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We Think That There Are Some Issues For PKSHA Technology (TSE:3993) Beyond Its Promising Earnings

Simply Wall St · 1d ago

The market for PKSHA Technology Inc.'s (TSE:3993) stock was strong after it released a healthy earnings report last week. While the profit numbers were good, our analysis has found some concerning factors that shareholders should be aware of.

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earnings-and-revenue-history
TSE:3993 Earnings and Revenue History December 29th 2025

The Impact Of Unusual Items On Profit

For anyone who wants to understand PKSHA Technology's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from JP¥693m worth of unusual items. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year. Which is hardly surprising, given the name. Assuming those unusual items don't show up again in the current year, we'd thus expect profit to be weaker next year (in the absence of business growth, that is).

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 PKSHA Technology's Profit Performance

Arguably, PKSHA Technology's statutory earnings have been distorted by unusual items boosting profit. Because of this, we think that it may be that PKSHA Technology's statutory profits are better than its underlying earnings power. But the good news is that its EPS growth over the last three years has been very impressive. 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. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of PKSHA Technology.

Today we've zoomed in on a single data point to better understand the nature of PKSHA Technology's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. 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.