Board Change • Jul 01
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 4 experienced directors. 1 highly experienced director. President, Executive Officer & Representative Director Shigemi Mima is the most experienced director on the board, commencing their role in 2005. 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 26
Pegasus Co., Ltd. to Report Q1, 2027 Results on Jul 31, 2026 Pegasus Co., Ltd. announced that they will report Q1, 2027 results on Jul 31, 2026 New Risk • May 21
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.0b (US$94.3m) 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.5% net profit margin). Market cap is less than US$100m (JP¥15.0b market cap, or US$94.3m). Reported Earnings • May 18
Full year 2026 earnings: EPS misses analyst expectations Full year 2026 results: EPS: JP¥13.20 (down from JP¥38.85 in FY 2025). Revenue: JP¥21.7b (down 1.7% from FY 2025). Net income: JP¥323.0m (down 67% from FY 2025). Profit margin: 1.5% (down from 4.4% in FY 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 35%. Revenue is forecast to grow 9.9% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Machinery 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 increased by 8% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • May 15
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to JP¥783, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 17x in the Machinery industry in Japan. Total returns to shareholders of 45% over the past three years. New Risk • May 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 7.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.4% average weekly change). Profit margins are more than 30% lower than last year (2.7% net profit margin). Announcement • May 13
Pegasus Co., Ltd., Annual General Meeting, Jun 23, 2026 Pegasus Co., Ltd., Annual General Meeting, Jun 23, 2026. Buy Or Sell Opportunity • May 13
Now 21% undervalued Over the last 90 days, the stock has risen 13% to JP¥870. The fair value is estimated to be JP¥1,103, 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 41%. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 83% in the next 2 years. Announcement • May 09
Pegasus Co., Ltd. to Report Fiscal Year 2026 Results on May 13, 2026 Pegasus Co., Ltd. announced that they will report fiscal year 2026 results on May 13, 2026 Valuation Update With 7 Day Price Move • May 01
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥916, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 16x in the Machinery industry in Japan. Total returns to shareholders of 57% over the past three years. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 25 June 2026. Payout ratio is a comfortable 74% and this is well supported by cash flows. Trailing yield: 5.3%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Declared Dividend • Feb 01
Dividend of JP¥20.00 announced Shareholders will receive a dividend of JP¥20.00. Ex-date: 30th March 2026 Payment date: 25th June 2026 Dividend yield will be 4.1%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (33% earnings payout ratio) and cash flows (17% cash payout ratio). The dividend has increased by an average of 5.2% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 79% over the next 2 years, which should provide support to the dividend and adequate earnings cover. New Risk • Jan 31
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: 2.7% Last year net profit margin: 5.1% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.0% average weekly change). Profit margins are more than 30% lower than last year (2.7% net profit margin). Announcement • Dec 23
Pegasus Co., Ltd. to Report Q3, 2026 Results on Jan 30, 2026 Pegasus Co., Ltd. announced that they will report Q3, 2026 results on Jan 30, 2026 Buy Or Sell Opportunity • Nov 07
Now 24% undervalued Over the last 90 days, the stock has risen 41% to JP¥846. The fair value is estimated to be JP¥1,107, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 4.5% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 20% in 2 years. Earnings are forecast to grow by 75% in the next 2 years. New Risk • Nov 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.4% average weekly change). Reported Earnings • Nov 02
Second quarter 2026 earnings released: EPS: JP¥1.84 (vs JP¥5.82 loss in 2Q 2025) Second quarter 2026 results: EPS: JP¥1.84 (up from JP¥5.82 loss in 2Q 2025). Revenue: JP¥5.24b (down 1.6% from 2Q 2025). Net income: JP¥45.6m (up JP¥189.9m from 2Q 2025). Profit margin: 0.9% (up from net loss in 2Q 2025). The move to profitability was driven by lower expenses. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Oct 31
Pegasus Co., Ltd. (TSE:6262) announces an Equity Buyback for 1,250,000 shares, representing 5.04% for ¥1,000 million. Pegasus Co., Ltd. (TSE:6262) announces a share repurchase program. Under the program, the company will repurchase up to 1,250,000 shares, representing 5.04% of its issued share capital, for ¥1,000 million. The purpose of the program is to increase the value per share. The program is valid till March 31, 2026. As of September 30, 2025, the company had 24,810,624 outstanding shares and 17,976 treasury shares. Valuation Update With 7 Day Price Move • Oct 31
