GMO internet, Inc. Fundamental Analysis (JPX: 4784.T)
GMO internet, Inc. (JPX: 4784.T) shows moderate financial fundamentals with a PE ratio of 25.66, profit margin of 7.67%, and ROE of 32.98%. The company generates $82.9B in annual revenue with moderate year-over-year growth of 5.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.5/100 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 4784.T's fundamental strength across five key dimensions:
Efficiency Score
Weak4784.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate4784.T shows balanced valuation metrics.
Growth Score
Excellent4784.T delivers strong and consistent growth momentum.
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 25.66 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 4784.T's PEG of 0.42 indicates potential undervaluation.
Price to Book
The market values GMO internet, Inc. at 5.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.54 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 $7.67 as profit after all expenses.
Operating Margin
Core operations generate 11.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.98 in profit for every $100 of shareholder equity.
ROA
GMO internet, Inc. generates $8.29 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
25.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How 4784.T Stacks Against Its Sector Peers
| Metric | 4784.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.66 | 34.93 | Better (Cheaper) |
| ROE | 32.98% | 750.00% | Weak |
| Net Margin | 7.67% | -3058.00% (disorted) | Weak |
| Debt/Equity | 0.45 | 0.65 | Strong (Low Leverage) |
| Current Ratio | 1.63 | 6.21 | Neutral |
| ROA | 8.29% | 308.00% | Weak |
4784.T outperforms its industry in 2 out of 6 key metrics, 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
-86.68%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
25.23%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-43.17%
Industry Style: Growth, Innovation, High Beta
Declining