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LINE

TSE:3938
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3938
TSE
¥1,247B
Market Cap
  1. Home
  2. JP
  3. Media
Company description

LINE Corporation provides a platform for mobile messaging and communication services, content distribution, and life and financial services primarily in Japan, Taiwan, Thailand, and Indonesia. The last earnings update was 10 days ago. More info.


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3938 Share Price and Events
7 Day Returns
-0.4%
TSE:3938
-6.9%
JP Interactive Media and Services
-8.9%
JP Market
1 Year Returns
35.1%
TSE:3938
-2.9%
JP Interactive Media and Services
-17.9%
JP Market
3938 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
LINE (3938) -0.4% -2.4% -3.3% 35.1% 23.5% -
JP Interactive Media and Services -6.9% -16.2% -27.6% -2.9% -26.6% -41.4%
JP Market -8.9% -10.5% -21.9% -17.9% -10.5% -14%
1 Year Return vs Industry and Market
  • 3938 outperformed the Interactive Media and Services industry which returned -2.9% over the past year.
  • 3938 outperformed the Market in Japan which returned -17.9% over the past year.
Price Volatility
3938
Industry
5yr Volatility vs Market
Related Companies

3938 Value

 Is LINE undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of LINE to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for LINE.

TSE:3938 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.9%
Perpetual Growth Rate 10-Year JP Government Bond Rate -0.1%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSE:3938
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year JP Govt Bond Rate -0.1%
Equity Risk Premium S&P Global 6.3%
Interactive Media and Services Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.029 (1 + (1- 30.86%) (17.86%))
1.104
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.09% + (1.104 * 6.33%)
6.9%

Discounted Cash Flow Calculation for TSE:3938 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for LINE is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSE:3938 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (JPY, Millions) Source Present Value
Discounted (@ 6.9%)
2020 -8,065.20 Analyst x5 -7,544.61
2021 22,803.50 Analyst x2 19,954.67
2022 22,127.00 Analyst x1 18,112.86
2023 29,074.00 Analyst x1 22,263.36
2024 33,253.00 Analyst x1 23,819.80
2025 36,109.61 Est @ 8.59% 24,196.44
2026 38,271.26 Est @ 5.99% 23,989.60
2027 39,864.67 Est @ 4.16% 23,375.44
2028 41,015.73 Est @ 2.89% 22,497.98
2029 41,833.66 Est @ 1.99% 21,465.48
Present value of next 10 years cash flows ¥192,131.00
TSE:3938 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ¥41,833.66 × (1 + -0.09%) ÷ (6.9% – -0.09%)
¥597,922.61
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ¥597,922.61 ÷ (1 + 6.9%)10
¥306,803.02
TSE:3938 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ¥192,131.00 + ¥306,803.02
¥498,934.02
Equity Value per Share
(JPY)
= Total value / Shares Outstanding
= ¥498,934.02 / 239.76
¥2080.99
TSE:3938 Discount to Share Price
Calculation Result
Value per share (JPY) From above. ¥2,080.99
Current discount Discount to share price of ¥5,200.00
= -1 x (¥5,200.00 - ¥2,080.99) / ¥2,080.99
-149.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of LINE is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for LINE's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are LINE's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSE:3938 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in JPY ¥-198.51
TSE:3938 Share Price ** TSE (2020-04-06) in JPY ¥5200
Japan Interactive Media and Services Industry PE Ratio Median Figure of 46 Publicly-Listed Interactive Media and Services Companies 21.82x
Japan Market PE Ratio Median Figure of 3,071 Publicly-Listed Companies 11.51x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of LINE.

TSE:3938 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSE:3938 Share Price ÷ EPS (both in JPY)

= 5200 ÷ -198.51

-26.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LINE is loss making, we can't compare its value to the JP Interactive Media and Services industry average.
  • LINE is loss making, we can't compare the value of its earnings to the Japan market.
Price based on expected Growth
Does LINE's expected growth come at a high price?
Raw Data
TSE:3938 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -26.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
77.3%per year
Japan Interactive Media and Services Industry PEG Ratio Median Figure of 16 Publicly-Listed Interactive Media and Services Companies 1.25x
Japan Market PEG Ratio Median Figure of 1,281 Publicly-Listed Companies 1.25x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for LINE, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on LINE's assets?
Raw Data
TSE:3938 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in JPY ¥659.96
TSE:3938 Share Price * TSE (2020-04-06) in JPY ¥5200
Japan Interactive Media and Services Industry PB Ratio Median Figure of 57 Publicly-Listed Interactive Media and Services Companies 2.11x
Japan Market PB Ratio Median Figure of 3,576 Publicly-Listed Companies 0.8x
TSE:3938 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSE:3938 Share Price ÷ Book Value per Share (both in JPY)

