New Risk • May 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 7.1% 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 have declined by 16% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.1% average weekly change). Market cap is less than US$100m (JP¥2.96b market cap, or US$18.6m). Reported Earnings • Feb 16
Full year 2025 earnings released: JP¥4.33 loss per share (vs JP¥38.99 loss in FY 2024) Full year 2025 results: JP¥4.33 loss per share (improved from JP¥38.99 loss in FY 2024). Revenue: JP¥2.75b (down 15% from FY 2024). Net loss: JP¥23.1m (loss narrowed 81% from FY 2024). Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has fallen by 30% per year, which means it is significantly lagging earnings. Duyuru • Feb 13
SHANON Inc., Annual General Meeting, Mar 30, 2026 SHANON Inc., Annual General Meeting, Mar 30, 2026. Buy Or Sell Opportunity • Feb 06
Now 30% overvalued Over the last 90 days, the stock has fallen 1.3% to JP¥390. The fair value is estimated to be JP¥299, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.9% over the last 3 years. Earnings per share has grown by 57%. Reported Earnings • Dec 16
Full year 2025 earnings released: JP¥15.84 loss per share (vs JP¥31.77 loss in FY 2024) Full year 2025 results: JP¥15.84 loss per share (improved from JP¥31.77 loss in FY 2024). Revenue: JP¥2.74b (down 14% from FY 2024). Net loss: JP¥83.0m (loss narrowed 18% from FY 2024). Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has fallen by 21% per year, which means it is significantly lagging earnings. Duyuru • Dec 03
SHANON Inc. to Report Fiscal Year 2025 Results on Feb 13, 2026 SHANON Inc. announced that they will report fiscal year 2025 results on Feb 13, 2026 Reported Earnings • Sep 14
Third quarter 2025 earnings released: EPS: JP¥1.52 (vs JP¥13.19 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥1.52 (up from JP¥13.19 loss in 3Q 2024). Revenue: JP¥661.0m (down 17% from 3Q 2024). Net income: JP¥9.00m (up JP¥51.0m from 3Q 2024). Profit margin: 1.4% (up from net loss in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has fallen by 28% per year, which means it is significantly lagging earnings. Reported Earnings • Jun 14
Second quarter 2025 earnings released: EPS: JP¥0.41 (vs JP¥13.21 in 2Q 2024) Second quarter 2025 results: EPS: JP¥0.41 (down from JP¥13.21 in 2Q 2024). Revenue: JP¥766.0m (down 10.0% from 2Q 2024). Net income: JP¥2.43m (down 94% from 2Q 2024). Profit margin: 0.3% (down from 4.9% in 2Q 2024). 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 32% per year, which means it is significantly lagging earnings. Duyuru • Apr 01
SHANON Inc. to Report Q3, 2025 Results on Sep 11, 2025 SHANON Inc. announced that they will report Q3, 2025 results on Sep 11, 2025 Reported Earnings • Mar 15
First quarter 2025 earnings released: JP¥49.99 loss per share (vs JP¥42.85 loss in 1Q 2024) First quarter 2025 results: JP¥49.99 loss per share (further deteriorated from JP¥42.85 loss in 1Q 2024). Revenue: JP¥670.0m (up 6.3% from 1Q 2024). Net loss: JP¥159.0m (loss widened 17% from 1Q 2024). Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 34% per year, which means it is significantly lagging earnings. New Risk • Feb 23
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 86% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Negative equity (-JP¥53m). Earnings have declined by 54% per year over the past 5 years. Shareholders have been substantially diluted in the past year (86% increase in shares outstanding). Minor Risk Market cap is less than US$100m (JP¥2.68b market cap, or US$18.0m). Reported Earnings • Feb 06
Full year 2024 earnings released: JP¥31.77 loss per share (vs JP¥145 loss in FY 2023) Full year 2024 results: JP¥31.77 loss per share (improved from JP¥145 loss in FY 2023). Revenue: JP¥3.21b (up 9.3% from FY 2023). Net loss: JP¥101.0m (loss narrowed 77% from FY 2023). Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has fallen by 31% per year, which means it is performing significantly worse than earnings. New Risk • Jan 23
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.8% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (7.8% average weekly change). Negative equity (-JP¥53m). Earnings have declined by 54% per year over the past 5 years. Market cap is less than US$10m (JP¥1.35b market cap, or US$8.65m). New Risk • Jan 22
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: JP¥1.49b (US$9.59m) This is considered a major 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 Risks Negative equity (-JP¥53m). Earnings have declined by 54% per year over the past 5 years. Market cap is less than US$10m (JP¥1.49b market cap, or US$9.59m). Minor Risk Share price has been volatile over the past 3 months (7.2% average weekly change). Reported Earnings • Dec 15
