Reported Earnings • May 01
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: EPS: JP¥44.01 (up from JP¥38.22 in 1Q 2025). Revenue: JP¥344.8b (up 9.3% from 1Q 2025). Net income: JP¥16.7b (up 15% from 1Q 2025). Profit margin: 4.8% (up from 4.6% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.8%. Earnings per share (EPS) also surpassed analyst estimates by 9.6%. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Apr 30
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 5.9% to JP¥2,882. The fair value is estimated to be JP¥3,631, however this is not to be taken as a buy 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 17%. For the next 3 years, revenue is forecast to grow by 4.7% per annum. Earnings are also forecast to grow by 6.7% per annum over the same time period. Duyuru • Apr 21
Otsuka Corporation to Report Q1, 2026 Results on Apr 30, 2026 Otsuka Corporation announced that they will report Q1, 2026 results on Apr 30, 2026 Declared Dividend • Apr 11
Final dividend of JP¥50.00 announced Shareholders will receive a dividend of JP¥50.00. Ex-date: 29th June 2026 Payment date: 3rd September 2026 Dividend yield will be 3.2%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (53% earnings payout ratio) and cash flows (50% cash payout ratio). The dividend has increased by an average of 15% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 21% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Apr 10
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.0% to JP¥2,972. The fair value is estimated to be JP¥3,718, however this is not to be taken as a buy 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 17%. For the next 3 years, revenue is forecast to grow by 4.7% per annum. Earnings are also forecast to grow by 6.7% per annum over the same time period. Duyuru • Feb 27
Otsuka Corporation, Annual General Meeting, Mar 27, 2026 Otsuka Corporation, Annual General Meeting, Mar 27, 2026, at 10:00 Tokyo Standard Time. Duyuru • Feb 21
Otsuka Corporation Announces Resignation of Makiko Hamabe as Outside Director, Effective February 20, 2026 Otsuka Corporation announced Resignation of Makiko Hamabe as Outside Director, effective February 20, 2026, Due to personal reasons. Buy Or Sell Opportunity • Feb 13
Now 21% undervalued The stock has been flat over the last 90 days, currently trading at JP¥3,013. The fair value is estimated to be JP¥3,825, however this is not to be taken as a buy 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 17%. For the next 3 years, revenue is forecast to grow by 4.5% per annum. Earnings are also forecast to grow by 6.7% per annum over the same time period. Reported Earnings • Feb 03
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥170 (up from JP¥141 in FY 2024). Revenue: JP¥1.32t (up 19% from FY 2024). Net income: JP¥64.3b (up 20% from FY 2024). Profit margin: 4.9% (up from 4.8% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates by 4.2%. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 30 March 2026. Payout ratio is a comfortable 72% and the cash payout ratio is 76%. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.2%). Reported Earnings • Nov 01
Third quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2025 results: EPS: JP¥32.71 (up from JP¥25.58 in 3Q 2024). Revenue: JP¥310.6b (up 23% from 3Q 2024). Net income: JP¥12.4b (up 28% from 3Q 2024). Profit margin: 4.0% (up from 3.8% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.8%. Earnings per share (EPS) missed analyst estimates by 23%. Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 11% per year. Duyuru • Oct 31
Otsuka Corporation Provides Year End Dividend Guidance for the Fiscal Year Ending December 31, 2025 Otsuka Corporation provided year end dividend guidance for the fiscal year ending December 31, 2025. For the period, the company expected year end dividend of JPY 40 per share. Duyuru • Oct 15
Otsuka Corporation to Report Q3, 2025 Results on Oct 31, 2025 Otsuka Corporation announced that they will report Q3, 2025 results on Oct 31, 2025 Declared Dividend • Sep 04
First half dividend of JP¥40.00 announced Shareholders will receive a dividend of JP¥40.00. Ex-date: 29th December 2025 Payment date: 30th March 2026 Dividend yield will be 2.8%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by earnings (75% earnings payout ratio) but not covered by cash flows (220% cash payout ratio). The dividend has increased by an average of 15% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 13% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 02
