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Hiday Hidaka (TSE:7611) Margin Improvement Reinforces Bullish Earnings Narrative

Simply Wall St · 3d ago

Hiday Hidaka (TSE:7611) has just posted Q3 2026 numbers that keep its earnings story in focus, with quarterly revenue of ¥15.4 billion and basic EPS of ¥29.72, set against trailing 12 month revenue of ¥60.8 billion and EPS of ¥133.74 that reflect a 42.5% earnings uplift over the past year. Over recent quarters the company has seen revenue move from ¥14.1 billion in Q3 2025 to ¥15.4 billion in Q3 2026, while basic EPS has shifted from ¥22.81 to ¥29.72. This sets up this print against steadily higher profit per share and an 8.1% net margin, which puts profitability at the center of the story for investors.

See our full analysis for Hiday Hidaka.

With the latest figures on the table, the next step is to weigh these margins and growth rates against the prevailing narratives around Hiday Hidaka, to see which views the numbers support and which they call into question.

Curious how numbers become stories that shape markets? Explore Community Narratives

TSE:7611 Earnings & Revenue History as at Jan 2026
TSE:7611 Earnings & Revenue History as at Jan 2026

TTM earnings up 42.5% with 8.1% margin

  • Over the last 12 months, earnings grew 42.5% while the net profit margin sat at 8.1% compared with 6.4% the prior year, alongside trailing revenue of ¥60,839 million and net income of ¥4,899 million.
  • What stands out for a bullish view is that higher trailing earnings and the move in net margin from 6.4% to 8.1% line up with the idea of a solid everyday restaurant chain. However, the quarterly pattern shows Q1 2026 net income of ¥1,266 million easing to ¥1,070 million by Q3, which prompts bulls to ask whether the margin gains are more about the full year than any single period.
To see how this earnings jump fits into the longer story, many investors look for a structured narrative that connects margin trends to future growth. 📊 Read the full Hiday Hidaka Consensus Narrative.

Revenue forecasts around 7–8% a year

  • Revenue is forecast in the dataset to grow about 7.4% a year and earnings about 7.9% a year. This sits below a quoted 8.5% growth forecast for the broader domestic market but above the recent 42.5% trailing growth rate when viewed as a more moderate run rate rather than a repeat of the last 12 months.
  • Supporters of the bullish angle often point to these mid single digit to high single digit forecast growth rates as a reasonable match for a mature restaurant business. The actual quarterly numbers show total revenue moving from ¥13,531 million in Q2 2025 to ¥15,420 million in Q3 2026, so the tension for bulls is whether the forecast step down from 42.5% trailing earnings growth to around 7–8% per year is a conservative reset or simply reflects that the last year was unusually strong.

P/E of 24.5x versus DCF fair value

  • The stock trades on a trailing P/E of 24.5x, below a peer average of 33.1x but slightly above the JP Hospitality industry at 23.9x, and the current share price of ¥3,330 sits above a DCF fair value of ¥2,583.29 in the data. This indicates that the DCF figure is lower than where the market is pricing the shares.
  • Critics who lean bearish often focus on this valuation gap, arguing that the share price being above the ¥2,583.29 DCF fair value and a P/E a little higher than the industry average could limit enthusiasm. Supporters counter that the margin improvement from 6.4% to 8.1% and TTM earnings growth of 42.5% are the kind of operating results that can justify paying closer to peer level multiples.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Hiday Hidaka's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Hiday Hidaka’s solid recent earnings sit alongside a share price that is above the DCF fair value and a P/E that edges past the industry average, raising valuation questions.

If you do not want valuation concerns hanging over your portfolio, use our these 877 undervalued stocks based on cash flows today to focus on stocks priced more conservatively than their cash flow profiles suggest.

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.