Declared Dividend • Jun 02
First half dividend of JP¥19.00 announced Dividend of JP¥19.00 is the same as last year. Ex-date: 29th September 2026 Payment date: 29th December 2026 Dividend yield will be 3.4%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is well covered by both earnings (40% earnings payout ratio) and cash flows (30% cash payout ratio). The dividend has increased by an average of 4.0% per year over the past 6 years and payments have been stable during that time. EPS is expected to grow by 44% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,090, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 13x in the Consumer Services industry in Japan. Total returns to shareholders of 52% over the past three years. Reported Earnings • May 13
Second quarter 2026 earnings released: EPS: JP¥19.43 (vs JP¥1.53 loss in 2Q 2025) Second quarter 2026 results: EPS: JP¥19.43 (up from JP¥1.53 loss in 2Q 2025). Revenue: JP¥9.35b (up 9.8% from 2Q 2025). Net income: JP¥343.0m (up JP¥370.0m from 2Q 2025). Profit margin: 3.7% (up from net loss in 2Q 2025). The move to profitability was driven by higher revenue. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥19.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 02 June 2026. Payout ratio is a comfortable 51% 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 (2.6%). Reported Earnings • Feb 14
First quarter 2026 earnings released: EPS: JP¥54.07 (vs JP¥41.58 in 1Q 2025) First quarter 2026 results: EPS: JP¥54.07 (up from JP¥41.58 in 1Q 2025). Revenue: JP¥9.75b (up 12% from 1Q 2025). Net income: JP¥954.0m (up 31% from 1Q 2025). Profit margin: 9.8% (up from 8.4% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Declared Dividend • Jan 08
Final dividend of JP¥19.00 announced Dividend of JP¥19.00 is the same as last year. Ex-date: 30th March 2026 Payment date: 2nd June 2026 Dividend yield will be 2.8%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is covered by both earnings (62% earnings payout ratio) and cash flows (25% cash payout ratio). The dividend has increased by an average of 4.8% per year over the past 5 years and payments have been stable during that time. EPS is expected to grow by 61% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 16
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥61.71 (up from JP¥28.68 in FY 2024). Revenue: JP¥35.1b (up 10% from FY 2024). Net income: JP¥1.09b (up 117% from FY 2024). Profit margin: 3.1% (up from 1.6% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.1%. Revenue is forecast to grow 5.9% p.a. on average during the next 2 years, compared to a 7.4% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Tillkännagivande • Nov 13
SPRIX Inc., Annual General Meeting, Dec 26, 2025 SPRIX Inc., Annual General Meeting, Dec 26, 2025. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥19.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 29 December 2025. Payout ratio is a comfortable 75% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.4%). Tillkännagivande • Aug 29
SPRIX Inc. to Report Fiscal Year 2025 Results on Nov 13, 2025 SPRIX Inc. announced that they will report fiscal year 2025 results on Nov 13, 2025 Buy Or Sell Opportunity • Aug 15
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 4.6% to JP¥1,160. The fair value is estimated to be JP¥946, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.5% over the last 3 years. Earnings per share has declined by 33%. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to grow by 40% in the next 2 years. Reported Earnings • Aug 09
Third quarter 2025 earnings released: JP¥16.22 loss per share (vs JP¥32.34 loss in 3Q 2024) Third quarter 2025 results: JP¥16.22 loss per share (improved from JP¥32.34 loss in 3Q 2024). Revenue: JP¥7.69b (up 14% from 3Q 2024). Net loss: JP¥286.0m (loss narrowed 49% from 3Q 2024). Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. New Risk • Jul 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (109% payout ratio). Share price has been volatile over the past 3 months (5.3% average weekly change). Declared Dividend • Jun 03
First half dividend of JP¥19.00 announced Dividend of JP¥19.00 is the same as last year. Ex-date: 29th September 2025 Payment date: 29th December 2025 Dividend yield will be 3.3%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is not covered by earnings (109% earnings payout ratio). However, it is covered by cash flows (67% cash payout ratio). The dividend has increased by an average of 4.8% per year over the past 5 years and payments have been stable during that time. The company's earnings per share (EPS) would need to grow by 21% to bring the payout ratio under control. EPS is expected to grow by 63% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • May 15
Second quarter 2025 earnings released: JP¥1.53 loss per share (vs JP¥3.50 loss in 2Q 2024) Second quarter 2025 results: JP¥1.53 loss per share (improved from JP¥3.50 loss in 2Q 2024). Revenue: JP¥8.52b (up 8.2% from 2Q 2024). Net loss: JP¥27.0m (loss narrowed 56% from 2Q 2024). Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. New Risk • Apr 10
