Analyst Estimates: Here's What Brokers Think Of Kamigumi Co., Ltd. (TSE:9364) After Its Full-Year Report

Kamigumi Co., Ltd. (TSE:9364) investors will be delighted, with the company turning in some strong numbers with its latest results. Results were good overall, with revenues beating analyst predictions by 2.9% to hit JP¥279b. Statutory earnings per share (EPS) came in at JP¥258, some 3.2% above whatthe analysts had expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in Kamigumi. Read for free now.

Taking into account the latest results, Kamigumi's three analysts currently expect revenues in 2026 to be JP¥279.9b, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 6.1% to JP¥264 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥287.3b and earnings per share (EPS) of JP¥250 in 2026. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

See our latest analysis for Kamigumi

The consensus has made no major changes to the price target of JP¥3,850, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. 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. Currently, the most bullish analyst values Kamigumi at JP¥4,050 per share, while the most bearish prices it at JP¥3,600. This is a very narrow spread of estimates, implying either that Kamigumi is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Kamigumi's growth to accelerate, with the forecast 0.3% annualised growth to the end of 2026 ranking favourably alongside historical growth of 0.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.0% annually. So it's clear that despite the acceleration in growth, Kamigumi is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Kamigumi's earnings potential next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at JP¥3,850, 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. We have estimates - from multiple Kamigumi analysts - going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Kamigumi you should be aware of.

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.