Weathernews (TSE:4825) Stock Earnings Growth And Higher Margins Reinforce Steady-Service Narrative

Weathernews (TSE:4825) has wrapped up FY 2026 with fourth quarter revenue of ¥6.2 billion and basic EPS of ¥23.28, while trailing 12 month figures stand at ¥24.5 billion in revenue and EPS of ¥85.76 as earnings grew 22.2% over the past year. The company has seen revenue move from ¥23.5 billion and EPS of ¥70.38 on a trailing basis in FY 2025 to the latest ¥24.5 billion and ¥85.76, as earnings growth has run ahead of the five year compound rate of 13.4% per year. With the trailing net profit margin now at 15.5% versus 13.3% a year ago, this set of results points to firmer profitability as a key part of the story investors are assessing.

See our full analysis for Weathernews.

Next up, the focus shifts to how these earnings and margin trends line up with the prevailing Weathernews narratives that investors follow, and where the latest numbers may challenge those views.

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

Weathernews margins supported by ¥3.8b in annual profit

• Over the last 12 months, Weathernews generated ¥3,806 million in net income on ¥24,479 million of revenue, which lines up with the 15.5% net margin that is higher than the 13.3% margin reported a year earlier.
• What is striking for the bullish narrative that treats Weathernews as a steady, resilience focused service provider is how this margin profile backs that view, yet also sets a clear performance bar:
  • Support comes from earnings growing 22.2% over the past year alongside a five year compound rate of 13.4% per year. This fits the idea of a business supplying essential weather data to multiple sectors rather than relying on one single end market.
  • At the same time, any bullish claim that the story is purely about stability has to account for the higher margin versus last year. Future periods will be compared against a stronger profitability base rather than a depressed one.

Premium 23.1x P/E against peers and industry

• The stock trades on a trailing P/E of 23.1x, above the peer average of 16.1x and the JP Professional Services industry average of 13.1x, so investors are currently paying a higher multiple than those comparison groups for Weathernews earnings.
• For investors taking a more cautious or bearish stance, this valuation gap is a key focus point, and the reported figures give some support while also putting limits around that concern:
  • Bears highlight that paying 23.1x for trailing EPS when peers sit at 16.1x and the broader industry at 13.1x leaves less room for disappointment if growth slows from the recent 22.2% pace.
  • On the other hand, the same data shows that this higher multiple is attached to earnings that have compounded at 13.4% per year over five years and to a net margin that has moved from 13.3% to 15.5%. This is not fully consistent with a weak business being overpaid for.

DCF fair value and income profile in focus

• At a share price of ¥1,980, Weathernews sits about 10.9% below the stated DCF fair value of ¥2,222.83 and also offers a 2.53% dividend yield over the trailing 12 months.
• General market opinion that treats Weathernews as a steady, income supported stock with some valuation support is both backed and tested by these numbers:
  • The case for that view leans on the combination of a dividend yield of 2.53% and a DCF fair value that is higher than the market price. Together, these point to investors receiving both cash returns and some room to close the gap to that valuation.
  • The tension for that same opinion lies in the fact that the stock still trades on a 23.1x P/E, so anyone leaning on the DCF figure or dividend also has to accept paying a multiple that is above both peer and industry averages at today’s price.

If you want to see how other investors are connecting these Weathernews numbers to their long term stories, take a look at the Curious how numbers become stories that shape markets? Explore Community Narratives.

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 Weathernews'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.

If this Weathernews update leaves you with more questions than answers, use the data to decide quickly how it all fits together in your own view. To see what others find appealing in the current setup, take a closer look at the 3 key rewards.

See What Else Is Out There

For all the strength in Weathernews earnings and margins, the stock’s 23.1x P/E against lower peer and industry multiples makes the valuation look demanding.

If that premium price tag gives you pause, compare it with other companies that score better on value by checking out the 19 high quality undervalued stocks.

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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