Announcement • May 21
Mitsubishi Pencil Co., Ltd. announced that it has received ¥10.024785826 billion in funding On May 19, 2026, Mitsubishi Pencil Co., Ltd. closed the transaction. Reported Earnings • May 01
First quarter 2026 earnings released: EPS: JP¥45.55 (vs JP¥26.43 in 1Q 2025) First quarter 2026 results: EPS: JP¥45.55 (up from JP¥26.43 in 1Q 2025). Revenue: JP¥24.7b (up 9.4% from 1Q 2025). Net income: JP¥2.46b (up 69% from 1Q 2025). Profit margin: 10.0% (up from 6.5% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Commercial Services 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 13% per year, which means it is well ahead of earnings. Announcement • Apr 21
Mitsubishi Pencil Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Mitsubishi Pencil Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Declared Dividend • Apr 11
Final dividend of JP¥27.50 announced Shareholders will receive a dividend of JP¥27.50. Ex-date: 29th June 2026 Payment date: 4th September 2026 Dividend yield will be 2.2%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 11% 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 38% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 28
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥114 (down from JP¥205 in FY 2024). Revenue: JP¥89.8b (up 1.1% from FY 2024). Net income: JP¥6.24b (down 45% from FY 2024). Profit margin: 6.9% (down from 13% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.0%. Earnings per share (EPS) also missed analyst estimates by 9.8%. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 14% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Feb 15
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥114 (down from JP¥205 in FY 2024). Revenue: JP¥89.8b (up 1.1% from FY 2024). Net income: JP¥6.24b (down 45% from FY 2024). Profit margin: 6.9% (down from 13% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.0%. Earnings per share (EPS) also missed analyst estimates by 9.8%. Revenue is forecast to grow 4.9% p.a. on average during the next 2 years, compared to a 3.8% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 14% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 12
Mitsubishi Pencil Co., Ltd., Annual General Meeting, Mar 26, 2026 Mitsubishi Pencil Co., Ltd., Annual General Meeting, Mar 26, 2026. Major Estimate Revision • Jan 10
Consensus EPS estimates fall by 13% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥145 to JP¥127 per share. Revenue forecast steady at JP¥90.7b. Net income forecast to grow 6.0% next year vs 9.9% growth forecast for Commercial Services industry in Japan. Consensus price target of JP¥2,400 unchanged from last update. Share price rose 2.3% to JP¥2,228 over the past week. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥26.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 30 March 2026. Payout ratio is a comfortable 35% but the company is not cash flow positive. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.0%). Announcement • Dec 03
Mitsubishi Pencil Co., Ltd. to Report Fiscal Year 2025 Results on Feb 12, 2026 Mitsubishi Pencil Co., Ltd. announced that they will report fiscal year 2025 results on Feb 12, 2026 Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: JP¥15.60 (vs JP¥18.10 in 3Q 2024) Third quarter 2025 results: EPS: JP¥15.60 (down from JP¥18.10 in 3Q 2024). Revenue: JP¥20.8b (up 1.7% from 3Q 2024). Net income: JP¥848.0m (down 16% from 3Q 2024). Profit margin: 4.1% (down from 4.9% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 14% per year. Declared Dividend • Sep 05
First half dividend of JP¥26.00 announced Shareholders will receive a dividend of JP¥26.00. Ex-date: 29th December 2025 Payment date: 30th March 2026 Dividend yield will be 2.4%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (36% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 14% 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 25% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Aug 02
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: 8.6% Last year net profit margin: 15% 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 Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (8.6% net profit margin). Reported Earnings • Aug 02
Second quarter 2025 earnings released: EPS: JP¥30.88 (vs JP¥82.72 in 2Q 2024) Second quarter 2025 results: EPS: JP¥30.88 (down from JP¥82.72 in 2Q 2024). Revenue: JP¥20.7b (down 7.6% from 2Q 2024). Net income: JP¥1.69b (down 63% from 2Q 2024). Profit margin: 8.2% (down from 20% in 2Q 2024). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year whereas the company’s share price has increased by 14% per year. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥24.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 05 September 2025. Payout ratio is a comfortable 23% but the company is paying out more than the cash it is generating. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (4.0%). In line with average of industry peers (2.2%). Major Estimate Revision • May 30
