New Risk • Jun 20
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 20% 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: Minor Risks Dividend is not well covered by earnings (91% payout ratio). Large one-off items impacting financial results. Shareholders have been diluted in the past year (20% increase in shares outstanding). Major Estimate Revision • May 18
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2027 has improved. 2027 revenue forecast increased from JP¥228.5b to JP¥233.2b. EPS estimate increased from JP¥14.57 to JP¥16.21 per share. Net income forecast to grow 44% next year vs 11% growth forecast for Banks industry in Japan. Consensus price target broadly unchanged at JP¥285. Share price was steady at JP¥268 over the past week. Live News • May 11
Seven Bank Maintains Dividend Despite 26% Net Income Drop and Plans Growth Through 2028 Seven Bank reported FY2026 results with ordinary income up 2.6% but net income down 26%, which weighed on return on equity.
The bank kept its annual dividend unchanged, resulting in a payout ratio of 90.5%.
Management issued forecasts for FY2027 that point to higher ordinary income and net income, and set out a three-year outlook through 2028 focused on everyday-life financial services and medium-term growth plans.
The combination of weaker profit and an unchanged dividend suggests management is prioritising income stability for shareholders even as earnings fluctuate.
Investors may want to watch how the high payout ratio, earnings recovery targets for FY2027 and the new 2028 growth plan interact with capital needs and risk metrics outlined in the bank’s detailed asset quality and capital adequacy data. Reported Earnings • May 09
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥12.15 (down from JP¥15.57 in FY 2025). Revenue: JP¥212.1b (up 1.7% from FY 2025). Net income: JP¥13.5b (down 26% from FY 2025). Profit margin: 6.4% (down from 8.7% in FY 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.7%. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Banks industry in Japan. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • May 08
Seven Bank, Ltd., Annual General Meeting, Jun 22, 2026 Seven Bank, Ltd., Annual General Meeting, Jun 22, 2026. Announcement • Apr 14
Seven Bank, Ltd. to Report Fiscal Year 2026 Results on May 08, 2026 Seven Bank, Ltd. announced that they will report fiscal year 2026 results at 12:00 PM, Tokyo Standard Time on May 08, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥5.50 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 09 June 2026. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.1%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.7%). New Risk • Feb 10
New minor risk - Dividend sustainability The dividend is not well covered by earnings. Payout ratio: 102% Current dividend yield: 3.7% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (102% payout ratio). Large one-off items impacting financial results. New Risk • Feb 07
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 24% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Feb 07
Third quarter 2026 earnings released: JP¥1.04 loss per share (vs JP¥3.45 profit in 3Q 2025) Third quarter 2026 results: JP¥1.04 loss per share (down from JP¥3.45 profit in 3Q 2025). Revenue: JP¥56.7b (up 8.1% from 3Q 2025). Net loss: JP¥1.19b (down 130% from profit in 3Q 2025). Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Banks industry in Japan. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Dec 11
Seven Bank, Ltd. to Report Q3, 2026 Results on Feb 06, 2026 Seven Bank, Ltd. announced that they will report Q3, 2026 results on Feb 06, 2026 Declared Dividend • Dec 02
First half dividend of JP¥5.50 announced Dividend of JP¥5.50 is the same as last year. Ex-date: 30th March 2026 Payment date: 9th June 2026 Dividend yield will be 3.8%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 3.2% 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 30% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 08
Second quarter 2026 earnings released: EPS: JP¥5.88 (vs JP¥5.38 in 2Q 2025) Second quarter 2026 results: EPS: JP¥5.88. Revenue: JP¥67.1b (up 27% from 2Q 2025). Net income: JP¥5.78b (down 8.2% from 2Q 2025). Profit margin: 8.6% (down from 12% in 2Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Banks industry in Japan. Announcement • Sep 27
Seven Bank, Ltd. announced that it expects to receive ¥51.3756 billion in funding from ITOCHU Corporation Seven Bank, Ltd. announced a private placement to issue Treasury Stock for gross proceeds of ¥51,375,600,000 on September 26, 2025. The transaction will include participation from new investor ITOCHU Corporation. The transaction has been approved by shareholders, expected to close on October 14, 2025. The company has disclosed the Estimated Issuance Expenses ¥9,000,000 and net proceeds of ¥51,366,600,000. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥5.50 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 02 December 2025. Payout ratio is a comfortable 72% but the company is not cash flow positive. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (3.1%). Announcement • Sep 02
