VRAIN Solution Inc. Fundamental Analysis (JPX: 135A.T)
VRAIN Solution Inc. (JPX: 135A.T) shows strong financial fundamentals with a PE ratio of 47.81, profit margin of 20.93%, and ROE of 43.89%. The company generates $3.7B in annual revenue with strong year-over-year growth of 52.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 15.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 135A.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent135A.T demonstrates superior asset utilization.
Valuation Score
Moderate135A.T shows balanced valuation metrics.
Growth Score
Excellent135A.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent135A.T maintains a strong and stable balance sheet.
Profitability Score
Moderate135A.T maintains healthy but balanced margins.
Key Financial Metrics
Is 135A.T Expensive or Cheap?
P/E Ratio
135A.T trades at 47.81 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 135A.T's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values VRAIN Solution Inc. at 18.22 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 32.55 times EBITDA. This signals the market has high growth expectations.
How Well Does 135A.T Make Money?
Net Profit Margin
For every $100 in sales, VRAIN Solution Inc. keeps $20.93 as profit after all expenses.
Operating Margin
Core operations generate 29.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $43.89 in profit for every $100 of shareholder equity.
ROA
VRAIN Solution Inc. generates $31.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
VRAIN Solution Inc. generates limited operating cash flow of $-374.00M, signaling weaker underlying cash strength.
Free Cash Flow
VRAIN Solution Inc. generates weak or negative free cash flow of $-475.00M, restricting financial flexibility.
FCF Per Share
Each share generates $-46.31 in free cash annually.
FCF Yield
135A.T converts -1.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
47.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
18.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.44
vs 25 benchmark
ROA
Return on assets percentage
0.31
vs 25 benchmark
ROCE
Return on capital employed
0.54
vs 25 benchmark
How 135A.T Stacks Against Its Sector Peers
| Metric | 135A.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 47.81 | 35.36 | Worse (Expensive) |
| ROE | 43.89% | 745.00% | Weak |
| Net Margin | 20.93% | -137640.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 4.61 | 3.37 | Strong Liquidity |
| ROA | 31.18% | 276.00% | Weak |
135A.T outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews VRAIN Solution Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
843.61%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
5676.06%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-2890.68%
Industry Style: Growth, Innovation, High Beta
Declining