<div id="readability-page-1"><div><p>Toei Animation (TSE:4816) has put out its Q3 2026 scorecard, with revenue of ¥22,187 million and basic EPS of ¥24.17, giving investors another data point on how the year is shaping up. Over recent quarters the company has seen revenue move between ¥23,736 million in Q3 2025 and ¥25,466 million in Q2 2026, while basic EPS has ranged from ¥22.92 to ¥37.92, setting a clear context for today’s figures and the trailing twelve month EPS of ¥120.51. With a trailing net profit margin of 25.2% compared with 22.7% a year earlier, the latest results keep the focus firmly on how efficiently Toei Animation is converting its top line into profit.</p> <p>See our full analysis for Toei AnimationLtd.</p><p>With the numbers on the table, the next step is to see how this earnings profile lines up with the broader narratives around Toei Animation’s growth, profitability and risks that investors have been following.</p> <p>Curious how numbers become stories that shape markets? Explore Community Narratives</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/d08bde4f-6d99-4e1e-b72d-d73a2f75bfc9/chart/earnings-and-revenue-history?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/d08bde4f-6d99-4e1e-b72d-d73a2f75bfc9/chart/earnings-and-revenue-history"/><figcaption>TSE:4816 Earnings &amp; Revenue History as at Jan 2026</figcaption></figure> <h2>TTM earnings growth outpaces five year trend</h2> <ul> <li>Over the last twelve months, earnings growth of 17.4% sits slightly ahead of Toei Animation’s five year average of 16.5% per year, while trailing EPS reached ¥120.51 on revenue of ¥95,277 million.</li> <li>What stands out for the bullish view is how this earnings profile lines up with profit quality, as:     <ul> <li>Net income over the trailing twelve months reached ¥24,635 million on ¥95,277 million of revenue, which is consistent with a 25.2% net margin that compares with 22.7% a year earlier.</li> <li>Quarterly data also shows EPS staying above ¥22 in each of the last six reported quarters, ranging from ¥22.92 to ¥37.92, which heavily supports the bullish focus on earnings durability rather than one off spikes.</li> </ul> </li> </ul> <h2>Premium P/E and DCF gap to watch</h2> <ul> <li>The shares trade on a P/E of 21.5x, above peer and industry levels of 17.9x and 18.9x, and the current price of ¥2,565 sits above the DCF fair value of about ¥2,121.90.</li> <li>Critics highlight this richer multiple as a key bearish talking point, and the numbers give them some support, because:     <ul> <li>The valuation premium comes alongside earnings growth forecasts of roughly 5.0% per year, which are below the 9.1% forecast for the broader JP market, so the higher P/E is not backed by faster expected growth in these figures.</li> <li>The gap between the share price of ¥2,565 and the DCF fair value of ¥2,121.90 suggests investors are currently paying more than this particular model indicates, which challenges a bearish claim that the shares already price in all known risks.</li> </ul> </li> </ul><p> On these numbers, some investors will want to see whether that P/E premium can persist if growth stays closer to 5% than the market’s 9.1% forecast. <strong>🐻 Toei AnimationLtd Bear Case</strong></p><h2>Forecast growth vs market expectations</h2> <ul> <li>Analysts’ forecasts point to revenue growth of about 6.1% per year and earnings growth of around 5.0% per year, while the current ¥2,565 share price sits below an average analyst price target of about ¥3,787.14 that implies roughly 47.6% upside.</li> <li>What is interesting for the generally optimistic angle is how this forecast profile both supports and questions the bullish case:     <ul> <li>On one hand, the combination of 6.1% revenue growth and 5.0% earnings growth, together with a trailing 25.2% net margin, aligns with the idea of a business that continues to generate healthy profits on a sizeable base of ¥95,277 million of revenue.</li> <li>On the other hand, those earnings forecasts running below the broader JP market’s 9.1% figure mean the implied 47.6% upside to ¥3,787.14 assumes the market keeps rewarding Toei Animation with a premium multiple, which investors may want to compare against the current P/E of 21.5x and peer levels of 17.9x and 18.9x.</li> </ul> </li> </ul><p> If you want to see how different investors connect these growth forecasts to long term value, check out the full narrative and valuation workup. <strong>📊 Read the full Toei AnimationLtd Consensus Narrative.</strong></p><h2> Next Steps</h2> <p>Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Toei AnimationLtd'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.</p> <h2>See What Else Is Out There</h2> <p>Toei Animation’s richer 21.5x P/E, DCF gap to ¥2,121.90, and earnings growth forecasts below the broader JP market highlight valuation pressure in the current price.</p> <p>If that premium worries you and you want ideas priced with more headroom, check out these 869 undervalued stocks based on cash flows today and focus on companies where cash flow models point to better value.</p> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

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<p>Toei Animation (TSE:4816) reported Q3 2026 revenue of ¥22,187 million and basic EPS of ¥24.17, reflecting a trailing net profit margin of 25.2%, up from 22.7% a year prior. Despite a P/E ratio of 21.5x, above industry averages, earnings growth forecasts of 5.0% lag behind the broader JP market's 9.1%. Analysts project a 6.1% revenue growth, with a share price of ¥2,565 suggesting a 47.6% upside to the average target of ¥3,787.14. Investors are advised to consider long-term trends and valuation pressures before making decisions.</p>

Toei Animation (TSE:4816) Margin Expansion Reinforces Bullish Earnings Narrative In Q3 2026