The first-quarter results for Toei Company, Ltd. (TSE:9605) were released last week, making it a good time to revisit its performance. Toei Company reported in line with analyst predictions, delivering revenues of JP¥42b and statutory earnings per share of JP¥374, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Toei Company after the latest results.
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Taking into account the latest results, the consensus forecast from Toei Company’s three analysts is for revenues of JP¥194.6b in 2027. This reflects a modest 4.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to tumble 29% to JP¥266 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥196.8b and earnings per share (EPS) of JP¥267 in 2027. 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.
Check out our latest analysis for Toei Company
The analysts reconfirmed their price target of JP¥5,900, showing that the business is executing well and in line with expectations. That’s not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Toei Company at JP¥6,100 per share, while the most bearish prices it at JP¥5,700. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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 pretty clear that there is an expectation that Toei Company’s revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 6.5% growth on an annualised basis. This is compared to a historical growth rate of 9.1% 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 4.2% annually. So it’s pretty clear that, while Toei Company’s revenue growth is expected to slow, it’s still expected to grow faster than the industry itself.
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. 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.
With that in mind, we wouldn’t be too quick to come to a conclusion on Toei Company. Long-term earnings power is much more important than next year’s profits. At Simply Wall St, we have a full range of analyst estimates for Toei Company going out to 2029, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Toei Company that you need to take into consideration.
Valuation is complex, but we’re here to simplify it.
Discover if Toei Company might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Have feedback on this article? Concerned about the content?Get in touchwith 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.
About TSE:9605
Toei Company
A content company, engages in the production and distribution of movies, television (TV) shows, and other video products in Japan.
Flawless balance sheet with solid track record.
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