Soliton Systems K.K.
Soliton Systems K.K. Fundamental Analysis
Soliton Systems K.K. (3040.T) shows moderate financial fundamentals with a PE ratio of 13.35, profit margin of 11.62%, and ROE of 18.49%. The company generates $19.8B in annual revenue with weak year-over-year growth of -2.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.1/100 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 3040.T's fundamental strength across five key dimensions:
Efficiency Score
Weak3040.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent3040.T trades at attractive valuation levels.
Growth Score
Weak3040.T faces weak or negative growth trends.
Financial Health Score
Excellent3040.T maintains a strong and stable balance sheet.
Profitability Score
Weak3040.T struggles to sustain strong margins.
Key Financial Metrics
Is 3040.T Expensive or Cheap?
P/E Ratio
3040.T trades at 13.35 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3040.T's PEG of -2.75 indicates potential undervaluation.
Price to Book
The market values Soliton Systems K.K. at 2.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.10 times EBITDA. This signals the market has high growth expectations.
How Well Does 3040.T Make Money?
Net Profit Margin
For every $100 in sales, Soliton Systems K.K. keeps $11.62 as profit after all expenses.
Operating Margin
Core operations generate 14.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.49 in profit for every $100 of shareholder equity.
ROA
Soliton Systems K.K. generates $8.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Soliton Systems K.K. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Soliton Systems K.K. 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
3040.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How 3040.T Stacks Against Its Sector Peers
| Metric | 3040.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.35 | 33.61 | Better (Cheaper) |
| ROE | 18.49% | 1020.00% | Weak |
| Net Margin | 11.62% | -56528.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 1.86 | 5.65 | Neutral |
| ROA | 8.76% | -291484.00% (disorted) | Weak |
3040.T outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Soliton Systems K.K.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.38%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
167.36%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-14.54%
Industry Style: Growth, Innovation, High Beta
Declining