<div id="readability-page-1"><div><p>Anritsu (TSE:6754) has wrapped up FY 2026 with fourth quarter revenue of ¥36.4b and basic EPS of ¥41.84, set against trailing 12 month revenue of ¥117.5b and EPS of ¥91.19 that came alongside a 26.1% earnings increase over the past year. Over recent periods, the company has seen quarterly revenue move from ¥29.4b in Q3 2026 to ¥36.4b in Q4 2026, while basic EPS shifted from ¥19.63 to ¥41.84. This gives investors a clear read on how the top and bottom line are tracking into the latest results. With the trailing net margin at 9.9% versus 8.2% a year earlier, this set of numbers points to a business where profitability is increasingly central to the story.</p> <p>See our full analysis for Anritsu.</p><p>With the headline figures in place, the next step is to see how these results line up with the big narratives around Anritsu's growth prospects, profitability and risk profile, and where those stories might need a rethink.</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/bbde6f2a-d702-4d17-9512-d66aaa5346bd/chart/revenue-and-expenses-breakdown/query-ZGF0ZT0yMDI2LTA0LTI4?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/bbde6f2a-d702-4d17-9512-d66aaa5346bd/chart/revenue-and-expenses-breakdown/query-ZGF0ZT0yMDI2LTA0LTI4"/><figcaption>TSE:6754 Revenue &amp; Expenses Breakdown as at Apr 2026</figcaption></figure> <h2>Trailing EPS Tells A Mixed Story</h2> <ul> <li>On a trailing 12 month basis, basic EPS is ¥91.19, compared with an annualized 10.9% decline in earnings over the past five years and a 26.1% earnings increase over the last year. This means the short term and long term trends are pulling in different directions.</li> <li>What stands out for a more bullish view is that the recent 26.1% earnings increase and Q4 EPS of ¥41.84 sit against that longer stretch of declining earnings. This means:     <ul> <li>Bulls can point to ¥11,677 million of trailing net income and ¥117,462 million of trailing revenue as support for the idea that the current level of profitability is backed by sizeable activity, not just a small base effect.</li> <li>Skeptics can counter that the five year 10.9% annualized earnings decline shows that the latest 12 months have not yet formed a clear multi year trend, so they may watch a few more reporting periods before treating the rebound as durable.</li> </ul> </li> </ul> <p>Stronger recent EPS against weaker multi year history gives plenty for both optimists and skeptics to consider. That is exactly where a balanced community view becomes useful, which you can tap into through the <strong>📊 Read the what the Community is saying about Anritsu.</strong></p> <h2>Margins At 9.9% Shift The Quality Debate</h2> <ul> <li>Net profit margin on a trailing 12 month basis is 9.9%, compared with 8.2% a year earlier, and earnings are described as high quality. As a result, more of the ¥117,462 million in revenue is dropping through to profit than in the prior year.</li> <li>For a bullish narrative that focuses on business quality, this margin profile offers both support and a reality check:     <ul> <li>The move from 8.2% to 9.9% net margin, alongside trailing EPS of ¥91.19, backs the idea that Anritsu is not relying only on revenue growth, but also on efficiency and mix that support profitability.</li> <li>At the same time, the fact that earnings had been declining at an annualized 10.9% over five years means bulls still have to contend with a history where profit growth was not consistently aligned with the current margin level.</li> </ul> </li> </ul> <h2>Premium P/E And DCF Gap Put Pressure On Execution</h2> <ul> <li>The shares trade on a trailing P/E of 43.5x at a price of ¥3,972, compared with a DCF fair value of ¥2,407.26 and P/E levels of 16.4x for the broader JP Electronic industry and 28.2x for peers. As a result, the stock sits at a clear valuation premium.</li> <li>For a more bearish narrative that focuses on valuation risk, the current setup is quite pointed:     <ul> <li>Critics highlight that the roughly 43.5x P/E and the gap between the share price of ¥3,972 and the DCF fair value of ¥2,407.26 leave limited room for disappointment if the forecast revenue growth of about 8.1% and earnings growth of about 15.9% per year are not met.</li> <li>Recent share price volatility relative to the JP market means any change in those growth expectations, or in margins from the current 9.9% level, could have an outsized impact on how that premium is viewed.</li> </ul> </li> </ul> <p>For readers weighing whether this premium feels justified by the current story or not, it can help to compare it directly with a more cautious breakdown of the risks and valuation trade offs in the Curious how numbers become stories that shape markets? Explore Community Narratives</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 Anritsu'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> <p>With sentiment split between the recent earnings rebound and the valuation premium, it makes sense to look at the full picture yourself. Review the key data points, stress test your own expectations, and see how they stack up against the 2 key rewards and 1 important warning sign.</p> <h2>See What Else Is Out There</h2> <p>Anritsu's rich 43.5x P/E against its DCF fair value of ¥2,407.26 and five year annualized earnings decline highlight a stretched and uncertain setup for value focused investors.</p> <p>If that premium makes you uneasy, compare Anritsu with companies trading closer to their fundamentals by scanning the 15 high quality undervalued stocks so you can quickly spot ideas that better align with your return expectations.</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><h3><strong>New: </strong>Manage All Your Stock Portfolios in One Place</h3><p>We've created the <strong>ultimate portfolio companion</strong> for stock investors, <strong>and it's free.</strong></p><p>• Connect an unlimited number of Portfolios and see your total in one currency<br/>• Be alerted to new Warning Signs or Risks via email or mobile<br/>• Track the Fair Value of your stocks<br/></p><p>Try a Demo Portfolio for Free</p></div></div></div>

6754

<p>Anritsu (TSE:6754) reported Q4 FY 2026 revenue of ¥36.4b and basic EPS of ¥41.84, with a trailing net margin increase to 9.9% from 8.2% a year prior. Despite a 26.1% earnings increase over the last year, the company faces a 10.9% annualized decline in earnings over the past five years. The stock trades at a high P/E of 43.5x, significantly above its DCF fair value of ¥2,407.26, raising concerns about valuation risks and future growth expectations. Investors are advised to consider long-term trends alongside current performance.</p>

Anritsu (TSE:6754) Margin Improvement Challenges Concerns Over Multi Year Earnings Decline