Nippon Rietec Co.,Ltd.
Nippon Rietec Co.,Ltd. Fundamental Analysis
Nippon Rietec Co.,Ltd. (1938.T) shows moderate financial fundamentals with a PE ratio of 11.60, profit margin of 7.71%, and ROE of 8.86%. The company generates $73.2B in annual revenue with strong year-over-year growth of 17.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.8/100 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 1938.T's fundamental strength across five key dimensions:
Efficiency Score
Weak1938.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent1938.T trades at attractive valuation levels.
Growth Score
Excellent1938.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent1938.T maintains a strong and stable balance sheet.
Profitability Score
Weak1938.T struggles to sustain strong margins.
Key Financial Metrics
Is 1938.T Expensive or Cheap?
P/E Ratio
1938.T trades at 11.60 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1938.T's PEG of 0.91 indicates potential undervaluation.
Price to Book
The market values Nippon Rietec Co.,Ltd. at 1.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.76 times EBITDA. This is generally considered low.
How Well Does 1938.T Make Money?
Net Profit Margin
For every $100 in sales, Nippon Rietec Co.,Ltd. keeps $7.71 as profit after all expenses.
Operating Margin
Core operations generate 9.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.86 in profit for every $100 of shareholder equity.
ROA
Nippon Rietec Co.,Ltd. generates $5.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nippon Rietec Co.,Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Nippon Rietec Co.,Ltd. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
1938.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.000
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.007
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How 1938.T Stacks Against Its Sector Peers
| Metric | 1938.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.60 | 34.43 | Better (Cheaper) |
| ROE | 8.86% | 1135.00% | Weak |
| Net Margin | 7.71% | -134663.00% (disorted) | Weak |
| Debt/Equity | 0.21 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 2.01 | 5.77 | Strong Liquidity |
| ROA | 5.41% | -310462.00% (disorted) | Weak |
1938.T outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nippon Rietec Co.,Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.30%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
32.32%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
341.61%
Industry Style: Growth, Innovation, High Beta
High Growth