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Despite currently being unprofitable, Unitika (TSE:3103) has delivered a 61% return to shareholders over 1 year

Simply Wall St · 2d ago

The Unitika Ltd. (TSE:3103) share price has had a bad week, falling 24%. But that doesn't change the reality that over twelve months the stock has done really well. After all, the share price is up a market-beating 61% in that time.

Since the long term performance has been good but there's been a recent pullback of 24%, let's check if the fundamentals match the share price.

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In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year, Unitika actually saw its earnings per share drop 22%. This was, in part, due to extraordinary items impacting earning in the last twelve months.

This means it's unlikely the market is judging the company based on earnings growth. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

However the year on year revenue growth of 4.2% would help. We do see some companies suppress earnings in order to accelerate revenue growth.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
TSE:3103 Earnings and Revenue Growth December 8th 2025

Take a more thorough look at Unitika's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Unitika shareholders have received a total shareholder return of 61% over one year. Notably the five-year annualised TSR loss of 5% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Unitika , and understanding them should be part of your investment process.

We will like Unitika better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Japanese exchanges.