8.77 (vs JP¥161 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥107.7b (down 26% from FY 2020). Net income: JP¥865.0m (down 95% from FY 2020). Profit margin: 0.8% (down from 11% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 29 June 2021. Trailing yield: 4.1%. Within top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.1%). Price Target Changed • Mar 04
Price target raised to JP¥2,520 Up from JP¥1,990, the current price target is provided by 1 analyst. The new target price is 39% above the current share price of JP¥1,815. As of last close, the stock is down 11% over the past year. Is New 90 Day High Low • Feb 22
New 90-day high: JP¥1,601 The company is up 4.0% from its price of JP¥1,542 on 24 November 2020. The Japanese market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Leisure industry, which is up 6.0% over the same period. Reported Earnings • Feb 11
Third quarter 2021 earnings released: EPS JP¥37.02 (vs JP¥59.70 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥38.3b (down 5.2% from 3Q 2020). Net income: JP¥3.65b (down 38% from 3Q 2020). Profit margin: 9.5% (down from 15% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Feb 11
Revenue and earnings miss expectations Revenue missed analyst estimates by 18%. Earnings per share (EPS) also missed analyst estimates by 2.6%. Over the next year, revenue is forecast to grow 13%, compared to a 9.0% growth forecast for the Leisure industry in Japan. Is New 90 Day High Low • Dec 28
New 90-day low: JP¥1,420 The company is down 21% from its price of JP¥1,792 on 29 September 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Leisure industry, which is up 12% over the same period.