= 5200 ÷ 659.96

7.88x

* Primary Listing of LINE.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LINE is overvalued based on assets compared to the JP Interactive Media and Services industry average.
X
Value checks
We assess LINE's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Interactive Media and Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Interactive Media and Services industry average (and greater than 0)? (1 check)
  5. LINE has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

3938 Future Performance

 How is LINE expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
77.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is LINE expected to grow at an attractive rate?
  • LINE's earnings growth is expected to exceed the low risk savings rate of -0.1%.
Growth vs Market Checks
  • LINE's earnings growth is expected to exceed the Japan market average.
  • LINE's revenue growth is expected to exceed the Japan market average.
Annual Growth Rates Comparison
Raw Data
TSE:3938 Future Growth Rates Data Sources
Data Point Source Value (per year)
TSE:3938 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 77.3%
TSE:3938 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 12.8%
Japan Interactive Media and Services Industry Earnings Growth Rate Market Cap Weighted Average 35%
Japan Interactive Media and Services Industry Revenue Growth Rate Market Cap Weighted Average 9%
Japan Market Earnings Growth Rate Market Cap Weighted Average 9.1%
Japan Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSE:3938 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in JPY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSE:3938 Future Estimates Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 430,100 55,920 33,200 1
2023-12-31 391,334 53,739 20,351 2
2022-12-31 384,324 51,110 17,332 3
2021-12-31 308,283 28,032 -2,786 8
2020-12-31 274,868 316 -17,031 8
2020-04-06
TSE:3938 Past Financials Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income *
2019-12-31 227,938 -3,105 -47,472
2019-09-30 223,167 -2,821 -31,983
2019-06-30 219,075 4,084 -33,618
2019-03-31 214,205 4,571 -13,026
2018-12-31 207,568 9,122 -4,094
2018-09-30 198,152 9,707 -10,065
2018-06-30 188,839 14,133 716
2018-03-31 177,906 18,481 5,264
2017-12-31 167,962 10,965 8,091
2017-09-30 158,698 16,482 13,752
2017-06-30 152,090 17,071 14,800
2017-03-31 146,164 19,458 8,667

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • LINE's earnings are expected to grow significantly at over 20% yearly.
  • LINE's revenue is expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSE:3938 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from LINE Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSE:3938 Future Estimates Data
Date (Data in JPY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31 85.05 117.00 53.10 2.00
2022-12-31 72.40 96.10 48.70 2.00
2021-12-31 10.38 87.30 -63.90 6.00
2020-12-31 -71.04 32.00 -179.78 8.00
2020-04-06
TSE:3938 Past Financials Data
Date (Data in JPY Millions) EPS *
2019-12-31 -198.51
2019-09-30 -133.89
2019-06-30 -140.90
2019-03-31 -54.66
2018-12-31 -17.20
2018-09-30 -42.83
2018-06-30 3.11
2018-03-31 23.32
2017-12-31 36.62
2017-09-30 62.86
2017-06-30 68.52
2017-03-31 42.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • LINE is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess LINE's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Japan market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Japan market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
LINE has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

3938 Past Performance

  How has LINE performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare LINE's growth in the last year to its industry (Interactive Media and Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • LINE does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare LINE's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare LINE's 1-year growth to the JP Interactive Media and Services industry average as it is not currently profitable.
Earnings and Revenue History
LINE's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from LINE Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSE:3938 Past Revenue, Cash Flow and Net Income Data
Date (Data in JPY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 227,938.00 -47,472.00 50,428.00
2019-09-30 223,167.00 -31,983.00 57,031.00
2019-06-30 219,075.00 -33,618.00 58,406.00
2019-03-31 214,205.00 -13,026.00 49,521.00
2018-12-31 207,568.00 -4,094.00 44,711.00
2018-09-30 198,152.00 -10,065.00 32,733.00
2018-06-30 188,839.00 716.00 27,158.00
2018-03-31 177,906.00 5,264.00 24,046.00
2017-12-31 167,962.00 8,091.00 22,519.00
2017-09-30 158,698.00 13,752.00 20,781.00
2017-06-30 152,090.00 14,800.00 20,034.00
2017-03-31 146,164.00 8,667.00 17,752.00
2016-12-31 142,195.00 8,745.00 15,977.00
2016-09-30 135,570.86 9,916.02 13,654.44
2016-06-30 131,541.03 6,924.77 15,111.07
2016-03-31 125,757.39 3,264.53 17,144.07
2015-12-31 120,406.00 6.00 18,898.00
2015-09-30 112,865.65 -3,433.68 21,134.30
2015-06-30 105,758.47 -3,897.29 22,174.48
2015-03-31 97,888.22 -2,130.11 21,741.05
2014-12-31 86,366.27 1,315.15 19,500.65
2014-09-30 74,542.72 1,451.49 20,393.70
2014-06-30 62,719.17 1,587.82 22,141.15
2014-03-31 49,343.51 217.97 18,547.95
2013-12-31 39,585.76 -2,042.88 18,069.26

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if LINE has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if LINE has efficiently used its assets last year compared to the JP Interactive Media and Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if LINE improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess LINE's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Interactive Media and Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
LINE has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

3938 Health

 How is LINE's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up LINE's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • LINE is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • LINE's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of LINE's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from LINE Company Filings, last reported 3 months ago.

