JP¥1,529: That's What Analysts Think en-japan inc. (TSE:4849) Is Worth After Its Latest Results

As you might know, en-japan inc. (TSE:4849) recently reported its first-quarter numbers. en-japan reported in line with analyst predictions, delivering revenues of JP¥15b and statutory earnings per share of JP¥187, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus, from the eight analysts covering en-japan, is for revenues of JP¥62.1b in 2026. This implies a measurable 3.6% reduction in en-japan's revenue over the past 12 months. Statutory earnings per share are expected to plummet 68% to JP¥58.96 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥64.8b and earnings per share (EPS) of JP¥80.92 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

Check out our latest analysis for en-japan

The consensus price target fell 5.7% to JP¥1,529, with the weaker earnings outlook clearly leading valuation estimates. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on en-japan, with the most bullish analyst valuing it at JP¥1,750 and the most bearish at JP¥1,200 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await en-japan shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the en-japan's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 4.8% annualised decline to the end of 2026. That is a notable change from historical growth of 8.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.0% per year. It's pretty clear that en-japan's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of en-japan's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple en-japan analysts - going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with en-japan (at least 1 which can't be ignored) , and understanding these should be part of your investment process.

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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.