Drecom Co.,Ltd. Fundamental Analysis (JPX: 3793.T)
Drecom Co.,Ltd. Fundamental Analysis (JPX: 3793.T)
Drecom Co.,Ltd. (JPX: 3793.T) shows strong financial fundamentals with a PE ratio of 6.30, profit margin of 13.40%, and ROE of 58.93%. The company generates $17.3B in annual revenue with strong year-over-year growth of 38.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.2/100 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 3793.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent3793.T demonstrates superior asset utilization.
Valuation Score
Excellent3793.T trades at attractive valuation levels.
Growth Score
Moderate3793.T shows steady but slowing expansion.
Financial Health Score
Excellent3793.T maintains a strong and stable balance sheet.
Profitability Score
Weak3793.T struggles to sustain strong margins.
Key Financial Metrics
Is 3793.T Expensive or Cheap?
P/E Ratio
3793.T trades at 6.30 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3793.T's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Drecom Co.,Ltd. at 2.79 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.62 times EBITDA. This is generally considered low.
How Well Does 3793.T Make Money?
Net Profit Margin
For every $100 in sales, Drecom Co.,Ltd. keeps $13.40 as profit after all expenses.
Operating Margin
Core operations generate 5.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $58.93 in profit for every $100 of shareholder equity.
ROA
Drecom Co.,Ltd. generates $21.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Drecom Co.,Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Drecom Co.,Ltd. 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
3793.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.002
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.59
vs 25 benchmark
ROA
Return on assets percentage
0.21
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How 3793.T Stacks Against Its Sector Peers
| Metric | 3793.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.30 | 35.30 | Better (Cheaper) |
| ROE | 58.93% | 752.00% | Weak |
| Net Margin | 13.40% | -2918.00% (disorted) | Strong |
| Debt/Equity | 0.51 | 0.60 | Neutral |
| Current Ratio | 1.66 | 6.15 | Neutral |
| ROA | 21.11% | 323.00% | Weak |
3793.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 Drecom Co.,Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.43%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-87.01%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-32.06%
Industry Style: Growth, Innovation, High Beta
Declining