GMO Financial Gate, Inc. Fundamental Analysis (JPX: 4051.T)
GMO Financial Gate, Inc. Fundamental Analysis (JPX: 4051.T)
GMO Financial Gate, Inc. (JPX: 4051.T) shows weak financial fundamentals with a PE ratio of 30.92, profit margin of 8.53%, and ROE of 27.66%. The company generates $20.9B in annual revenue with weak year-over-year growth of -4.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.6/100 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 4051.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent4051.T demonstrates superior asset utilization.
Valuation Score
Moderate4051.T shows balanced valuation metrics.
Growth Score
Moderate4051.T shows steady but slowing expansion.
Financial Health Score
Excellent4051.T maintains a strong and stable balance sheet.
Profitability Score
Moderate4051.T maintains healthy but balanced margins.
Key Financial Metrics
Is 4051.T Expensive or Cheap?
P/E Ratio
4051.T trades at 30.92 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 4051.T's PEG of 1.47 indicates fair valuation.
Price to Book
The market values GMO Financial Gate, Inc. at 7.94 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.22 times EBITDA. This signals the market has high growth expectations.
How Well Does 4051.T Make Money?
Net Profit Margin
For every $100 in sales, GMO Financial Gate, Inc. keeps $8.53 as profit after all expenses.
Operating Margin
Core operations generate 12.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.66 in profit for every $100 of shareholder equity.
ROA
GMO Financial Gate, Inc. generates $10.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GMO Financial Gate, Inc. generates limited operating cash flow of $720.68M, signaling weaker underlying cash strength.
Free Cash Flow
GMO Financial Gate, Inc. produces free cash flow of $713.25M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $86.39 in free cash annually.
FCF Yield
4051.T converts 1.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How 4051.T Stacks Against Its Sector Peers
| Metric | 4051.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.92 | 29.88 | Neutral |
| ROE | 27.66% | 1106.00% | Weak |
| Net Margin | 8.53% | -24767.00% (disorted) | Weak |
| Debt/Equity | 0.63 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 1.74 | 21.64 | Neutral |
| ROA | 10.38% | -1320894.00% (disorted) | Strong |
4051.T outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GMO Financial Gate, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
329.64%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
394.70%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
302.10%
Industry Style: Cyclical, Value, Infrastructure
High Growth