Ceres Inc.
Ceres Inc. Fundamental Analysis
Ceres Inc. (3696.T) shows strong financial fundamentals with a PE ratio of 5.77, profit margin of 11.26%, and ROE of 27.42%. The company generates $31.5B in annual revenue with moderate year-over-year growth of 7.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.6/100 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 3696.T's fundamental strength across five key dimensions:
Efficiency Score
Weak3696.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent3696.T trades at attractive valuation levels.
Growth Score
Excellent3696.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent3696.T maintains a strong and stable balance sheet.
Profitability Score
Moderate3696.T maintains healthy but balanced margins.
Key Financial Metrics
Is 3696.T Expensive or Cheap?
P/E Ratio
3696.T trades at 5.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3696.T's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Ceres Inc. at 1.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.22 times EBITDA. This is generally considered low.
How Well Does 3696.T Make Money?
Net Profit Margin
For every $100 in sales, Ceres Inc. keeps $11.26 as profit after all expenses.
Operating Margin
Core operations generate 10.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.42 in profit for every $100 of shareholder equity.
ROA
Ceres Inc. generates $8.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ceres Inc. generates limited operating cash flow of $1.32B, signaling weaker underlying cash strength.
Free Cash Flow
Ceres Inc. produces free cash flow of $1.26B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $108.85 in free cash annually.
FCF Yield
3696.T converts 6.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How 3696.T Stacks Against Its Sector Peers
| Metric | 3696.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.77 | 26.09 | Better (Cheaper) |
| ROE | 27.42% | 1258.00% | Weak |
| Net Margin | 11.26% | -33493.00% (disorted) | Strong |
| Debt/Equity | 0.91 | 0.73 | Weak (High Leverage) |
| Current Ratio | 1.24 | 10.37 | Neutral |
| ROA | 8.92% | -1482877.00% (disorted) | Weak |
3696.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 Ceres Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.78%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
221.77%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-31.31%
Industry Style: Cyclical, Value, Infrastructure
Declining