Financials SMS Co., Ltd.

Equities

2175

JP3162350007

Employment Services

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-04-26 am EDT			5-day change	1st Jan Change
2,270 ^JPY	-0.50%		+3.89%	-21.69%

Apr. 26	SMS Co., Ltd. announces an Equity Buyback for 876,400 shares, representing 1.01% for ¥2,000 million.	CI
Apr. 26	SMS Co., Ltd. authorizes a Buyback Plan.	CI

Valuation

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	173,910	182,211	294,429	295,865	278,448	196,963	-	-
Enterprise Value (EV) ¹	183,326	188,751	297,014	291,594	269,810	224,398	182,945	174,600
P/E ratio	41.2 x	38.3 x	61.3 x	54.7 x	43.5 x	31.2 x	23.7 x	20 x
Yield	0.38%	0.41%	0.28%	0.31%	0.47%	0.77%	0.88%	1.18%
Capitalization / Revenue	5.64 x	5.19 x	8.19 x	7.61 x	6.1 x	4.16 x	3 x	2.58 x
EV / Revenue	5.95 x	5.37 x	8.26 x	7.5 x	5.91 x	4.16 x	2.79 x	2.28 x
EV / EBITDA	27.7 x	27.1 x	38.8 x	33.1 x	26.5 x	16.6 x	13.8 x	11.4 x
EV / FCF	44.8 x	47.4 x	59.6 x	37.7 x	56.9 x	35.2 x	29.3 x	22.2 x
FCF Yield	2.23%	2.11%	1.68%	2.65%	1.76%	2.84%	3.41%	4.5%
Price to Book	11.3 x	9.48 x	13.1 x	9.98 x	7.34 x	5.1 x	4.05 x	3.45 x
Nbr of stocks (in thousands)	86,998	87,057	87,109	87,147	87,151	86,749	-	-
Reference price ²	1,999	2,093	3,380	3,395	3,195	2,270	2,270	2,270
Announcement Date	4/26/19	4/30/20	4/28/21	4/28/22	4/28/23	4/26/24	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	30,836	35,140	35,960	38,899	45,667	53,973	65,558	76,421
EBITDA ¹	6,611	6,955	7,655	8,800	10,175	11,122	13,247	15,337
EBIT ¹	4,743	4,935	5,470	6,318	7,279	8,269	9,836	11,614
Operating Margin	15.38%	14.04%	15.21%	16.24%	15.94%	15.32%	15%	15.2%
Earnings before Tax (EBT) ¹	5,534	6,375	6,470	7,707	8,795	9,742	11,002	13,316
Net income ¹	4,216	4,760	4,800	5,408	6,406	7,227	8,163	9,770
Net margin	13.67%	13.55%	13.35%	13.9%	14.03%	13.39%	12.45%	12.78%
EPS ²	48.51	54.69	55.13	62.07	73.50	82.97	95.86	113.6
Free Cash Flow ¹	4,090	3,986	4,986	7,739	4,741	5,243	6,243	7,857
FCF margin	13.26%	11.34%	13.87%	19.9%	10.38%	9.64%	9.52%	10.28%
FCF Conversion (EBITDA)	61.87%	57.31%	65.13%	87.94%	46.59%	47.14%	47.13%	51.23%
FCF Conversion (Net income)	97.01%	83.74%	103.88%	143.1%	74.01%	72.69%	76.48%	80.43%
Dividend per Share ²	7.500	8.500	9.500	10.50	15.00	20.00	20.00	26.83
Announcement Date	4/26/19	4/30/20	4/28/21	4/28/22	4/28/23	4/26/24	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: March	2020 S1	2020 S2	2021 S1	2021 S2	2022 Q2	2022 S1	2022 Q3	2022 Q4	2022 S2	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2023 S2	2024 Q1	2024 Q2	2024 S1	2024 Q3	2024 Q4	2024 S2	2025 Q1	2025 Q2	2025 S1	2025 Q3	2025 Q4	2025 S2
Net sales ¹	17,628	17,512	18,638	17,322	9,089	19,927	8,388	10,584	18,972	12,517	10,817	23,334	10,098	12,235	22,333	15,194	12,280	27,474	11,883	14,616	26,499	-	-	-	-	-	-
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	2,074	2,861	2,949	2,521	1,135	3,682	213	2,423	2,636	3,086	1,523	4,609	434	2,236	2,670	3,729	972	4,701	244	3,324	3,568	4,300	1,275	5,050	525	3,800	4,650
Operating Margin	11.77%	16.34%	15.82%	14.55%	12.49%	18.48%	2.54%	22.89%	13.89%	24.65%	14.08%	19.75%	4.3%	18.28%	11.96%	24.54%	7.92%	17.11%	2.05%	22.74%	13.46%	-	-	-	-	-	-
Earnings before Tax (EBT) ¹	3,110	3,265	3,786	-	1,374	4,687	432	2,602	3,020	4,007	1,708	5,715	636	2,444	3,080	4,604	1,158	5,767	366	3,609	3,975	-	-	-	-	-	-
Net income ¹	2,319	2,441	2,775	2,025	928	3,404	245	1,759	2,004	2,975	1,154	4,129	433	1,844	2,277	3,389	787	4,176	200	2,851	3,051	-	-	-	-	-	-
Net margin	13.16%	13.94%	14.89%	11.69%	10.21%	17.08%	2.92%	16.62%	10.56%	23.77%	10.67%	17.7%	4.29%	15.07%	10.2%	22.3%	6.41%	15.2%	1.68%	19.51%	11.51%	-	-	-	-	-	-
EPS ²	26.66	-	31.88	-	10.64	39.07	2.810	20.19	-	34.14	13.24	47.38	4.970	21.15	-	38.89	8.920	47.81	2.350	32.81	-	-	-	-	-	-	-
Dividend per Share	-	-	-	-	-	-	-	-	-	-	-	-	-	-	15.00	-	-	-	-	-	-	-	-	-	-	-	-
Announcement Date	10/30/19	4/30/20	10/29/20	4/28/21	10/29/21	10/29/21	1/31/22	4/28/22	4/28/22	7/29/22	10/28/22	10/28/22	1/31/23	4/28/23	4/28/23	7/28/23	10/27/23	10/27/23	1/31/24	4/26/24	4/26/24	-	-	-	-	-	-