Seven Bank, Ltd. to Report Q2, 2026 Results on Nov 07, 2025 Seven Bank, Ltd. announced that they will report Q2, 2026 results on Nov 07, 2025 Reported Earnings • Aug 09
First quarter 2026 earnings: EPS and revenues miss analyst expectations First quarter 2026 results: EPS: JP¥3.65 (down from JP¥3.97 in 1Q 2025). Revenue: JP¥52.5b (up 2.9% from 1Q 2025). Net income: JP¥4.19b (down 9.8% from 1Q 2025). Profit margin: 8.0% (down from 9.1% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 4.6%. Earnings per share (EPS) also missed analyst estimates by 18%. Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Banks industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Declared Dividend • Jul 09
Final dividend of JP¥5.50 announced Dividend of JP¥5.50 is the same as last year. Ex-date: 29th September 2025 Payment date: 2nd December 2025 Dividend yield will be 4.1%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 3.2% 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 38% to bring the payout ratio under control. EPS is expected to grow by 41% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Board Change • Jul 08
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Outside Director Mika Matsuo was the last director to join the board, commencing their role in 2025. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Jun 27
Seven Bank, Ltd. to Report Q1, 2026 Results on Aug 08, 2025 Seven Bank, Ltd. announced that they will report Q1, 2026 results on Aug 08, 2025 Announcement • Jun 19
Seven Bank, Ltd. (TSE:8410) announces an Equity Buyback for 200,000,000 shares, representing 17.01% for ¥52,400 million. Seven Bank, Ltd. (TSE:8410) announces a share repurchase program. Under the program, the company will repurchase up to 200,000,000 shares, representing 17.01% of its share capital, for ¥52,400 million. The purpose of the buyback is to mitigate the impact on stock supply and demand due to the parent company's intention to sell shares. The program will expire on June 20, 2025. As of March 31, 2025, the company had 1,175,472,652 shares in issue (excluding treasury stock) and 3,835,348 shares in treasury. Announcement • May 20
Seven & i Holdings Reportedly Plans to Sell Partial Stake in Seven Bank to Itochu Seven & i Holdings Co., Ltd. (TSE:3382) planned to sell a partial stake in Seven Bank, Ltd. (TSE:8410) to trading house ITOCHU Corporation (TSE:8001), with an announcement expected as early as May 30, 2025 the Nikkei business reported. Seven & i will initially discuss with Itochu the transfer of a stake of about 10% in Seven Bank, worth about JPY 30 billion ($208 million), held by its group's supermarket operators Ito-Yokado and York Benimaru, the Nikkei reported. Seven & i is aiming to focus on its core convenience store business as it faces a takeover proposal from Canada's Alimentation Couche-Tard (ATD.TO). Seven Bank shares rose more than 8% following the report. A Seven & i spokesperson said he could not immediately comment. Details such as the size of the stake and price are to be announced in June, according to the Nikkei. Reported Earnings • May 10
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥15.57 (down from JP¥27.26 in FY 2024). Revenue: JP¥208.7b (up 8.3% from FY 2024). Net income: JP¥18.2b (down 43% from FY 2024). Profit margin: 8.7% (down from 17% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 11%. Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Banks 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 3% per year. Announcement • May 09
Seven Bank, Ltd., Annual General Meeting, Jun 23, 2025 Seven Bank, Ltd., Annual General Meeting, Jun 23, 2025. 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¥237, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 10x in the Banks industry in Japan. Total returns to shareholders of 10% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥390 per share. Buy Or Sell Opportunity • Mar 31
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 10% to JP¥280. The fair value is estimated to be JP¥359, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 2.9%. For the next 3 years, revenue is forecast to grow by 3.2% per annum. Earnings are also forecast to grow by 15% per annum over the same time period. Announcement • Mar 26
Seven Bank, Ltd. to Report Fiscal Year 2025 Results on May 09, 2025 Seven Bank, Ltd. announced that they will report fiscal year 2025 results on May 09, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥5.50 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 03 June 2025. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 3.7%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (3.1%). Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥3.45 (vs JP¥3.39 in 3Q 2024) Third quarter 2025 results: EPS: JP¥3.45 (up from JP¥3.39 in 3Q 2024). Revenue: JP¥53.9b (up 4.6% from 3Q 2024). Net income: JP¥4.04b (up 1.6% from 3Q 2024). Profit margin: 7.5% (down from 7.7% in 3Q 2024). Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 1.7% growth forecast for the Banks 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 6% per year. Announcement • Dec 13
