Some Daiseki Eco. Solution Co., Ltd. (TSE:1712) Analysts Just Made A Major Cut To Next Year's Estimates

The analysts covering Daiseki Eco. Solution Co., Ltd. (TSE:1712) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the latest downgrade, the two analysts covering Daiseki Eco. Solution provided consensus estimates of JP¥19b revenue in 2025, which would reflect a considerable 19% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to tumble 24% to JP¥80.10 in the same period. Before this latest update, the analysts had been forecasting revenues of JP¥25b and earnings per share (EPS) of JP¥103 in 2025. Indeed, we can see that the analysts are a lot more bearish about Daiseki Eco. Solution's prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Daiseki Eco. Solution

Despite the cuts to forecast earnings, there was no real change to the JP¥2,200 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 19% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 11% 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 3.8% annually for the foreseeable future. It's pretty clear that Daiseki Eco. Solution's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Daiseki Eco. Solution. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Daiseki Eco. Solution's revenues are expected to grow slower than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Daiseki Eco. Solution after the downgrade.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Daiseki Eco. Solution going out as far as 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.