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.5b (US$99.1m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 115% Cash payout ratio: 98% Minor Risk Market cap is less than US$100m (JP¥14.5b market cap, or US$99.1m). Buy Or Sell Opportunity • Mar 31
Now 20% undervalued Over the last 90 days, the stock has risen 7.1% to JP¥976. The fair value is estimated to be JP¥1,224, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 2.5% over the last 3 years. Earnings per share has declined by 42%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 62% in the next 2 years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥19.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 03 June 2025. The company is paying out more than 100% of its profits and is paying out 98% of its cash flow. Trailing yield: 4.1%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.6%). Reported Earnings • Feb 15
First quarter 2025 earnings released: EPS: JP¥41.58 (vs JP¥37.45 in 1Q 2024) First quarter 2025 results: EPS: JP¥41.58 (up from JP¥37.45 in 1Q 2024). Revenue: JP¥8.71b (up 6.4% from 1Q 2024). Net income: JP¥730.0m (up 12% from 1Q 2024). Profit margin: 8.4% (up from 8.0% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 9.1% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Declared Dividend • Jan 06
Final dividend of JP¥19.00 announced Dividend of JP¥19.00 is the same as last year. Ex-date: 28th March 2025 Payment date: 3rd June 2025 Dividend yield will be 4.2%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is not covered by earnings (132% earnings payout ratio) nor is it adequately covered by cash flows (97% cash payout ratio). The dividend has increased by an average of 6.1% per year over the past 4 years and payments have been stable during that time. The company's earnings per share (EPS) would need to grow by 47% to bring the payout ratio under control. EPS is expected to grow by 79% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Tillkännagivande • Jan 05
SPRIX Inc. to Report Q3, 2025 Results on Aug 08, 2025 SPRIX Inc. announced that they will report Q3, 2025 results on Aug 08, 2025 Reported Earnings • Dec 31
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥28.68 (down from JP¥32.47 in FY 2023). Revenue: JP¥31.9b (up 4.9% from FY 2023). Net income: JP¥500.0m (down 11% from FY 2023). Profit margin: 1.6% (down from 1.8% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Dec 10
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 11% to JP¥865. The fair value is estimated to be JP¥718, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.7% over the last 3 years. Earnings per share has declined by 39%. For the next 3 years, revenue is forecast to grow by 4.9% per annum. Earnings are also forecast to grow by 22% per annum over the same time period. Reported Earnings • Nov 16
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥28.68 (down from JP¥32.47 in FY 2023). Revenue: JP¥31.9b (up 4.9% from FY 2023). Net income: JP¥500.0m (down 11% from FY 2023). Profit margin: 1.6% (down from 1.8% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 4.0% p.a. on average during the next 2 years, compared to a 8.2% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Tillkännagivande • Nov 12
SPRIX Inc., Annual General Meeting, Dec 26, 2024 SPRIX Inc., Annual General Meeting, Dec 26, 2024. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥19.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 25 December 2024. The company is paying out more than 100% of its profits and is paying out 82% of its cash flow. Trailing yield: 4.6%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.7%). Tillkännagivande • Aug 29
SPRIX Inc. to Report Fiscal Year 2024 Results on Nov 12, 2024 SPRIX Inc. announced that they will report fiscal year 2024 results on Nov 12, 2024 Reported Earnings • Aug 15
Third quarter 2024 earnings released: JP¥32.34 loss per share (vs JP¥22.96 loss in 3Q 2023) Third quarter 2024 results: JP¥32.34 loss per share (further deteriorated from JP¥22.96 loss in 3Q 2023). Revenue: JP¥6.72b (up 3.0% from 3Q 2023). Net loss: JP¥564.0m (loss widened 42% from 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 29% 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. Reported Earnings • May 18
Second quarter 2024 earnings released: JP¥3.50 loss per share (vs JP¥4.22 loss in 2Q 2023) Second quarter 2024 results: JP¥3.50 loss per share (improved from JP¥4.22 loss in 2Q 2023). Revenue: JP¥7.87b (up 4.9% from 2Q 2023). Net loss: JP¥61.0m (loss narrowed 16% from 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Declared Dividend • May 16
