News Flash: 3 Analysts Think Toho Titanium Co., Ltd. (TSE:5727) Earnings Are Under Threat

Market forces rained on the parade of Toho Titanium Co., Ltd. (TSE:5727) shareholders today, when the analysts downgraded their forecasts for next year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the latest downgrade, Toho Titanium's three analysts currently expect revenues in 2026 to be JP¥88b, approximately in line with the last 12 months. Statutory earnings per share are presumed to increase 6.5% to JP¥76.60. Prior to this update, the analysts had been forecasting revenues of JP¥101b and earnings per share (EPS) of JP¥94.87 in 2026. Indeed, we can see that the analysts are a lot more bearish about Toho Titanium's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Toho Titanium

It'll come as no surprise then, to learn that the analysts have cut their price target 9.2% to JP¥1,385.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Toho Titanium's revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2026 being well below the historical 18% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 1.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that Toho Titanium is also expected to grow slower than other industry participants.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Toho Titanium. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Toho Titanium's revenues are expected to grow slower than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Toho Titanium.

A high debt burden combined with a downgrade of this magnitude always gives us some reason for concern, especially if these forecasts are just the first sign of a business downturn. See why we're concerned about Toho Titanium's balance sheet by visiting our risks dashboard for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.