Consensus EPS estimates fall by 16% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥92.8b to JP¥91.8b. EPS estimate also fell from JP¥177 per share to JP¥148 per share. Net income forecast to shrink 22% next year vs 9.3% growth forecast for Commercial Services industry in Japan . Consensus price target down from JP¥2,400 to JP¥2,100. Share price was steady at JP¥2,113 over the past week. New Risk • May 29
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 3.4% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 3.4% per year for the foreseeable future. Minor Risks Dividend is not well covered by cash flows (104% cash payout ratio). Large one-off items impacting financial results. Reported Earnings • Apr 26
First quarter 2025 earnings released: EPS: JP¥26.43 (vs JP¥39.33 in 1Q 2024) First quarter 2025 results: EPS: JP¥26.43 (down from JP¥39.33 in 1Q 2024). Revenue: JP¥22.6b (up 13% from 1Q 2024). Net income: JP¥1.46b (down 32% from 1Q 2024). Profit margin: 6.5% (down from 11% in 1Q 2024). Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 25% per year whereas the company’s share price has increased by 26% per year. Declared Dividend • Apr 17
Final dividend of JP¥24.00 announced Shareholders will receive a dividend of JP¥24.00. Ex-date: 27th June 2025 Payment date: 5th September 2025 Dividend yield will be 2.0%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (21% earnings payout ratio) but not covered by cash flows (106% cash payout ratio). The dividend has increased by an average of 13% 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 remain steady over the next 3 years, which should provide adequate earnings cover for the dividend. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥2,150, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 13x in the Commercial Services industry in Japan. Total returns to shareholders of 85% over the past three years. Reported Earnings • Feb 15
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥205 (up from JP¥187 in FY 2023). Revenue: JP¥88.8b (up 19% from FY 2023). Net income: JP¥11.3b (up 11% from FY 2023). Profit margin: 13% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.0%. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 28% per year and the company’s share price has also increased by 28% per year. New Risk • Feb 14
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 6.1% 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 are forecast to decline by an average of 1.1% per year for the foreseeable future. Minor Risks Share price has been volatile over the past 3 months (6.1% average weekly change). Large one-off items impacting financial results. Announcement • Feb 14
Mitsubishi Pencil Co., Ltd. Announces Board Retirements, Effective March 27, 2025 Mitsubishi Pencil Co., Ltd. announced that at the AGM to be held on March 27, 2025, proposed the retirement of Nobuyuki Nagasawa as Director and Osamu Ishida as Outside Audit & Supervisory Board Member. Effective date is March 27, 2025. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥23.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 31 March 2025. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (2.1%). Reported Earnings • Nov 02
Third quarter 2024 earnings released: EPS: JP¥18.10 (vs JP¥32.86 in 3Q 2023) Third quarter 2024 results: EPS: JP¥18.10 (down from JP¥32.86 in 3Q 2023). Revenue: JP¥20.5b (up 21% from 3Q 2023). Net income: JP¥1.01b (down 44% from 3Q 2023). Profit margin: 4.9% (down from 11% in 3Q 2023). Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 29% per year whereas the company’s share price has increased by 24% per year. New Risk • Aug 09
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 7.3% This is considered a minor 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 Risk Earnings are forecast to decline by an average of 5.0% per year for the foreseeable future. Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (7.3% increase in shares outstanding). Announcement • Aug 08
Mitsubishi Pencil Co., Ltd. (TSE:7976) announces an Equity Buyback for 800,000 shares, representing 1.37% for ¥2,000 million. Mitsubishi Pencil Co., Ltd. (TSE:7976) announces a share repurchase program. Under the program, the company will repurchase up to 800,000 shares, representing 1.37% of its total shares outstanding excluding treasury shares, for a total of ¥2,000 million. The purpose of repurchase program is to return profits to shareholders, improve capital efficiency, and implement a flexible capital policy that responds to changes in the business environment. The repurchased shares will be cancelled. The repurchase program is valid till November 29, 2024. As of July 31, 2024, the company had 58,311,929 shares outstanding excluding treasury shares and had 3,374,363 shares in treasury. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to JP¥1,943, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 11x in the Commercial Services industry in Japan. Total returns to shareholders of 46% over the past three years. Reported Earnings • Aug 01