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥828, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 15x in the Machinery industry in Japan. Total loss to shareholders of 4.7% over the past three years. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 27 November 2025. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.0%). Announcement • Sep 18
Pegasus Co., Ltd. to Report Q2, 2026 Results on Oct 31, 2025 Pegasus Co., Ltd. announced that they will report Q2, 2026 results on Oct 31, 2025 Board Change • Sep 18
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 Norio Kotaka was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 02
First quarter 2026 earnings released: EPS: JP¥14.83 (vs JP¥15.37 in 1Q 2025) First quarter 2026 results: EPS: JP¥14.83 (down from JP¥15.37 in 1Q 2025). Revenue: JP¥6.17b (up 20% from 1Q 2025). Net income: JP¥368.0m (down 3.5% from 1Q 2025). Profit margin: 6.0% (down from 7.4% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.6% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 62% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Declared Dividend • Jul 20
Final dividend of JP¥10.00 announced Shareholders will receive a dividend of JP¥10.00. Ex-date: 29th September 2025 Payment date: 27th November 2025 Dividend yield will be 3.2%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (33% earnings payout ratio) and cash flows (29% cash payout ratio). The dividend has increased by an average of 2.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 90% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 17
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥38.85 (up from JP¥2.90 loss in FY 2024). Revenue: JP¥22.0b (up 26% from FY 2024). Net income: JP¥964.0m (up JP¥1.04b from FY 2024). Profit margin: 4.4% (up from net loss in FY 2024). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 33%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 4.3% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • May 13
Pegasus Co., Ltd., Annual General Meeting, Jun 24, 2025 Pegasus Co., Ltd., Annual General Meeting, Jun 24, 2025. Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥541, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Machinery industry in Japan. Negligible returns to shareholders over past three years. New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.7% average weekly change). Market cap is less than US$100m (JP¥9.95b market cap, or US$68.0m). Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥441, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 11x in the Machinery industry in Japan. Total loss to shareholders of 20% over the past three years. Announcement • Mar 26
Pegasus Co., Ltd. to Report Fiscal Year 2025 Results on May 13, 2025 Pegasus Co., Ltd. announced that they will report fiscal year 2025 results on May 13, 2025 Reported Earnings • Feb 01
Third quarter 2025 earnings released: EPS: JP¥30.35 (vs JP¥22.89 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥30.35 (up from JP¥22.89 loss in 3Q 2024). Revenue: JP¥5.56b (up 33% from 3Q 2024). Net income: JP¥753.0m (up JP¥1.32b from 3Q 2024). Profit margin: 14% (up from net loss in 3Q 2024). The move to profitability was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • Dec 21
Pegasus Co., Ltd. to Report Q3, 2025 Results on Jan 31, 2025 Pegasus Co., Ltd. announced that they will report Q3, 2025 results on Jan 31, 2025 Reported Earnings • Nov 02
Second quarter 2025 earnings released: JP¥5.82 loss per share (vs JP¥1.94 profit in 2Q 2024) Second quarter 2025 results: JP¥5.82 loss per share (down from JP¥1.94 profit in 2Q 2024). Revenue: JP¥5.32b (up 28% from 2Q 2024). Net loss: JP¥144.3m (down 401% from profit in 2Q 2024). Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 58% 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 • Sep 25
Pegasus Co., Ltd. to Report Q2, 2025 Results on Oct 31, 2024 Pegasus Co., Ltd. announced that they will report Q2, 2025 results on Oct 31, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥5.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 27 November 2024. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.9%). New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.8% 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 Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (5.8% average weekly change). Market cap is less than US$100m (JP¥11.1b market cap, or US$78.2m). Reported Earnings • Aug 02
First quarter 2025 earnings released: EPS: JP¥15.37 (vs JP¥15.76 in 1Q 2024) First quarter 2025 results: EPS: JP¥15.37 (down from JP¥15.76 in 1Q 2024). Revenue: JP¥5.14b (up 10% from 1Q 2024). Net income: JP¥381.3m (down 2.5% from 1Q 2024). Profit margin: 7.4% (down from 8.4% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Declared Dividend • Jul 11
