Nihon Falcom Corporation
Nihon Falcom Corporation Fundamental Analysis
Nihon Falcom Corporation (3723.T) shows moderate financial fundamentals with a PE ratio of 15.29, profit margin of 41.20%, and ROE of 12.60%. The company generates $3.1B in annual revenue with weak year-over-year growth of 2.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 3723.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent3723.T demonstrates superior asset utilization.
Valuation Score
Excellent3723.T trades at attractive valuation levels.
Growth Score
Weak3723.T faces weak or negative growth trends.
Financial Health Score
Excellent3723.T maintains a strong and stable balance sheet.
Profitability Score
Moderate3723.T maintains healthy but balanced margins.
Key Financial Metrics
Is 3723.T Expensive or Cheap?
P/E Ratio
3723.T trades at 15.29 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 3723.T's PEG of 0.34 indicates potential undervaluation.
Price to Book
The market values Nihon Falcom Corporation at 1.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.15 times EBITDA. This signals the market has high growth expectations.
How Well Does 3723.T Make Money?
Net Profit Margin
For every $100 in sales, Nihon Falcom Corporation keeps $41.20 as profit after all expenses.
Operating Margin
Core operations generate 60.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.60 in profit for every $100 of shareholder equity.
ROA
Nihon Falcom Corporation generates $11.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nihon Falcom Corporation generates strong operating cash flow of $984.55M, reflecting robust business health.
Free Cash Flow
Nihon Falcom Corporation generates strong free cash flow of $983.83M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $99.71 in free cash annually.
FCF Yield
3723.T converts 5.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
27.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How 3723.T Stacks Against Its Sector Peers
| Metric | 3723.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.29 | 33.94 | Better (Cheaper) |
| ROE | 12.60% | 1002.00% | Weak |
| Net Margin | 41.20% | -48794.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 27.05 | 5.74 | Strong Liquidity |
| ROA | 11.95% | -288341.00% (disorted) | Strong |
3723.T outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nihon Falcom Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2.87%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
-15.30%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-25.02%
Industry Style: Growth, Innovation, High Beta
Declining