The SHIMAMURA Co., Ltd. (TSE:8227) Full-Year Results Are Out And Analysts Have Published New Forecasts

Investors in SHIMAMURA Co., Ltd. (TSE:8227) had a good week, as its shares rose 9.5% to close at JP¥9,391 following the release of its yearly results. It was a credible result overall, with revenues of JP¥667b and statutory earnings per share of JP¥570 both in line with analyst estimates, showing that SHIMAMURA is executing in line with expectations. 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.

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Taking into account the latest results, the consensus forecast from SHIMAMURA's eleven analysts is for revenues of JP¥689.2b in 2026. This reflects a reasonable 3.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 3.4% to JP¥589. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥685.9b and earnings per share (EPS) of JP¥586 in 2026. 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.

Check out our latest analysis for SHIMAMURA

The analysts reconfirmed their price target of JP¥9,004, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on SHIMAMURA, with the most bullish analyst valuing it at JP¥10,100 and the most bearish at JP¥8,000 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that SHIMAMURA's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.4% growth on an annualised basis. This is compared to a historical growth rate of 5.3% 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 7.1% 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 SHIMAMURA.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

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. We have forecasts for SHIMAMURA going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for SHIMAMURA that you need to take into consideration.

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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.