Duyuru • Jan 02
Sumitomo Riko Company Limited to Delist from Prime Market Segment of the Tokyo Stock Exchange, Effective Jan. 29, 2026 Sumitomo Riko Company Limited will be delisted from Prime Market Segment of the Tokyo Stock Exchange effective from Jan. 29, 2026. Reason is Acquisition by controlling shareholder, etc. Duyuru • Dec 17
Sumitomo Electric Industries, Ltd. (TSE:5802) completed the acquisition of additional 49.4% stake in Sumitomo Riko Company Limited (TSE:5191) from a group of shareholders. Sumitomo Electric Industries, Ltd. (TSE:5802) proposed to acquire an additional 49.4% stake in Sumitomo Riko Company Limited (TSE:5191) from a group of shareholders for approximately ¥130 billion on October 29, 2025. A cash consideration of ¥133.35 billion valued at ¥2600 per share will be paid by Sumitomo Electric Industries, Ltd for 51.2897 million. Upon completion, Sumitomo Electric Industries, Ltd. will own 99.04% stake in Sumitomo Riko Company Limited.
The transaction is subject to minimum tender of 16,681,702 shares. Sumitomo Electric Industries intends to proceed with Squeeze-Out if minimum tender is achieved. The transaction has been unanimously approved by target board. The Board of Directors of Sumitomo Riko Company Limited formed a special committee for the transaction. The expected completion of the transaction is December 15, 2025.
JPMorgan Securities Japan Co., Ltd. acted as financial advisor for Sumitomo Electric Industries, Ltd. Plutus Consulting Co., Ltd. acted as financial advisor for special committee of Sumitomo Riko Company Limited. Anderson Mori & Tomotsune acted as legal advisor for Sumitomo Riko Company Limited. Daiwa Securities Capital Markets Co. Ltd. acted as fairness opinion provider for special committee of Sumitomo Riko Company Limited. Plutus Consulting Co., Ltd. acted as fairness opinion provider for special committee of Sumitomo Riko Company Limited.
Sumitomo Electric Industries, Ltd. (TSE:5802) completed the acquisition of additional 49.4% stake in Sumitomo Riko Company Limited (TSE:5191) from a group of shareholders on December 15, 2025. Minimum tender was achieved. Reported Earnings • Oct 31
Second quarter 2026 earnings released: EPS: JP¥57.41 (vs JP¥39.55 in 2Q 2025) Second quarter 2026 results: EPS: JP¥57.41 (up from JP¥39.55 in 2Q 2025). Revenue: JP¥161.6b (up 6.6% from 2Q 2025). Net income: JP¥5.96b (up 45% from 2Q 2025). Profit margin: 3.7% (up from 2.7% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.4% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 60% per year whereas the company’s share price has increased by 63% per year. New Risk • Oct 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 3.6% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.0% average weekly change). Valuation Update With 7 Day Price Move • Oct 30
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥2,610, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 12x in the Auto Components industry in Japan. Total returns to shareholders of 361% over the past three years. Price Target Changed • Oct 08
Price target increased by 10% to JP¥2,430 Up from JP¥2,200, the current price target is provided by 1 analyst. New target price is 12% above last closing price of JP¥2,174. Stock is up 46% over the past year. The company is forecast to post earnings per share of JP¥210 for next year compared to JP¥264 last year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 02 December 2025. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (3.0%). Reported Earnings • Jul 31
First quarter 2026 earnings released: EPS: JP¥55.51 (vs JP¥57.06 in 1Q 2025) First quarter 2026 results: EPS: JP¥55.51 (down from JP¥57.06 in 1Q 2025). Revenue: JP¥154.8b (down 1.8% from 1Q 2025). Net income: JP¥5.76b (down 2.7% from 1Q 2025). Profit margin: 3.7% (down from 3.8% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 1.7% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Auto Components 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 51% per year, which means it is significantly lagging earnings growth. Declared Dividend • Jul 09
Final dividend of JP¥11.00 announced Shareholders will receive a dividend of JP¥11.00. Ex-date: 29th September 2025 Payment date: 2nd December 2025 Dividend yield will be 3.1%, which is higher than the industry average of 2.7%. Sustainability & Growth Dividend is well covered by both earnings (20% earnings payout ratio) and cash flows (18% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 11% over the next 3 years. However, it would need to fall by 78% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Jun 25
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥264 (up from JP¥180 in FY 2024). Revenue: JP¥633.3b (up 2.9% from FY 2024). Net income: JP¥27.4b (up 47% from FY 2024). Profit margin: 4.3% (up from 3.0% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 9.7%. Revenue is forecast to grow 1.4% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jun 20
