Announcement • May 27
HITO-Communications Holdings,Inc. to Report Q3, 2026 Results on Jul 15, 2026 HITO-Communications Holdings,Inc. announced that they will report Q3, 2026 results on Jul 15, 2026 Declared Dividend • May 16
First half dividend of JP¥19.50 announced Shareholders will receive a dividend of JP¥19.50. Ex-date: 28th August 2026 Payment date: 30th November 2026 Dividend yield will be 4.4%, which is higher than the industry average of 1.2%. Sustainability & Growth Dividend is not covered by earnings (141% earnings payout ratio) and 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 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. The company's earnings per share (EPS) would need to grow by 57% to bring the payout ratio under control. EPS is expected to grow by 211% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Apr 16
Second quarter 2026 earnings released: EPS: JP¥6.11 (vs JP¥16.31 in 2Q 2025) Second quarter 2026 results: EPS: JP¥6.11 (down from JP¥16.31 in 2Q 2025). Revenue: JP¥14.9b (up 2.7% from 2Q 2025). Net income: JP¥109.0m (down 63% from 2Q 2025). Profit margin: 0.7% (down from 2.0% in 2Q 2025). Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 59 percentage points per year, which is a significant difference in performance. New Risk • Apr 15
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.9b (US$100.0m) This is considered a minor 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: Minor Risks Dividend is not well covered by earnings (102% payout ratio). Large one-off items impacting financial results. Market cap is less than US$100m (JP¥15.9b market cap, or US$100.0m). Announcement • Apr 07
HITO-Communications Holdings,Inc. to Report Q2, 2026 Results on Apr 14, 2026 HITO-Communications Holdings,Inc. announced that they will report Q2, 2026 results on Apr 14, 2026 Upcoming Dividend • Feb 19
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 26 February 2026. Payment date: 18 May 2026. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.5%). New Risk • Jan 15
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 21% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (166% payout ratio). Large one-off items impacting financial results. Reported Earnings • Jan 15
First quarter 2026 earnings released: EPS: JP¥3.98 (vs JP¥15.36 in 1Q 2025) First quarter 2026 results: EPS: JP¥3.98 (down from JP¥15.36 in 1Q 2025). Revenue: JP¥16.2b (down 1.3% from 1Q 2025). Net income: JP¥71.0m (down 74% from 1Q 2025). Profit margin: 0.4% (down from 1.7% in 1Q 2025). Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 68 percentage points per year, which is a significant difference in performance. Declared Dividend • Dec 11
Final dividend of JP¥18.00 announced Shareholders will receive a dividend of JP¥18.00. Ex-date: 26th February 2026 Payment date: 18th May 2026 Dividend yield will be 3.7%, which is higher than the industry average of 1.2%. Sustainability & Growth Dividend is not covered by earnings (166% earnings payout ratio). However, it is covered by cash flows (65% 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. The company's earnings per share (EPS) would need to grow by 84% to bring the payout ratio under control. EPS is expected to grow by 102% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Announcement • Nov 28
HITO-Communications Holdings,Inc. to Report Q1, 2026 Results on Jan 14, 2026 HITO-Communications Holdings,Inc. announced that they will report Q1, 2026 results on Jan 14, 2026 Reported Earnings • Oct 15
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥47.81 (up from JP¥2.41 loss in FY 2024). Revenue: JP¥63.6b (up 8.6% from FY 2024). Net income: JP¥853.0m (up JP¥896.0m from FY 2024). Profit margin: 1.3% (up from net loss in FY 2024). The move to profitability was driven by higher revenue. Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 43%. Revenue is forecast to grow 6.9% p.a. on average during the next 2 years, compared to a 6.9% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 71 percentage points per year, which is a significant difference in performance. Announcement • Oct 14
HITO-Communications Holdings,Inc., Annual General Meeting, Nov 27, 2025 HITO-Communications Holdings,Inc., Annual General Meeting, Nov 27, 2025. Announcement • Sep 18
HITO-Communications Holdings,Inc. to Report Fiscal Year 2025 Results on Oct 14, 2025 HITO-Communications Holdings,Inc. announced that they will report fiscal year 2025 results on Oct 14, 2025 Upcoming Dividend • Aug 21
