Shareholders Will Be Pleased With The Quality of Saint Marc Holdings' (TSE:3395) Earnings

Saint Marc Holdings Co., Ltd. (TSE:3395) just reported healthy earnings but the stock price didn't move much. Our analysis suggests that investors might be missing some promising details.

Check out our latest analysis for Saint Marc Holdings

The Impact Of Unusual Items On Profit

To properly understand Saint Marc Holdings' profit results, we need to consider the JP¥1.2b expense attributed to unusual items. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. Saint Marc Holdings took a rather significant hit from unusual items in the year to March 2024. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be.

That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

Our Take On Saint Marc Holdings' Profit Performance

As we discussed above, we think the significant unusual expense will make Saint Marc Holdings' statutory profit lower than it would otherwise have been. Because of this, we think Saint Marc Holdings' underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! And on top of that, its earnings per share have grown at an extremely impressive rate over the last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. If you want to do dive deeper into Saint Marc Holdings, you'd also look into what risks it is currently facing. While conducting our analysis, we found that Saint Marc Holdings has 2 warning signs and it would be unwise to ignore them.

This note has only looked at a single factor that sheds light on the nature of Saint Marc Holdings' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.

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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.