Hokko Chemical Industry Co., Ltd.
Hokko Chemical Industry Co., Ltd. Fundamental Analysis
Hokko Chemical Industry Co., Ltd. (4992.T) shows weak financial fundamentals with a PE ratio of 10.28, profit margin of 9.06%, and ROE of 8.74%. The company generates $48.3B in annual revenue with weak year-over-year growth of 2.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.5/100 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 4992.T's fundamental strength across five key dimensions:
Efficiency Score
Weak4992.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate4992.T shows balanced valuation metrics.
Growth Score
Weak4992.T faces weak or negative growth trends.
Financial Health Score
Excellent4992.T maintains a strong and stable balance sheet.
Profitability Score
Weak4992.T struggles to sustain strong margins.
Key Financial Metrics
Is 4992.T Expensive or Cheap?
P/E Ratio
4992.T trades at 10.28 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 4992.T's PEG of 13.08 indicates potential overvaluation.
Price to Book
The market values Hokko Chemical Industry Co., Ltd. at 0.87 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.22 times EBITDA. This is generally considered low.
How Well Does 4992.T Make Money?
Net Profit Margin
For every $100 in sales, Hokko Chemical Industry Co., Ltd. keeps $9.06 as profit after all expenses.
Operating Margin
Core operations generate 10.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.74 in profit for every $100 of shareholder equity.
ROA
Hokko Chemical Industry Co., Ltd. generates $5.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hokko Chemical Industry Co., Ltd. produces operating cash flow of $7.49B, showing steady but balanced cash generation.
Free Cash Flow
Hokko Chemical Industry Co., Ltd. generates strong free cash flow of $4.98B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $193.05 in free cash annually.
FCF Yield
4992.T converts 11.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
13.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How 4992.T Stacks Against Its Sector Peers
| Metric | 4992.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.28 | 24.91 | Better (Cheaper) |
| ROE | 8.74% | 840.00% | Weak |
| Net Margin | 9.06% | -105381.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 2.64 | 4.94 | Strong Liquidity |
| ROA | 5.74% | -4176.00% (disorted) | Weak |
4992.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 Hokko Chemical Industry Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.21%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
42.38%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
55.04%
Industry Style: Cyclical, Commodity, Value
High Growth