Upcoming dividend of JP¥19.00 per share Eligible shareholders must have bought the stock before 28 August 2025. Payment date: 01 December 2025. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.1%). Reported Earnings • Jul 17
Third quarter 2025 earnings released Third quarter 2025 results: Net income: (up JP¥127.0m from 3Q 2024). Announcement • Jun 14
HITO-Communications Holdings,Inc. to Report Q3, 2025 Results on Jul 15, 2025 HITO-Communications Holdings,Inc. announced that they will report Q3, 2025 results on Jul 15, 2025 Declared Dividend • May 17
First half dividend of JP¥18.00 announced Shareholders will receive a dividend of JP¥18.00. Ex-date: 28th August 2025 Payment date: 1st December 2025 Dividend yield will be 3.8%, which is higher than the industry average of 1.2%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having 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 12% 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. Reported Earnings • Apr 15
Second quarter 2025 earnings released: EPS: JP¥16.31 (vs JP¥5.32 in 2Q 2024) Second quarter 2025 results: EPS: JP¥16.31 (up from JP¥5.32 in 2Q 2024). Revenue: JP¥14.5b (up 3.7% from 2Q 2024). Net income: JP¥291.0m (up 206% from 2Q 2024). Profit margin: 2.0% (up from 0.7% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. New Risk • Apr 08
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.7b (US$99.4m) This is considered a minor 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 Risk Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Dividend per share is over 24x cash flows per share. Minor Risk Market cap is less than US$100m (JP¥14.7b market cap, or US$99.4m). Upcoming Dividend • Feb 20
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 27 February 2025. Payment date: 19 May 2025. The company is not currently making a profit and there are not enough cash flows to support it either. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (0.9%). Announcement • Feb 04
HITO-Communications Holdings,Inc. to Report Q2, 2025 Results on Apr 14, 2025 HITO-Communications Holdings,Inc. announced that they will report Q2, 2025 results on Apr 14, 2025 Reported Earnings • Jan 15
First quarter 2025 earnings released: EPS: JP¥15.36 (vs JP¥25.11 in 1Q 2024) First quarter 2025 results: EPS: JP¥15.36 (down from JP¥25.11 in 1Q 2024). Revenue: JP¥16.4b (up 3.8% from 1Q 2024). Net income: JP¥274.0m (down 39% from 1Q 2024). Profit margin: 1.7% (down from 2.8% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 42 percentage points per year, which is a significant difference in performance. Declared Dividend • Dec 19
Final dividend of JP¥18.00 announced Shareholders will receive a dividend of JP¥18.00. Ex-date: 27th February 2025 Payment date: 19th May 2025 Dividend yield will be 4.4%, which is higher than the industry average of 1.2%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. The dividend is also not covered by cash flows (dividend approximately 24x free cash flows). 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. Reported Earnings • Dec 05
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: JP¥2.41 loss per share (down from JP¥106 profit in FY 2023). Revenue: JP¥58.5b (down 8.5% from FY 2023). Net loss: JP¥43.0m (down 102% from profit in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 33% per year, which means it has not declined as severely as earnings. Announcement • Nov 27
HITO-Communications Holdings,Inc. to Report Q1, 2025 Results on Jan 14, 2025 HITO-Communications Holdings,Inc. announced that they will report Q1, 2025 results on Jan 14, 2025 Reported Earnings • Oct 18
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: JP¥2.41 loss per share (down from JP¥106 profit in FY 2023). Revenue: JP¥58.5b (down 8.5% from FY 2023). Net loss: JP¥43.0m (down 102% from profit in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 6.3% p.a. on average during the next 2 years, compared to a 6.0% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 27% per year, which means it has not declined as severely as earnings. New Risk • Oct 16
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.6b (US$97.6m) This is considered a minor 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: Minor Risks Dividend is not well covered by earnings (214% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). Market cap is less than US$100m (JP¥14.6b market cap, or US$97.6m). Announcement • Oct 15
