- ENEOS revised its full-year operating income forecast to 290 billion yen, down from an earlier expectation of 360 billion yen and below the market estimate of 336.33 billion yen.
- The company’s net income forecast is now 135 billion yen, a decrease from the previously anticipated 185 billion yen, with market estimates at 180.31 billion yen.
- ENEOS expects net sales to total 11.40 trillion yen, slightly down from the previous forecast of 11.70 trillion yen and just below the estimate of 11.45 trillion yen.
- A surprise announcement from the company revealed an increased dividend of 34.00 yen, up from their previous 30.00 yen and exceeding the market expectation of 30.00 yen.
- In the second quarter, ENEOS reported an operating income of 116.44 billion yen, a turnaround from a loss of 4.80 billion yen in the previous year, surpassing the forecast of 111.86 billion yen.
- The second quarter net income stood at 79.27 billion yen, recovering from a loss of 13.47 billion yen last year, though it came in slightly lower than the estimate of 84.83 billion yen.
- Second-quarter net sales were reported at 2.82 trillion yen, an 11% decrease year-over-year, falling short of the 3.03 trillion yen estimate.
- Analyst recommendations include 5 buy ratings, 2 hold ratings, and no sell ratings.
ENEOS Holdings on Smartkarma
ENEOS Holdings, Japan’s largest integrated energy company, has been under the spotlight on Smartkarma. A recent report by Ξ±SK highlights the company’s dominant position in the domestic petroleum market, with a market share of around 50%. Despite facing challenges from declining fuel demand and the rise of electric vehicles, ENEOS is strategically investing in renewable energy, sustainable aviation fuels, and hydrogen to adapt to a changing industry landscape. However, uncertainties remain around the execution and profitability of these new ventures.
On the other hand, analyst Rahul Jain‘s report on ENEOS Holdings takes a more cautious stance, suggesting that the company’s valuation is currently above fair value given potential risks from oil price volatility and transition challenges. With earnings fluctuations and risks such as high leverage and shrinking domestic fuel demand, Jain points out that the stock is trading above their calculated fair value. These contrasting viewpoints shed light on the complexities of ENEOS Holdings‘ business outlook and the strategic decisions management must make to navigate the energy transition successfully.
A look at ENEOS Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have assessed ENEOS Holdings, Inc.’s long-term outlook using their proprietary Smart Scores. The company scored high in Value and Dividend, indicating strong fundamentals and attractive dividend potential. Despite lower scores in Growth and Resilience, ENEOS Holdings received a top score in Momentum, suggesting positive price trends and market sentiment.
ENEOS Holdings, Inc. operates refining and marketing businesses, refining and distributing petroleum products, including petroleum chemicals. Additionally, the company provides non-ferrous metals, electronic materials, and other products. With solid Value and Dividend scores, coupled with strong Momentum, ENEOS Holdings shows promise for the future, despite lower scores in Growth and Resilience factors.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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