JSP (TSE:7942) Stock Rallies On Q1 Earnings And Lower P E

JSP walked into this earnings season with its stock at ¥3,070, after a steady 90 day climb of about 21%. The Q1 2027 release then landed with a jolt. Basic earnings per share printed at ¥106.57 and quarterly net income reached ¥2,793 million, figures that emphasize profit quality rather than price swings.

Short term traders may fixate on the recent chart. Longer term investors will likely focus instead on the fact that trailing twelve month earnings per share are now ¥309.15, while the valuation still sits below both peer and industry P/E levels.

Like the look of JSP’s earnings power and below peer P/E, but want a wider bench of companies with similar fundamentals? Check out the 16 high quality undervalued stocks for ideas that pair solid cash flows with valuations that still look restrained.

Q1 2027 Earnings Summary

• Revenue (Q1 2027 vs. Q1 2026): ¥40,952 million vs. ¥34,392 million (year-on-year increase)
• Net Income (Excl. Extra Items, Q1 2027 vs. Q1 2026): ¥2,793 million vs. ¥1,293 million (year-on-year increase)
• Basic EPS (Q1 2027 vs. Q1 2026): ¥106.57 vs. ¥49.34 (year-on-year increase)
• Trailing 12 Month Basic EPS (Q1 2027 vs. Q1 2026): ¥309.15 vs. ¥194.94 (12 month increase in earnings power)

Earnings are one thing, but investors who care about what they are paying for JSP tend to focus on the cash that actually comes through the business. Looking at JSP's cash flows alone, the stock could be a slight 14% undervalued.

Stronger JSP Earnings Tilt The Story Positive

For anyone leaning optimistic on JSP, this quarter gives some support. Revenue moved from ¥34,392 million to ¥40,952 million, while net income excluding extra items rose from ¥1,293 million to ¥2,793 million. Basic EPS more than doubled, and trailing 12 month EPS is now ¥309.15. That combination points to a business that is currently scaling profits faster than sales. For a materials supplier tied to autos, construction and packaging, this kind of earnings momentum hints that the product mix and cost base are working reasonably well right now.

JSP Risks Tempered But Cycles Still Matter

Bears often worry most about cyclicality and earnings quality for a group like JSP. The latest figures do not remove those concerns, yet they soften the immediate risk. Profit excluding extra items moved ahead with revenue, and trailing EPS sits comfortably above the prior year’s level. That suggests recent strength is not purely a one quarter spike. Even so, exposure to automotive, construction and packaging demand remains. If those end markets slow, the recent earnings trajectory could come under pressure, so caution around cycle timing still has a place in the conversation.

After a cycle-linked business like JSP reports stronger earnings, the key question is durability. Review the risk analysis for JSP which shows 1 important warning sign before assuming this upswing is secure.

Hunt Quiet Value Stories Now

JSP just showed how a single quarter can change the feel of a profit story without rewriting the entire playbook. The real opportunity could be spotting stocks that look mispriced before the crowd reworks the numbers.

• Company 1 - 36% below our estimate - develops large infrastructure projects where maintenance, seismic checks and pollution cleanup keep extending contracted activity.
• Company 2 - 45% below our estimate - serves borrowers needing local lending, deposits and leasing as big banks streamline traditional branches.
• Company 3 - 32% below our estimate - runs payment rails merchants use when card, carrier, bank transfer and wallet options must settle together.

Those are three of them. See all 16 potentially undervalued companies →

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