Japan Pure Chemical Co., Ltd.
Japan Pure Chemical Co., Ltd. Fundamental Analysis
Japan Pure Chemical Co., Ltd. (4973.T) shows moderate financial fundamentals with a PE ratio of 17.02, profit margin of 11.36%, and ROE of 11.27%. The company generates $14.8B in annual revenue with strong year-over-year growth of 10.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.2/100 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 4973.T's fundamental strength across five key dimensions:
Efficiency Score
Weak4973.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent4973.T trades at attractive valuation levels.
Growth Score
Moderate4973.T shows steady but slowing expansion.
Financial Health Score
Excellent4973.T maintains a strong and stable balance sheet.
Profitability Score
Weak4973.T struggles to sustain strong margins.
Key Financial Metrics
Is 4973.T Expensive or Cheap?
P/E Ratio
4973.T trades at 17.02 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 4973.T's PEG of 0.78 indicates potential undervaluation.
Price to Book
The market values Japan Pure Chemical Co., Ltd. at 1.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.97 times EBITDA. This signals the market has high growth expectations.
How Well Does 4973.T Make Money?
Net Profit Margin
For every $100 in sales, Japan Pure Chemical Co., Ltd. keeps $11.36 as profit after all expenses.
Operating Margin
Core operations generate 3.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.27 in profit for every $100 of shareholder equity.
ROA
Japan Pure Chemical Co., Ltd. generates $8.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Japan Pure Chemical Co., Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Japan Pure Chemical 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
4973.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
20.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How 4973.T Stacks Against Its Sector Peers
| Metric | 4973.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.02 | 24.91 | Better (Cheaper) |
| ROE | 11.27% | 840.00% | Weak |
| Net Margin | 11.36% | -105381.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 20.38 | 4.94 | Strong Liquidity |
| ROA | 8.53% | -4176.00% (disorted) | Weak |
4973.T outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Japan Pure Chemical Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.69%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
84.23%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
131.57%
Industry Style: Cyclical, Commodity, Value
High Growth