Duyuru • Jul 09
Lawson, Inc. to Delist from Prime Section of Tokyo Stock Exchange, Effective July 24, 2024 Lawson, Inc. will be delisted from Prime Section of Tokyo Stock Exchange effective from July 24, 2024 due to Reverse stock split. Duyuru • May 09
Lawson, Inc.(TSE:2651) dropped from FTSE All-World Index (USD) Lawson, Inc.(TSE:2651) dropped from FTSE All-World Index (USD) Duyuru • May 03
Lawson, Inc. to Report Q1, 2025 Results on Jul 12, 2024 Lawson, Inc. announced that they will report Q1, 2025 results on Jul 12, 2024 Duyuru • Apr 27
KDDI Corporation (TSE:9433) completed the acquisition of additional 47.88% stake in Lawson, Inc. (TSE:2651) from its shareholders for ¥400 billion. KDDI Corporation (TSE:9433) made an offer to acquire an additional 47.88% stake in Lawson, Inc. (TSE:2651) from its shareholders for ¥500 billion on February 6, 2024. The commencement of tender offer is March 28, 2024, and closing of tender offer period is April 25, 2024. Nishimura & Asahi acted as legal advisor and UBS Securities Japan Co., Ltd. acted as financial advisor for KDDI Corporation. Anderson Mori & Tomotsune LPC and Nakamura, Tsunoda & Matsumoto acted as legal advisors and Daiwa Securities Co. Ltd. and SMBC Nikko Securities Inc. acted as financial advisors for Lawson Inc. Nomura Securities Co., Ltd acted as Tender offer agent in the transaction.KDDI Corporation (TSE:9433) completed the acquisition of additional 39% stake in Lawson, Inc. (TSE:2651) from its shareholders for ¥400 billion on April 26, 2024. Reported Earnings • Apr 12
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥521 (up from JP¥297 in FY 2023). Revenue: JP¥1.09t (up 8.8% from FY 2023). Net income: JP¥52.1b (up 76% from FY 2023). Profit margin: 4.8% (up from 3.0% 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 5.8%. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 2.8% growth forecast for the Consumer Retailing industry in Japan. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Price Target Changed • Mar 04
Price target increased by 9.1% to JP¥9,036 Up from JP¥8,283, the current price target is an average from 9 analysts. New target price is 12% below last closing price of JP¥10,225. Stock is up 89% over the past year. The company is forecast to post earnings per share of JP¥488 for next year compared to JP¥297 last year. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to JP¥10,270, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 14x in the Consumer Retailing industry in Japan. Total returns to shareholders of 110% over the past three years. Reported Earnings • Jan 14
Third quarter 2024 earnings: EPS exceeds analyst expectations Third quarter 2024 results: EPS: JP¥135 (up from JP¥107 in 3Q 2023). Revenue: JP¥268.7b (up 5.8% from 3Q 2023). Net income: JP¥13.5b (up 26% from 3Q 2023). Profit margin: 5.0% (up from 4.2% in 3Q 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 21%. Revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 2.8% growth forecast for the Consumer Retailing industry in Japan. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Duyuru • Jan 12
Lawson, Inc. Provides Consolidated Earnings Guidance for the Fiscal Year Ending February 29, 2024 Lawson, Inc. provided consolidated earnings guidance for the fiscal year ending February 29, 2024. For the year, the company expects gross operating revenue of JPY 1,090,000 million, Core operating profit of JPY 88,000 million, profit attributable to owners of parent of JPY 50,000 million and basic earnings per share of JPY 499.61 against previous guidance of gross operating revenue of JPY 1,080,000 million, Core operating profit of JPY 85,000 million, profit attributable to owners of parent of JPY 47,000 million and basic earnings per share of JPY 469.63. Duyuru • Nov 03
Lawson, Inc. to Report Q3, 2024 Results on Jan 12, 2024 Lawson, Inc. announced that they will report Q3, 2024 results on Jan 12, 2024 Reported Earnings • Oct 14
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: JP¥163 (up from JP¥73.74 in 2Q 2023). Revenue: JP¥281.4b (up 14% from 2Q 2023). Net income: JP¥16.3b (up 121% from 2Q 2023). Profit margin: 5.8% (up from 3.0% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 7.8%. Earnings per share (EPS) also surpassed analyst estimates by 83%. Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Consumer Retailing industry in Japan. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Duyuru • Oct 13