HITO-Communications Holdings,Inc., Annual General Meeting, Nov 28, 2024 HITO-Communications Holdings,Inc., Annual General Meeting, Nov 28, 2024. New Risk • Sep 17
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. This is currently the only risk that has been identified for the company. Announcement • Sep 06
HITO-Communications Holdings,Inc. to Report Fiscal Year 2024 Results on Oct 15, 2024 HITO-Communications Holdings,Inc. announced that they will report fiscal year 2024 results on Oct 15, 2024 Upcoming Dividend • Aug 22
Upcoming dividend of JP¥17.50 per share Eligible shareholders must have bought the stock before 29 August 2024. Payment date: 29 November 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 3.7%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.0%). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥816, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 15x in the Professional Services industry in Japan. Total loss to shareholders of 56% over the past three years. Reported Earnings • Jul 18
Third quarter 2024 earnings released: JP¥7.12 loss per share (vs JP¥27.69 profit in 3Q 2023) Third quarter 2024 results: JP¥7.12 loss per share (down from JP¥27.69 profit in 3Q 2023). Revenue: JP¥14.7b (down 6.8% from 3Q 2023). Net loss: JP¥127.0m (down 126% from profit in 3Q 2023). Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 23% per year, which means it has not declined as severely as earnings. Announcement • Jun 28
HITO-Communications Holdings,Inc. to Report Q3, 2024 Results on Jul 16, 2024 HITO-Communications Holdings,Inc. announced that they will report Q3, 2024 results on Jul 16, 2024 Buy Or Sell Opportunity • May 16
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to JP¥968. The fair value is estimated to be JP¥1,220, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 11% over the last 3 years. Earnings per share has declined by 15%. Revenue is forecast to grow by 6.9% in 2 years. Earnings are forecast to grow by 67% in the next 2 years. Valuation Update With 7 Day Price Move • Apr 22
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,001, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 16x in the Professional Services industry in Japan. Total loss to shareholders of 49% over the past three years. Declared Dividend • Apr 17
First half dividend of JP¥17.50 announced Shareholders will receive a dividend of JP¥17.50. Ex-date: 29th August 2024 Payment date: 29th November 2024 Dividend yield will be 3.3%, which is higher than the industry average of 1.2%. Sustainability & Growth Dividend is well covered by both earnings (31% earnings payout ratio) and cash flows (28% 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 grow by 113% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 16
Second quarter 2024 earnings released: EPS: JP¥5.32 (vs JP¥33.29 in 2Q 2023) Second quarter 2024 results: EPS: JP¥5.32 (down from JP¥33.29 in 2Q 2023). Revenue: JP¥14.0b (down 14% from 2Q 2023). Net income: JP¥95.0m (down 84% from 2Q 2023). Profit margin: 0.7% (down from 3.7% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% per year whereas the company’s share price has fallen by 18% per year. Announcement • Mar 16
HITO-Communications Holdings,Inc. to Report Q2, 2024 Results on Apr 15, 2024 HITO-Communications Holdings,Inc. announced that they will report Q2, 2024 results on Apr 15, 2024 Upcoming Dividend • Feb 21
Upcoming dividend of JP¥17.50 per share Eligible shareholders must have bought the stock before 28 February 2024. Payment date: 13 May 2024. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.2%). Reported Earnings • Jan 16
First quarter 2024 earnings released: EPS: JP¥25.11 (vs JP¥52.57 in 1Q 2023) First quarter 2024 results: EPS: JP¥25.11 (down from JP¥52.57 in 1Q 2023). Revenue: JP¥15.8b (down 8.1% from 1Q 2023). Net income: JP¥448.0m (down 52% from 1Q 2023). Profit margin: 2.8% (down from 5.4% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 11% per year, which means it is performing significantly worse than earnings. Announcement • Dec 28
HITO-Communications Holdings,Inc. to Report Q1, 2024 Results on Jan 15, 2024 HITO-Communications Holdings,Inc. announced that they will report Q1, 2024 results on Jan 15, 2024 Buying Opportunity • Oct 26
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 22%. The fair value is estimated to be JP¥1,517, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 7.0% over the last 3 years. Earnings per share has grown by 12%. For the next 3 years, revenue is forecast to grow by 2.4% per annum. Earnings is also forecast to grow by 12% per annum over the same time period. Announcement • Oct 14