TSE:3938 Past Debt and Equity Data
Date (Data in JPY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 174,663.00 166,058.00 227,910.00
2019-09-30 182,493.00 165,671.00 219,693.00
2019-06-30 192,539.00 166,489.00 243,107.00
2019-03-31 207,369.00 166,311.00 264,042.00
2018-12-31 208,514.00 165,132.00 271,447.00
2018-09-30 211,565.00 165,017.00 276,183.00
2018-06-30 189,321.00 22,098.00 117,317.00
2018-03-31 185,165.00 22,148.00 124,127.00
2017-12-31 189,977.00 22,224.00 136,463.00
2017-09-30 181,241.00 22,088.00 129,040.00
2017-06-30 177,192.00 19,955.00 131,332.00
2017-03-31 165,577.00 20,868.00 132,590.00
2016-12-31 161,023.00 21,925.00 140,478.00
2016-09-30 156,768.82 261.22 130,290.11
2016-06-30 23,697.47 42,523.22 43,533.99
2016-03-31 19,224.29 42,522.72 35,365.69
2015-12-31 17,532.89 42,974.55 33,993.65
2015-09-30
2015-06-30
2015-03-31 10,832.34 39,244.58 23,560.18
2014-12-31 12,510.97 24,112.33 21,067.38
2014-09-30 12,510.97 24,112.33 21,067.38
2014-06-30 14,757.57 10,161.05 15,608.86
2014-03-31 12,316.09 11,643.46 13,362.08
2013-12-31 12,316.09 11,643.46 13,362.08
  • LINE's level of debt (95.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (194.4% vs 95.1% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • LINE has sufficient cash runway for more than 3 years based on current free cash flow.
  • Unable to confirm if LINE has at least 1 year of cash runway based on growing free cash flows without relevant data.
X
Financial health checks
We assess LINE's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. LINE has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

3938 Dividends

 What is LINE's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from LINE dividends. Estimated to be 0% next year.
If you bought ¥2,000 of LINE shares you are expected to receive ¥0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate LINE's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate LINE's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSE:3938 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Japan Interactive Media and Services Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 2.9%
Japan Market Average Dividend Yield Market Cap Weighted Average of 2988 Stocks 3%
Japan Minimum Threshold Dividend Yield 10th Percentile 1%
Japan Bottom 25% Dividend Yield 25th Percentile 1.8%
Japan Top 25% Dividend Yield 75th Percentile 4.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSE:3938 Future Dividends Estimate Data
Date (Data in ¥) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.00 1.00
2021-12-31 0.33 3.00
2020-12-31 0.00 2.00
2020-04-06

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as LINE has not reported any payouts.
  • Unable to verify if LINE's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of LINE's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as LINE has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of LINE's dividends in 3 years as they are not expected to pay a notable one for Japan.
X
Income/ dividend checks
We assess LINE's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can LINE afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. LINE has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

3938 Management

 What is the CEO of LINE's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Takeshi Idezawa
COMPENSATION ¥315,000,000
AGE 46
TENURE AS CEO 5 years
CEO Bio

Mr. Takeshi Idezawa has been the Chief Executive Officer and President at LINE Corporation since April 2015. Mr. Idezawa served as Chief Operating Officer and President of livedoor Co., Ltd., where he served in various roles after joining it in June 2002. He serves as a Representative Director of LINE Fukuoka Corporation and LINE Financial Corporation. He has been Representative Director at LINE Corporation since April 2014. He served as Representative Director of livedoor Co., Ltd. Mr. Idezawa received a B.A. in political science and economics from Waseda University.