Dividend of JP¥5.00 announced Dividend of JP¥5.00 is the same as last year. Ex-date: 27th September 2024 Payment date: 27th November 2024 Dividend yield will be 0.8%, which is lower than the industry average of 2.1%. Sustainability & Growth Dividend is not covered by earnings (133% 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 8.0% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 47% to bring the payout ratio under control. EPS is expected to grow by 250% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Board Change • Jul 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 3 highly experienced directors. Full-Time Audit & Supervisory Board Member Taizo Yoshida was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Announcement • Jun 28
Pegasus Co., Ltd. to Report Q1, 2025 Results on Jul 31, 2024 Pegasus Co., Ltd. announced that they will report Q1, 2025 results on Jul 31, 2024 Reported Earnings • May 16
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: JP¥2.90 loss per share (down from JP¥92.46 profit in FY 2023). Revenue: JP¥17.5b (down 31% from FY 2023). Net loss: JP¥72.0m (down 103% from profit in FY 2023). Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 23% p.a. on average during the next 2 years, compared to a 4.7% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • May 15
Pegasus Co., Ltd., Annual General Meeting, Jun 25, 2024 Pegasus Co., Ltd., Annual General Meeting, Jun 25, 2024. New Risk • Apr 20
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (5.8% average weekly change). Profit margins are more than 30% lower than last year (1.7% net profit margin). Market cap is less than US$100m (JP¥12.1b market cap, or US$78.0m). Announcement • Mar 21
Pegasus Co., Ltd. to Report Fiscal Year 2024 Results on May 13, 2024 Pegasus Co., Ltd. announced that they will report fiscal year 2024 results on May 13, 2024 Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥532, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 13x in the Machinery industry in Japan. Total returns to shareholders of 25% over the past three years. Reported Earnings • Feb 02
Third quarter 2024 earnings released: JP¥22.89 loss per share (vs JP¥4.31 profit in 3Q 2023) Third quarter 2024 results: JP¥22.89 loss per share (down from JP¥4.31 profit in 3Q 2023). Revenue: JP¥4.19b (down 34% from 3Q 2023). Net loss: JP¥568.0m (down JP¥675.0m from profit in 3Q 2023). Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Machinery 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 3% per year, which means it is significantly lagging earnings growth. Announcement • Dec 16
Pegasus Co., Ltd. to Report Q3, 2024 Results on Jan 31, 2024 Pegasus Co., Ltd. announced that they will report Q3, 2024 results on Jan 31, 2024 Reported Earnings • Oct 28
Second quarter 2024 earnings released: EPS: JP¥1.94 (vs JP¥33.86 in 2Q 2023) Second quarter 2024 results: EPS: JP¥1.94 (down from JP¥33.86 in 2Q 2023). Revenue: JP¥3.48b (down 47% from 2Q 2023). Net income: JP¥48.0m (down 94% from 2Q 2023). Profit margin: 1.4% (down from 13% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. New Risk • Oct 27
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (312% cash payout ratio). Share price has been volatile over the past 3 months (5.9% average weekly change). Market cap is less than US$100m (JP¥12.7b market cap, or US$84.6m). Valuation Update With 7 Day Price Move • Oct 27
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥512, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Machinery industry in Japan. Total returns to shareholders of 106% over the past three years. New Risk • Oct 06
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.9b (US$99.7m) 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 cash flows (312% cash payout ratio). Market cap is less than US$100m (JP¥14.9b market cap, or US$99.7m). Announcement • Sep 23
Pegasus Co., Ltd. to Report Q2, 2024 Results on Oct 26, 2023 Pegasus Co., Ltd. announced that they will report Q2, 2024 results on Oct 26, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥9.00 per share at 4.3% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 25 November 2023. Payout ratio is a comfortable 38% but the company is paying out more than the cash it is generating. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.1%). Reported Earnings • Jul 28
First quarter 2024 earnings released: EPS: JP¥15.76 (vs JP¥36.28 in 1Q 2023) First quarter 2024 results: EPS: JP¥15.76 (down from JP¥36.28 in 1Q 2023). Revenue: JP¥5.35b (down 22% from 1Q 2023). Net income: JP¥391.0m (down 57% from 1Q 2023). Profit margin: 7.3% (down from 13% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Announcement • Jun 24
Pegasus Co., Ltd. to Report Q1, 2024 Results on Jul 27, 2023 Pegasus Co., Ltd. announced that they will report Q1, 2024 results on Jul 27, 2023 Reported Earnings • Jun 24
Full year 2023 earnings released: EPS: JP¥92.46 (vs JP¥63.36 in FY 2022) Full year 2023 results: EPS: JP¥92.46 (up from JP¥63.36 in FY 2022). Revenue: JP¥25.3b (up 23% from FY 2022). Net income: JP¥2.29b (up 46% from FY 2022). Profit margin: 9.1% (up from 7.7% 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 83% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 18
