Avant Group (TSE:3836) delivered an impressive set of results, with earnings growing 15.1% per year over the past five years and profit growth accelerating to 23.1% in the last twelve months. The company’s net profit margin improved to 12.7%, up from 11.7% a year ago, while forecasts point to 9.3% annual earnings growth and 13% revenue growth, both notably outpacing the Japanese market averages. These numbers, combined with positive signals like strong dividends, consistent growth, and fair valuation, give investors plenty of reasons to view the current outlook favorably.
See our full analysis for Avant Group.
The next section takes a direct look at how these latest results compare with the narratives most investors are following. This helps to identify where the momentum holds strong and where expectations might need to shift.
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Profit Margin Rises to 12.7%
* Net profit margin improved to 12.7%, up from 11.7% last year, reinforcing the company’s ability to convert more revenue into profit even as the business scales.
* This margin expansion strongly supports the bullish case
Valuation Gap vs DCF Fair Value
* Shares change hands at ¥1,586, while DCF fair value is estimated at ¥1,841.85, indicating the market price still sits at an approximate 14% discount to intrinsic value calculations.
* Despite a slightly above-peer P/E ratio of 15.8x (vs 15.5x for direct competitors, and below the Japanese IT sector average of 17.3x), prevailing market analysis suggests