Lawson, Inc. Provides Consolidated Earnings Guidance for the Fiscal Year Ending February 29, 2024 Lawson, Inc. provided consolidated earnings guidance for the fiscal year ending February 29, 2024. For the year, the company expects gross operating revenue of JPY 1,080,000 million, Core operating profit of JPY 85,000 million, profit attributable to owners of parent of JPY 47,000 million and basic earnings per share of JPY 469.63. Major Estimate Revision • Sep 21
Consensus EPS estimates increase by 46% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥275 to JP¥402. Revenue forecast unchanged at JP¥1.06t. Net income forecast to shrink 1.8% next year vs 10% growth forecast for Consumer Retailing industry in Japan . Consensus price target up from JP¥6,815 to JP¥7,173. Share price was steady at JP¥6,830 over the past week. Upcoming Dividend • Aug 23
Upcoming dividend of JP¥100.00 per share at 2.8% yield Eligible shareholders must have bought the stock before 30 August 2023. Payment date: 10 November 2023. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.6%). Duyuru • Aug 03
Lawson, Inc. to Report Q2, 2024 Results on Oct 13, 2023 Lawson, Inc. announced that they will report Q2, 2024 results on Oct 13, 2023 Price Target Changed • Jul 14
Price target increased by 7.4% to JP¥6,369 Up from JP¥5,931, the current price target is an average from 13 analysts. New target price is 6.1% below last closing price of JP¥6,783. Stock is up 44% over the past year. The company is forecast to post earnings per share of JP¥324 for next year compared to JP¥297 last year. Reported Earnings • Jul 14
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: JP¥161 (up from JP¥80.23 in 1Q 2023). Revenue: JP¥264.1b (up 11% from 1Q 2023). Net income: JP¥16.1b (up 100% from 1Q 2023). Profit margin: 6.1% (up from 3.4% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.0%. Earnings per share (EPS) also surpassed analyst estimates by 82%. Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 2.3% growth forecast for the Consumer Retailing industry in Japan. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. New Risk • Jul 13
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 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 (5.3% average weekly change). Large one-off items impacting financial results. New Risk • Jun 13
New major risk - Revenue and earnings growth Earnings have declined by 4.9% per year over the past 5 years. 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 declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings 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 Earnings have declined by 4.9% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Reported Earnings • May 30
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥297 (up from JP¥179 in FY 2022). Revenue: JP¥1.00t (up 43% from FY 2022). Net income: JP¥29.7b (up 66% from FY 2022). Profit margin: 3.0% (up from 2.6% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.3%. Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 1.8% growth forecast for the Consumer Retailing 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 only increased by 2% per year, which means it is significantly lagging earnings growth. Duyuru • May 24
Lawson, Inc. to Report Q1, 2024 Results on Jul 11, 2023 Lawson, Inc. announced that they will report Q1, 2024 results on Jul 11, 2023 Reported Earnings • Apr 14
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥247 (up from JP¥179 in FY 2022). Revenue: JP¥988.6b (up 42% from FY 2022). Net income: JP¥24.7b (up 38% from FY 2022). Profit margin: 2.5% (in line with FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.3%. Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 1.6% growth forecast for the Consumer Retailing industry in Japan. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Upcoming Dividend • Feb 20
Upcoming dividend of JP¥75.00 per share at 2.8% yield Eligible shareholders must have bought the stock before 27 February 2023. Payment date: 26 May 2023. Payout ratio is on the higher end at 76%, however this is supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Duyuru • Feb 03
Lawson, Inc. to Report Fiscal Year 2023 Results on Apr 13, 2023 Lawson, Inc. announced that they will report fiscal year 2023 results on Apr 13, 2023 Reported Earnings • Jan 11