Seven Bank, Ltd. to Report Q3, 2025 Results on Feb 07, 2025 Seven Bank, Ltd. announced that they will report Q3, 2025 results on Feb 07, 2025 Declared Dividend • Dec 03
First half dividend of JP¥5.50 announced Dividend of JP¥5.50 is the same as last year. Ex-date: 28th March 2025 Payment date: 3rd June 2025 Dividend yield will be 3.3%, which is about the same as the industry average. Sustainability & Growth The dividend has increased by an average of 3.2% 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 77% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Nov 09
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: 5.0% Last year net profit margin: 25% 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 Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.0% net profit margin). Upcoming Dividend • Sep 20
Upcoming dividend of JP¥5.50 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 41% but the company is not cash flow positive. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (3.5%). Announcement • Aug 28
Seven Bank, Ltd. to Report Q2, 2025 Results on Nov 08, 2024 Seven Bank, Ltd. announced that they will report Q2, 2025 results on Nov 08, 2024 Reported Earnings • Aug 11
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: EPS: JP¥3.97 (down from JP¥4.52 in 1Q 2024). Revenue: JP¥50.9b (up 25% from 1Q 2024). Net income: JP¥4.64b (down 13% from 1Q 2024). Profit margin: 9.1% (down from 13% in 1Q 2024). Revenue missed analyst estimates by 3.0%. Earnings per share (EPS) also missed analyst estimates by 5.9%. Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, while revenues in the Banks industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Declared Dividend • Jul 11
Final dividend of JP¥5.50 announced Dividend of JP¥5.50 is the same as last year. Ex-date: 27th September 2024 Payment date: 2nd December 2024 Dividend yield will be 4.0%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 4.6% 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 decline by 13% over the next 3 years. However, it would need to fall by 55% to increase the payout ratio to a potentially unsustainable range. Buy Or Sell Opportunity • Jul 05
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.0% to JP¥274. The fair value is estimated to be JP¥343, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 16%. For the next 3 years, revenue is forecast to grow by 4.2% per annum. Earnings are forecast to decline by 4.4% per annum over the same time period. Announcement • Jun 28
Seven Bank, Ltd. to Report Q1, 2025 Results on Aug 09, 2024 Seven Bank, Ltd. announced that they will report Q1, 2025 results on Aug 09, 2024 Reported Earnings • Jun 21
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: JP¥27.26 (up from JP¥16.03 in FY 2023). Revenue: JP¥192.6b (up 26% from FY 2023). Net income: JP¥32.0b (up 70% from FY 2023). Profit margin: 17% (up from 12% in FY 2023). Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 1.7% decline forecast for the Banks industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 13
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: JP¥27.26 (up from JP¥16.03 in FY 2023). Revenue: JP¥194.0b (up 27% from FY 2023). Net income: JP¥32.0b (up 70% from FY 2023). Profit margin: 17% (up from 12% in FY 2023). Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Banks industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% 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 • May 13
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.6% to JP¥267. The fair value is estimated to be JP¥345, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 16%. For the next 3 years, revenue is forecast to grow by 3.1% per annum. Earnings are forecast to decline by 4.4% per annum over the same time period. Announcement • May 12
Seven Bank, Ltd., Annual General Meeting, Jun 17, 2024 Seven Bank, Ltd., Annual General Meeting, Jun 17, 2024. Announcement • Mar 29
Seven Bank, Ltd. to Report Fiscal Year 2024 Results on May 10, 2024 Seven Bank, Ltd. announced that they will report fiscal year 2024 results on May 10, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥5.50 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 03 June 2024. Payout ratio is a comfortable 48% and this is well supported by cash flows. Trailing yield: 3.6%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.9%). Reported Earnings • Feb 10
Third quarter 2024 earnings: EPS misses analyst expectations Third quarter 2024 results: EPS: JP¥3.39 (down from JP¥4.73 in 3Q 2023). Revenue: JP¥53.1b (up 35% from 3Q 2023). Net income: JP¥3.97b (down 29% from 3Q 2023). Profit margin: 7.5% (down from 14% in 3Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 24%. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 2.3% growth forecast for the Banks 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 6% per year. Buy Or Sell Opportunity • Feb 10
