New Risk • Jul 17
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 102% Cash payout ratio: 0% Dividend yield: 2.0% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Shares are highly illiquid. Dividend is not well covered by earnings and cash flows. Payout ratio: 102% Cash payout ratio: 0% Minor Risk Market cap is less than US$100m (JP¥10.7b market cap, or US$72.3m). Reported Earnings • Jun 16
First quarter 2026 earnings released: EPS: JP¥9.31 (vs JP¥5.26 in 1Q 2025) First quarter 2026 results: EPS: JP¥9.31 (up from JP¥5.26 in 1Q 2025). Revenue: JP¥910.0m (up 11% from 1Q 2025). Net income: JP¥46.0m (up 77% from 1Q 2025). Profit margin: 5.1% (up from 3.2% in 1Q 2025). The increase in margin was driven by higher revenue. Reported Earnings • May 02
Full year 2025 earnings released: EPS: JP¥39.24 (vs JP¥44.70 in FY 2024) Full year 2025 results: EPS: JP¥39.24 (down from JP¥44.70 in FY 2024). Revenue: JP¥3.53b (up 11% from FY 2024). Net income: JP¥194.0m (down 12% from FY 2024). Profit margin: 5.5% (down from 6.9% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has increased by 37% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Apr 29
LIGHTWORKS Corporation to Report Q1, 2026 Results on Jun 13, 2025 LIGHTWORKS Corporation announced that they will report Q1, 2026 results on Jun 13, 2025 Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improves as stock rises 41% After last week's 41% share price gain to JP¥2,171, the stock trades at a trailing P/E ratio of 55.3x. Average trailing P/E is 20x in the Software industry in Japan. Total returns to shareholders of 126% over the past three years. Duyuru • Mar 17
LIGHTWORKS Corporation, Annual General Meeting, Apr 25, 2025 LIGHTWORKS Corporation, Annual General Meeting, Apr 25, 2025. Reported Earnings • Mar 15
Full year 2025 earnings released: EPS: JP¥39.24 (vs JP¥44.70 in FY 2024) Full year 2025 results: EPS: JP¥39.24 (down from JP¥44.70 in FY 2024). Revenue: JP¥3.53b (up 11% from FY 2024). Net income: JP¥194.0m (down 12% from FY 2024). Profit margin: 5.5% (down from 6.9% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 16% per year. New Risk • Mar 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (106% payout ratio). Share price has been volatile over the past 3 months (5.3% average weekly change). Market cap is less than US$100m (JP¥7.59b market cap, or US$51.3m). Duyuru • Jan 28
LIGHTWORKS Corporation to Report Fiscal Year 2024 Results on Mar 14, 2025 LIGHTWORKS Corporation announced that they will report fiscal year 2024 results on Mar 14, 2025 Upcoming Dividend • Jan 23
Upcoming dividend of JP¥33.00 per share Eligible shareholders must have bought the stock before 30 January 2025. Payment date: 28 April 2025. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.3%). Reported Earnings • Dec 15
Third quarter 2025 earnings released: EPS: JP¥9.51 (vs JP¥3.24 in 3Q 2024) Third quarter 2025 results: EPS: JP¥9.51 (up from JP¥3.24 in 3Q 2024). Revenue: JP¥903.0m (up 17% from 3Q 2024). Net income: JP¥47.0m (up 194% from 3Q 2024). Profit margin: 5.2% (up from 2.1% in 3Q 2024). The increase in margin was driven by higher revenue. Duyuru • Oct 17
LIGHTWORKS Corporation to Report Q3, 2025 Results on Dec 13, 2024 LIGHTWORKS Corporation announced that they will report Q3, 2025 results on Dec 13, 2024 Reported Earnings • Sep 15
Second quarter 2025 earnings released: EPS: JP¥8.90 (vs JP¥19.22 in 2Q 2024) Second quarter 2025 results: EPS: JP¥8.90 (down from JP¥19.22 in 2Q 2024). Revenue: JP¥880.0m (up 13% from 2Q 2024). Net income: JP¥44.0m (down 54% from 2Q 2024). Profit margin: 5.0% (down from 12% in 2Q 2024). The decrease in margin was driven by higher expenses. Buy Or Sell Opportunity • Aug 30
