Nippon Hotel & Residential Investment Corporation
Nippon Hotel & Residential Investment Corporation Fundamental Analysis
Nippon Hotel & Residential Investment Corporation (3472.T) shows moderate financial fundamentals with a PE ratio of 15.86, profit margin of 26.02%, and ROE of 5.34%. The company generates $5.3B in annual revenue with weak year-over-year growth of -33.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -55668.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 3472.T's fundamental strength across five key dimensions:
Efficiency Score
Weak3472.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent3472.T trades at attractive valuation levels.
Growth Score
Moderate3472.T shows steady but slowing expansion.
Financial Health Score
Moderate3472.T shows balanced financial health with some risks.
Profitability Score
Weak3472.T struggles to sustain strong margins.
Key Financial Metrics
Is 3472.T Expensive or Cheap?
P/E Ratio
3472.T trades at 15.86 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 3472.T's PEG of 0.62 indicates potential undervaluation.
Price to Book
The market values Nippon Hotel & Residential Investment Corporation at 0.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.89 times EBITDA. This is generally considered low.
How Well Does 3472.T Make Money?
Net Profit Margin
For every $100 in sales, Nippon Hotel & Residential Investment Corporation keeps $26.02 as profit after all expenses.
Operating Margin
Core operations generate 34.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.34 in profit for every $100 of shareholder equity.
ROA
Nippon Hotel & Residential Investment Corporation generates $2.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nippon Hotel & Residential Investment Corporation generates strong operating cash flow of $4.39B, reflecting robust business health.
Free Cash Flow
Nippon Hotel & Residential Investment Corporation generates weak or negative free cash flow of $-11.53B, restricting financial flexibility.
FCF Per Share
Each share generates $-37112.45 in free cash annually.
FCF Yield
3472.T converts -52.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 3472.T Stacks Against Its Sector Peers
| Metric | 3472.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.86 | 22.46 | Better (Cheaper) |
| ROE | 5.34% | 681.00% | Weak |
| Net Margin | 26.02% | -37308.00% (disorted) | Strong |
| Debt/Equity | 0.81 | -20.87 (disorted) | Distorted |
| Current Ratio | 0.20 | 1953.63 | Weak Liquidity |
| ROA | 2.82% | -1226.00% (disorted) | Weak |
3472.T outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nippon Hotel & Residential Investment Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-9.94%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-29.17%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-6.78%
Industry Style: Income, Inflation Hedge, REIT
Declining