Now 21% undervalued The stock has been flat over the last 90 days, currently trading at JP¥296. The fair value is estimated to be JP¥374, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.9% over the last 3 years. Earnings per share has grown by 11%. For the next 3 years, revenue is forecast to grow by 4.9% per annum. Earnings are forecast to decline by 19% per annum over the same time period. Announcement • Feb 10
Digital Wallet Corporation reached an agreement to acquire Seven Global Remit, Ltd. from Seven Bank, Ltd. (TSE:8410). Digital Wallet Corporation reached an agreement to acquire Seven Global Remit, Ltd. from Seven Bank, Ltd. (TSE:8410) on February 9, 2024. Announcement • Dec 01
Seven Bank, Ltd. to Report Q3, 2024 Results on Feb 09, 2024 Seven Bank, Ltd. announced that they will report Q3, 2024 results on Feb 09, 2024 Reported Earnings • Nov 11
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: JP¥23.26 (up from JP¥4.06 in 2Q 2023). Revenue: JP¥50.9b (up 35% from 2Q 2023). Net income: JP¥27.3b (up 472% from 2Q 2023). Profit margin: 54% (up from 13% in 2Q 2023). Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 2.7%. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 1.8% decline forecast for the Banks industry in Japan. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥5.50 per share at 3.4% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 01 December 2023. Payout ratio is a comfortable 67% but the company is paying out more than the cash it is generating. Trailing yield: 3.4%. Within top quartile of Japanese dividend payers (3.3%). In line with average of industry peers (3.2%). Announcement • Sep 07
Seven Bank, Ltd. to Report Q2, 2024 Results on Nov 10, 2023 Seven Bank, Ltd. announced that they will report Q2, 2024 results on Nov 10, 2023 Reported Earnings • Aug 06
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: JP¥4.52 (up from JP¥4.25 in 1Q 2023). Revenue: JP¥41.7b (up 17% from 1Q 2023). Net income: JP¥5.31b (up 6.4% from 1Q 2023). Profit margin: 13% (down from 14% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) also surpassed analyst estimates by 31%. Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 4.4% decline forecast for the Banks industry in Japan. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Board Change • Jul 05
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 4 experienced directors. 1 highly experienced director. CEO & Chairman Yasuaki Funatake is the most experienced director on the board, commencing their role in 2008. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Jun 30
Seven Bank, Ltd. to Report Q1, 2024 Results on Aug 04, 2023 Seven Bank, Ltd. announced that they will report Q1, 2024 results on Aug 04, 2023 Reported Earnings • May 16
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: JP¥16.03 (down from JP¥17.72 in FY 2022). Revenue: JP¥152.9b (up 13% from FY 2022). Net income: JP¥18.9b (down 9.5% from FY 2022). Profit margin: 12% (down from 15% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.7%. Earnings per share (EPS) missed analyst estimates by 5.4%. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, while revenues in the Banks industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • May 12
Seven Bank, Ltd., Annual General Meeting, Jun 19, 2023 Seven Bank, Ltd., Annual General Meeting, Jun 19, 2023. Agenda: Annual General Meeting. Buying Opportunity • Apr 05
Now 21% undervalued Over the last 90 days, the stock is up 1.9%. The fair value is estimated to be JP¥332, 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 declined by 11%. For the next 3 years, revenue is forecast to grow by 2.5% per annum. Earnings is also forecast to grow by 7.5% per annum over the same time period. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥5.50 per share at 4.1% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 01 June 2023. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 4.1%. Within top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (4.0%). Reported Earnings • Feb 04
Third quarter 2023 earnings: EPS misses analyst expectations Third quarter 2023 results: EPS: JP¥4.73 (up from JP¥4.31 in 3Q 2022). Revenue: JP¥40.1b (up 13% from 3Q 2022). Net income: JP¥5.56b (up 9.7% from 3Q 2022). Profit margin: 14% (in line with 3Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.5%. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, while revenues in the Banks industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 7% per year. Reported Earnings • Nov 06
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: EPS: JP¥4.06 (down from JP¥4.64 in 2Q 2022). Revenue: JP¥37.7b (up 12% from 2Q 2022). Net income: JP¥4.77b (down 12% from 2Q 2022). Profit margin: 13% (down from 16% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 12%. Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, while revenues in the Banks industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 6% per year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥5.50 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 01 December 2022. Payout ratio is a comfortable 63% but the company is paying out more than the cash it is generating. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (4.4%). Reported Earnings • Aug 07
