AR advanced technology, Inc.
AR advanced technology, Inc. Fundamental Analysis
AR advanced technology, Inc. (5578.T) shows moderate financial fundamentals with a PE ratio of 15.05, profit margin of 3.86%, and ROE of 29.22%. The company generates $15.0B in annual revenue with strong year-over-year growth of 27.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.8/100 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 5578.T's fundamental strength across five key dimensions:
Efficiency Score
Weak5578.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent5578.T trades at attractive valuation levels.
Growth Score
Excellent5578.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent5578.T maintains a strong and stable balance sheet.
Profitability Score
Moderate5578.T maintains healthy but balanced margins.
Key Financial Metrics
Is 5578.T Expensive or Cheap?
P/E Ratio
5578.T trades at 15.05 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 5578.T's PEG of 0.49 indicates potential undervaluation.
Price to Book
The market values AR advanced technology, Inc. at 4.01 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.14 times EBITDA. This is generally considered low.
How Well Does 5578.T Make Money?
Net Profit Margin
For every $100 in sales, AR advanced technology, Inc. keeps $3.86 as profit after all expenses.
Operating Margin
Core operations generate 6.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.22 in profit for every $100 of shareholder equity.
ROA
AR advanced technology, Inc. generates $8.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AR advanced technology, Inc. generates limited operating cash flow of $1.14B, signaling weaker underlying cash strength.
Free Cash Flow
AR advanced technology, Inc. produces free cash flow of $917.86M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $93.92 in free cash annually.
FCF Yield
5578.T converts 10.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.38
vs 25 benchmark
How 5578.T Stacks Against Its Sector Peers
| Metric | 5578.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.05 | 33.94 | Better (Cheaper) |
| ROE | 29.22% | 1002.00% | Weak |
| Net Margin | 3.86% | -48794.00% (disorted) | Weak |
| Debt/Equity | 0.74 | 0.44 | Weak (High Leverage) |
| Current Ratio | 1.27 | 5.74 | Neutral |
| ROA | 8.68% | -288341.00% (disorted) | Weak |
5578.T outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AR advanced technology, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
86.25%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
29.19%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
125.82%
Industry Style: Growth, Innovation, High Beta
High Growth