Q1 2026 earnings put profitability in focus
Nisshin OilliO GroupLtd (TSE:2602) reported first quarter results for the period ended June 30, 2026, with sales of ¥152,401 million, compared with ¥132,070 million a year earlier.
Net income was ¥3,439 million versus ¥16,639 million in the prior year quarter, and basic earnings per share from continuing operations came in at ¥37.59, compared with ¥171.67 previously.
See our latest analysis for Nisshin OilliO GroupLtd.
At a share price of ¥1,924, Nisshin OilliO GroupLtd has logged a 7.61% 90 day share price return and an 18.08% total shareholder return over the past year. This suggests that investors are still weighing revenue growth against recent pressure on profitability.
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Given that Nisshin OilliO GroupLtd has already delivered a strong multi year total return, yet just reported a sharp profit step down, the key issue now is whether most of the valuation upside is already priced in.
Preferred P/E of 16.3x on Nisshin OilliO GroupLtd: Is it justified?
On a P/E of 16.3x at a share price of ¥1,924, Nisshin OilliO GroupLtd trades in line with the wider JP Food industry average but above its peer group average.
The P/E multiple compares the current share price with earnings per share and is a common way investors frame what they are paying for each unit of profit. For a mature food and ingredients company like Nisshin OilliO GroupLtd, this yardstick can help you see how the market is weighing its earnings profile against others in the same space.
On one hand, Nisshin OilliO GroupLtd screens as expensive compared with both the JP Food industry average and its direct peers on this preferred multiple. At the same time, the current P/E sits below an estimated fair P/E of 19.4x. This suggests the market is applying a lower earnings multiple than that fair ratio level could move towards.
Compared with the JP Food industry, the stock trades on the same 16.3x P/E, which points to pricing that is broadly aligned with the sector. Against a peer average P/E of 12.7x, though, the premium is clear and highlights that investors are paying more per unit of earnings than for similar companies.
Explore the SWS fair ratio for Nisshin OilliO GroupLtd
Result: Price-to-earnings of 16.3x (ABOUT RIGHT)
However, investors in Nisshin OilliO GroupLtd still face risks around sustained margin pressure and any shift in demand across key oils, fats and processed foods lines.
Find out about the key risks to this Nisshin OilliO GroupLtd narrative.
Another view on Nisshin OilliO GroupLtd's value
While the current 16.3x P/E for Nisshin OilliO GroupLtd looks roughly in line with the JP Food industry and above peers, the SWS DCF model points in the other direction. With the share price at ¥1,924 and a cash flow value estimate of ¥1,503.94, the stock screens as overvalued on this measure. That raises a simple question for you as an investor: Do you trust today's earnings multiple or the cash flow math over the long run?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Nisshin OilliO GroupLtd for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 18 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
With Nisshin OilliO GroupLtd showing both pressure on recent profits and a richer P/E, the picture is clearly mixed. Use the data, stress test your own thesis, and then weigh up the 1 key reward and 3 important warning signs
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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.
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