Results: Marui Group Co., Ltd. Exceeded Expectations And The Consensus Has Updated Its Estimates

Marui Group Co., Ltd. (TSE:8252) came out with its half-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The result was positive overall - although revenues of JP¥124b were in line with what the analysts predicted, Marui Group surprised by delivering a statutory profit of JP¥31.75 per share, modestly greater than expected. The analysts 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Marui Group

Taking into account the latest results, the current consensus from Marui Group's eight analysts is for revenues of JP¥252.7b in 2025. This would reflect an okay 2.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 4.1% to JP¥141. In the lead-up to this report, the analysts had been modelling revenues of JP¥252.4b and earnings per share (EPS) of JP¥142 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,688. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Marui Group analyst has a price target of JP¥2,900 per share, while the most pessimistic values it at JP¥2,500. This is a very narrow spread of estimates, implying either that Marui Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Marui Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 4.6% annualised growth until the end of 2025. If achieved, this would be a much better result than the 1.0% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.1% per year. So although Marui Group's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Marui Group's revenue is expected to perform worse 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Marui Group going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Marui Group (1 is significant!) that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.