Sangetsu Corporation (TSE:8130) Released Earnings Last Week And Analysts Lifted Their Price Target To JP¥3,250

Sangetsu Corporation (TSE:8130) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. Results were roughly in line with estimates, with revenues of JP¥200b and statutory earnings per share of JP¥214. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Sangetsu after the latest results.

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Taking into account the latest results, the current consensus from Sangetsu's solitary analyst is for revenues of JP¥217.3b in 2026. This would reflect a notable 8.4% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 12% to JP¥240. Before this earnings report, the analyst had been forecasting revenues of JP¥218.2b and earnings per share (EPS) of JP¥254 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Sangetsu

Althoughthe analyst has revised their earnings forecasts for next year, they've also lifted the consensus price target 17% to JP¥3,250, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

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. It's clear from the latest estimates that Sangetsu's rate of growth is expected to accelerate meaningfully, with the forecast 8.4% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 6.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Sangetsu to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sangetsu. 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. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Sangetsu. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

We also provide an overview of the Sangetsu Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.