NIPPON REIT Investment Corporation Fundamental Analysis (JPX: 3296.T)
NIPPON REIT Investment Corporation Fundamental Analysis (JPX: 3296.T)
NIPPON REIT Investment Corporation (JPX: 3296.T) shows strong financial fundamentals with a PE ratio of 11.46, profit margin of 56.15%, and ROE of 9.61%. The company generates $23.5B in annual revenue with strong year-over-year growth of 12.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.5/100 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 3296.T's fundamental strength across five key dimensions:
Efficiency Score
Weak3296.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent3296.T trades at attractive valuation levels.
Growth Score
Excellent3296.T delivers strong and consistent growth momentum.
Financial Health Score
Weak3296.T carries high financial risk with limited liquidity.
Profitability Score
Moderate3296.T maintains healthy but balanced margins.
Key Financial Metrics
Is 3296.T Expensive or Cheap?
P/E Ratio
3296.T trades at 11.46 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3296.T's PEG of 0.68 indicates potential undervaluation.
Price to Book
The market values NIPPON REIT Investment Corporation at 1.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.42 times EBITDA. This is generally considered low.
How Well Does 3296.T Make Money?
Net Profit Margin
For every $100 in sales, NIPPON REIT Investment Corporation keeps $56.15 as profit after all expenses.
Operating Margin
Core operations generate 63.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.61 in profit for every $100 of shareholder equity.
ROA
NIPPON REIT Investment Corporation generates $4.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NIPPON REIT Investment Corporation generates strong operating cash flow of $50.24B, reflecting robust business health.
Free Cash Flow
NIPPON REIT Investment Corporation generates strong free cash flow of $7.92B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4328.59 in free cash annually.
FCF Yield
3296.T converts 5.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.99
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
0.06
vs 25 benchmark
How 3296.T Stacks Against Its Sector Peers
| Metric | 3296.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.46 | 26.30 | Better (Cheaper) |
| ROE | 9.61% | 808.00% | Weak |
| Net Margin | 56.15% | 2704.00% | Weak |
| Debt/Equity | 1.01 | -37.38 (disorted) | Distorted |
| Current Ratio | 0.99 | 39.56 | Weak Liquidity |
| ROA | 4.53% | 277.00% | Weak |
3296.T outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NIPPON REIT Investment Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.56%
Industry Style: Income, Inflation Hedge, REIT
GrowingEPS CAGR
0.71%
Industry Style: Income, Inflation Hedge, REIT
GrowingFCF CAGR
17.01%
Industry Style: Income, Inflation Hedge, REIT
High Growth