Now 22% overvalued The stock has been flat over the last 90 days, currently trading at JP¥1,043. The fair value is estimated to be JP¥856, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last year. Earnings per share has grown by 152%. Buy Or Sell Opportunity • Aug 15
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 3.7% to JP¥1,030. The fair value is estimated to be JP¥858, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last year. Earnings per share has grown by 152%. Duyuru • Jul 27
LIGHTWORKS Corporation to Report Q2, 2025 Results on Sep 13, 2024 LIGHTWORKS Corporation announced that they will report Q2, 2025 results on Sep 13, 2024 Upcoming Dividend • Jul 23
Upcoming dividend of JP¥11.00 per share Eligible shareholders must have bought the stock before 30 July 2024. Payment date: 01 October 2024. Payout ratio and cash payout ratio are on the higher end at 91% and 99% respectively. Trailing yield: 4.4%. Within top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.4%). Reported Earnings • Jun 16
First quarter 2025 earnings released: EPS: JP¥5.26 (vs JP¥1.62 in 1Q 2024) First quarter 2025 results: EPS: JP¥5.26 (up from JP¥1.62 in 1Q 2024). Revenue: JP¥821.0m (up 14% from 1Q 2024). Net income: JP¥26.0m (up 225% from 1Q 2024). Profit margin: 3.2% (up from 1.1% in 1Q 2024). Duyuru • Apr 29
LIGHTWORKS Corporation to Report Q1, 2025 Results on Jun 14, 2024 LIGHTWORKS Corporation announced that they will report Q1, 2025 results on Jun 14, 2024 New Risk • Mar 21
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 201% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (201% accrual ratio). Minor Risks Dividend is not well covered by cash flows (92% cash payout ratio). Share price has been volatile over the past 3 months (7.2% average weekly change). Market cap is less than US$100m (JP¥4.98b market cap, or US$32.9m). Duyuru • Mar 17
LIGHTWORKS Corporation, Annual General Meeting, Apr 25, 2024 LIGHTWORKS Corporation, Annual General Meeting, Apr 25, 2024. Duyuru • Jan 28
LIGHTWORKS Corporation to Report Fiscal Year 2024 Results on Mar 15, 2024 LIGHTWORKS Corporation announced that they will report fiscal year 2024 results on Mar 15, 2024 Upcoming Dividend • Jan 23
Upcoming dividend of JP¥32.00 per share at 1.5% yield Eligible shareholders must have bought the stock before 30 January 2024. Payment date: 30 April 2024. Payout ratio is a comfortable 62% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.3%). In line with average of industry peers (1.4%). Reported Earnings • Dec 16
Third quarter 2024 earnings released: EPS: JP¥3.24 (vs JP¥5.66 in 3Q 2023) Third quarter 2024 results: EPS: JP¥3.24 (down from JP¥5.66 in 3Q 2023). Revenue: JP¥773.0m (up 15% from 3Q 2023). Net income: JP¥16.0m (down 43% from 3Q 2023). Profit margin: 2.1% (down from 4.2% in 3Q 2023). Duyuru • Oct 14
LIGHTWORKS Corporation to Report Q3, 2024 Results on Dec 15, 2023 LIGHTWORKS Corporation announced that they will report Q3, 2024 results on Dec 15, 2023 Reported Earnings • Sep 16
Second quarter 2024 earnings released: EPS: JP¥19.22 (vs JP¥5.66 in 2Q 2023) Second quarter 2024 results: EPS: JP¥19.22 (up from JP¥5.66 in 2Q 2023). Revenue: JP¥778.0m (up 16% from 2Q 2023). Net income: JP¥95.0m (up 239% from 2Q 2023). Profit margin: 12% (up from 4.2% in 2Q 2023). Duyuru • Jul 26
LIGHTWORKS Corporation to Report Q2, 2024 Results on Sep 14, 2023 LIGHTWORKS Corporation announced that they will report Q2, 2024 results on Sep 14, 2023 Upcoming Dividend • Jul 21