CEO Compensation
  • Takeshi's compensation has increased whilst company is loss making.
  • Takeshi's remuneration is higher than average for companies of similar size in Japan.
Management Team Tenure

Average tenure and age of the LINE management team in years:

6
Average Tenure
43
Average Age
  • The average tenure for the LINE management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Takeshi Idezawa

TITLE
President
COMPENSATION
¥315M
AGE
46
TENURE
5 yrs

In-Joon Hwang

TITLE
CFO & Director
COMPENSATION
¥218M
AGE
54
TENURE
5 yrs

Jun Masuda

TITLE
Chief Strategy & Marketing Officer and Director
COMPENSATION
¥257M
AGE
41
TENURE
6 yrs

Jungho Shin

TITLE
Chief WOW Officer & Representative Director
COMPENSATION
¥589M
AGE
47
TENURE
6 yrs

Kokan Ki

TITLE
Head of Finance and Accounting
AGE
43

Euibin Park

TITLE
CTO & Head of Web Services Development Group
AGE
44
TENURE
6 yrs

Takeshi Nakayama

TITLE
Chief Privacy & Information Security Officer and Legal & Compliance and Risk Management Officer

Tomohiro Ikebe

TITLE
Head of Services Development
AGE
42
TENURE
6 yrs

Takeshi Shimamura

TITLE
Head of Portal & Media Business
AGE
42
TENURE
6 yrs

Shintaro Tabata

TITLE
Chief-Corp Business Group
AGE
43
TENURE
6 yrs
Board of Directors Tenure

Average tenure and age of the LINE board of directors in years:

5.5
Average Tenure
51
Average Age
  • The tenure for the LINE board of directors is about average.
Board of Directors

Hae-Jin Lee

TITLE
Chairman of the Board
AGE
52
TENURE
8.3 yrs

Takeshi Idezawa

TITLE
President
COMPENSATION
¥315M
AGE
46
TENURE
6 yrs

In-Joon Hwang

TITLE
CFO & Director
COMPENSATION
¥218M
AGE
54
TENURE
11.3 yrs

Jun Masuda

TITLE
Chief Strategy & Marketing Officer and Director
COMPENSATION
¥257M
AGE
41
TENURE
5.1 yrs

Jungho Shin

TITLE
Chief WOW Officer & Representative Director
COMPENSATION
¥589M
AGE
47
TENURE
8.3 yrs

Tadashi Kunihiro

TITLE
Outside Director
AGE
64
TENURE
4.5 yrs

Koji Kotaka

TITLE
Outside Director
AGE
60
TENURE
4.2 yrs

Rehito Hatoyama

TITLE
Outside Director
AGE
45
TENURE
4.1 yrs

Hitoshi Kurasawa

TITLE
Corporate Auditor
AGE
69
TENURE
7 yrs

Yoichi Namekata

TITLE
Corporate Auditor
AGE
50
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (¥) Value (¥)
X
Management checks
We assess LINE's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. LINE has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

3938 News

Simply Wall St News

3938 Company Info

Description

LINE Corporation provides a platform for mobile messaging and communication services, content distribution, and life and financial services primarily in Japan, Taiwan, Thailand, and Indonesia. It operates through two segments, Core Business and Strategic Business. The company offers LINE, a cross-platform messenger application that enables users to communicate through free instant messaging, stickers, and voice and video calls, as well as serves as a smart portal to its other applications and services. It also provides communication products, including LINE Stickers and themes; and contents, such as LINE Games, LINE PLAY, LINE Manga, LINE Music, and LINE Fortune. In addition, the company offers display advertising services through Timeline, LINE NEWS, and LINE TODAY; account advertising products and services comprising official accounts, LINE@, sponsored stickers, and LINE Point Ads; and other advertising products and services that include LINE Part-time Job, livedoor, and Matome Web portals. Further, it sells LINE characters merchandise under the LINE Friends name; and provides fintech services, such as LINE Pay service, as well as other services that include AI and e-commerce. The company was formerly known as NHN Japan Corporation and changed its name to LINE Corporation in April 2013. The company was founded in 2000 and is headquartered in Tokyo, Japan. LINE Corporation is a subsidiary of Naver Corporation.

Details
Name: LINE Corporation
3938
Exchange: TSE
Founded: 2000
¥1,246,741,449,200
239,757,971
Website: http://linecorp.com
Address: LINE Corporation
JR Shinjuku Miraina Tower,
23rd Floor,
Tokyo,
160-0022,
Japan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSE 3938 Common Shares The Tokyo Stock Exchange JP JPY 15. Jul 2016
OTCPK LNNF.F Common Shares Pink Sheets LLC US USD 15. Jul 2016
DB HL3 Common Shares Deutsche Boerse AG DE EUR 15. Jul 2016
NYSE LN SPONS ADS EACH REPR 1 SHS New York Stock Exchange US USD 14. Jul 2016
DB LI6 SPONS ADS EACH REPR 1 SHS Deutsche Boerse AG DE EUR 14. Jul 2016
Number of employees
Current staff
Staff numbers
6,998
LINE employees.
Industry
Interactive Media and Services
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 16:50
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/03/26
Last earnings filing: 2020/03/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.