This Analyst Just Downgraded Their Nippon Yakin Kogyo Co., Ltd. (TSE:5480) EPS Forecasts

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The latest analyst coverage could presage a bad day for Nippon Yakin Kogyo Co., Ltd. (TSE:5480), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

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Following the latest downgrade, the solo analyst covering Nippon Yakin Kogyo provided consensus estimates of JP¥159b revenue in 2026, which would reflect a perceptible 3.6% decline on its sales over the past 12 months. Statutory earnings per share are expected to be JP¥723, roughly flat on the last 12 months. Before this latest update, the analyst had been forecasting revenues of JP¥191b and earnings per share (EPS) of JP¥1,192 in 2026. Indeed, we can see that the analyst is a lot more bearish about Nippon Yakin Kogyo’s prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Nippon Yakin Kogyo

The consensus price target fell 16% to JP¥4,700, with the weaker earnings outlook clearly leading analyst valuation estimates.

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. We would highlight that sales are expected to reverse, with a forecast 4.8% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 9.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.8% annually for the foreseeable future. It’s pretty clear that Nippon Yakin Kogyo’s revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year’s expectations and a falling price target, we wouldn’t be surprised if investors were becoming wary of Nippon Yakin Kogyo.

With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have analyst estimates for Nippon Yakin Kogyo going out as far as 2028, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.