Koshidaka Holdings' (TSE:2157) Soft Earnings Don't Show The Whole Picture

Simply Wall St · 1d ago

Soft earnings didn't appear to concern Koshidaka Holdings Co., Ltd.'s (TSE:2157) shareholders over the last week. We did some digging, and we believe the earnings are stronger than they seem.

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TSE:2157 Earnings and Revenue History December 7th 2025

The Impact Of Unusual Items On Profit

For anyone who wants to understand Koshidaka Holdings' profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by JP¥4.2b due to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. If Koshidaka Holdings doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year.

That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

Our Take On Koshidaka Holdings' Profit Performance

Unusual items (expenses) detracted from Koshidaka Holdings' earnings over the last year, but we might see an improvement next year. Because of this, we think Koshidaka Holdings' earnings potential is at least as good as it seems, and maybe even better! And on top of that, its earnings per share have grown at 43% per year over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Case in point: We've spotted 2 warning signs for Koshidaka Holdings you should be aware of.

Today we've zoomed in on a single data point to better understand the nature of Koshidaka Holdings' profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.