Maruwa Co.,Ltd. (TSE:5344) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

Maruwa Co.,Ltd. (TSE:5344) shareholders are probably feeling a little disappointed, since its shares fell 4.5% to JP¥32,900 in the week after its latest annual results. The result was positive overall - although revenues of JP¥62b were in line with what the analysts predicted, MaruwaLtd surprised by delivering a statutory profit of JP¥1,233 per share, modestly greater than expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for MaruwaLtd

Taking into account the latest results, the current consensus from MaruwaLtd's four analysts is for revenues of JP¥70.5b in 2025. This would reflect a decent 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 16% to JP¥1,428. Before this earnings report, the analysts had been forecasting revenues of JP¥71.1b and earnings per share (EPS) of JP¥1,434 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥35,854. 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 MaruwaLtd, with the most bullish analyst valuing it at JP¥40,000 and the most bearish at JP¥26,000 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that MaruwaLtd's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that MaruwaLtd is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥35,854, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for MaruwaLtd going out to 2027, and you can see them free on our platform here..

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.