Dividend of JP¥19.00 announced Dividend of JP¥19.00 is the same as last year. Ex-date: 27th September 2024 Payment date: 25th December 2024 Dividend yield will be 4.9%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is covered by both earnings (87% earnings payout ratio) and cash flows (83% cash payout ratio). The dividend has increased by an average of 6.1% per year over the past 4 years and payments have been stable during that time. The company's earnings per share (EPS) would need to decline by 3.7% to shift the payout ratio to a potentially unsustainable range, which is less than the 8.3% EPS decline seen over the last 5 years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥19.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 05 June 2024. Payout ratio and cash payout ratio are on the higher end at 87% and 82% respectively. Trailing yield: 4.6%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.1%). Reported Earnings • Feb 16
First quarter 2024 earnings released: EPS: JP¥37.45 (vs JP¥26.31 in 1Q 2023) First quarter 2024 results: EPS: JP¥37.45 (up from JP¥26.31 in 1Q 2023). Revenue: JP¥8.18b (up 6.0% from 1Q 2023). Net income: JP¥652.0m (up 44% from 1Q 2023). Profit margin: 8.0% (up from 5.9% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Reported Earnings • Dec 28
Full year 2023 earnings released: EPS: JP¥32.47 (vs JP¥93.77 in FY 2022) Full year 2023 results: EPS: JP¥32.47 (down from JP¥93.77 in FY 2022). Revenue: JP¥30.4b (up 3.4% from FY 2022). Net income: JP¥561.0m (down 65% from FY 2022). Profit margin: 1.8% (down from 5.5% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Reported Earnings • Nov 11
Full year 2023 earnings released: EPS: JP¥32.47 (vs JP¥93.77 in FY 2022) Full year 2023 results: EPS: JP¥32.47 (down from JP¥93.77 in FY 2022). Revenue: JP¥30.4b (up 3.4% from FY 2022). Net income: JP¥561.0m (down 65% from FY 2022). Profit margin: 1.8% (down from 5.5% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 13% 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. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥19.00 per share at 4.4% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 26 December 2023. Payout ratio is on the higher end at 77%, however this is supported by cash flows. Trailing yield: 4.4%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.6%). New Risk • Sep 05
New major risk - Revenue and earnings growth Revenue has declined by 0.6% over the past year. 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 revenues are declining, then it is difficult for the company to prevent its earnings from declining as well. A trend of falling revenue can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. 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 Risk Revenue has declined by 0.6% over the past year. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (2.8% net profit margin). Market cap is less than US$100m (JP¥14.3b market cap, or US$97.0m). Tillkännagivande • Sep 02
SPRIX Inc. to Report Fiscal Year 2023 Results on Nov 10, 2023 SPRIX Inc. announced that they will report fiscal year 2023 results on Nov 10, 2023 New Risk • Aug 11
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: 2.8% Last year net profit margin: 4.7% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (2.8% net profit margin). Market cap is less than US$100m (JP¥13.6b market cap, or US$93.5m). Reported Earnings • Aug 10
Third quarter 2023 earnings released: JP¥22.96 loss per share (vs JP¥10.56 loss in 3Q 2022) Third quarter 2023 results: JP¥22.96 loss per share (further deteriorated from JP¥10.56 loss in 3Q 2022). Revenue: JP¥6.53b (up 6.1% from 3Q 2022). Net loss: JP¥397.0m (loss widened 119% from 3Q 2022). Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the Consumer Services 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 2% per year. Reported Earnings • May 15
Second quarter 2023 earnings released: JP¥4.22 loss per share (vs JP¥6.48 profit in 2Q 2022) Second quarter 2023 results: JP¥4.22 loss per share (down from JP¥6.48 profit in 2Q 2022). Revenue: JP¥7.50b (up 1.2% from 2Q 2022). Net loss: JP¥73.0m (down 166% from profit in 2Q 2022). Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Consumer Services 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 3% per year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥19.00 per share at 4.3% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 06 June 2023. Payout ratio is a comfortable 52% and this is well supported by cash flows. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.5%). Reported Earnings • Feb 12
First quarter 2023 earnings released: EPS: JP¥26.31 (vs JP¥47.33 in 1Q 2022) First quarter 2023 results: EPS: JP¥26.31 (down from JP¥47.33 in 1Q 2022). Revenue: JP¥7.72b (up 2.4% from 1Q 2022). Net income: JP¥454.0m (down 44% from 1Q 2022). Profit margin: 5.9% (down from 11% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Consumer Services industry in Japan. Reported Earnings • Dec 28
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥93.77 (up from JP¥85.38 in FY 2021). Revenue: JP¥29.4b (up 13% from FY 2021). Net income: JP¥1.61b (up 9.5% from FY 2021). Profit margin: 5.5% (down from 5.7% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.8%. Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Consumer Services industry in Japan. 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. 9 experienced directors. 1 highly experienced director. 2 independent directors (8 non-independent directors). President & Representative Director Hiroyuki Tsuneishi was the last director to join the board, commencing their role in 2004. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Tillkännagivande • Nov 11
