The half-year results for Tokyo Tatemono Co., Ltd. (TSE:8804) were released last week, making it a good time to revisit its performance. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at JP¥194b, statutory earnings beat expectations by a notable 22%, coming in at JP¥113 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for Tokyo Tatemono from ten analysts is for revenues of JP¥525.8b in 2026. If met, it would imply a notable 14% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 6.6% to JP¥317. Before this earnings report, the analysts had been forecasting revenues of JP¥525.8b and earnings per share (EPS) of JP¥310 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for Tokyo Tatemono
The consensus price target was unchanged at JP¥3,939, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Tokyo Tatemono at JP¥4,450 per share, while the most bearish prices it at JP¥3,450. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Tokyo Tatemono is an easy business to forecast or the the analysts are all using similar assumptions.
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. It's clear from the latest estimates that Tokyo Tatemono's rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 7.0% 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 4.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tokyo Tatemono to grow faster 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 Tokyo Tatemono following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.
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 forecasts for Tokyo Tatemono 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 2 warning signs for Tokyo Tatemono you should be aware of, and 1 of them is concerning.
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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.