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: EPS: JP¥4.25 (down from JP¥4.63 in 1Q 2022). Revenue: JP¥35.7b (up 7.5% from 1Q 2022). Net income: JP¥4.99b (down 8.4% from 1Q 2022). Profit margin: 14% (down from 16% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) also missed analyst estimates by 1.4%. Over the next year, revenue is forecast to grow 8.3% while the industry in Japan is not expected to grow. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has fallen by 3% per year. Announcement • Jul 08
Seven Bank, Ltd. to Report Q3, 2023 Results on Feb 03, 2023 Seven Bank, Ltd. announced that they will report Q3, 2023 results on Feb 03, 2023 Reported Earnings • May 11
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥17.72 (down from JP¥22.01 in FY 2021). Revenue: JP¥134.9b (down 1.3% from FY 2021). Net income: JP¥20.8b (down 20% from FY 2021). Profit margin: 15% (down from 19% in FY 2021). The decrease in margin was primarily driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.1%. Over the next year, revenue is forecast to grow 5.2% compared to a 15% decline forecast for the banks industry in Japan. 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 5% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥5.50 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 01 June 2022. Payout ratio is a comfortable 63% and the cash payout ratio is 94%. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (3.4%). In line with average of industry peers (4.0%). Reported Earnings • Feb 07
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: JP¥4.31 (down from JP¥6.08 in 3Q 2021). Revenue: JP¥35.4b (flat on 3Q 2021). Net income: JP¥5.07b (down 29% from 3Q 2021). Profit margin: 14% (down from 20% in 3Q 2021). Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) missed analyst estimates by 8.7%. Over the next year, revenue is forecast to grow 3.8% compared to a 15% decline forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Buying Opportunity • Jan 19
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 2.4%. The fair value is estimated to be JP¥306, 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 22% per annum over the last 3 years. Reported Earnings • Nov 07
Second quarter 2022 earnings released: EPS JP¥4.64 (vs JP¥6.34 in 2Q 2021) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥33.8b (down 3.8% from 2Q 2021). Net income: JP¥5.45b (down 27% from 2Q 2021). Profit margin: 16% (down from 21% in 2Q 2021). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥5.50 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 01 December 2021. Trailing yield: 4.4%. Within top quartile of Japanese dividend payers (3.0%). In line with average of industry peers (4.3%). Reported Earnings • Aug 09
First quarter 2022 earnings released: EPS JP¥4.63 (vs JP¥5.75 in 1Q 2021) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2022 results: Revenue: JP¥33.3b (up 1.3% from 1Q 2021). Net income: JP¥5.45b (down 20% from 1Q 2021). Profit margin: 16% (down from 21% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Board Change • Jul 31
High number of new directors Full-Time Audit & Supervisory Board Member Kazuhiko Ishiguro was the last director to join the board, commencing their role in 2020. Price Target Changed • Jul 20
Price target decreased to JP¥255 Down from JP¥278, the current price target is an average from 4 analysts. New target price is 6.7% above last closing price of JP¥239. Stock is down 12% over the past year. Reported Earnings • May 09
Full year 2021 earnings released: EPS JP¥22.01 (vs JP¥22.14 in FY 2020) The company reported a soft full year result with weaker earnings and revenues, although profit margins were improved. Full year 2021 results: Revenue: JP¥136.7b (down 7.5% from FY 2020). Net income: JP¥25.9b (down 1.0% from FY 2020). Profit margin: 19% (up from 18% in FY 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥5.50 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 01 June 2021. Trailing yield: 4.1%. Within top quartile of Japanese dividend payers (2.7%). In line with average of industry peers (3.8%). Is New 90 Day High Low • Mar 08
New 90-day high: JP¥247 The company is up 14% from its price of JP¥217 on 08 December 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Banks industry, which is up 18% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥355 per share. Reported Earnings • Feb 07
Third quarter 2021 earnings released: EPS JP¥6.08 (vs JP¥6.57 in 3Q 2020) The company reported a poor third quarter result with weaker earnings and revenues, although profit margins were flat. Third quarter 2021 results: Revenue: JP¥35.7b (down 5.1% from 3Q 2020). Net income: JP¥7.15b (down 7.6% from 3Q 2020). Profit margin: 20% (in line with 3Q 2020). 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 14% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Feb 07
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) also surpassed analyst estimates by 24%. Over the next year, revenue is forecast to decline by -3.0% while the Banks industry in Japan is not expected to grow. 