Full year 2024 earnings released: JP¥31.77 loss per share (vs JP¥145 loss in FY 2023) Full year 2024 results: JP¥31.77 loss per share (improved from JP¥145 loss in FY 2023). Revenue: JP¥3.21b (up 9.3% from FY 2023). Net loss: JP¥101.0m (loss narrowed 77% from FY 2023). Over the last 3 years on average, earnings per share has fallen by 25% per year whereas the company’s share price has fallen by 30% per year. Duyuru • Dec 13
SHANON Inc., Annual General Meeting, Jan 30, 2025 SHANON Inc., Annual General Meeting, Jan 30, 2025. New Risk • Nov 28
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 5.4% 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 Risks Negative equity (-JP¥86m). Earnings have declined by 60% per year over the past 5 years. Market cap is less than US$10m (JP¥1.46b market cap, or US$9.68m). Minor Risk Share price has been volatile over the past 3 months (5.4% average weekly change). Board Change • Nov 21
Less than half of directors are independent There are 3 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: 3 new directors. 1 experienced director. 2 highly experienced directors. 1 independent director (2 non-independent directors). President & Representative Director Kenichiro Nakamura is the most experienced director on the board, commencing their role in 2000. Independent Outside Director Yoshihiro Murakami was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Duyuru • Oct 30
Someya Kaguten Co., Ltd. agreed to acquire GOTO BRAND Inc from SHANON Inc. (TSE:3976) for ¥170 million. Someya Kaguten Co., Ltd. agreed to acquire GOTO BRAND Inc from SHANON Inc. (TSE:3976) for ¥170 million on October 30, 2024. A cash consideration of ¥170 million will be paid by Someya Kaguten Co., Ltd.
For the period ending August 31, 2024, GOTO BRAND Inc reported total revenue of ¥191.75 million, EBIT of ¥45.13 million and net income of ¥11.24 million. As of August 31, 2024, GOTO BRAND Inc reported total assets of ¥183.22 million and total common equity of ¥35.11 million. The expected completion of the transaction is October 31, 2024. Duyuru • Oct 02
SHANON Inc. to Report Fiscal Year 2024 Results on Dec 13, 2024 SHANON Inc. announced that they will report fiscal year 2024 results on Dec 13, 2024 Reported Earnings • Sep 15
Third quarter 2024 earnings released: JP¥13.19 loss per share (vs JP¥104 loss in 3Q 2023) Third quarter 2024 results: JP¥13.19 loss per share (improved from JP¥104 loss in 3Q 2023). Revenue: JP¥794.2m (up 35% from 3Q 2023). Net loss: JP¥42.0m (loss narrowed 87% from 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has only fallen by 34% per year, which means it has not declined as severely as earnings. Duyuru • Jun 30
SHANON Inc. to Report Q3, 2024 Results on Sep 12, 2024 SHANON Inc. announced that they will report Q3, 2024 results on Sep 12, 2024 Reported Earnings • Jun 17
Second quarter 2024 earnings released: EPS: JP¥13.28 (vs JP¥4.66 in 2Q 2023) Second quarter 2024 results: EPS: JP¥13.28 (up from JP¥4.66 in 2Q 2023). Revenue: JP¥850.9m (up 3.5% from 2Q 2023). Net income: JP¥42.2m (up 202% from 2Q 2023). Profit margin: 5.0% (up from 1.7% in 2Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 49 percentage points per year, which is a significant difference in performance. Duyuru • Mar 31
SHANON Inc. to Report Q2, 2024 Results on Jun 13, 2024 SHANON Inc. announced that they will report Q2, 2024 results on Jun 13, 2024 Reported Earnings • Mar 17
First quarter 2024 earnings released: JP¥42.85 loss per share (vs JP¥51.45 loss in 1Q 2023) First quarter 2024 results: JP¥42.85 loss per share (improved from JP¥51.45 loss in 1Q 2023). Revenue: JP¥630.0m (flat on 1Q 2023). Net loss: JP¥136.0m (loss narrowed 9.9% from 1Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 62 percentage points per year, which is a significant difference in performance. Reported Earnings • Feb 03
Full year 2023 earnings released: JP¥145 loss per share (vs JP¥124 loss in FY 2022) Full year 2023 results: JP¥145 loss per share (further deteriorated from JP¥124 loss in FY 2022). Revenue: JP¥2.93b (up 20% from FY 2022). Net loss: JP¥445.0m (loss widened 22% from FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. Duyuru • Jan 30
SHANON Inc. announced that it has received ¥524.292108 million in funding from Whiz Partners Inc. On January 29, 2024, SHANON Inc. closed the transaction. The exercise period of 26th and 27th stock acquisition rights is from January 30, 2024 to December 24, 2027. Duyuru • Jan 05
