Nippon Shokubai Co., Ltd.
Nippon Shokubai Co., Ltd. Fundamental Analysis
Nippon Shokubai Co., Ltd. (4114.T) shows weak financial fundamentals with a PE ratio of 18.77, profit margin of 4.43%, and ROE of 4.64%. The company generates $400.1B in annual revenue with moderate year-over-year growth of 4.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.0/100 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 4114.T's fundamental strength across five key dimensions:
Efficiency Score
Weak4114.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent4114.T trades at attractive valuation levels.
Growth Score
Moderate4114.T shows steady but slowing expansion.
Financial Health Score
Excellent4114.T maintains a strong and stable balance sheet.
Profitability Score
Weak4114.T struggles to sustain strong margins.
Key Financial Metrics
Is 4114.T Expensive or Cheap?
P/E Ratio
4114.T trades at 18.77 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 4114.T's PEG of 1.64 indicates fair valuation.
Price to Book
The market values Nippon Shokubai Co., Ltd. at 0.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.70 times EBITDA. This is generally considered low.
How Well Does 4114.T Make Money?
Net Profit Margin
For every $100 in sales, Nippon Shokubai Co., Ltd. keeps $4.43 as profit after all expenses.
Operating Margin
Core operations generate 4.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.64 in profit for every $100 of shareholder equity.
ROA
Nippon Shokubai Co., Ltd. generates $3.14 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nippon Shokubai Co., Ltd. produces operating cash flow of $47.86B, showing steady but balanced cash generation.
Free Cash Flow
Nippon Shokubai Co., Ltd. generates weak or negative free cash flow of $7.75B, restricting financial flexibility.
FCF Per Share
Each share generates $52.44 in free cash annually.
FCF Yield
4114.T converts 2.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 4114.T Stacks Against Its Sector Peers
| Metric | 4114.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.77 | 24.08 | Better (Cheaper) |
| ROE | 4.64% | 921.00% | Weak |
| Net Margin | 4.43% | -113338.00% (disorted) | Weak |
| Debt/Equity | 0.14 | 0.53 | Strong (Low Leverage) |
| Current Ratio | 2.46 | 5.09 | Strong Liquidity |
| ROA | 3.14% | -9816.00% (disorted) | Weak |
4114.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 Nippon Shokubai Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-64.63%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
-59.06%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-67.29%
Industry Style: Cyclical, Commodity, Value
Declining