The Kamigumi Co., Ltd. (TSE:9364) Half-Yearly Results Are Out And Analysts Have Published New Forecasts

It's been a good week for Kamigumi Co., Ltd. (TSE:9364) shareholders, because the company has just released its latest half-yearly results, and the shares gained 5.4% to JP¥4,969. Results overall were respectable, with statutory earnings of JP¥258 per share roughly in line with what the analysts had forecast. Revenues of JP¥74b came in 2.2% ahead of analyst predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Taking into account the latest results, Kamigumi's three analysts currently expect revenues in 2026 to be JP¥290.5b, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 2.2% to JP¥290. In the lead-up to this report, the analysts had been modelling revenues of JP¥288.8b and earnings per share (EPS) of JP¥270 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Kamigumi

The consensus price target was unchanged at JP¥4,800, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Kamigumi analyst has a price target of JP¥5,000 per share, while the most pessimistic values it at JP¥4,600. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Kamigumi's rate of growth is expected to accelerate meaningfully, with the forecast 1.7% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.4% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Kamigumi is expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Kamigumi 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. The consensus price target held steady at JP¥4,800, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Kamigumi. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kamigumi analysts - 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 Kamigumi that you need to take into consideration.

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.