JP¥1,300: That's What Analysts Think Nisshinbo Holdings Inc. (TSE:3105) Is Worth After Its Latest Results

It's been a good week for Nisshinbo Holdings Inc. (TSE:3105) shareholders, because the company has just released its latest interim results, and the shares gained 3.7% to JP¥1,020. Results were roughly in line with estimates, with revenues of JP¥255b and statutory earnings per share of JP¥65.40. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

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Following last week's earnings report, Nisshinbo Holdings' one analyst are forecasting 2025 revenues to be JP¥500.0b, approximately in line with the last 12 months. Per-share earnings are expected to jump 30% to JP¥107. Before this earnings report, the analyst had been forecasting revenues of JP¥506.0b and earnings per share (EPS) of JP¥157 in 2025. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

Check out our latest analysis for Nisshinbo Holdings

The average price target fell 7.1% to JP¥1,300, with reduced earnings forecasts clearly tied to a lower valuation estimate.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 3.7% annualised decline to the end of 2025. That is a notable change from historical growth of 1.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.4% annually for the foreseeable future. It's pretty clear that Nisshinbo Holdings' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Nisshinbo Holdings' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Nisshinbo Holdings' future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

It might also be worth considering whether Nisshinbo Holdings' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.