MEC Company Ltd. Fundamental Analysis (JPX: 4971.T)
MEC Company Ltd. (JPX: 4971.T) shows strong financial fundamentals with a PE ratio of 20.05, profit margin of 25.56%, and ROE of 19.51%. The company generates $24.2B in annual revenue with strong year-over-year growth of 14.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.4/100 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 4971.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent4971.T demonstrates superior asset utilization.
Valuation Score
Excellent4971.T trades at attractive valuation levels.
Growth Score
Moderate4971.T shows steady but slowing expansion.
Financial Health Score
Excellent4971.T maintains a strong and stable balance sheet.
Profitability Score
Moderate4971.T maintains healthy but balanced margins.
Key Financial Metrics
Is 4971.T Expensive or Cheap?
P/E Ratio
4971.T trades at 20.05 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 4971.T's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values MEC Company Ltd. at 3.42 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.17 times EBITDA. This signals the market has high growth expectations.
How Well Does 4971.T Make Money?
Net Profit Margin
For every $100 in sales, MEC Company Ltd. keeps $25.56 as profit after all expenses.
Operating Margin
Core operations generate 30.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.51 in profit for every $100 of shareholder equity.
ROA
MEC Company Ltd. generates $13.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MEC Company Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
MEC Company 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
4971.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.03
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
0.19
vs 25 benchmark
How 4971.T Stacks Against Its Sector Peers
| Metric | 4971.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.05 | 27.48 | Better (Cheaper) |
| ROE | 19.51% | 1186.00% | Weak |
| Net Margin | 25.56% | 220.00% | Weak |
| Debt/Equity | 0.00 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 4.03 | 3.13 | Strong Liquidity |
| ROA | 13.97% | 2741.00% | Weak |
4971.T outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MEC Company Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
79.94%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
223.61%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
68.21%
Industry Style: Cyclical, Commodity, Value
High Growth