Analysts Have Made A Financial Statement On Kurita Water Industries Ltd.'s (TSE:6370) Full-Year Report

It's been a good week for Kurita Water Industries Ltd. (TSE:6370) shareholders, because the company has just released its latest yearly results, and the shares gained 7.5% to JP¥6,748. Kurita Water Industries reported JP¥385b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥260 beat expectations, being 2.2% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Kurita Water Industries

Taking into account the latest results, the consensus forecast from Kurita Water Industries' six analysts is for revenues of JP¥393.2b in 2025. This reflects a modest 2.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 12% to JP¥290. Before this earnings report, the analysts had been forecasting revenues of JP¥388.3b and earnings per share (EPS) of JP¥287 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of JP¥7,050, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Kurita Water Industries, with the most bullish analyst valuing it at JP¥7,700 and the most bearish at JP¥6,250 per share. This is a very narrow spread of estimates, implying either that Kurita Water Industries is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Kurita Water Industries' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.2% growth on an annualised basis. This is compared to a historical growth rate of 8.8% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Kurita Water Industries.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Kurita Water Industries going out to 2027, and you can see them free on our platform here..

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.