Consensus EPS estimates fall by 22% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from JP¥660.0b to JP¥630.0b. EPS estimate also fell from JP¥270 per share to JP¥210 per share. Net income forecast to shrink 20% next year vs 1.5% growth forecast for Auto Components industry in Japan . Consensus price target up from JP¥2,100 to JP¥2,200. Share price was steady at JP¥1,623 over the past week. New Risk • Jun 19
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 4.0% 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 Risk Earnings are forecast to decline by an average of 4.0% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • May 10
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥264 (up from JP¥180 in FY 2024). Revenue: JP¥633.3b (up 2.9% from FY 2024). Net income: JP¥27.4b (up 47% from FY 2024). Profit margin: 4.3% (up from 3.0% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 9.7%. Revenue is forecast to grow 5.0% p.a. on average during the next 2 years, compared to a 2.9% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has only increased by 44% per year, which means it is significantly lagging earnings growth. Duyuru • May 09
Sumitomo Riko Company Limited, Annual General Meeting, Jun 19, 2025 Sumitomo Riko Company Limited, Annual General Meeting, Jun 19, 2025. Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,478, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 8x in the Auto Components industry in Japan. Total returns to shareholders of 192% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥36.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 23 June 2025. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (3.3%). Major Estimate Revision • Mar 19
Consensus EPS estimates increase by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥600.0b to JP¥635.0b. EPS estimate increased from JP¥212 to JP¥241 per share. Net income forecast to shrink 0.7% next year vs 11% growth forecast for Auto Components industry in Japan . Consensus price target up from JP¥1,770 to JP¥2,100. Share price rose 5.4% to JP¥1,849 over the past week. Buy Or Sell Opportunity • Feb 21
Now 20% undervalued Over the last 90 days, the stock has risen 1.7% to JP¥1,656. The fair value is estimated to be JP¥2,075, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Meanwhile, the company has become profitable. Buy Or Sell Opportunity • Feb 03
Now 21% undervalued Over the last 90 days, the stock has risen 9.1% to JP¥1,751. The fair value is estimated to be JP¥2,228, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Meanwhile, the company has become profitable. Reported Earnings • Jan 30
Third quarter 2025 earnings released: EPS: JP¥117 (vs JP¥72.83 in 3Q 2024) Third quarter 2025 results: EPS: JP¥117 (up from JP¥72.83 in 3Q 2024). Revenue: JP¥162.1b (up 1.8% from 3Q 2024). Net income: JP¥12.2b (up 61% from 3Q 2024). Profit margin: 7.5% (up from 4.7% in 3Q 2024). The increase in margin was primarily driven by higher revenue. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 3.3% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 94% per year but the company’s share price has only increased by 43% per year, which means it is significantly lagging earnings growth. New Risk • Jan 29
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 5.7% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.7% average weekly change). Valuation Update With 7 Day Price Move • Jan 29
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,801, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 9x in the Auto Components industry in Japan. Total returns to shareholders of 215% over the past three years. Major Estimate Revision • Dec 18
Consensus EPS estimates increase by 22%, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from JP¥632.0b to JP¥600.0b. EPS estimate rose from JP¥173 to JP¥212. Net income forecast to shrink 15% next year vs 12% growth forecast for Auto Components industry in Japan . Consensus price target up from JP¥1,670 to JP¥1,770. Share price was steady at JP¥1,603 over the past week. New Risk • Dec 17
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 6.6% 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 Risk Earnings are forecast to decline by an average of 6.6% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Buy Or Sell Opportunity • Nov 20
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 12% to JP¥1,597. The fair value is estimated to be JP¥1,312, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 90%. Revenue is forecast to grow by 6.2% in 2 years. Earnings are forecast to decline by 4.3% in the next 2 years. Reported Earnings • Nov 02
Second quarter 2025 earnings released: EPS: JP¥39.55 (vs JP¥24.67 in 2Q 2024) Second quarter 2025 results: EPS: JP¥39.55 (up from JP¥24.67 in 2Q 2024). Revenue: JP¥151.6b (flat on 2Q 2024). Net income: JP¥4.11b (up 60% from 2Q 2024). Profit margin: 2.7% (up from 1.7% in 2Q 2024). Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 36% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Oct 28