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: JP¥51.78 (up from JP¥40.22 in 2Q 2024). Revenue: JP¥379.6b (up 25% from 2Q 2024). Net income: JP¥19.6b (up 29% from 2Q 2024). Profit margin: 5.2% (up from 5.0% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.0%. Earnings per share (EPS) missed analyst estimates by 13%. Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Duyuru • Jul 15
Otsuka Corporation to Report Q2, 2025 Results on Aug 01, 2025 Otsuka Corporation announced that they will report Q2, 2025 results on Aug 01, 2025 Reported Earnings • May 01
First quarter 2025 earnings: EPS misses analyst expectations First quarter 2025 results: EPS: JP¥38.22 (up from JP¥30.80 in 1Q 2024). Revenue: JP¥315.5b (up 18% from 1Q 2024). Net income: JP¥14.5b (up 24% from 1Q 2024). Profit margin: 4.6% (up from 4.4% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 9.4%. Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 11% per year. Duyuru • Apr 12
Otsuka Corporation to Report Q1, 2025 Results on Apr 30, 2025 Otsuka Corporation announced that they will report Q1, 2025 results on Apr 30, 2025 Buy Or Sell Opportunity • Feb 21
Now 21% overvalued Over the last 90 days, the stock has fallen 5.6% to JP¥3,499. The fair value is estimated to be JP¥2,902, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 11%. For the next 3 years, revenue is forecast to grow by 4.2% per annum. Earnings are also forecast to grow by 5.7% per annum over the same time period. Reported Earnings • Feb 04
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥141 (up from JP¥125 in FY 2023). Revenue: JP¥1.11t (up 13% from FY 2023). Net income: JP¥53.5b (up 13% from FY 2023). Profit margin: 4.8% (down from 4.9% in FY 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 5.0%. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Feb 03
Otsuka Corporation, Annual General Meeting, Mar 27, 2025 Otsuka Corporation, Annual General Meeting, Mar 27, 2025. Duyuru • Jan 17
Otsuka Corporation to Report Fiscal Year 2024 Results on Feb 03, 2025 Otsuka Corporation announced that they will report fiscal year 2024 results on Feb 03, 2025 Upcoming Dividend • Dec 20
Upcoming dividend of JP¥70.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 28 March 2025. Payout ratio is a comfortable 50% and the cash payout ratio is 80%. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.4%). Reported Earnings • Nov 02
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: JP¥25.58 (up from JP¥20.35 in 3Q 2023). Revenue: JP¥252.5b (up 15% from 3Q 2023). Net income: JP¥9.70b (up 26% from 3Q 2023). Profit margin: 3.8% (up from 3.5% in 3Q 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 11%. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year and the company’s share price has also increased by 9% per year. Duyuru • Oct 16
Otsuka Corporation to Report Q3, 2024 Results on Oct 31, 2024 Otsuka Corporation announced that they will report Q3, 2024 results on Oct 31, 2024 Declared Dividend • Aug 07
Dividend of JP¥70.00 announced Shareholders will receive a dividend of JP¥70.00. Ex-date: 27th December 2024 Payment date: 28th March 2025 Dividend yield will be 2.2%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (52% earnings payout ratio) and cash flows (45% cash payout ratio). The dividend has increased by an average of 15% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 19% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Aug 05
Now 21% undervalued The stock has been flat over the last 90 days, currently trading at JP¥3,034. The fair value is estimated to be JP¥3,842, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.8% over the last 3 years. Earnings per share has grown by 6.5%. For the next 3 years, revenue is forecast to grow by 4.7% per annum. Earnings are also forecast to grow by 6.0% per annum over the same time period. Reported Earnings • Aug 03
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: EPS: JP¥26.81. Revenue: JP¥303.1b (up 8.8% from 2Q 2023). Net income: JP¥15.3b (up 10% from 2Q 2023). Profit margin: 5.0% (in line with 2Q 2023). Revenue exceeded analyst estimates by 5.1%. Earnings per share (EPS) missed analyst estimates by 76%. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the IT industry in Japan. Duyuru • Jul 14
Otsuka Corporation to Report Q2, 2024 Results on Aug 01, 2024 Otsuka Corporation announced that they will report Q2, 2024 results on Aug 01, 2024 Reported Earnings • May 01
First quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2024 results: EPS: JP¥61.60 (up from JP¥30.57 in 1Q 2023). Revenue: JP¥266.7b (up 9.9% from 1Q 2023). Net income: JP¥11.7b (flat on 1Q 2023). Profit margin: 4.4% (down from 4.8% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.0%. Earnings per share (EPS) missed analyst estimates by 5.2%. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Duyuru • Apr 14
Otsuka Corporation to Report Q1, 2024 Results on Apr 30, 2024 Otsuka Corporation announced that they will report Q1, 2024 results on Apr 30, 2024 Price Target Changed • Mar 28
Price target decreased by 8.4% to JP¥3,288 Down from JP¥3,591, the current price target is an average from 11 analysts. New target price is approximately in line with last closing price of JP¥3,201. Stock is up 38% over the past year. The company is forecast to post earnings per share of JP¥134 for next year compared to JP¥125 last year. Reported Earnings • Feb 03
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥250 (up from JP¥211 in FY 2022). Revenue: JP¥977.4b (up 14% from FY 2022). Net income: JP¥47.4b (up 19% from FY 2022). Profit margin: 4.9% (up from 4.6% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.4%. Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 7% per year. Duyuru • Feb 01
Otsuka Corporation, Annual General Meeting, Mar 27, 2024 Otsuka Corporation, Annual General Meeting, Mar 27, 2024. Duyuru • Jan 18
Otsuka Corporation to Report Fiscal Year 2023 Results on Feb 01, 2024 Otsuka Corporation announced that they will report fiscal year 2023 results on Feb 01, 2024 Upcoming Dividend • Dec 21
Upcoming dividend of JP¥130 per share at 2.2% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 01 April 2024. Payout ratio is a comfortable 55% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.5%). Reported Earnings • Nov 02
Third quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2023 results: EPS: JP¥40.71 (down from JP¥45.29 in 3Q 2022). Revenue: JP¥219.0b (up 5.4% from 3Q 2022). Net income: JP¥7.72b (down 10% from 3Q 2022). Profit margin: 3.5% (down from 4.1% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) missed analyst estimates by 6.5%. Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 5% per year. Duyuru • Oct 18
Otsuka Corporation to Report Q3, 2023 Results on Oct 31, 2023 Otsuka Corporation announced that they will report Q3, 2023 results on Oct 31, 2023 Reported Earnings • Aug 02
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: JP¥72.92 (up from JP¥65.03 in 2Q 2022). Revenue: JP¥278.4b (up 18% from 2Q 2022). Net income: JP¥13.8b (up 12% from 2Q 2022). Profit margin: 5.0% (down from 5.2% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.3%. Earnings per share (EPS) also surpassed analyst estimates by 5.0%. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 1% per year. Duyuru • Jul 15
Otsuka Corporation to Report Q2, 2023 Results on Aug 01, 2023 Otsuka Corporation announced that they will report Q2, 2023 results on Aug 01, 2023 Price Target Changed • Jul 03
Price target increased by 8.5% to JP¥5,769 Up from JP¥5,319, the current price target is an average from 13 analysts. New target price is approximately in line with last closing price of JP¥5,629. Stock is up 39% over the past year. The company is forecast to post earnings per share of JP¥228 for next year compared to JP¥211 last year. Reported Earnings • May 03
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: EPS: JP¥61.13 (up from JP¥55.48 in 1Q 2022). Revenue: JP¥242.6b (up 16% from 1Q 2022). Net income: JP¥11.6b (up 10% from 1Q 2022). Profit margin: 4.8% (down from 5.0% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.4%. Earnings per share (EPS) also surpassed analyst estimates by 5.2%. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has increased by 2% per year. Reported Earnings • Apr 01
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: JP¥211 (up from JP¥211 in FY 2021). Revenue: JP¥861.0b (up 1.1% from FY 2021). Net income: JP¥40.0b (flat on FY 2021). Profit margin: 4.6% (down from 4.7% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 3.1%. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the IT 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 increased by 2% per year. Duyuru • Feb 03
Otsuka Corporation, Annual General Meeting, Mar 29, 2023 Otsuka Corporation, Annual General Meeting, Mar 29, 2023. Reported Earnings • Feb 02
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: JP¥211 (up from JP¥211 in FY 2021). Revenue: JP¥861.0b (up 1.1% from FY 2021). Net income: JP¥40.0b (flat on FY 2021). Profit margin: 4.6% (down from 4.7% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 3.1%. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year and the company’s share price has also fallen by 3% per year. Duyuru • Jan 18
