Stock Analysis

Aica Kogyo Company, Limited (TSE:4206) Yearly Results: Here's What Analysts Are Forecasting For This Year

TSE:4206
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Shareholders might have noticed that Aica Kogyo Company, Limited (TSE:4206) filed its full-year result this time last week. The early response was not positive, with shares down 3.6% to JP¥3,460 in the past week. Results were roughly in line with estimates, with revenues of JP¥237b and statutory earnings per share of JP¥237. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Aica Kogyo Company

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TSE:4206 Earnings and Revenue Growth May 4th 2024

Taking into account the latest results, the current consensus from Aica Kogyo Company's three analysts is for revenues of JP¥249.0b in 2025. This would reflect a reasonable 5.2% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 6.1% to JP¥251. In the lead-up to this report, the analysts had been modelling revenues of JP¥249.0b and earnings per share (EPS) of JP¥256 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 analysts reconfirmed their price target of JP¥4,193, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Aica Kogyo Company at JP¥4,400 per share, while the most bearish prices it at JP¥3,980. This is a very narrow spread of estimates, implying either that Aica Kogyo Company is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Aica Kogyo Company's revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2025 being well below the historical 6.5% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.7% annually. Factoring in the forecast slowdown in growth, it looks like Aica Kogyo Company is forecast to grow at about the same rate as the wider 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Aica Kogyo Company going out to 2026, and you can see them free on our platform here..

You can also see our analysis of Aica Kogyo Company's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Valuation is complex, but we're helping make it simple.

Find out whether Aica Kogyo Company is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.