Stock Analysis

JP¥2,258: That's What Analysts Think Mani, Inc. (TSE:7730) Is Worth After Its Latest Results

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TSE:7730

Last week, you might have seen that Mani, Inc. (TSE:7730) released its annual result to the market. The early response was not positive, with shares down 2.7% to JP¥1,749 in the past week. Results were roughly in line with estimates, with revenues of JP¥29b and statutory earnings per share of JP¥63.82. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Mani after the latest results.

Check out our latest analysis for Mani

TSE:7730 Earnings and Revenue Growth October 9th 2024

Taking into account the latest results, the most recent consensus for Mani from six analysts is for revenues of JP¥30.7b in 2025. If met, it would imply an okay 7.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.4% to JP¥67.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥30.9b and earnings per share (EPS) of JP¥69.21 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.

The consensus price target fell 5.8% to JP¥2,258, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the annual results. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Mani, with the most bullish analyst valuing it at JP¥2,670 and the most bearish at JP¥2,000 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Mani is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Mani's revenue growth is expected to slow, with the forecast 7.7% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. Compare this to the 40 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.7% per year. So it's pretty clear that, while Mani's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Mani 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 Mani 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.