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San A Co Ltd TSE 2659 Slower 3.9% Earnings Growth Tests Prior Bullish Narratives

Simply Wall St · 4d ago

San-A Co., Ltd. (TSE:2659) has reported Q3 2026 revenue of ¥55.3b and basic EPS of ¥35.62, with trailing twelve month EPS at ¥184.34 and net income at ¥11.4b framing the latest quarter in a wider profit context. The company has seen quarterly revenue move between ¥54.4b and ¥67.9b over the last five reported periods, while EPS has ranged from about ¥35.6 to ¥53.74 as earnings tracked this revenue base. For investors, the current set of numbers points to a business where profit margins and earnings quality are central considerations when judging how durable the story looks from here.

See our full analysis for SAN-ALTD.

With the latest figures on the table, the next step is to compare these results with the widely followed narratives around San-A, to see which views the numbers support and which they begin to challenge.

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

TSE:2659 Earnings & Revenue History as at Jan 2026
TSE:2659 Earnings & Revenue History as at Jan 2026

TTM earnings growth slows to 3.9%

  • Over the last 12 months, net income grew 3.9% to ¥11.4b on trailing revenue of ¥241.8b, compared with a five year earnings growth rate of 15.3% per year.
  • For those taking a more bullish view, what stands out is that high earnings quality and a 4.7% net margin sit alongside this slower 3.9% growth,
    • Supporters of the bullish angle can point to five year earnings growth of 15.3% per year and trailing EPS of ¥184.34 as evidence that recent moderation comes on top of a longer stretch of profit expansion.
    • At the same time, the step down from 15.3% per year to 3.9% over the last year gives cautious investors data to question how much of that earlier pace is repeatable.
To see how that multi year growth story and the recent slowdown fit together over a longer horizon, check out the full balanced narrative investors have been debating. 📊 Read the full SAN-ALTD Consensus Narrative.

P/E of 16.4x versus peers at 43.1x

  • The trailing P/E sits at 16.4x, above the JP Consumer Retailing industry average of 13.5x but well below the cited peer average of 43.1x.
  • Critics who focus on the more bearish side of the debate often highlight the slower 3.9% earnings growth and revenue growth forecasts of about 3.8% per year,
    • Those concerns are amplified by management level forecasts pointing to earnings growth of around 5% per year, which is below the JP market forecast of 8.6% per year, so the current 16.4x multiple is being compared against more modest growth expectations.
    • Bears also flag that this growth profile is attached to a net margin of 4.7%, which, while consistent with the recent year, does not give a lot of room if costs or competition were to pressure profitability.

Share price above DCF fair value and 3.3% yield

  • The shares trade at ¥3,030 compared with a DCF fair value of ¥2,797.62 and offer a 3.3% dividend yield on the trailing numbers.
  • On the more bearish side of the discussion, the stock price sitting above the DCF fair value comes at the same time as earnings and revenue forecasts that run below the broader JP market,
    • For those investors, the combination of a price above DCF fair value and a 16.4x P/E is taken as a prompt to look more closely at how much of the 3.3% dividend yield and 5% forecast earnings growth is already reflected in the valuation.
    • Others counter that a history of 15.3% per year earnings growth and high earnings quality partly explains why the market is comfortable paying above the modelled DCF fair value despite the more moderate near term outlook.

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 SAN-ALTD'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

San-A’s slower 3.9% TTM earnings growth compared with its earlier 15.3% pace, alongside a share price above DCF fair value, leaves some investors questioning upside.

If that gap between moderated growth and a fuller valuation makes you uneasy, use our these 883 undervalued stocks based on cash flows to quickly focus on companies where pricing looks more aligned with their earnings profile.

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.