HITO-Communications Holdings,Inc., Annual General Meeting, Nov 28, 2023 HITO-Communications Holdings,Inc., Annual General Meeting, Nov 28, 2023. Reported Earnings • Oct 13
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥106 (down from JP¥181 in FY 2022). Revenue: JP¥64.0b (flat on FY 2022). Net income: JP¥1.89b (down 42% from FY 2022). Profit margin: 2.9% (down from 5.0% in FY 2022). Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) also missed analyst estimates by 29%. Revenue is forecast to grow 6.8% p.a. on average during the next 2 years, compared to a 8.0% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. New Risk • Oct 13
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: 2.9% Last year net profit margin: 5.0% 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. This is currently the only risk that has been identified for the company. Announcement • Sep 22
HITO-Communications Holdings,Inc. to Report Fiscal Year 2023 Results on Oct 12, 2023 HITO-Communications Holdings,Inc. announced that they will report fiscal year 2023 results on Oct 12, 2023 Upcoming Dividend • Aug 23
Upcoming dividend of JP¥15.50 per share at 2.2% yield Eligible shareholders must have bought the stock before 30 August 2023. Payment date: 30 November 2023. Payout ratio is a comfortable 12% 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 (1.3%). Reported Earnings • Jul 17
Third quarter 2023 earnings released: EPS: JP¥27.69 (vs JP¥43.83 in 3Q 2022) Third quarter 2023 results: EPS: JP¥27.69 (down from JP¥43.83 in 3Q 2022). Revenue: JP¥15.8b (down 3.6% from 3Q 2022). Net income: JP¥494.0m (down 37% from 3Q 2022). Profit margin: 3.1% (down from 4.8% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 13
Second quarter 2023 earnings released: EPS: JP¥33.29 (vs JP¥43.38 in 2Q 2022) Second quarter 2023 results: EPS: JP¥33.29 (down from JP¥43.38 in 2Q 2022). Revenue: JP¥16.2b (up 8.5% from 2Q 2022). Net income: JP¥594.0m (down 23% from 2Q 2022). Profit margin: 3.7% (down from 5.2% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to stay flat during the next 3 years compared to a 9.0% growth forecast for the Professional Services industry in Japan. 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 15% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Feb 20
Upcoming dividend of JP¥15.50 per share at 2.0% yield Eligible shareholders must have bought the stock before 27 February 2023. Payment date: 15 May 2023. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.2%). Reported Earnings • Jan 13
First quarter 2023 earnings released: EPS: JP¥52.57 (vs JP¥65.41 in 1Q 2022) First quarter 2023 results: EPS: JP¥52.57 (down from JP¥65.41 in 1Q 2022). Revenue: JP¥17.2b (up 1.5% from 1Q 2022). Net income: JP¥938.0m (down 20% from 1Q 2022). Profit margin: 5.4% (down from 6.9% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Professional 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 fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Dec 29
HITO-Communications Holdings,Inc. to Report Q1, 2023 Results on Jan 12, 2023 HITO-Communications Holdings,Inc. announced that they will report Q1, 2023 results on Jan 12, 2023 Reported Earnings • Dec 04
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: JP¥181 (up from JP¥155 in FY 2021). Revenue: JP¥64.1b (down 24% from FY 2021). Net income: JP¥3.23b (up 16% from FY 2021). Profit margin: 5.0% (up from 3.3% in FY 2021). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 6.9%. Earnings per share (EPS) missed analyst estimates by 2.2%. Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Professional 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 1% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Outside Director Tadatsugu Mori was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Oct 14
HITO-Communications Holdings,Inc., Annual General Meeting, Nov 29, 2022 HITO-Communications Holdings,Inc., Annual General Meeting, Nov 29, 2022. Reported Earnings • Oct 13
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: JP¥181 (up from JP¥155 in FY 2021). Revenue: JP¥64.1b (down 24% from FY 2021). Net income: JP¥3.23b (up 16% from FY 2021). Profit margin: 5.0% (up from 3.3% in FY 2021). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 6.9%. Earnings per share (EPS) missed analyst estimates by 2.2%. Revenue is expected to decline by 3.0% p.a. on average during the next 2 years, while revenues in the Professional Services industry in Japan are expected to grow by 11%. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Oct 06
