Dentsu Group Inc. Fundamental Analysis (JPX: 4324.T)
Dentsu Group Inc. Fundamental Analysis (JPX: 4324.T)
Dentsu Group Inc. (JPX: 4324.T) shows weak financial fundamentals with a PE ratio of -4.48, profit margin of -14.14%, and ROE of -45.87%. The company generates $1468.7B in annual revenue with weak year-over-year growth of 1.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -24.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 4324.T's fundamental strength across five key dimensions:
Efficiency Score
Weak4324.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent4324.T trades at attractive valuation levels.
Growth Score
Weak4324.T faces weak or negative growth trends.
Financial Health Score
Moderate4324.T shows balanced financial health with some risks.
Profitability Score
Weak4324.T struggles to sustain strong margins.
Key Financial Metrics
Is 4324.T Expensive or Cheap?
P/E Ratio
4324.T trades at -4.48 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 4324.T's PEG of -0.54 indicates potential undervaluation.
Price to Book
The market values Dentsu Group Inc. at 2.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -10.82 times EBITDA. This is generally considered low.
How Well Does 4324.T Make Money?
Net Profit Margin
For every $100 in sales, Dentsu Group Inc. keeps $-14.14 as profit after all expenses.
Operating Margin
Core operations generate 10.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-45.87 in profit for every $100 of shareholder equity.
ROA
Dentsu Group Inc. generates $-6.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dentsu Group Inc. produces operating cash flow of $176.11B, showing steady but balanced cash generation.
Free Cash Flow
Dentsu Group Inc. generates strong free cash flow of $149.31B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $575.17 in free cash annually.
FCF Yield
4324.T converts 16.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-4.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.46
vs 25 benchmark
ROA
Return on assets percentage
-0.07
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How 4324.T Stacks Against Its Sector Peers
| Metric | 4324.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -4.48 | 19.41 | Better (Cheaper) |
| ROE | -45.87% | 578.00% | Weak |
| Net Margin | -14.14% | 922.00% | Weak |
| Debt/Equity | 1.06 | -0.50 (disorted) | Distorted |
| Current Ratio | 1.08 | 1.90 | Neutral |
| ROA | -6.77% | 257.00% | Weak |
4324.T outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dentsu Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
64.48%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-120.95%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
43.79%
Industry Style: Growth, Technology, Streaming
High Growth