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Internetworking and Broadband Consulting Co.,Ltd.

3920.TJPX
Technology
Information Technology Services
¥966.00
¥-3.00(-0.31%)
Japanese Market opens in 22h 43m

Internetworking and Broadband Consulting Co.,Ltd. Fundamental Analysis

Internetworking and Broadband Consulting Co.,Ltd. (3920.T) shows strong financial fundamentals with a PE ratio of 14.32, profit margin of 15.90%, and ROE of 17.20%. The company generates $2.4B in annual revenue with strong year-over-year growth of 10.06%.

Key Strengths

Operating Margin21.70%
Cash Position43.61%
PEG Ratio-1.64
Current Ratio2.35

Areas of Concern

No major concerns flagged.
We analyze 3920.T's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of 80.4/100 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

B+
80.4/100

We analyze 3920.T's fundamental strength across five key dimensions:

Efficiency Score

Excellent

3920.T demonstrates superior asset utilization.

ROA > 10%
11.04%

Valuation Score

Excellent

3920.T trades at attractive valuation levels.

PE < 25
14.32
PEG Ratio < 2
-1.64

Growth Score

Excellent

3920.T delivers strong and consistent growth momentum.

Revenue Growth > 5%
10.06%
EPS Growth > 10%
62.79%

Financial Health Score

Excellent

3920.T maintains a strong and stable balance sheet.

Debt/Equity < 1
0.38
Current Ratio > 1
2.35

Profitability Score

Excellent

3920.T achieves industry-leading margins.

ROE > 15%
17.20%
Net Margin ≥ 15%
15.90%
Positive Free Cash Flow
Yes

Key Financial Metrics

Is 3920.T Expensive or Cheap?

P/E Ratio

3920.T trades at 14.32 times earnings. This suggests potential undervaluation.

14.32

PEG Ratio

When adjusting for growth, 3920.T's PEG of -1.64 indicates potential undervaluation.

-1.64

Price to Book

The market values Internetworking and Broadband Consulting Co.,Ltd. at 2.42 times its book value. This may indicate undervaluation.

2.42

EV/EBITDA

Enterprise value stands at 12.08 times EBITDA. This signals the market has high growth expectations.

12.08

How Well Does 3920.T Make Money?

Net Profit Margin

For every $100 in sales, Internetworking and Broadband Consulting Co.,Ltd. keeps $15.90 as profit after all expenses.

15.90%

Operating Margin

Core operations generate 21.70 in profit for every $100 in revenue, before interest and taxes.

21.70%

ROE

Management delivers $17.20 in profit for every $100 of shareholder equity.

17.20%

ROA

Internetworking and Broadband Consulting Co.,Ltd. generates $11.04 in profit for every $100 in assets, demonstrating efficient asset deployment.

11.04%

Following the Money - Real Cash Generation

Operating Cash Flow

Internetworking and Broadband Consulting Co.,Ltd. generates strong operating cash flow of $701.47M, reflecting robust business health.

$701.47M

Free Cash Flow

Internetworking and Broadband Consulting Co.,Ltd. generates strong free cash flow of $696.33M, providing ample flexibility for dividends, buybacks, or growth.

$696.33M

FCF Per Share

Each share generates $125.30 in free cash annually.

$125.30

FCF Yield

3920.T converts 12.97% of its market value into free cash.

12.97%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

14.32

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

-1.64

vs 25 benchmark

P/B Ratio

Price to book value ratio

2.42

vs 25 benchmark

P/S Ratio

Price to sales ratio

2.28

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

0.38

vs 25 benchmark

Current Ratio

Current assets to current liabilities

2.35

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.17

vs 25 benchmark

ROA

Return on assets percentage

0.11

vs 25 benchmark

ROCE

Return on capital employed

0.23

vs 25 benchmark

How 3920.T Stacks Against Its Sector Peers

Metric3920.T ValueSector AveragePerformance
P/E Ratio14.3234.43 Better (Cheaper)
ROE17.20%1135.00% Weak
Net Margin15.90%-134663.00% (disorted) Strong
Debt/Equity0.387.92 Strong (Low Leverage)
Current Ratio2.355.77 Strong Liquidity
ROA11.04%-310462.00% (disorted) Strong

3920.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 Internetworking and Broadband Consulting Co.,Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.

Revenue CAGR

22.94%

Industry Style: Growth, Innovation, High Beta

High Growth

EPS CAGR

992.54%

Industry Style: Growth, Innovation, High Beta

High Growth

FCF CAGR

725.46%

Industry Style: Growth, Innovation, High Beta

High Growth

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