SHANON Inc. to Report Q1, 2024 Results on Mar 14, 2024 SHANON Inc. announced that they will report Q1, 2024 results on Mar 14, 2024 Reported Earnings • Dec 16
Full year 2023 earnings released: JP¥145 loss per share (vs JP¥124 loss in FY 2022) Full year 2023 results: JP¥145 loss per share (further deteriorated from JP¥124 loss in FY 2022). Revenue: JP¥2.93b (up 20% from FY 2022). Net loss: JP¥445.0m (loss widened 22% from FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. Duyuru • Dec 15
SHANON Inc., Annual General Meeting, Jan 26, 2024 SHANON Inc., Annual General Meeting, Jan 26, 2024. New Risk • Oct 25
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.2% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (8.2% average weekly change). Earnings have declined by 45% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (8.2% increase in shares outstanding). Market cap is less than US$100m (JP¥1.69b market cap, or US$11.3m). New Risk • Oct 23
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: JP¥1.47b (US$9.78m) This is considered a major 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 Risks Earnings have declined by 45% per year over the past 5 years. Market cap is less than US$10m (JP¥1.47b market cap, or US$9.78m). Minor Risks Share price has been volatile over the past 3 months (6.5% average weekly change). Shareholders have been diluted in the past year (8.2% increase in shares outstanding). Reported Earnings • Sep 13
Third quarter 2023 earnings released: JP¥104 loss per share (vs JP¥37.86 loss in 3Q 2022) Third quarter 2023 results: JP¥104 loss per share (further deteriorated from JP¥37.86 loss in 3Q 2022). Revenue: JP¥587.0m (flat on 3Q 2022). Net loss: JP¥323.0m (loss widened 191% from 3Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 98 percentage points per year, which is a significant difference in performance. Duyuru • Sep 12
SHANON Inc. Provides Consolidated Earnings Guidance for the Year Ending October 31, 2023 SHANON Inc. provided consolidated earnings guidance for the year ending October 31, 2023. For the year, the company expects net sales of JPY 2,958 million, operating loss of JPY 205 million, loss attributable to owners of parent of JPY 376 million and loss per share of JPY 122.86. New Risk • Jun 16
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -JP¥371m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-JP¥371m free cash flow). Share price has been highly volatile over the past 3 months (8.9% average weekly change). Earnings have declined by 20% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (4.1% increase in shares outstanding). Market cap is less than US$100m (JP¥2.37b market cap, or US$16.8m). Reported Earnings • Jun 14
Second quarter 2023 earnings released: EPS: JP¥4.66 (vs JP¥23.54 loss in 2Q 2022) Second quarter 2023 results: EPS: JP¥4.66 (up from JP¥23.54 loss in 2Q 2022). Revenue: JP¥822.0m (up 38% from 2Q 2022). Net income: JP¥14.0m (up JP¥83.0m from 2Q 2022). Profit margin: 1.7% (up from net loss in 2Q 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 104 percentage points per year, which is a significant difference in performance. Duyuru • Jun 13
Shanon Inc. Provides Consolidated Earnings Guidance for the Fiscal Year Ending October 31, 2023 SHANON Inc. provided consolidated earnings guidance for the fiscal year ending October 31, 2023. For the year the company expects net sales of JPY 3,500 million, operating profit of JPY 70 million, profit attributable to owners of parent of JPY 53 million and basic earnings per share of JPY 18.06. Reported Earnings • Mar 15
First quarter 2023 earnings released: JP¥51.45 loss per share (vs JP¥25.92 loss in 1Q 2022) First quarter 2023 results: JP¥51.45 loss per share (further deteriorated from JP¥25.92 loss in 1Q 2022). Revenue: JP¥628.0m (up 18% from 1Q 2022). Net loss: JP¥151.0m (loss widened 99% from 1Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 130 percentage points per year, which is a significant difference in performance. Reported Earnings • Feb 02
Full year 2022 earnings released: JP¥124 loss per share (vs JP¥36.53 profit in FY 2021) Full year 2022 results: JP¥124 loss per share (down from JP¥36.53 profit in FY 2021). Revenue: JP¥2.46b (up 12% from FY 2021). Net loss: JP¥365.0m (down 441% from profit in FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 99 percentage points per year, which is a significant difference in performance. Duyuru • Jan 06
SHANON Inc. to Report Q1, 2023 Results on Mar 14, 2023 SHANON Inc. announced that they will report Q1, 2023 results on Mar 14, 2023 Duyuru • Dec 15