Second quarter 2024 earnings released: EPS: JP¥82.72 (vs JP¥37.51 in 2Q 2023) Second quarter 2024 results: EPS: JP¥82.72 (up from JP¥37.51 in 2Q 2023). Revenue: JP¥22.4b (up 29% from 2Q 2023). Net income: JP¥4.53b (up 122% from 2Q 2023). Profit margin: 20% (up from 12% in 2Q 2023). Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥21.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 06 September 2024. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (1.9%). Announcement • Apr 29
Mitsubishi Pencil Co., Ltd. Revises Consolidated Earnings Guidance for the Fiscal Year Ending December 31, 2024 Mitsubishi Pencil Co., Ltd. revised consolidated earnings guidance for the fiscal year ending December 31, 2024. For the year, the company expects net sales to be JPY 87,000 million, operating profit to be JPY 12,500 million, profit attributable to owners of parent to be JPY 11,300 million and basic earnings per share to be JPY 207.94 compared to previous guidance of net sales of JPY 78,000 million, operating profit of JPY 12,500 million, profit attributable to owners of parent of JPY 11,300 million and basic earnings per share of JPY 207.94 . Reported Earnings • Apr 26
First quarter 2024 earnings released: EPS: JP¥39.33 (vs JP¥43.84 in 1Q 2023) First quarter 2024 results: EPS: JP¥39.33 (down from JP¥43.84 in 1Q 2023). Revenue: JP¥20.1b (up 5.9% from 1Q 2023). Net income: JP¥2.14b (down 11% from 1Q 2023). Profit margin: 11% (down from 13% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Declared Dividend • Apr 23
Final dividend of JP¥21.00 announced Shareholders will receive a dividend of JP¥21.00. Ex-date: 27th June 2024 Payment date: 6th September 2024 Dividend yield will be 1.7%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is well covered by both earnings (25% earnings payout ratio) and cash flows (20% cash payout ratio). The dividend has increased by an average of 9.1% 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. Earnings per share has grown by 13% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Mar 01
Mitsubishi Pencil Co., Ltd. (TSE:7976) reached an agreement to acquire C. Josef Lamy Gmbh from Vera Lamy and Markus Lamy. Mitsubishi Pencil Co., Ltd. (TSE:7976) reached an agreement to acquire C. Josef Lamy Gmbh from Vera Lamy and Markus Lamy on February 28, 2024. As of December 2023, Josef Lamy reported a net assets of €42.7 million, total assets of €80 million, sales of €74.6 million, EBITDA of €9.8 million, operating profit of €5.2 million and net income of €3.7 million. The board of Mitsubishi Pencil has approved the transaction. The deal is expected to close on March 15, 2024. Karl Fesenmeyer and Katja Schult of IMAP M&A Consultants AG acted as financial advisor to C. Josef Lamy Gmbh. New Risk • Feb 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 6.3% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Feb 19
Full year 2023 earnings released: EPS: JP¥187 (vs JP¥126 in FY 2022) Full year 2023 results: EPS: JP¥187 (up from JP¥126 in FY 2022). Revenue: JP¥74.8b (up 8.4% from FY 2022). Net income: JP¥10.2b (up 46% from FY 2022). Profit margin: 14% (up from 10% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Announcement • Feb 18
Mitsubishi Pencil Co., Ltd., Annual General Meeting, Mar 28, 2024 Mitsubishi Pencil Co., Ltd., Annual General Meeting, Mar 28, 2024. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥20.00 per share at 1.7% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 01 April 2024. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (1.9%). Buying Opportunity • Nov 27
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 1.9%. The fair value is estimated to be JP¥2,410, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.9% over the last 3 years. Earnings per share has grown by 27%. Buying Opportunity • Oct 30
Now 23% undervalued Over the last 90 days, the stock is up 2.2%. The fair value is estimated to be JP¥2,420, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.9% over the last 3 years. Earnings per share has grown by 27%. Reported Earnings • Oct 28
Third quarter 2023 earnings released: EPS: JP¥32.86 (vs JP¥22.00 in 3Q 2022) Third quarter 2023 results: EPS: JP¥32.86 (up from JP¥22.00 in 3Q 2022). Revenue: JP¥16.9b (up 4.0% from 3Q 2022). Net income: JP¥1.79b (up 47% from 3Q 2022). Profit margin: 11% (up from 7.5% in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 28
Second quarter 2023 earnings released: EPS: JP¥37.51 (vs JP¥26.99 in 2Q 2022) Second quarter 2023 results: EPS: JP¥37.51 (up from JP¥26.99 in 2Q 2022). Revenue: JP¥17.3b (up 9.6% from 2Q 2022). Net income: JP¥2.04b (up 37% from 2Q 2022). Profit margin: 12% (up from 9.5% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥18.00 per share at 2.1% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 06 September 2023. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.5%). In line with average of industry peers (2.0%). Reported Earnings • Apr 29
