Kandenko Co.,Ltd. Fundamental Analysis (JPX: 1942.T)
Kandenko Co.,Ltd. (JPX: 1942.T) shows moderate financial fundamentals with a PE ratio of 17.08, profit margin of 8.72%, and ROE of 16.34%. The company generates $734.5B in annual revenue with strong year-over-year growth of 10.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 1942.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent1942.T demonstrates superior asset utilization.
Valuation Score
Excellent1942.T trades at attractive valuation levels.
Growth Score
Excellent1942.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent1942.T maintains a strong and stable balance sheet.
Profitability Score
Moderate1942.T maintains healthy but balanced margins.
Key Financial Metrics
Is 1942.T Expensive or Cheap?
P/E Ratio
1942.T trades at 17.08 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 1942.T's PEG of 0.48 indicates potential undervaluation.
Price to Book
The market values Kandenko Co.,Ltd. at 2.79 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.96 times EBITDA. This signals the market has high growth expectations.
How Well Does 1942.T Make Money?
Net Profit Margin
For every $100 in sales, Kandenko Co.,Ltd. keeps $8.72 as profit after all expenses.
Operating Margin
Core operations generate 11.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.34 in profit for every $100 of shareholder equity.
ROA
Kandenko Co.,Ltd. generates $10.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kandenko Co.,Ltd. produces operating cash flow of $89.45B, showing steady but balanced cash generation.
Free Cash Flow
Kandenko Co.,Ltd. generates strong free cash flow of $73.67B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $370.18 in free cash annually.
FCF Yield
1942.T converts 6.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How 1942.T Stacks Against Its Sector Peers
| Metric | 1942.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.08 | 29.34 | Better (Cheaper) |
| ROE | 16.34% | 1104.00% | Weak |
| Net Margin | 8.72% | -25189.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.95 | Strong (Low Leverage) |
| Current Ratio | 2.06 | 21.76 | Strong Liquidity |
| ROA | 10.72% | -1328228.00% (disorted) | Strong |
1942.T outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kandenko Co.,Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.79%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
216.07%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
596.68%
Industry Style: Cyclical, Value, Infrastructure
High Growth