Tosoh Corporation
Tosoh Corporation Fundamental Analysis
Tosoh Corporation (4042.T) shows weak financial fundamentals with a PE ratio of 21.61, profit margin of 3.33%, and ROE of 4.19%. The company generates $1002.4B in annual revenue with moderate year-over-year growth of 5.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.8/100 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 4042.T's fundamental strength across five key dimensions:
Efficiency Score
Weak4042.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent4042.T trades at attractive valuation levels.
Growth Score
Moderate4042.T shows steady but slowing expansion.
Financial Health Score
Excellent4042.T maintains a strong and stable balance sheet.
Profitability Score
Weak4042.T struggles to sustain strong margins.
Key Financial Metrics
Is 4042.T Expensive or Cheap?
P/E Ratio
4042.T trades at 21.61 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 4042.T's PEG of -1.42 indicates potential undervaluation.
Price to Book
The market values Tosoh Corporation at 0.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.54 times EBITDA. This is generally considered low.
How Well Does 4042.T Make Money?
Net Profit Margin
For every $100 in sales, Tosoh Corporation keeps $3.33 as profit after all expenses.
Operating Margin
Core operations generate 9.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.19 in profit for every $100 of shareholder equity.
ROA
Tosoh Corporation generates $2.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tosoh Corporation produces operating cash flow of $129.21B, showing steady but balanced cash generation.
Free Cash Flow
Tosoh Corporation produces free cash flow of $58.88B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $190.76 in free cash annually.
FCF Yield
4042.T converts 8.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How 4042.T Stacks Against Its Sector Peers
| Metric | 4042.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.61 | 24.08 | Better (Cheaper) |
| ROE | 4.19% | 921.00% | Weak |
| Net Margin | 3.33% | -113338.00% (disorted) | Weak |
| Debt/Equity | 0.26 | 0.53 | Strong (Low Leverage) |
| Current Ratio | 2.23 | 5.09 | Strong Liquidity |
| ROA | 2.54% | -9816.00% (disorted) | Weak |
4042.T outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tosoh Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.97%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
6.49%
Industry Style: Cyclical, Commodity, Value
GrowingFCF CAGR
8.44%
Industry Style: Cyclical, Commodity, Value
Growing