First quarter 2023 earnings released: EPS: JP¥43.84 (vs JP¥43.34 in 1Q 2022) First quarter 2023 results: EPS: JP¥43.84. Revenue: JP¥19.0b (up 4.7% from 1Q 2022). Net income: JP¥2.40b (flat on 1Q 2022). Profit margin: 13% (in line with 1Q 2022). Reported Earnings • Feb 14
Full year 2022 earnings released: EPS: JP¥126 (vs JP¥101 in FY 2021) Full year 2022 results: EPS: JP¥126 (up from JP¥101 in FY 2021). Revenue: JP¥69.0b (up 12% from FY 2021). Net income: JP¥6.95b (up 23% from FY 2021). Profit margin: 10% (up from 9.1% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Feb 13
Mitsubishi Pencil Co., Ltd. (TSE:7976) announces an Equity Buyback for 700,000 shares, representing 1.22% for ¥980 million. Mitsubishi Pencil Co., Ltd. (TSE:7976) announces a share repurchase program. Under the program, the company will repurchase up to 700,000 shares, representing 1.22% of its issued share capital (excluding treasury stock), for a total purchase price of ¥980 million. The shares will be repurchased at a price of ¥1,400 per share. The purpose of the program is to improve capital efficiency and to implement a capital policy that responds to changes in the business environment. As of January 31, 2023, the company had 57,332,276 issued shares (excluding treasury stock) and 5,954,016 treasury shares. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥16.50 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 31 March 2023. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (2.4%). 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, 3 were independent directors. The company's board is composed of: 3 independent directors. 6 non-independent directors. Outside Independent Director Tadashi Shimamoto was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Nov 02
Third quarter 2022 earnings released: EPS: JP¥22.00 (vs JP¥17.47 in 3Q 2021) Third quarter 2022 results: EPS: JP¥22.00 (up from JP¥17.47 in 3Q 2021). Revenue: JP¥16.2b (up 16% from 3Q 2021). Net income: JP¥1.21b (up 24% from 3Q 2021). Profit margin: 7.5% (up from 7.0% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Nov 02
Mitsubishi Pencil Co., Ltd. Provides Earnings Guidance for the Year Ending December 31, 2022 Mitsubishi Pencil Co., Ltd. provided earnings guidance for the year ending December 31, 2022. For the period, the company expects net sales to be ¥67,000 million. Operating profit to be ¥9,000 million. Profit attributable to owners of parent to be ¥6,800 million or Earnings per share to be ¥123.01. Announcement • Jul 30
Mitsubishi Pencil Co., Ltd. Provides Earnings Guidance for the Year Ending December 31, 2022 Mitsubishi Pencil Co., Ltd. provided earnings guidance for the year ending December 31, 2022. For the period, the company expects net sales to be ¥67,000 million. Operating profit to be ¥9,000 million. Profit attributable to owners of parent to be ¥6,800 million or Earnings per share to be ¥122.78. Reported Earnings • Jul 30
Second quarter 2022 earnings released: EPS: JP¥26.99 (vs JP¥22.32 in 2Q 2021) Second quarter 2022 results: EPS: JP¥26.99 (up from JP¥22.32 in 2Q 2021). Revenue: JP¥15.8b (up 9.4% from 2Q 2021). Net income: JP¥1.50b (up 20% from 2Q 2021). Profit margin: 9.5% (in line with 2Q 2021). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Jul 29
Mitsubishi Pencil Co., Ltd. Declares Dividend for the Second Quarter of 2022 Payable on September 6, 2022 and Provides Dividend Guidance for Year Ending December 31, 2022 Mitsubishi Pencil Co., Ltd. declared dividend for the second quarter of 2022 and provided dividend guidance for year ending December 31, 2022. For the second quarter 2022, the company announced a dividend of ¥16.50 per share against ¥16.00 per share a year ago. Scheduled date to commence dividend payments: September 6, 2022.For the year 2022, the company expects to pay a dividend of ¥16.50 per share against ¥16.00 per share a year ago. Buying Opportunity • Jul 29
Now 25% undervalued Over the last 90 days, the stock is up 13%. The fair value is estimated to be JP¥1,878, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 3.4%. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥16.50 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 05 September 2022. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (2.3%). Reported Earnings • Apr 30
First quarter 2022 earnings released: EPS: JP¥43.34 (vs JP¥35.33 in 1Q 2021) First quarter 2022 results: EPS: JP¥43.34 (up from JP¥35.33 in 1Q 2021). Revenue: JP¥18.1b (up 12% from 1Q 2021). Net income: JP¥2.41b (up 22% from 1Q 2021). Profit margin: 13% (up from 12% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 3 independent directors. 6 non-independent directors. Outside Independent Director Tadashi Shimamoto was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Apr 08
Mitsubishi Pencil Co., Ltd. to Report Q3, 2022 Results on Oct 31, 2022 Mitsubishi Pencil Co., Ltd. announced that they will report Q3, 2022 results on Oct 31, 2022 
