Nippon Paint Holdings Co., Ltd.
Nippon Paint Holdings Co., Ltd. Fundamental Analysis
Nippon Paint Holdings Co., Ltd. (4612.T) shows strong financial fundamentals with a PE ratio of 13.14, profit margin of 10.39%, and ROE of 11.64%. The company generates $1789.2B in annual revenue with strong year-over-year growth of 13.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.1/100 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 4612.T's fundamental strength across five key dimensions:
Efficiency Score
Weak4612.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent4612.T trades at attractive valuation levels.
Growth Score
Moderate4612.T shows steady but slowing expansion.
Financial Health Score
Excellent4612.T maintains a strong and stable balance sheet.
Profitability Score
Weak4612.T struggles to sustain strong margins.
Key Financial Metrics
Is 4612.T Expensive or Cheap?
P/E Ratio
4612.T trades at 13.14 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 4612.T's PEG of 1.29 indicates fair valuation.
Price to Book
The market values Nippon Paint Holdings Co., Ltd. at 1.36 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.28 times EBITDA. This is generally considered low.
How Well Does 4612.T Make Money?
Net Profit Margin
For every $100 in sales, Nippon Paint Holdings Co., Ltd. keeps $10.39 as profit after all expenses.
Operating Margin
Core operations generate 14.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.64 in profit for every $100 of shareholder equity.
ROA
Nippon Paint Holdings Co., Ltd. generates $4.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nippon Paint Holdings Co., Ltd. produces operating cash flow of $186.95B, showing steady but balanced cash generation.
Free Cash Flow
Nippon Paint Holdings Co., Ltd. produces free cash flow of $144.57B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $62.10 in free cash annually.
FCF Yield
4612.T converts 5.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How 4612.T Stacks Against Its Sector Peers
| Metric | 4612.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.14 | 24.91 | Better (Cheaper) |
| ROE | 11.64% | 840.00% | Weak |
| Net Margin | 10.39% | -105381.00% (disorted) | Strong |
| Debt/Equity | 0.79 | 0.55 | Weak (High Leverage) |
| Current Ratio | 2.16 | 4.94 | Strong Liquidity |
| ROA | 4.64% | -4176.00% (disorted) | Weak |
4612.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 Nippon Paint Holdings Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
61.69%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
54.52%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
24.14%
Industry Style: Cyclical, Commodity, Value
High Growth