GMO internet, Inc.
GMO internet, Inc. Fundamental Analysis
GMO internet, Inc. (4784.T) shows weak financial fundamentals with a PE ratio of 34.01, profit margin of 7.08%, and ROE of 41.10%. The company generates $78.6B in annual revenue with weak year-over-year growth of -12.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 4784.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent4784.T demonstrates superior asset utilization.
Valuation Score
Weak4784.T trades at a premium to fair value.
Growth Score
Weak4784.T faces weak or negative growth trends.
Financial Health Score
Excellent4784.T maintains a strong and stable balance sheet.
Profitability Score
Weak4784.T struggles to sustain strong margins.
Key Financial Metrics
Is 4784.T Expensive or Cheap?
P/E Ratio
4784.T trades at 34.01 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 4784.T's PEG of 2.02 indicates potential overvaluation.
Price to Book
The market values GMO internet, Inc. at 13.62 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 28.71 times EBITDA. This signals the market has high growth expectations.
How Well Does 4784.T Make Money?
Net Profit Margin
For every $100 in sales, GMO internet, Inc. keeps $7.08 as profit after all expenses.
Operating Margin
Core operations generate 10.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $41.10 in profit for every $100 of shareholder equity.
ROA
GMO internet, Inc. generates $10.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GMO internet, Inc. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
GMO internet, Inc. 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
4784.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.01
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
13.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.64
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.41
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.39
vs 25 benchmark
How 4784.T Stacks Against Its Sector Peers
| Metric | 4784.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.01 | 33.61 | Neutral |
| ROE | 41.10% | 1020.00% | Weak |
| Net Margin | 7.08% | -56528.00% (disorted) | Weak |
| Debt/Equity | 0.64 | 0.45 | Weak (High Leverage) |
| Current Ratio | 1.16 | 5.65 | Neutral |
| ROA | 10.80% | -291484.00% (disorted) | Strong |
4784.T outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GMO internet, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-62.54%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-102.01%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-93.70%
Industry Style: Growth, Innovation, High Beta
Declining