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 4.9% to JP¥1,470. The fair value is estimated to be JP¥1,208, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 84%. Revenue is forecast to grow by 4.9% in 2 years. Earnings are forecast to decline by 0.8% in the next 2 years. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (3.5%). Buy Or Sell Opportunity • Sep 12
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 8.1% to JP¥1,452. The fair value is estimated to be JP¥1,208, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 84%. Revenue is forecast to grow by 4.9% in 2 years. Earnings are forecast to decline by 0.8% in the next 2 years. Buy Or Sell Opportunity • Aug 20
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 13% to JP¥1,425. The fair value is estimated to be JP¥1,186, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 84%. Revenue is forecast to grow by 4.9% in 2 years. Earnings are forecast to decline by 0.8% in the next 2 years. Valuation Update With 7 Day Price Move • Aug 07
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥1,282, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 8x in the Auto Components industry in Japan. Total returns to shareholders of 88% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,167 per share. Reported Earnings • Aug 02
First quarter 2025 earnings released: EPS: JP¥57.06 (vs JP¥31.46 in 1Q 2024) First quarter 2025 results: EPS: JP¥57.06 (up from JP¥31.46 in 1Q 2024). Revenue: JP¥157.6b (up 8.2% from 1Q 2024). Net income: JP¥5.92b (up 81% from 1Q 2024). Profit margin: 3.8% (up from 2.2% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. New Risk • Aug 01
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 5.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.6% average weekly change). Reported Earnings • Jun 26
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥180 (up from JP¥64.37 in FY 2023). Revenue: JP¥615.4b (up 14% from FY 2023). Net income: JP¥18.6b (up 179% from FY 2023). Profit margin: 3.0% (up from 1.2% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 22%. Revenue is forecast to grow 3.1% p.a. on average during the next 2 years, compared to a 3.7% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. New Risk • May 28
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 3.1% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • May 11
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥180 (up from JP¥64.37 in FY 2023). Revenue: JP¥615.4b (up 14% from FY 2023). Net income: JP¥18.6b (up 179% from FY 2023). Profit margin: 3.0% (up from 1.2% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 22%. Revenue is forecast to grow 2.5% p.a. on average during the next 2 years, compared to a 3.8% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Duyuru • May 11
Sumitomo Riko Company Limited, Annual General Meeting, Jun 20, 2024 Sumitomo Riko Company Limited, Annual General Meeting, Jun 20, 2024. New Risk • Apr 18
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 5.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 2.4% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (5.9% average weekly change). Upcoming Dividend • Mar 21
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 17 June 2024. Payout ratio is a comfortable 7.4% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (2.6%). Reported Earnings • Feb 02
Third quarter 2024 earnings released: EPS: JP¥72.83 (vs JP¥21.82 in 3Q 2023) Third quarter 2024 results: EPS: JP¥72.83 (up from JP¥21.82 in 3Q 2023). Revenue: JP¥159.2b (up 14% from 3Q 2023). Net income: JP¥7.56b (up 234% from 3Q 2023). Profit margin: 4.7% (up from 1.6% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Feb 01
Consensus EPS estimates increase by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from JP¥594.0b to JP¥610.0b. EPS estimate increased from JP¥118 to JP¥133 per share. Net income forecast to shrink 15% next year vs 20% growth forecast for Auto Components industry in Japan . Consensus price target of JP¥1,250 unchanged from last update. Share price rose 7.7% to JP¥1,260 over the past week. Duyuru • Jan 13
Sumitomo Riko Company Limited to Report Fiscal Year 2024 Results on May 09, 2024 Sumitomo Riko Company Limited announced that they will report fiscal year 2024 results on May 09, 2024 Reported Earnings • Nov 02
Second quarter 2024 earnings released: EPS: JP¥24.67 (vs JP¥20.49 loss in 2Q 2023) Second quarter 2024 results: EPS: JP¥24.67 (up from JP¥20.49 loss in 2Q 2023). Revenue: JP¥152.2b (up 10.0% from 2Q 2023). Net income: JP¥2.56b (up JP¥4.69b from 2Q 2023). Profit margin: 1.7% (up from net loss in 2Q 2023). The move to profitability was driven by higher revenue. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Auto Components 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 22% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥7.00 per share at 1.4% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 01 December 2023. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (2.5%). Reported Earnings • Aug 02