Full year 2023 earnings released: EPS: JP¥92.46 (vs JP¥63.36 in FY 2022) Full year 2023 results: EPS: JP¥92.46 (up from JP¥63.36 in FY 2022). Revenue: JP¥25.3b (up 23% from FY 2022). Net income: JP¥2.29b (up 46% from FY 2022). Profit margin: 9.1% (up from 7.7% 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 83% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Announcement • May 13
Pegasus Co., Ltd., Annual General Meeting, Jun 20, 2023 Pegasus Co., Ltd., Annual General Meeting, Jun 20, 2023. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥668, the stock trades at a trailing P/E ratio of 7x. Average trailing P/E is 11x in the Machinery industry in Japan. Total returns to shareholders of 51% over the past three years. Reported Earnings • Jan 27
Third quarter 2023 earnings released: EPS: JP¥4.31 (vs JP¥22.85 in 3Q 2022) Third quarter 2023 results: EPS: JP¥4.31 (down from JP¥22.85 in 3Q 2022). Revenue: JP¥6.37b (up 24% from 3Q 2022). Net income: JP¥107.0m (down 81% from 3Q 2022). Profit margin: 1.7% (down from 11% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 93% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment deteriorated over the past week After last week's 16% share price decline to JP¥752, the stock trades at a trailing P/E ratio of 6.6x. Average trailing P/E is 10x in the Machinery industry in Japan. Total returns to shareholders of 61% over the past three years. Announcement • Dec 21
Pegasus Sewing Machine Mfg. Co., Ltd. to Report Q3, 2023 Results on Jan 26, 2023 Pegasus Sewing Machine Mfg. Co., Ltd. announced that they will report Q3, 2023 results on Jan 26, 2023 Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Outside Independent Director Norio Kotaka was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 28
Second quarter 2023 earnings released: EPS: JP¥33.86 (vs JP¥11.69 in 2Q 2022) Second quarter 2023 results: EPS: JP¥33.86 (up from JP¥11.69 in 2Q 2022). Revenue: JP¥6.50b (up 42% from 2Q 2022). Net income: JP¥840.0m (up 190% from 2Q 2022). Profit margin: 13% (up from 6.3% 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 96% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 25 November 2022. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.4%). Announcement • Sep 17
Pegasus Sewing Machine Mfg. Co., Ltd. to Report Q2, 2023 Results on Oct 27, 2022 Pegasus Sewing Machine Mfg. Co., Ltd. announced that they will report Q2, 2023 results on Oct 27, 2022 Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥802, the stock trades at a trailing P/E ratio of 8.7x. Average trailing P/E is 11x in the Machinery industry in Japan. Total returns to shareholders of 81% over the past three years. Reported Earnings • Jul 30
First quarter 2023 earnings released: EPS: JP¥36.28 (vs JP¥7.26 in 1Q 2022) First quarter 2023 results: EPS: JP¥36.28 (up from JP¥7.26 in 1Q 2022). Revenue: JP¥6.85b (up 37% from 1Q 2022). Net income: JP¥900.0m (up 400% from 1Q 2022). Profit margin: 13% (up from 3.6% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 69% 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 • May 16
Full year 2022 earnings released: EPS: JP¥63.36 (vs JP¥28.50 in FY 2021) Full year 2022 results: EPS: JP¥63.36 (up from JP¥28.50 in FY 2021). Revenue: JP¥20.5b (up 65% from FY 2021). Net income: JP¥1.57b (up 122% from FY 2021). Profit margin: 7.7% (up from 5.7% 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 24% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • May 12
Pegasus Sewing Machine Mfg. Co., Ltd., Annual General Meeting, Jun 22, 2022 Pegasus Sewing Machine Mfg. Co., Ltd., Annual General Meeting, Jun 22, 2022. 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, 2 were independent directors. The company's board is composed of: 3 independent directors. 6 non-independent directors. Outside Independent Director Tokuo Kodaka was the last independent director to join the board, commencing their role in 2021. 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
Pegasus Sewing Machine Mfg. Co., Ltd. to Report Fiscal Year 2022 Results on May 12, 2022 Pegasus Sewing Machine Mfg. Co., Ltd. announced that they will report fiscal year 2022 results on May 12, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥13.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 23 June 2022. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 4.6%. Within top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (2.0%). Reported Earnings • Jan 28
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥22.85 (up from JP¥9.15 in 3Q 2021). Revenue: JP¥5.15b (up 68% from 3Q 2021). Net income: JP¥567.0m (up 150% from 3Q 2021). Profit margin: 11% (up from 7.4% in 3Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 9% per year and the company’s share price has also fallen by 9% per year. Reported Earnings • Oct 31
Second quarter 2022 earnings released: EPS JP¥11.69 (vs JP¥4.84 loss in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥4.57b (up 137% from 2Q 2021). Net income: JP¥290.0m (up JP¥410.0m from 2Q 2021). Profit margin: 6.3% (up from net loss in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings.