Hikari Food Service Co Ltd Fundamental Analysis
Hikari Food Service Co Ltd (138A.T) shows weak financial fundamentals with a PE ratio of 22.29, profit margin of 4.39%, and ROE of 9.81%. The company generates $2.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 138A.T's fundamental strength across five key dimensions:
Efficiency Score
Weak138A.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent138A.T trades at attractive valuation levels.
Growth Score
Moderate138A.T shows steady but slowing expansion.
Financial Health Score
Excellent138A.T maintains a strong and stable balance sheet.
Profitability Score
Weak138A.T struggles to sustain strong margins.
Key Financial Metrics
Is 138A.T Expensive or Cheap?
P/E Ratio
138A.T trades at 22.29 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 138A.T's PEG of -4.09 indicates potential undervaluation.
Price to Book
The market values Hikari Food Service Co Ltd at 2.15 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.07 times EBITDA. This signals the market has high growth expectations.
How Well Does 138A.T Make Money?
Net Profit Margin
For every $100 in sales, Hikari Food Service Co Ltd keeps $4.39 as profit after all expenses.
Operating Margin
Core operations generate 8.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.81 in profit for every $100 of shareholder equity.
ROA
Hikari Food Service Co Ltd generates $4.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hikari Food Service Co Ltd generates limited operating cash flow of $166.52M, signaling weaker underlying cash strength.
Free Cash Flow
Hikari Food Service Co Ltd generates weak or negative free cash flow of $49.83M, restricting financial flexibility.
FCF Per Share
Each share generates $50.23 in free cash annually.
FCF Yield
138A.T converts 1.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How 138A.T Stacks Against Its Sector Peers
| Metric | 138A.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.29 | 27.80 | Better (Cheaper) |
| ROE | 9.81% | 1298.00% | Weak |
| Net Margin | 4.39% | -3346.00% (disorted) | Weak |
| Debt/Equity | 0.58 | 0.43 | Weak (High Leverage) |
| Current Ratio | 2.70 | 2.47 | Strong Liquidity |
| ROA | 4.98% | 279.00% | Weak |
138A.T outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hikari Food Service Co Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary