Mizuno (TSE:8022) drew fresh investor attention after reporting first quarter results on 7 August 2026, along with new earnings guidance and updated dividend plans for the fiscal year ending March 2027.
See our latest analysis for Mizuno.
The earnings release and new guidance appear to have supported sentiment around Mizuno, with the share price at ¥4,270 after a 30 day share price return of 18.78% and a 1 year total shareholder return of 62.68%, building on a very large 5 year total shareholder return.
If this kind of momentum has your attention, it can be a good time to widen your watchlist and check out our screener of 11 top founder-led companies.
Mizuno has rewarded shareholders with strong recent returns and a higher share price, while guiding to specific earnings and dividend levels. After this move, does the current valuation still offer an attractive balance between risk and reward?
Price to Earnings of 16.6x for Mizuno: Is it justified?
Mizuno is trading on a P/E of 16.6x, which sits slightly above both the JP Leisure industry average of 15.7x and the peer average of 16.4x. At a share price of ¥4,270, that points to the market attaching a modest premium to the company compared with similar stocks.
The P/E ratio compares the current share price with earnings per share and is a common way to gauge how much investors are paying for current profits. For a sports products company like Mizuno, it can reflect expectations around the stability of earnings, brand strength and the ability to keep converting revenue into profit.
Here, the premium P/E reflects that investors are paying up for earnings that have been growing at 19.3% per year over the past five years, with profit growth of 30.3% over the last year and net profit margins at 7.3% compared with 6.2% a year earlier. However, a fair P/E based on the SWS fair ratio is estimated at 14.7x, which is below the current 16.6x level. That points to a valuation level that some models suggest the market could move towards if expectations cool.
Compared with the broader JP Leisure industry, Mizuno has also outpaced peers on recent earnings growth, with 30.3% earnings growth versus 11.8% for the industry over the last year. Even so, when lining up the current 16.6x P/E against both the 15.7x industry average and the 14.7x fair P/E estimate, the stock screens as more expensive than those benchmarks.
Explore the SWS fair ratio for Mizuno
Result: Price-to-Earnings of 16.6x (OVERVALUED)
However, investors still face risks if Mizuno's earnings growth slows or if its current premium to the analyst price target of ¥4,256 narrows significantly.
Find out about the key risks to this Mizuno narrative.
Another View on Mizuno Using the SWS DCF Model
The P/E discussion shows Mizuno on a premium multiple. The SWS DCF model tells a similar story, with an estimated future cash flow value of ¥3,416.85 compared with the current share price of ¥4,270. That points to an overvalued result. Which signal feels more important to you right now?
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 Mizuno 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 26 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
If the tone around Mizuno feels upbeat, that is because the data points to at least one area investors already like. Take a closer look for yourself, decide how that fits your own view, and then review the 2 key rewards.
Looking for more investment ideas beyond Mizuno?
If Mizuno has helped sharpen your focus, do not stop there. Broaden your watchlist with other ideas that match your goals and risk comfort.
- Target potential mispricing by scanning 26 high quality undervalued stocks that pair solid fundamentals with prices that may not fully reflect their financial profile.
- Strengthen your income stream by reviewing 33 dividend fortresses that could suit investors who want higher yields from established businesses.
- Prioritise resilience by filtering for 58 resilient stocks with low risk scores that may better align with a more cautious approach to market swings.
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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