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Is Umios (TSE:1333) Cheap Following Earnings That Lifted Sales But Cut Profit?

Simply Wall St · 1d ago

Why Umios earnings matter for shareholders now

Umios (TSE:1333) has just reported first quarter results to June 30, 2026, with sales of ¥277,595 million and net income of ¥3,424 million. Basic EPS from continuing operations was ¥22.72.

Sales were above the prior year’s ¥263,597 million, while net income and EPS were below the earlier ¥6,499 million and ¥43.01. This split between higher revenue and lower profit is central to how investors may reassess Umios stock today.

See our latest analysis for Umios.

At a share price of ¥1,293.5, Umios has shown modest short term momentum, with a 1-day share price return of 0.86% and a 7-day share price return of 1.81%. The 1-year total shareholder return of 23.91% and 3-year total shareholder return of 75.37% indicate stronger gains over time as investors weigh higher sales against softer quarterly profits.

If you want to see what else is working for long term investors right now, it could be worth broadening your search to 11 top founder-led companies

Recent earnings left Umios with higher sales but softer profits, and the stock has still climbed over the past year. Is the slight discount to estimated fair value a cautious market getting it right, or an opportunity being ignored?

Preferred P/E of 10.1x for Umios: Is it justified?

On a P/E of 10.1x against a last close of ¥1,293.5, Umios looks cheaper than several benchmarks, which raises a clear valuation question for shareholders.

The P/E ratio compares the current share price to earnings per share and is a common way to judge how the market is pricing a company’s profits. For a business like Umios, which operates across fishing, aquaculture, processing, trading, and distribution, earnings can reflect many moving parts. The P/E becomes a simple reference point for what investors are currently willing to pay for those profits.

Umios has a history of earnings growth of 9.2% per year over the past 5 years, though earnings declined 17.7% over the last year and recent results were affected by a one off gain of ¥8.4b. That mix of longer term profit growth, a weaker recent year, and some non recurring items may help explain why the market is assigning a P/E below broader references.

The stock is described as good value on a P/E of 10.1x when compared with the JP market at 14x, the JP Food industry average of 16.3x, and a peer group average of 13.5x. That is a meaningful discount across each comparison and suggests the market is pricing Umios at a lower earnings multiple than many similar companies, even after factoring in the latest profit softness and quality adjustments.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 10.1x (UNDERVALUED)

However, investors in Umios still face risks from softer recent earnings and from the ongoing impact of past one off gains on how profits are interpreted.

Find out about the key risks to this Umios narrative.

Another view on Umios using the SWS DCF model

The P/E of 10.1x suggests Umios looks cheap against the JP market and food peers. The SWS DCF model points the other way. With the stock at ¥1,293.5 and an estimated future cash flow value of ¥375.88, the shares screen as expensive on that measure. Which signal do you trust more right now?

Look into how the SWS DCF model arrives at its fair value.

1333 Discounted Cash Flow as at Aug 2026
1333 Discounted Cash Flow as at Aug 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Umios for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 24 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With mixed signals around Umios in mind, it makes sense to move quickly and review the figures yourself so you are not relying on headline impressions alone. To help frame that view, make sure you check the 1 key reward and 3 important warning signs

Looking for more investment ideas beyond Umios?

If Umios has sharpened your focus, now is the time to widen your watchlist with stocks that match clear financial strengths and different investing angles.

  • Target potential long term compounders by reviewing companies that look attractively priced on earnings and balance sheet quality through the 24 high quality undervalued stocks.
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  • Prioritise peace of mind by screening for companies that carry lower risk scores and sturdier financial profiles via the 60 resilient stocks with low risk scores.

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.