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Auto Server Co., Ltd.

5589.TJPX
Consumer Cyclical
Auto - Dealerships
¥2519.00
¥-27.00(-1.06%)
Japanese Market opens in 40h 13m

Auto Server Co., Ltd. Fundamental Analysis

Auto Server Co., Ltd. (5589.T) shows strong financial fundamentals with a PE ratio of 12.10, profit margin of 23.18%, and ROE of 12.01%. The company generates $6.5B in annual revenue with moderate year-over-year growth of 7.54%.

Key Strengths

Operating Margin36.90%
Cash Position75.16%
Current Ratio2.19

Areas of Concern

PEG Ratio7.77
We analyze 5589.T's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of 62.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.

Fundamental Health Score

C+
62.8/100

We analyze 5589.T's fundamental strength across five key dimensions:

Efficiency Score

Weak

5589.T struggles to generate sufficient returns from assets.

ROA > 10%
7.37%

Valuation Score

Moderate

5589.T shows balanced valuation metrics.

PE < 25
12.10
PEG Ratio < 2
7.77

Growth Score

Excellent

5589.T delivers strong and consistent growth momentum.

Revenue Growth > 5%
7.54%
EPS Growth > 10%
10.54%

Financial Health Score

Excellent

5589.T maintains a strong and stable balance sheet.

Debt/Equity < 1
0.17
Current Ratio > 1
2.19

Profitability Score

Weak

5589.T struggles to sustain strong margins.

ROE > 15%
12.01%
Net Margin ≥ 15%
23.18%
Positive Free Cash Flow
No

Key Financial Metrics

Is 5589.T Expensive or Cheap?

P/E Ratio

5589.T trades at 12.10 times earnings. This suggests potential undervaluation.

12.10

PEG Ratio

When adjusting for growth, 5589.T's PEG of 7.77 indicates potential overvaluation.

7.77

Price to Book

The market values Auto Server Co., Ltd. at 1.39 times its book value. This may indicate undervaluation.

1.39

EV/EBITDA

Enterprise value stands at 10.51 times EBITDA. This signals the market has high growth expectations.

10.51

How Well Does 5589.T Make Money?

Net Profit Margin

For every $100 in sales, Auto Server Co., Ltd. keeps $23.18 as profit after all expenses.

23.18%

Operating Margin

Core operations generate 36.90 in profit for every $100 in revenue, before interest and taxes.

36.90%

ROE

Management delivers $12.01 in profit for every $100 of shareholder equity.

12.01%

ROA

Auto Server Co., Ltd. generates $7.37 in profit for every $100 in assets, demonstrating efficient asset deployment.

7.37%

Following the Money - Real Cash Generation

Operating Cash Flow

Auto Server Co., Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.

$0.00

Free Cash Flow

Auto Server Co., Ltd. generates weak or negative free cash flow of $0.00, restricting financial flexibility.

$0.00

FCF Per Share

Each share generates $0.00 in free cash annually.

$0.00

FCF Yield

5589.T converts 0.00% of its market value into free cash.

0.00%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

12.10

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

7.77

vs 25 benchmark

P/B Ratio

Price to book value ratio

1.39

vs 25 benchmark

P/S Ratio

Price to sales ratio

2.80

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

0.17

vs 25 benchmark

Current Ratio

Current assets to current liabilities

2.19

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.12

vs 25 benchmark

ROA

Return on assets percentage

0.07

vs 25 benchmark

ROCE

Return on capital employed

0.18

vs 25 benchmark

How 5589.T Stacks Against Its Sector Peers

Metric5589.T ValueSector AveragePerformance
P/E Ratio12.1023.52 Better (Cheaper)
ROE12.01%1156.00% Weak
Net Margin23.18%670.00% Weak
Debt/Equity0.170.73 Strong (Low Leverage)
Current Ratio2.192.56 Strong Liquidity
ROA7.37%-8289.00% (disorted) Weak

5589.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 Auto Server Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.

Revenue CAGR

6.33%

Industry Style: Cyclical, Growth, Discretionary

Growing

EPS CAGR

9.38%

Industry Style: Cyclical, Growth, Discretionary

Growing

FCF CAGR

40.22%

Industry Style: Cyclical, Growth, Discretionary

High Growth

Fundamental Analysis FAQ