SHANON Inc., Annual General Meeting, Jan 27, 2023 SHANON Inc., Annual General Meeting, Jan 27, 2023. Reported Earnings • Dec 14
Full year 2022 earnings released: JP¥124 loss per share (vs JP¥36.53 profit in FY 2021) Full year 2022 results: JP¥124 loss per share (down from JP¥36.53 profit in FY 2021). Revenue: JP¥2.46b (up 12% from FY 2021). Net loss: JP¥365.0m (down 441% from profit in FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 97 percentage points per year, which is a significant difference in performance. Duyuru • Dec 13
SHANON Inc. Provides Consolidated Earnings Guidance for the Six Months Ending April 30, 2023 and Year Ending October 31, 2023 SHANON Inc. provided consolidated earnings guidance for the six months ending April 30, 2023 and year ending October 31, 2023. For the six months, the company expects net sales of JPY 1,580 million, operating loss of JPY 70 million, loss attributable to owners of parent of JPY 81 million and loss per share of JPY 27.60.For the year, the company expects net sales of JPY 3,500 million, operating profit of JPY 70 million, profit attributable to owners of parent of JPY 53 million and earnings per share of JPY 18.06. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. 1 independent director (6 non-independent directors). Independent Outside Director Kazuyuki Arata 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. Insufficient board refreshment. Duyuru • Oct 05
SHANON Inc. to Report Fiscal Year 2022 Results on Dec 12, 2022 SHANON Inc. announced that they will report fiscal year 2022 results on Dec 12, 2022 Reported Earnings • Sep 14
Third quarter 2022 earnings released: JP¥37.86 loss per share (vs JP¥26.29 loss in 3Q 2021) Third quarter 2022 results: JP¥37.86 loss per share (further deteriorated from JP¥26.29 loss in 3Q 2021). Revenue: JP¥586.0m (up 30% from 3Q 2021). Net loss: JP¥111.0m (loss widened 44% from 3Q 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 88 percentage points per year, which is a significant difference in performance. Reported Earnings • Jun 13
Second quarter 2022 earnings released: JP¥23.54 loss per share (vs JP¥6.83 profit in 2Q 2021) Second quarter 2022 results: JP¥23.54 loss per share (down from JP¥6.83 profit in 2Q 2021). Revenue: JP¥597.0m (up 10% from 2Q 2021). Net loss: JP¥69.0m (down 445% from profit in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 21% per year, which means it is well ahead of earnings. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. 1 independent director (6 non-independent directors). Independent Outside Director Kazuyuki Arata 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. Insufficient board refreshment. Duyuru • Apr 08
SHANON Inc. to Report Q2, 2022 Results on Jun 10, 2022 SHANON Inc. announced that they will report Q2, 2022 results on Jun 10, 2022 Reported Earnings • Mar 15
First quarter 2022 earnings: Revenues and EPS in line with analyst expectations First quarter 2022 results: JP¥25.92 loss per share (down from JP¥32.11 profit in 1Q 2021). Revenue: JP¥533.0m (down 10% from 1Q 2021). Net loss: JP¥76.0m (down 181% from profit in 1Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 26% per year whereas the company’s share price has increased by 23% per year. Reported Earnings • Feb 04
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: JP¥36.53 (up from JP¥19.41 in FY 2020). Revenue: JP¥2.20b (up 23% from FY 2020). Net income: JP¥107.0m (up 91% from FY 2020). Profit margin: 4.9% (up from 3.1% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 25
Investor sentiment deteriorated over the past week After last week's 15% share price decline to JP¥1,473, the stock trades at a trailing P/E ratio of 40.4x. Average trailing P/E is 22x in the Software industry in Japan. Total returns to shareholders of 98% over the past three years. Reported Earnings • Dec 17
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: JP¥36.53 (up from JP¥19.41 in FY 2020). Revenue: JP¥2.20b (up 23% from FY 2020). Net income: JP¥107.0m (up 91% from FY 2020). Profit margin: 4.9% (up from 3.1% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 47% per year, which means it is significantly lagging earnings growth. Reported Earnings • Sep 18
Third quarter 2021 earnings released: JP¥26.29 loss per share (vs JP¥4.82 loss in 3Q 2020) The company reported a soft third quarter result with increased losses and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: JP¥451.0m (up 20% from 3Q 2020). Net loss: JP¥77.0m (loss widened 450% from 3Q 2020). Over the last 3 years on average, earnings per share has increased by 106% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 09