Third quarter 2023 earnings: EPS exceeds analyst expectations Third quarter 2023 results: EPS: JP¥107 (up from JP¥69.68 in 3Q 2022). Revenue: JP¥253.9b (up 46% from 3Q 2022). Net income: JP¥10.7b (up 54% from 3Q 2022). Profit margin: 4.2% (up from 4.0% in 3Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 86%. Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Consumer Retailing 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 8% per year, which means it is significantly lagging earnings. Duyuru • Jan 10
Lawson, Inc. Provides Consolidated Earnings Guidance for the Year Ending February 28, 2023 Lawson, Inc. provided consolidated earnings guidance for the year ending February 28, 2023. For the year, the company expects gross operating revenue of JPY 1,024,000 million, operating income of JPY 53,000 million, profit attributable to owners of parent of JPY 22,000 million or JPY 219.83 per share. Board Change • Nov 16
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, 1 was an independent director. The company's board is composed of: 5 new directors. 3 experienced directors. 2 highly experienced directors. 2 independent directors (3 non-independent directors). Outside Audit & Supervisory Board Member Eiko Tsujiyama is the most experienced director on the board, commencing their role in 2011. Independent Outside Director Satoko Suzuki was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Duyuru • Nov 03
Lawson, Inc. to Report Q3, 2023 Results on Jan 10, 2023 Lawson, Inc. announced that they will report Q3, 2023 results on Jan 10, 2023 Reported Earnings • Oct 07
Second quarter 2023 earnings: EPS exceeds analyst expectations Second quarter 2023 results: EPS: JP¥73.74 (down from JP¥118 in 2Q 2022). Revenue: JP¥245.7b (up 37% from 2Q 2022). Net income: JP¥7.38b (down 37% from 2Q 2022). Profit margin: 3.0% (down from 6.6% in 2Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 28%. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Consumer Retailing industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 8% per year. Upcoming Dividend • Aug 23
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 30 August 2022. Payment date: 10 November 2022. Payout ratio is a comfortable 74% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Reported Earnings • Jul 13
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: EPS: JP¥80.23 (up from JP¥56.33 in 1Q 2022). Net income: JP¥8.03b (up 42% from 1Q 2022). Revenue exceeded analyst estimates by 7.1%. Earnings per share (EPS) also surpassed analyst estimates by 65%. Over the last 3 years on average, earnings per share has fallen by 15% 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 • Jun 01
Full year 2022 earnings: Revenues in line with analyst expectations Full year 2022 results: Net income: JP¥17.9b (up 106% from FY 2021). Revenue was in line with analyst estimates. Board Change • Apr 27
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 6 new directors. 5 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Outside Audit & Supervisory Board Member Eiko Tsujiyama is the most experienced director on the board, commencing their role in 2011. Independent Outside Director Satoko Suzuki was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Apr 12
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: JP¥179 (up from JP¥86.83 in FY 2021). Revenue: JP¥698.4b (up 4.9% from FY 2021). Net income: JP¥17.9b (up 106% from FY 2021). Profit margin: 2.6% (up from 1.3% in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.9%. Over the next year, revenue is forecast to grow 13%, compared to a 20% growth forecast for the retail industry in Japan. Over the last 3 years on average, earnings per share has fallen by 17% 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 • Feb 18
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 25 February 2022. Payment date: 26 May 2022. Payout ratio is a comfortable 71% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.6%). Reported Earnings • Jan 09
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: JP¥69.68 (down from JP¥85.91 in 3Q 2021). Revenue: JP¥173.7b (flat on 3Q 2021). Net income: JP¥6.97b (down 19% from 3Q 2021). Profit margin: 4.0% (down from 4.9% in 3Q 2021). Revenue missed analyst estimates by 4.5%. Earnings per share (EPS) exceeded analyst estimates by 25%. Earnings per share (EPS) surpassed analyst estimates by 25%. Over the next year, revenue is forecast to grow 6.1%, compared to a 28% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 18% 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. Reported Earnings • Oct 08