First quarter 2024 earnings released: EPS: JP¥31.46 (vs JP¥25.69 loss in 1Q 2023) First quarter 2024 results: EPS: JP¥31.46 (up from JP¥25.69 loss in 1Q 2023). Revenue: JP¥145.6b (up 24% from 1Q 2023). Net income: JP¥3.27b (up JP¥5.93b from 1Q 2023). Profit margin: 2.2% (up from net loss in 1Q 2023). The move to profitability was driven by higher revenue. Revenue is forecast to grow 4.4% p.a. on average during the next 2 years, compared to a 4.0% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Aug 02
Consensus EPS estimates increase by 49% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from JP¥582.0b to JP¥594.0b. EPS estimate increased from JP¥82.83 to JP¥123 per share. Net income forecast to grow 92% next year vs 19% growth forecast for Auto Components industry in Japan. Consensus price target of JP¥650 unchanged from last update. Share price rose 15% to JP¥936 over the past week. Reported Earnings • Jun 21
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥64.37 (up from JP¥61.23 loss in FY 2022). Revenue: JP¥541.0b (up 21% from FY 2022). Net income: JP¥6.68b (up JP¥13.0b from FY 2022). Profit margin: 1.2% (up from net loss in FY 2022). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates significantly. Revenue is forecast to grow 6.3% p.a. on average during the next 2 years, compared to a 4.4% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 11% per year. Major Estimate Revision • Jun 08
Consensus EPS estimates increase by 43% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥57.80 to JP¥82.83. Revenue forecast steady at JP¥582.0b. Net income forecast to grow 29% next year vs 26% growth forecast for Auto Components industry in Japan. Consensus price target of JP¥650 unchanged from last update. Share price rose 5.6% to JP¥791 over the past week. Reported Earnings • May 12
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥64.37 (up from JP¥61.23 loss in FY 2022). Revenue: JP¥541.0b (up 21% from FY 2022). Net income: JP¥6.68b (up JP¥13.0b from FY 2022). Profit margin: 1.2% (up from net loss in FY 2022). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates significantly. Revenue is forecast to grow 6.4% p.a. on average during the next 2 years, compared to a 4.5% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 10% per year. Duyuru • May 11
Sumitomo Riko Company Limited, Annual General Meeting, Jun 15, 2023 Sumitomo Riko Company Limited, Annual General Meeting, Jun 15, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥7.00 per share at 2.2% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 19 June 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (3.2%). Reported Earnings • Feb 02
Third quarter 2023 earnings released: EPS: JP¥21.82 (vs JP¥11.21 loss in 3Q 2022) Third quarter 2023 results: EPS: JP¥21.82 (up from JP¥11.21 loss in 3Q 2022). Revenue: JP¥139.5b (up 23% from 3Q 2022). Net income: JP¥2.27b (up JP¥3.43b from 3Q 2022). Profit margin: 1.6% (up from net loss in 3Q 2022). Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 9% per year. Board Change • Nov 16
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 7 new directors. 3 experienced directors. 2 highly experienced directors. 3 independent directors (5 non-independent directors). Lead Independent Outside Director Masaaki Iritani is the most experienced director on the board, commencing their role in 2011. Independent Outside Director Mariko Miyagi was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 02
Second quarter 2023 earnings released: JP¥20.49 loss per share (vs JP¥50.22 loss in 2Q 2022) Second quarter 2023 results: JP¥20.49 loss per share (improved from JP¥50.22 loss in 2Q 2022). Revenue: JP¥138.4b (up 40% from 2Q 2022). Net loss: JP¥2.13b (loss narrowed 59% from 2Q 2022). Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Auto Components industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 15% per year, which means it is performing significantly worse than earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥7.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 01 December 2022. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (3.1%). Reported Earnings • Aug 02
First quarter 2023 earnings released: JP¥25.69 loss per share (vs JP¥16.70 profit in 1Q 2022) First quarter 2023 results: JP¥25.69 loss per share (down from JP¥16.70 profit in 1Q 2022). Revenue: JP¥117.3b (up 6.8% from 1Q 2022). Net loss: JP¥2.67b (down 254% from profit in 1Q 2022). Over the next year, revenue is forecast to grow 21%, compared to a 13% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Reported Earnings • Jun 22
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: JP¥61.23 loss per share (down from JP¥47.74 loss in FY 2021). Revenue: JP¥446.0b (up 12% from FY 2021). Net loss: JP¥6.36b (loss widened 28% from FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 43%. Over the next year, revenue is forecast to grow 17%, compared to a 12% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Reported Earnings • May 11
