JP¥3,250 - That's What Analysts Think Fuji Seal International, Inc. (TSE:7864) Is Worth After These Results

Shareholders might have noticed that Fuji Seal International, Inc. (TSE:7864) filed its half-yearly result this time last week. The early response was not positive, with shares down 2.2% to JP¥2,521 in the past week. It was a workmanlike result, with revenues of JP¥105b coming in 2.8% ahead of expectations, and statutory earnings per share of JP¥188, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Fuji Seal International

Following last week's earnings report, Fuji Seal International's three analysts are forecasting 2025 revenues to be JP¥208.6b, approximately in line with the last 12 months. Statutory earnings per share are predicted to expand 11% to JP¥218. Before this earnings report, the analysts had been forecasting revenues of JP¥205.6b and earnings per share (EPS) of JP¥212 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 6.6% to JP¥3,250, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Fuji Seal International, with the most bullish analyst valuing it at JP¥3,500 and the most bearish at JP¥3,000 per share. This is a very narrow spread of estimates, implying either that Fuji Seal International is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Fuji Seal International's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.6% growth on an annualised basis. This is compared to a historical growth rate of 5.2% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 2.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Fuji Seal International.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Fuji Seal International following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Fuji Seal International. Long-term earnings power is much more important than next year's profits. We have forecasts for Fuji Seal International going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Fuji Seal International's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.