EDION Corporation Fundamental Analysis (JPX: 2730.T)
EDION Corporation (JPX: 2730.T) shows moderate financial fundamentals with a PE ratio of 13.59, profit margin of 2.44%, and ROE of 8.49%. The company generates $811.8B in annual revenue with moderate year-over-year growth of 3.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.6/100 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 2730.T's fundamental strength across five key dimensions:
Efficiency Score
Weak2730.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent2730.T trades at attractive valuation levels.
Growth Score
Weak2730.T faces weak or negative growth trends.
Financial Health Score
Excellent2730.T maintains a strong and stable balance sheet.
Profitability Score
Weak2730.T struggles to sustain strong margins.
Key Financial Metrics
Is 2730.T Expensive or Cheap?
P/E Ratio
2730.T trades at 13.59 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2730.T's PEG of 0.44 indicates potential undervaluation.
Price to Book
The market values EDION Corporation at 1.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.35 times EBITDA. This is generally considered low.
How Well Does 2730.T Make Money?
Net Profit Margin
For every $100 in sales, EDION Corporation keeps $2.44 as profit after all expenses.
Operating Margin
Core operations generate 3.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.49 in profit for every $100 of shareholder equity.
ROA
EDION Corporation generates $4.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
EDION Corporation generates limited operating cash flow of $46.78B, signaling weaker underlying cash strength.
Free Cash Flow
EDION Corporation produces free cash flow of $35.88B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $339.36 in free cash annually.
FCF Yield
2730.T converts 13.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 2730.T Stacks Against Its Sector Peers
| Metric | 2730.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.59 | 25.81 | Better (Cheaper) |
| ROE | 8.49% | 973.00% | Weak |
| Net Margin | 2.44% | -4892.00% (disorted) | Weak |
| Debt/Equity | 0.25 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 1.49 | 2.32 | Neutral |
| ROA | 4.48% | 299.00% | Weak |
2730.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 EDION Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
4.80%
Industry Style: Cyclical, Growth, Discretionary
GrowingEPS CAGR
-5.77%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-27.22%
Industry Style: Cyclical, Growth, Discretionary
Declining