Change Inc. Fundamental Analysis (JPX: 3962.T)
Change Inc. (JPX: 3962.T) shows strong financial fundamentals with a PE ratio of 10.70, profit margin of 12.21%, and ROE of 14.49%. The company generates $53.8B in annual revenue with strong year-over-year growth of 13.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.4/100 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
We analyze 3962.T's fundamental strength across five key dimensions:
Efficiency Score
Weak3962.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate3962.T shows balanced valuation metrics.
Growth Score
Moderate3962.T shows steady but slowing expansion.
Financial Health Score
Excellent3962.T maintains a strong and stable balance sheet.
Profitability Score
Weak3962.T struggles to sustain strong margins.
Key Financial Metrics
Is 3962.T Expensive or Cheap?
P/E Ratio
3962.T trades at 10.70 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3962.T's PEG of 336.56 indicates potential overvaluation.
Price to Book
The market values Change Inc. at 1.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.90 times EBITDA. This is generally considered low.
How Well Does 3962.T Make Money?
Net Profit Margin
For every $100 in sales, Change Inc. keeps $12.21 as profit after all expenses.
Operating Margin
Core operations generate 20.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.49 in profit for every $100 of shareholder equity.
ROA
Change Inc. generates $6.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Change Inc. produces operating cash flow of $8.46B, showing steady but balanced cash generation.
Free Cash Flow
Change Inc. generates strong free cash flow of $8.07B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $116.06 in free cash annually.
FCF Yield
3962.T converts 11.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
336.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.004
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How 3962.T Stacks Against Its Sector Peers
| Metric | 3962.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.70 | 35.21 | Better (Cheaper) |
| ROE | 14.49% | 747.00% | Weak |
| Net Margin | 12.21% | -3061.00% (disorted) | Strong |
| Debt/Equity | 0.61 | 0.66 | Neutral |
| Current Ratio | 2.00 | 6.21 | Strong Liquidity |
| ROA | 6.62% | 174.00% | Weak |
3962.T outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Change Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
170.47%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
16.46%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
113.46%
Industry Style: Growth, Innovation, High Beta
High Growth