Upcoming dividend of JP¥8.00 per share at 1.0% yield Eligible shareholders must have bought the stock before 28 July 2023. Payment date: 02 October 2023. Payout ratio is on the higher end at 94%, however this is supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (1.6%). New Risk • Jul 19
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: Minor Risks Share price has been volatile over the past 3 months (5.4% average weekly change). Profit margins are more than 30% lower than last year (3.5% net profit margin). Shareholders have been diluted in the past year (4.5% increase in shares outstanding). Market cap is less than US$100m (JP¥5.46b market cap, or US$39.3m). New Risk • Jun 16
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.5% Last year net profit margin: 5.5% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Profit margins are more than 30% lower than last year (3.5% net profit margin). Shareholders have been diluted in the past year (4.5% increase in shares outstanding). Market cap is less than US$100m (JP¥4.89b market cap, or US$34.7m). Buying Opportunity • Mar 20
Now 25% undervalued Over the last 90 days, the stock is up 2.9%. The fair value is estimated to be JP¥1,383, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Meanwhile, the company has become profitable. Buying Opportunity • Feb 20
Now 22% undervalued Over the last 90 days, the stock is up 2.5%. The fair value is estimated to be JP¥1,373, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 25% over the last 3 years. Earnings per share has grown by 85%. Duyuru • Feb 01
LIGHTWORKS Corporation to Report Fiscal Year 2023 Results on Mar 17, 2023 LIGHTWORKS Corporation announced that they will report fiscal year 2023 results on Mar 17, 2023 Duyuru • Oct 28
LIGHTWORKS Corporation to Report Q3, 2023 Results on Dec 15, 2022 LIGHTWORKS Corporation announced that they will report Q3, 2023 results on Dec 15, 2022 Duyuru • Jul 28
LIGHTWORKS Corporation to Report Q2, 2023 Results on Sep 14, 2022 LIGHTWORKS Corporation announced that they will report Q2, 2023 results on Sep 14, 2022 Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment deteriorated over the past week After last week's 19% share price decline to JP¥1,514, the stock trades at a trailing P/E ratio of 29.6x. Average trailing P/E is 22x in the Software industry in Japan. Valuation Update With 7 Day Price Move • May 20
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥1,943, the stock trades at a trailing P/E ratio of 36.4x. Average trailing P/E is 21x in the Software industry in Japan. Duyuru • May 02
LIGHTWORKS Corporation to Report Q1, 2023 Results on Jun 14, 2022 LIGHTWORKS Corporation announced that they will report Q1, 2023 results on Jun 14, 2022 Reported Earnings • Mar 16
Full year 2022 earnings: Revenues and EPS in line with analyst expectations Full year 2022 results: EPS: JP¥53.33 (up from JP¥7.75 in FY 2021). Revenue: JP¥2.22b (up 26% from FY 2021). Net income: JP¥121.0m (up JP¥103.0m from FY 2021). Profit margin: 5.5% (up from 1.0% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Duyuru • Feb 24
LIGHTWORKS Corporation to Report Fiscal Year 2022 Results on Mar 15, 2022 LIGHTWORKS Corporation announced that they will report fiscal year 2022 results on Mar 15, 2022 Duyuru • Feb 11
LIGHTWORKS Corporation has completed an IPO in the amount of ¥672 million. LIGHTWORKS Corporation has completed an IPO in the amount of ¥672 million.
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 320,000
Price\Range: ¥2100
Discount Per Security: ¥168