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: JP¥61.23 loss per share (down from JP¥47.74 loss in FY 2021). Revenue: JP¥446.0b (up 12% from FY 2021). Net loss: JP¥6.36b (loss widened 28% from FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 43%. Over the next year, revenue is forecast to grow 11%, compared to a 12% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Price Target Changed • Apr 27
Price target decreased to JP¥640 Down from JP¥900, the current price target is an average from 2 analysts. New target price is 18% above last closing price of JP¥542. Stock is down 23% over the past year. The company is forecast to post a net loss per share of JP¥42.86 next year compared to a net loss per share of JP¥47.74 last year. Board Change • Apr 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Outside Director Mariko Miyagi was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Duyuru • Apr 08
Sumitomo Riko Company Limited to Report Fiscal Year 2022 Results on May 10, 2022 Sumitomo Riko Company Limited announced that they will report fiscal year 2022 results on May 10, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥7.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 18 June 2022. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (3.0%). Reported Earnings • Feb 02
Third quarter 2022 earnings: EPS misses analyst expectations Third quarter 2022 results: JP¥11.21 loss per share (down from JP¥51.96 profit in 3Q 2021). Revenue: JP¥113.2b (down 2.9% from 3Q 2021). Net loss: JP¥1.16b (down 122% from profit in 3Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 30%. Over the next year, revenue is forecast to grow 11%, compared to a 7.0% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 02
Second quarter 2022 earnings released: JP¥50.22 loss per share (vs JP¥50.77 loss in 2Q 2021) The company reported a soft second quarter result with weaker revenues and control over costs, although losses reduced. Second quarter 2022 results: Revenue: JP¥98.6b (down 3.2% from 2Q 2021). Net loss: JP¥5.21b (loss narrowed 1.1% from 2Q 2021). Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 04
First quarter 2022 earnings released: EPS JP¥16.70 (vs JP¥71.09 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¥109.8b (up 68% from 1Q 2021). Net income: JP¥1.73b (up JP¥9.12b from 1Q 2021). Profit margin: 1.6% (up from net loss in 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 36% 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. Reported Earnings • May 14
Full year 2021 earnings released: JP¥47.74 loss per share (vs JP¥8.49 profit in FY 2020) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2021 results: Revenue: JP¥397.9b (down 11% from FY 2020). Net loss: JP¥4.96b (down JP¥5.84b from profit in FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 56 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥7.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 19 June 2021. Trailing yield: 1.0%. Lower than top quartile of Japanese dividend payers (2.7%). Lower than average of industry peers (1.9%). Is New 90 Day High Low • Mar 16
New 90-day high: JP¥701 The company is up 19% from a price of JP¥590 on 16 December 2020. Outperformed the Japanese market which is up 10.0% over the last 90 days. Lagged the Auto Components industry, which is up 21% over the same period. Duyuru • Mar 05
Sumitomo Riko Company Limited to Report Fiscal Year 2021 Results on May 11, 2021 Sumitomo Riko Company Limited announced that they will report fiscal year 2021 results on May 11, 2021 Reported Earnings • Feb 04
Third quarter 2021 earnings released: EPS JP¥51.96 (vs JP¥9.24 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥116.6b (up 3.4% from 3Q 2020). Net income: JP¥5.40b (up 463% from 3Q 2020). Profit margin: 4.6% (up from 0.9% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 88% 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. Is New 90 Day High Low • Feb 02
New 90-day high: JP¥678 The company is up 26% from its price of JP¥536 on 04 November 2020. The Japanese market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Auto Components industry, which is up 17% over the same period. Is New 90 Day High Low • Dec 16
New 90-day high: JP¥590 The company is up 3.0% from its price of JP¥571 on 17 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Auto Components industry, which is up 13% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥4,981 per share. Major Estimate Revision • Dec 03
Analysts update estimates The 2021 consensus revenue estimate increased from JP¥383.5b to JP¥388.0b. The company's losses in 2021 are expected to worsen with analysts lowering their EPS forecasts from -JP¥86.68 to -JP¥106. The Auto Components industry in Japan is expected to see an average net income growth of 77% next year. The consensus price target of JP¥700 was unchanged from the last update. Share price is up 2.8% to JP¥552 over the past week.