Bewith (TSE:9216) Q2 EPS Recovery Tests Bearish Earnings Narratives

Bewith (TSE:9216) has released its Q2 2026 results, reporting revenue of ¥9,009 million and basic EPS of ¥10.48, while trailing 12-month figures show revenue of ¥35.97 billion and EPS of ¥9.71. Over the last few quarters, revenue has remained in a tight band around ¥9,000 million per quarter and quarterly EPS has moved from a loss of ¥21.00 in Q4 2025 to ¥6.87 in Q1 2026 and ¥10.48 in the latest period. This points to a situation where the headline recovery in earnings is supported by thin margins and reflects a recent one-off hit to profit.

See our full analysis for Bewith.

With the numbers now available, the next step is to consider how this combination of slim margins, one-off items and shifting EPS aligns with the prevailing narratives around Bewith's earnings power and longer-term prospects.

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

Margins Thin With 0.4% Net Profit

• Over the last 12 months, Bewith generated ¥35,973 million in revenue and ¥137 million in net income, which works out to a net margin of 0.4% compared with 3.8% a year earlier.
• A more optimistic interpretation focuses on how this slim 0.4% margin sits alongside analysts expecting earnings to grow about 44.2% per year, which leans on the idea that the current drag is temporary rather than structural.
  • Trailing 12 month EPS of ¥9.71 follows a period where five year EPS declined around 20.6% per year, so the growth story is starting from a low base.
  • That gap between weak recent profitability and strong earnings growth expectations is where you need to decide whether you side more with the optimistic or cautious camp.

To see how these mixed signals fit into a wider story on growth, risks, and valuation, have a look at the broader community views on Bewith. 📊 Read the full Bewith Consensus Narrative.

¥332 million One off Loss Skews TTM Picture

• The trailing 12 month figures include a one off loss of ¥332 million, and against that backdrop, TTM net income of ¥137 million and EPS of ¥9.71 look quite compressed relative to earlier periods.
• Critics often focus on weak trailing earnings, but this one off charge complicates a straightforward bearish read because it mixes regular operating performance with a single large hit.
  • Within the last six quarters, quarterly net income moved from a loss of ¥296.2 million in Q4 2025 to profits of ¥97 million in Q1 2026 and ¥148 million in Q2 2026, so the latest two quarters both show profits despite the TTM drag.
  • When that pattern is set against analysts expecting earnings to grow roughly 44.2% per year, the argument that recent reported profit fully reflects the underlying run rate looks less clear cut.

DCF Fair Value Below Price, P/S Looks Cheaper

• At a share price of ¥1,630, Bewith trades above a DCF fair value of ¥1,180.76. On a P/S ratio of 0.6x, however, it screens below the industry at 1.0x and peers at 1.6x.
• Some investors highlight the stock sitting above DCF fair value as a warning sign, while the comparatively low P/S and forecasts for 2.2% annual revenue growth and around 44.2% earnings growth create a more mixed picture than a simple "too expensive" label.
  • The combination of a 0.4% trailing net margin and a 4.72% dividend yield that is not well covered by earnings or free cash flow supports a cautious view on payout sustainability.
  • At the same time, trading on 0.6x sales while the sector sits closer to 1.0x or 1.6x raises the question of whether the market is pricing in weak execution or simply assigning a discount while waiting for earnings quality to catch up.

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 Bewith'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

Bewith's thin 0.4% net margin, one-off loss of ¥332 million and dividend that is not covered by earnings point to pressure on payout quality.

If you want income backed by stronger fundamentals, use our these 1835 dividend stocks with yields > 3% today to focus on companies where dividend yields sit on healthier earnings and cash flow support.

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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