- TOPPAN Holdings has revised its full-year operating income forecast to 70.00 billion yen, down from the previous 79.00 billion yen, and below the market estimate of 97.5 billion yen.
- The company’s full-year net income forecast has been adjusted upward to 70.00 billion yen, previously 65.00 billion yen, yet it remains below the market estimate of 76.2 billion yen.
- Full-year net sales are expected to be 1.79 trillion yen, slightly under the previous forecast of 1.82 trillion yen and the market estimate of 1.86 trillion yen.
- Despite the forecast adjustments, TOPPAN maintains its dividend outlook at 56.00 yen per share, slightly above the market estimate of 55.67 yen.
- For the second quarter, operating income stood at 11.25 billion yen, showing a decline of 31% year-over-year.
- Second quarter net income was reported at 20.52 billion yen, a decrease of 8.3% compared year-over-year.
- Net sales for the second quarter increased by 10% year-over-year, reaching 466.06 billion yen.
- In terms of market performance, there are currently 3 buy ratings for TOPPAN, with no holds or sells.
Toppan Printing on Smartkarma
Analyst coverage on Smartkarma shines a spotlight on Toppan Printing, with Rahul Jain’s research report “TOPPAN Holdings – IPO Premium Priced In, Core Execution the Next Test”. Jain’s analysis paints a picture of limited upside potential, with the IPO catalyst already factored into the current price of around ¥3,900. The core focus now lies on the company’s execution in key sectors like Information & Communication and BPO/Digital DX to drive margin expansion towards the target of 10% by FY2030. Despite a balanced risk-reward profile supported by a robust balance sheet and shareholder returns, Toppan faces challenges such as high capital expenditures and lingering effects from legacy print operations that impact free cash flow and return on equity.
A look at Toppan Printing Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
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
Toppan Printing Co., Ltd. is positioned for a positive long-term outlook based on the Smartkarma Smart Scores. With a strong Value score of 4, the company is deemed to be undervalued relative to its financial metrics. This suggests that there may be room for growth in the company’s stock price as its true value is recognized by the market. Additionally, Toppan Printing demonstrates resilience with a score of 3, indicating its ability to weather economic downturns and challenges.
Despite a moderate Growth score of 3, Toppan Printing is expected to see steady expansion in its operations and market presence over the long term. On the other hand, the company’s Momentum and Dividend scores are more modest at 2, implying that there may be opportunities for improvement in these areas to further enhance investor confidence and shareholder returns. Overall, Toppan Printing‘s diverse portfolio of printing services positions it well for sustainable growth in the future.
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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