¹JPY in Million²JPY

Estimates

Balance Sheet Analysis

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	9,416	6,540	2,585	-	-	-	-	-
Net Cash position ¹	-	-	-	4,271	8,638	12,263	14,018	22,363
Leverage (Debt/EBITDA)	1.424 x	0.9403 x	0.3377 x	-	-	-	-	-
Free Cash Flow ¹	4,090	3,986	4,986	7,739	4,741	5,243	6,243	7,857
ROE (net income / shareholders' equity)	24.4%	27.5%	23.1%	20.8%	19%	17.6%	18.2%	18.8%
ROA (Net income/ Total Assets)	12.8%	12.9%	13.2%	14.6%	14.4%	14.4%	9%	13.7%
Assets ¹	32,984	36,875	36,233	37,109	44,497	50,209	90,700	71,138
Book Value Per Share ²	177.0	221.0	257.0	340.0	435.0	507.0	561.0	658.0
Cash Flow per Share ²	60.70	68.60	70.90	81.00	96.20	111.0	120.0	139.0
Capex ¹	947	1,605	2,035	2,012	2,914	2,713	4,061	3,258
Capex / Sales	3.07%	4.57%	5.66%	5.17%	6.38%	4.99%	6.19%	4.26%
Announcement Date	4/26/19	4/30/20	4/28/21	4/28/22	4/28/23	4/26/24	-	-

¹JPY in Million²JPY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for SMS Co., Ltd.

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

2,270 JPY

Average target price

3,650 JPY

Spread / Average Target

+60.76%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Outsourcing & Staffing Services

	1st Jan change	Capi.
SMS CO., LTD.	-21.69%	1.25B
RECRUIT HOLDINGS CO., LTD	+11.37%	64.99B
PAYCHEX, INC.	+0.72%	43.18B
TRINET GROUP, INC.	-11.11%	5.35B
BENEFIT ONE INC.	+2.00%	2.18B
TECHNOPRO HOLDINGS, INC.	-23.19%	1.94B
MEITEC GROUP HOLDINGS INC.	+5.77%	1.47B
OUTSOURCING INC.	+0.46%	1.4B
OPEN UP GROUP INC.	-13.88%	1.12B
UT GROUP CO.,LTD.	+36.46%	841M

Outsourcing & Staffing Services