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- TSE:9887
Shareholders Can Be Confident That Matsuya Foods Holdings' (TSE:9887) Earnings Are High Quality
Even though Matsuya Foods Holdings Co., Ltd. (TSE:9887 ) posted strong earnings, investors appeared to be underwhelmed. We have done some analysis and have found some comforting factors beneath the profit numbers.
Check out our latest analysis for Matsuya Foods Holdings
The Impact Of Unusual Items On Profit
To properly understand Matsuya Foods Holdings' profit results, we need to consider the JP¥1.3b expense attributed to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. 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. Assuming those unusual expenses don't come up again, we'd therefore expect Matsuya Foods Holdings to produce a higher profit next year, all else being equal.
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Matsuya Foods Holdings.
Our Take On Matsuya Foods Holdings' Profit Performance
Unusual items (expenses) detracted from Matsuya Foods Holdings' earnings over the last year, but we might see an improvement next year. Based on this observation, we consider it likely that Matsuya Foods Holdings' statutory profit actually understates its earnings potential! Furthermore, it has done a great job growing EPS over the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. To help with this, we've discovered 2 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Matsuya Foods Holdings.
This note has only looked at a single factor that sheds light on the nature of Matsuya Foods Holdings' profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful.
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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.
About TSE:9887
Matsuya Foods Holdings
Owns and operates restaurants in Japan, China, and Taiwan.
Solid track record with excellent balance sheet.