Otsuka Corporation to Report Fiscal Year 2022 Results on Feb 01, 2023 Otsuka Corporation announced that they will report fiscal year 2022 results on Feb 01, 2023 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥125 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 30 March 2023. Payout ratio is a comfortable 55% and the cash payout ratio is 75%. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.7%). Reported Earnings • Nov 18
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: JP¥36.35 (down from JP¥42.91 in 3Q 2021). Revenue: JP¥196.9b (up 2.2% from 3Q 2021). Net income: JP¥6.89b (down 15% from 3Q 2021). Profit margin: 3.5% (down from 4.2% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) missed analyst estimates by 8.6%. Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the IT 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 increased by 1% per year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 7 non-independent directors. Independent Outside Director Makiko Hamabe was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 02
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: JP¥36.35 (down from JP¥42.91 in 3Q 2021). Revenue: JP¥196.9b (up 2.2% from 3Q 2021). Net income: JP¥6.89b (down 15% from 3Q 2021). Profit margin: 3.5% (down from 4.2% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) missed analyst estimates by 8.6%. Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the IT 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 increased by 3% per year, which means it is well ahead of earnings. Buying Opportunity • Aug 08
Now 22% undervalued Over the last 90 days, the stock is up 15%. The fair value is estimated to be JP¥6,067, however this is not to be taken as a buy recommendation but rather should be used as a guide only. For the next 3 years, revenue is forecast to grow by 5.1% per annum. Earnings is also forecast to grow by 9.3% per annum over the same time period. Reported Earnings • Aug 02
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: JP¥65.03 (up from JP¥64.19 in 2Q 2021). Revenue: JP¥235.3b (up 3.5% from 2Q 2021). Net income: JP¥12.3b (up 1.3% from 2Q 2021). Profit margin: 5.2% (down from 5.4% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) also surpassed analyst estimates by 6.0%. Over the next year, revenue is forecast to grow 2.5%, compared to a 11% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 02
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥4,845, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 19x in the IT industry in Japan. Total returns to shareholders of 31% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥6,107 per share. Reported Earnings • Apr 30
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: JP¥55.48 (down from JP¥60.58 in 1Q 2021). Revenue: JP¥210.1b (down 12% from 1Q 2021). Net income: JP¥10.5b (down 8.4% from 1Q 2021). Profit margin: 5.0% (up from 4.8% in 1Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) exceeded analyst estimates by 8.4%. Over the next year, revenue is forecast to grow 3.0%, compared to a 7.4% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 1% per year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 7 non-independent directors. Independent Outside Director Makiko Hamabe was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 03
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: JP¥211 (up from JP¥207 in FY 2020). Revenue: JP¥851.9b (up 1.9% from FY 2020). Net income: JP¥39.9b (up 1.6% from FY 2020). Profit margin: 4.7% (in line with FY 2020). Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) also missed analyst estimates by 3.2%. Over the next year, revenue is forecast to stay flat compared to a 7.9% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 1% per year. Reported Earnings • Feb 02
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: JP¥211 (up from JP¥207 in FY 2020). Revenue: JP¥851.9b (up 1.9% from FY 2020). Net income: JP¥39.9b (up 1.6% from FY 2020). Profit margin: 4.7% (in line with FY 2020). Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) also missed analyst estimates by 3.2%. Over the next year, revenue is forecast to grow 5.8%, compared to a 7.5% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 1% per year. Buying Opportunity • Jan 14
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 14%. The fair value is estimated to be JP¥6,348, however is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.1% per annum over the last 3 years. Earnings per share has grown by 6.2% per annum over the last 3 years.