Sekisui House, Ltd. (TSE:1928) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?

Investors in Sekisui House, Ltd. (TSE:1928) had a good week, as its shares rose 2.8% to close at JP¥3,473 following the release of its annual results. The result was positive overall - although revenues of JP¥3.1t were in line with what the analysts predicted, Sekisui House surprised by delivering a statutory profit of JP¥309 per share, modestly greater than 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sekisui House after the latest results.

View our latest analysis for Sekisui House

After the latest results, the seven analysts covering Sekisui House are now predicting revenues of JP¥3.42t in 2025. If met, this would reflect a notable 10.0% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥311, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥3.37t and earnings per share (EPS) of JP¥308 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,541. 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 Sekisui House, with the most bullish analyst valuing it at JP¥4,100 and the most bearish at JP¥3,100 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Sekisui House's rate of growth is expected to accelerate meaningfully, with the forecast 10.0% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sekisui House to grow faster than the wider industry.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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. We have estimates - from multiple Sekisui House analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Sekisui House you should know about.

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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.