SPRIX, Ltd., Annual General Meeting, Dec 23, 2022 SPRIX, Ltd., Annual General Meeting, Dec 23, 2022. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥19.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 27 December 2022. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 4.0%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.5%). Tillkännagivande • Sep 01
SPRIX, Ltd. to Report Fiscal Year 2022 Results on Nov 11, 2022 SPRIX, Ltd. announced that they will report fiscal year 2022 results on Nov 11, 2022 Reported Earnings • Aug 12
Third quarter 2022 earnings released: JP¥10.56 loss per share (vs JP¥8.12 loss in 3Q 2021) Third quarter 2022 results: JP¥10.56 loss per share (down from JP¥8.12 loss in 3Q 2021). Revenue: JP¥6.16b (flat on 3Q 2021). Net loss: JP¥181.0m (loss widened 30% from 3Q 2021). Over the next year, revenue is forecast to grow 7.8%, compared to a 9.3% growth forecast for the industry in Japan. Tillkännagivande • Jun 22
SPRIX, Ltd. (TSE:7030) agreed to acquire Wayo Nihongo Institute from Hinokikai Co., Ltd. SPRIX, Ltd. (TSE:7030) agreed to acquire Wayo Nihongo Institute from Hinokikai Co., Ltd on June 20, 2022. Board of Directors passed resolution on June20, 2022. Business transfer agreement will be signed in late July 2022. The transaction is expected to complete in Late July, 2022. Valuation Update With 7 Day Price Move • May 18
Investor sentiment deteriorated over the past week After last week's 15% share price decline to JP¥998, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 15x in the Consumer Services industry in Japan. Total loss to shareholders of 45% over the past three years. Reported Earnings • May 13
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: EPS: JP¥6.48 (down from JP¥24.57 in 2Q 2021). Revenue: JP¥7.42b (flat on 2Q 2021). Net income: JP¥111.0m (down 74% from 2Q 2021). Profit margin: 1.5% (down from 5.7% in 2Q 2021). Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) exceeded analyst estimates by 22%. Over the next year, revenue is forecast to grow 8.0%, compared to a 10% growth forecast for the industry in Japan. 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. 9 experienced directors. 1 highly experienced director. 2 independent directors (8 non-independent directors). President & Representative Director Hiroyuki Tsuneishi was the last director to join the board, commencing their role in 2004. 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¥19.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 07 June 2022. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (2.2%). Reported Earnings • Feb 16
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: EPS: JP¥47.33 (up from JP¥24.57 in 1Q 2021). Revenue: JP¥7.54b (up 1.1% from 1Q 2021). Net income: JP¥811.0m (up 91% from 1Q 2021). Profit margin: 11% (up from 5.7% in 1Q 2021). The increase in margin was primarily driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 22%. Over the next year, revenue is forecast to grow 4.5%, compared to a 13% growth forecast for the industry in Japan. Valuation Update With 7 Day Price Move • Nov 19
Investor sentiment improved over the past week After last week's 27% share price gain to JP¥1,532, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 19x in the Consumer Services industry in Japan. Total loss to shareholders of 20% over the past three years. Reported Earnings • Nov 15
Full year 2021 earnings released: EPS JP¥85.38 (vs JP¥67.08 in FY 2020) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2021 results: Revenue: JP¥25.9b (up 119% from FY 2020). Net income: JP¥1.47b (up 28% from FY 2020). Profit margin: 5.7% (down from 9.7% in FY 2020). The decrease in margin was driven by higher expenses. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥16.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 25 December 2021. Trailing yield: 3.3%. Within top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.9%). Valuation Update With 7 Day Price Move • Aug 16
Investor sentiment deteriorated over the past week After last week's 16% share price decline to JP¥910, the stock trades at a trailing P/E ratio of 15x. Average trailing P/E is 27x in the Consumer Services industry in Japan. Total loss to shareholders of 63% over the past three years. Valuation Update With 7 Day Price Move • May 24
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥1,273, the stock trades at a trailing P/E ratio of 15.9x. Average trailing P/E is 28x in the Consumer Services industry in Japan. Total returns to shareholders of 41% over the past year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 08 June 2021. Trailing yield: 3.2%. Within top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.9%). Is New 90 Day High Low • Feb 25
New 90-day high: JP¥890 The company is up 3.0% from its price of JP¥868 on 27 November 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Consumer Services industry, which is up 1.0% over the same period.