Here's What Analysts Are Forecasting For Furuya Metal Co., Ltd. (TSE:7826) After Its Half-Yearly Results

The interim results for Furuya Metal Co., Ltd. (TSE:7826) were released last week, making it a good time to revisit its performance. Results look mixed - while revenue fell marginally short of analyst estimates at JP¥27b, statutory earnings were in line with expectations, at JP¥322 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Furuya Metal after the latest results.

View our latest analysis for Furuya Metal

Taking into account the latest results, the most recent consensus for Furuya Metal from three analysts is for revenues of JP¥56.2b in 2025. If met, it would imply an okay 5.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 5.7% to JP¥358. Before this earnings report, the analysts had been forecasting revenues of JP¥56.5b and earnings per share (EPS) of JP¥355 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥5,267. 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 Furuya Metal, with the most bullish analyst valuing it at JP¥5,400 and the most bearish at JP¥5,100 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company 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 Furuya Metal's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.2% annually. Even after the forecast slowdown in growth, it seems obvious that Furuya Metal is also expected to grow faster than 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥5,267, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Furuya Metal analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Furuya Metal that you should be aware of.

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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.