HITO-Communications Holdings,Inc. to Report Fiscal Year 2022 Results on Oct 12, 2022 HITO-Communications Holdings,Inc. announced that they will report fiscal year 2022 results on Oct 12, 2022 Upcoming Dividend • Aug 23
Upcoming dividend of JP¥17.50 per share Eligible shareholders must have bought the stock before 30 August 2022. Payment date: 29 November 2022. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.0%). Reported Earnings • Jul 13
Third quarter 2022 earnings released: EPS: JP¥43.83 (vs JP¥41.03 in 3Q 2021) Third quarter 2022 results: EPS: JP¥43.83 (up from JP¥41.03 in 3Q 2021). Revenue: JP¥16.4b (down 19% from 3Q 2021). Net income: JP¥782.0m (up 6.8% from 3Q 2021). Profit margin: 4.8% (up from 3.6% in 3Q 2021). The increase in margin was driven by lower expenses. Over the next year, revenue is expected to shrink by 18% compared to a 14% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Jul 10
HITO-Communications Holdings,Inc. to Report Q3, 2022 Results on Jul 11, 2022 HITO-Communications Holdings,Inc. announced that they will report Q3, 2022 results on Jul 11, 2022 Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Outside Director Tadatsugu Mori was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 12
Second quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2022 results: EPS: JP¥43.38 (up from JP¥35.03 in 2Q 2021). Revenue: JP¥15.0b (down 27% from 2Q 2021). Net income: JP¥774.0m (up 24% from 2Q 2021). Profit margin: 5.2% (up from 3.1% in 2Q 2021). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 5.8%. Earnings per share (EPS) missed analyst estimates by 10%. Over the next year, revenue is expected to shrink by 23% compared to a 12% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Apr 08
HITO-Communications Holdings,Inc. to Report Q2, 2022 Results on Apr 11, 2022 HITO-Communications Holdings,Inc. announced that they will report Q2, 2022 results on Apr 11, 2022 Upcoming Dividend • Feb 18
Upcoming dividend of JP¥12.50 per share Eligible shareholders must have bought the stock before 25 February 2022. Payment date: 16 May 2022. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (0.9%). Reported Earnings • Jan 13
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: JP¥65.41 (up from JP¥50.16 in 1Q 2021). Revenue: JP¥17.0b (down 18% from 1Q 2021). Net income: JP¥1.17b (up 30% from 1Q 2021). Profit margin: 6.9% (up from 4.3% in 1Q 2021). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 3.0%. Earnings per share (EPS) missed analyst estimates by 10%. Earnings per share (EPS) missed analyst estimates by 10%. Over the next year, revenue is expected to shrink by 28% compared to a 13% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 17
Investor sentiment deteriorated over the past week After last week's 19% share price decline to JP¥2,248, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 26x in the Professional Services industry in Japan. Total returns to shareholders of 62% over the past three years. Reported Earnings • Dec 05
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: JP¥155 (up from JP¥76.68 in FY 2020). Revenue: JP¥84.2b (up 18% from FY 2020). Net income: JP¥2.77b (up 102% from FY 2020). Profit margin: 3.3% (up from 1.9% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.0%. Earnings per share (EPS) missed analyst estimates by 10%. Earnings per share (EPS) missed analyst estimates by 10%. Over the next year, revenue is expected to shrink by 31% compared to a 12% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 11% per year. Valuation Update With 7 Day Price Move • Oct 20
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥2,041, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 26x in the Professional Services industry in Japan. Total returns to shareholders of 4.0% over the past three years. Reported Earnings • Oct 14
Full year 2021 earnings released: EPS JP¥155 (vs JP¥76.68 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥84.2b (up 18% from FY 2020). Net income: JP¥2.77b (up 102% from FY 2020). Profit margin: 3.3% (up from 1.9% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Upcoming Dividend • Aug 23
Upcoming dividend of JP¥13.75 per share Eligible shareholders must have bought the stock before 30 August 2021. Payment date: 30 November 2021. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.1%). Higher than average of industry peers (0.7%). Reported Earnings • Jul 11
