Nojima (TSE:7419) Stock Looks Cheap After Profit Surge Clouded By One Off Gain

Nojima stock came into this earnings print looking ignored, not loved, with the share price roughly flat over the past month and down about 9% over the past week. The results themselves tell a very different story. Quarterly basic earnings per share landed at ¥70.78 and net income reached ¥20.52b, both sitting well above recent quarterly levels. The key tension for investors now is simple. The market is still pricing Nojima on a single digit P/E, while the latest earnings power and reported cash flow value point to a company that screens far stronger than the mood suggests.

Impressed by Nojima’s strong earnings print but unsure whether a single digit P/E still leaves enough upside? Compare it with our 18 high quality undervalued stocks for companies that pair earnings power with balance sheet strength.

Q1 2027 Earnings Summary

• Total Revenue (Q1 2027 vs Q1 2026): ¥242,078m vs. ¥228,170m (up 6.1%)
• Net Income (Excl. Extra Items, Q1 2027 vs Q1 2026): ¥20,515m vs. ¥9,946m (up 106.3%)
• Basic EPS (Q1 2027 vs Q1 2026): ¥70.78 vs. ¥34.64 (up 104.3%)
• Trailing 12 Month Net Income Margin (Q1 2027 vs Q1 2026): 5.0% vs. 4.1% (higher margin, with a large one off gain of ¥13.4b affecting reported profit quality)

Prefer clean charts over scrolling through pages of earnings tables and PDFs? See Nojima’s full financial picture with a visual breakdown of its valuation in the company report for Nojima.

Nojima earnings lend support to multi-segment story

Nojima’s latest quarter gives some real weight to the idea of a multi engine business. Revenue reached ¥242,078m, ahead of the prior year, while net income excluding extra items more than doubled to ¥20,515m and basic EPS also a little over doubled to ¥70.78. That kind of earnings step up, alongside a higher trailing 12 month net margin of 5.0%, sits comfortably with the view that services, consolidation moves and cross segment contributions are helping the overall platform, not just the core retail stores.

Short term earnings quality keeps bear case alive

The bear story around Nojima is not erased. Profitability looks better on the surface, yet a large one off gain of ¥13.4b is explicitly lifting reported profit quality concerns. That matters for anyone worried that a retail heavy and complex group might lean on non recurring items to smooth the ride. The share price also fell about 9% over the past week even with these strong headline numbers. That suggests some investors still question how durable this earnings jump really is.

After a quarter padded by a ¥13.4b one off gain, are you sure this is not just the start of deeper issues? Review our risk analysis for Nojima which shows 1 important warning sign

Stay Ahead With Simply Wall St

If Nojima’s mix of strong reported earnings and a low single digit P/E has your attention, register for free with Simply Wall St and add it to your Watchlist to track price against fair value and watch how the story develops. Once you decide to take a position, manage Nojima and your other holdings in the Portfolio Command Center so you see the key updates without getting buried in noise. For longer term conviction and fresh angles on Nojima, tap into the Community to see how other investors are interpreting the same numbers. This way you can surface potential catalysts and risks early and keep a step ahead of the market.

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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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