Nissha Co., Ltd. (TSE:7915) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates

Explore Nissha's Fair Values from the Community and select yours

Shareholders might have noticed that Nissha Co., Ltd. (TSE:7915) filed its interim result this time last week. The early response was not positive, with shares down 6.1% to JP¥1,268 in the past week. It was a credible result overall, with revenues of JP¥50b and statutory earnings per share of JP¥80.15 both in line with analyst estimates, showing that Nissha is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, Nissha's five analysts currently expect revenues in 2025 to be JP¥193.5b, approximately in line with the last 12 months. Earnings are expected to improve, with Nissha forecast to report a statutory profit of JP¥79.42 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥193.2b and earnings per share (EPS) of JP¥90.54 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

Check out our latest analysis for Nissha

The consensus price target held steady at JP¥1,565, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Nissha at JP¥1,750 per share, while the most bearish prices it at JP¥1,400. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 0.6% growth on an annualised basis. That is in line with its 0.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 6.2% annually. So it's pretty clear that Nissha is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment 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. 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 Nissha 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 Nissha 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.