Artience (TSE:4634) One Off Loss And 3% Margin Test Bullish Earnings Narrative

artience (TSE:4634) FY 2025 earnings snapshot

artience (TSE:4634) has wrapped up FY 2025 with fourth quarter revenue of ¥91,545 million and basic EPS of ¥14.14, capping a year in which trailing twelve month revenue came in at ¥349,979 million and EPS reached ¥210.50. Over recent periods the company has seen quarterly revenue move from ¥90,877 million in Q4 FY 2024 to ¥91,545 million in Q4 FY 2025, while quarterly EPS shifted from ¥115.06 to ¥14.14. This sets a clear earnings backdrop for investors to assess. With trailing net profit margins sitting at 3% against a backdrop of higher historical margins and a one off loss, this result puts profitability quality and the path of future margins firmly in focus.

See our full analysis for artience.

With the headline numbers on the table, the next step is to see how these results line up with the widely followed narratives about artience’s growth, risks, and earnings power, and where those stories might need an update.

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

Margins pressured by ¥4.9b one off loss

• Trailing 12 month net profit margin is 3%, down from 5.3% a year earlier, with a ¥4.9b one off loss pulling reported profitability lower over the period.
• Bears focus on the weaker margin picture, and the trailing data gives them some backing:
  • Net income over the last 12 months is ¥10,340 million on ¥349,979 million of revenue, which is a thinner margin than the prior year even before thinking about any future improvement.
  • Within FY 2025, quarterly net income moved from ¥5,918 million in Q4 FY 2024 to ¥675 million in Q4 FY 2025, which fits the cautious view around recent profitability pressure.

TTM EPS down from ¥352.53 to ¥210.50

• Trailing EPS for the latest 12 month period is ¥210.50 compared with ¥352.53 a year earlier, while FY 2025 quarterly EPS ranged from ¥58.48 in Q1 to ¥14.14 in Q4 as profits softened through the year.
• Bulls point to the longer term and forecasts, and the historical numbers give that side some support:
  • Five year compound earnings growth is 14.8% per year, which sits in contrast to the most recent year, where earnings growth was negative on a trailing basis.
  • Earnings are forecast to grow by about 26.6% per year, so the gap between the latest 12 month EPS of ¥210.50 and earlier levels is a key part of the bullish argument that a recovery could rebuild that earnings base.

P/E of 17.9x and large DCF gap

• artience trades on a trailing P/E of 17.9x versus the JP Chemicals industry at 14.4x and peers at 16.9x, while the current share price of ¥3,925 sits well below the DCF fair value estimate of ¥8,578.79.
• What stands out is how valuation data cuts both ways for bulls and bears:
  • Critics highlight that paying 17.9x trailing earnings for a business with a 3% net margin and a recent year of negative earnings growth may feel expensive compared with industry and peer averages.
  • Supporters instead point to the DCF fair value being more than double the current price and to forecast revenue growth of about 4% per year alongside a 2.55% dividend yield as reasons the current multiple may still be acceptable.

For a wider read on how these numbers, forecasts, and risks fit together into a single story for the company, you can check out the balanced narrative that pulls all the pieces into one place: 📊 Read the full artience Consensus Narrative.

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 artience’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

artience’s thinner 3% net margin, weaker trailing EPS and reliance on a year with a one off loss highlight that earnings quality and resilience are under pressure.

If that mix of softer profitability and recent earnings swings makes you cautious, compare it with companies filtered for steadier fundamentals using our 45 resilient stocks with low risk scores and see if they fit your risk comfort today.

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.

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