Investor sentiment improved over the past week After last week's 28% share price gain to JP¥1,609, the stock trades at a trailing P/E ratio of 42.7x. Average trailing P/E is 30x in the Software industry in Japan. Total returns to shareholders of 115% over the past three years. Reported Earnings • Jun 14
Second quarter 2021 earnings released: EPS JP¥136,986 (vs JP¥10.03 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: JP¥542.0m (up 23% from 2Q 2020). Net income: JP¥20.0m (down 31% from 2Q 2020). Profit margin: 3.7% (down from 6.6% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 126% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 24
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥1,340, the stock trades at a trailing P/E ratio of 32.8x. Average trailing P/E is 34x in the Software industry in Japan. Total returns to shareholders of 26% over the past three years. Duyuru • May 01
SHANON Inc. (TSE:3976) completed the acquisition of Digital marketing Business Of TAGGY, Inc. SHANON Inc. (TSE:3976) entered into a letter of intent to acquire Digital marketing Business Of TAGGY, Inc on April 7, 2021. SHANON Inc. (TSE:3976) agreed to acquire Digital marketing Business Of TAGGY, Inc on April 13, 2021. For the year ending July 31, 2020, Digital marketing Business Of TAGGY, Inc reported revenues of ¥ 161 million. The transaction was resolved by the board of SHANON Inc. on April 7, 2021.
SHANON Inc. (TSE:3976) completed the acquisition of Digital marketing Business Of TAGGY, Inc on April 30, 2021. Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment improved over the past week After last week's 21% share price gain to JP¥3,310, the stock trades at a trailing P/E ratio of 40.5x. Average trailing P/E is 37x in the Software industry in Japan. Total returns to shareholders of 67% over the past three years. Reported Earnings • Mar 14
First quarter 2021 earnings released: EPS JP¥64.21 (vs JP¥22.00 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: JP¥595.0m (up 14% from 1Q 2020). Net income: JP¥94.0m (up 203% from 1Q 2020). Profit margin: 16% (up from 5.9% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 127% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 12
Investor sentiment improved over the past week After last week's 24% share price gain to JP¥2,234, the stock is trading at a trailing P/E ratio of 57.5x, up from the previous P/E ratio of 46.5x. This compares to an average P/E of 38x in the Software industry in Japan. Total returns to shareholders over the past three years are 8.0%. Is New 90 Day High Low • Mar 05
New 90-day low: JP¥1,805 The company is down 33% from its price of JP¥2,695 on 04 December 2020. The Japanese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is down 6.0% over the same period. Reported Earnings • Feb 02
Full year 2020 earnings released: EPS JP¥38.83 (vs JP¥17.27 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: JP¥1.79b (down 3.7% from FY 2019). Net income: JP¥56.0m (up 133% from FY 2019). Profit margin: 3.1% (up from 1.3% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 122% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Feb 01
New 90-day low: JP¥1,836 The company is down 1.0% from its price of JP¥1,855 on 02 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 6.0% over the same period. Duyuru • Dec 27
SHANON Inc. to Report Q1, 2021 Results on Mar 12, 2021 SHANON Inc. announced that they will report Q1, 2021 results on Mar 12, 2021 Reported Earnings • Dec 17
Full year 2020 earnings released: EPS JP¥38.83 The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: JP¥1.79b (down 3.7% from FY 2019). Net income: JP¥56.0m (up 133% from FY 2019). Profit margin: 3.1% (up from 1.3% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 122% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment deteriorated over the past week After last week's 22% share price decline to JP¥2,120, the stock is trading at a trailing P/E ratio of 31.1x, down from the previous P/E ratio of 39.8x. This compares to an average P/E of 39x in the Software industry in Japan. Total return to shareholders over the past three years is a loss of 2.3%. Valuation Update With 7 Day Price Move • Dec 02
Market bids up stock over the past week After last week's 21% share price gain to JP¥2,794, the stock is trading at a trailing P/E ratio of 41x, up from the previous P/E ratio of 33.9x. This compares to an average P/E of 40x in the Software industry in Japan. Total returns to shareholders over the past three years are 29%.