Third quarter 2021 earnings released: EPS JP¥41.03 (vs JP¥16.59 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥20.2b (up 21% from 3Q 2020). Net income: JP¥732.0m (up 147% from 3Q 2020). Profit margin: 3.6% (up from 1.8% in 3Q 2020). The increase in margin was driven by higher revenue. 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 6% per year. Announcement • May 28
HITO-Communications Holdings,Inc. (TSE:4433) agreed to acquire 51% stake in Moffly Co., Ltd. HITO-Communications Holdings,Inc. (TSE:4433) agreed to acquire 51% stake in Moffly Co., Ltd on May 27, 2021. Impact of the acquisition on the HITO-Communications's consolidated financial results will be minor. Reported Earnings • Apr 11
Second quarter 2021 earnings released: EPS JP¥35.03 (vs JP¥31.12 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: JP¥20.4b (up 13% from 2Q 2020). Net income: JP¥625.0m (up 12% from 2Q 2020). Profit margin: 3.1% (in line with 2Q 2020). Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Apr 10
HITO-Communications Holdings,Inc. Announces Earning Guidance for the Fiscal Year Ending August 31, 2021 HITO-Communications Holdings,Inc. announced earning guidance for the fiscal year ending August 31, 2021. For the period, the company expects that Net Sales were JPY 73,000 million, operating income was JPY 3,500 million, profit attributable to owners of parent was JPY 1,880, Profit per share was JPY 105.37. Announcement • Mar 07
HITO-Communications Holdings,Inc. to Report Q2, 2021 Results on Apr 08, 2021 HITO-Communications Holdings,Inc. announced that they will report Q2, 2021 results on Apr 08, 2021 Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥2,136, the stock is trading at a trailing P/E ratio of 22.3x, up from the previous P/E ratio of 19.1x. This compares to an average P/E of 23x in the Professional Services industry in Japan. Total returns to shareholders over the past three years are 20%. Is New 90 Day High Low • Feb 04
New 90-day high: JP¥2,126 The company is up 44% from its price of JP¥1,480 on 06 November 2020. The Japanese market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Professional Services industry, which is up 11% over the same period. Reported Earnings • Jan 14
First quarter 2021 earnings released: EPS JP¥50.16 The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: JP¥20.6b (up 14% from 1Q 2020). Net income: JP¥895.0m (up 61% from 1Q 2020). Profit margin: 4.3% (up from 3.1% 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 7% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Jan 12
New 90-day high: JP¥1,693 The company is up 17% from its price of JP¥1,447 on 14 October 2020. The Japanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Professional Services industry, which is up 4.0% over the same period. Valuation Update With 7 Day Price Move • Jan 12
Investor sentiment improved over the past week After last week's 22% share price gain to JP¥1,693, the stock is trading at a trailing P/E ratio of 22.1x, up from the previous P/E ratio of 18.1x. This compares to an average P/E of 22x in the Professional Services industry in Japan. Total return to shareholders over the past three years is a loss of 27%. Announcement • Jan 01
HITO-Communications Holdings,Inc. to Report Q1, 2021 Results on Jan 12, 2021 HITO-Communications Holdings,Inc. announced that they will report Q1, 2021 results on Jan 12, 2021 Reported Earnings • Dec 04
Full year 2020 earnings released: EPS JP¥76.68 The company reported a soft full year result with weaker earnings and profit margins, although revenues were improved. Full year 2020 results: Revenue: JP¥71.5b (up 12% from FY 2019). Net income: JP¥1.37b (down 21% from FY 2019). Profit margin: 1.9% (down from 2.7% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Dec 04
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) missed analyst estimates by 25%. Over the next year, revenue is forecast to stay flat compared to a 4.6% growth forecast for the Professional Services industry in Japan. Is New 90 Day High Low • Dec 03
New 90-day high: JP¥1,542 The company is up 45% from its price of JP¥1,060 on 04 September 2020. The Japanese market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Professional Services industry, which is up 8.0% over the same period. Announcement • Sep 23
HITO-Communications Holdings,Inc. to Report Fiscal Year 2020 Results on Oct 12, 2020 HITO-Communications Holdings,Inc. announced that they will report fiscal year 2020 results on Oct 12, 2020