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Amano (TSE:6436) Valuation in Focus After Dividend Increase and Upcoming Earnings Call

Simply Wall St · 11/03 10:21

Amano (TSE:6436) just announced it will raise its dividend to JPY 55 per share for the first half of the year, up from last year’s JPY 50. Investors may also be watching closely ahead of its Q2 earnings call on October 31.

See our latest analysis for Amano.

After a stretch of choppy trading, Amano’s latest dividend boost and anticipation around its upcoming earnings call appear to have nudged sentiment. Although the share price is still down slightly for the year, long-term investors have seen total shareholder returns grow a remarkable 82% over three years and nearly double over five.

If you’re curious where else this kind of momentum might be building, now is a great time to broaden your search and discover fast growing stocks with high insider ownership

With Amano trading roughly 15 percent below analyst price targets and recent growth trends still holding up, investors have to ask: is there still room for upside here, or has the future already been priced in?

Price-to-Earnings of 16.6x: Is it justified?

Amano trades at a price-to-earnings (P/E) ratio of 16.6x, just under the peer average of 17.1x. This suggests the market is valuing Amano similar to its industry rivals but at a slight discount.

The price-to-earnings ratio reflects how much investors are willing to pay for each unit of current earnings. For a company like Amano, which has delivered consistent profit growth, the P/E serves as a quick temperature check of market confidence in future earnings potential.

Currently, Amano’s earnings growth stands out. Its earnings grew 17.6% over the past year, outpacing the Electronic industry’s 4.5%. However, compared to the Japanese Electronic industry P/E average of 15.6x, Amano is priced somewhat higher. Against its estimated fair P/E ratio of 16.5x, it appears very slightly expensive. This suggests that while the market recognises Amano's recent earnings momentum, further upside may be restrained if growth slows.

Explore the SWS fair ratio for Amano

Result: Price-to-Earnings of 16.6x (ABOUT RIGHT)

However, recent underperformance in short-term returns and a pause in earnings momentum could temper optimism if market conditions worsen or if growth slows unexpectedly.

Find out about the key risks to this Amano narrative.

Another View: Discounted Cash Flow Suggests Undervaluation

Looking at Amano through the lens of our DCF model, the shares appear to be trading roughly 14% below their estimated fair value. This perspective challenges the “about right” label from the earnings multiple and hints there may be more upside potential than the market’s current pricing suggests. Could this present an overlooked opportunity?

Look into how the SWS DCF model arrives at its fair value.

6436 Discounted Cash Flow as at Nov 2025
6436 Discounted Cash Flow as at Nov 2025

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Amano 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 844 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Amano Narrative

Of course, if you want to dig into the numbers yourself or challenge our take, you can dive in and build your perspective in just a few minutes with Do it your way.

A great starting point for your Amano research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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.