Ryoyu Systems Co., Ltd.
Ryoyu Systems Co., Ltd. Fundamental Analysis
Ryoyu Systems Co., Ltd. (4685.T) shows moderate financial fundamentals with a PE ratio of 9.81, profit margin of 8.49%, and ROE of 19.57%. The company generates $45.6B in annual revenue with strong year-over-year growth of 15.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.3/100 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 4685.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent4685.T demonstrates superior asset utilization.
Valuation Score
Moderate4685.T shows balanced valuation metrics.
Growth Score
Excellent4685.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent4685.T maintains a strong and stable balance sheet.
Profitability Score
Weak4685.T struggles to sustain strong margins.
Key Financial Metrics
Is 4685.T Expensive or Cheap?
P/E Ratio
4685.T trades at 9.81 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 4685.T's PEG of 2.68 indicates potential overvaluation.
Price to Book
The market values Ryoyu Systems Co., Ltd. at 1.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.94 times EBITDA. This is generally considered low.
How Well Does 4685.T Make Money?
Net Profit Margin
For every $100 in sales, Ryoyu Systems Co., Ltd. keeps $8.49 as profit after all expenses.
Operating Margin
Core operations generate 11.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.57 in profit for every $100 of shareholder equity.
ROA
Ryoyu Systems Co., Ltd. generates $13.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ryoyu Systems Co., Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Ryoyu Systems Co., Ltd. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
4685.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How 4685.T Stacks Against Its Sector Peers
| Metric | 4685.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.81 | 25.96 | Better (Cheaper) |
| ROE | 19.57% | 1263.00% | Weak |
| Net Margin | 8.49% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 3.53 | 10.05 | Strong Liquidity |
| ROA | 13.63% | -1497918.00% (disorted) | Strong |
4685.T outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ryoyu Systems Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.55%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
100.54%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
96.32%
Industry Style: Cyclical, Value, Infrastructure
High Growth