Second quarter 2022 earnings released: EPS JP¥118 (vs JP¥74.87 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥179.5b (up 7.1% from 2Q 2021). Net income: JP¥11.8b (up 57% from 2Q 2021). Profit margin: 6.6% (up from 4.5% in 2Q 2021). 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 7% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Aug 23
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 30 August 2021. Payment date: 10 November 2021. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.1%). Higher than average of industry peers (1.4%). Reported Earnings • Jul 09
First quarter 2022 earnings released: EPS JP¥56.33 (vs JP¥41.82 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¥169.3b (up 8.9% from 1Q 2021). Net income: JP¥5.64b (up JP¥9.82b from 1Q 2021). Profit margin: 3.3% (up from net loss in 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Reported Earnings • May 29
Full year 2021 earnings released: EPS JP¥86.83 (vs JP¥201 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥666.0b (down 8.8% from FY 2020). Net income: JP¥8.69b (down 57% from FY 2020). Profit margin: 1.3% (down from 2.8% in FY 2020). 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 10% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Apr 15
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from JP¥210 to JP¥183 per share. Revenue forecast steady at JP¥708.5b. Net income forecast to grow 129% next year vs 7.4% growth forecast for Consumer Retailing industry in Japan. Consensus price target broadly unchanged at JP¥4,964. Share price fell 5.0% to JP¥5,160 over the past week. Reported Earnings • Apr 09
Full year 2021 earnings released: EPS JP¥86.83 (vs JP¥201 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥666.0b (down 8.8% from FY 2020). Net income: JP¥8.69b (down 57% from FY 2020). Profit margin: 1.3% (down from 2.8% in FY 2020). 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 9% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Mar 09
New 90-day high: JP¥5,400 The company is up 13% from its price of JP¥4,770 on 09 December 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Retailing industry, which is up 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥15,269 per share. Is New 90 Day High Low • Feb 05
New 90-day high: JP¥5,300 The company is up 7.0% from its price of JP¥4,945 on 06 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Consumer Retailing industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥15,300 per share. Analyst Estimate Surprise Post Earnings • Jan 19
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 7.2%. Earnings per share (EPS) also surpassed analyst estimates by 311%. Over the next year, revenue is forecast to grow 2.4%, compared to a 8.3% growth forecast for the Consumer Retailing industry in Japan. Analyst Estimate Surprise Post Earnings • Jan 16
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 7.2%. Earnings per share (EPS) also surpassed analyst estimates by 311%. Over the next year, revenue is forecast to grow 2.4%, compared to a 8.2% growth forecast for the Consumer Retailing industry in Japan. Reported Earnings • Jan 09
Third quarter 2021 earnings released: EPS JP¥85.91 The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: JP¥174.5b (down 4.0% from 3Q 2020). Net income: JP¥8.60b (up 47% from 3Q 2020). Profit margin: 4.9% (up from 3.2% in 3Q 2020). The increase in margin was driven by lower expenses. 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 12% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Jan 09
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 7.2%. Earnings per share (EPS) also surpassed analyst estimates by 311%. Over the next year, revenue is forecast to grow 2.3%, compared to a 4.9% growth forecast for the Consumer Retailing industry in Japan. Major Estimate Revision • Jan 05
Analysts update estimates The 2021 consensus earning per share (EPS) estimate was lowered from JP¥74.26 to JP¥60.60. Revenue estimate was approximately flat at JP¥666.4b. Net income is expected to grow by 286% next year compared to 3.1% growth forecast for the Consumer Retailing industry in Japan. The consensus price target was lowered from JP¥4,936 to JP¥4,893. Share price is down by 3.7% to JP¥4,695 over the past week. Is New 90 Day High Low • Dec 08
New 90-day low: JP¥4,715 The company is down 8.0% from its price of JP¥5,100 on 09 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 Consumer Retailing industry, which is up 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥14,674 per share. 
