NETSTARS Co.,Ltd.
NETSTARS Co.,Ltd. Fundamental Analysis
NETSTARS Co.,Ltd. (5590.T) shows moderate financial fundamentals with a PE ratio of 27.35, profit margin of 10.13%, and ROE of 6.63%. The company generates $4.8B in annual revenue with moderate year-over-year growth of 4.87%.
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 5590.T's fundamental strength across five key dimensions:
Efficiency Score
Weak5590.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate5590.T shows balanced valuation metrics.
Growth Score
Moderate5590.T shows steady but slowing expansion.
Financial Health Score
Excellent5590.T maintains a strong and stable balance sheet.
Profitability Score
Weak5590.T struggles to sustain strong margins.
Key Financial Metrics
Is 5590.T Expensive or Cheap?
P/E Ratio
5590.T trades at 27.35 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 5590.T's PEG of 0.61 indicates potential undervaluation.
Price to Book
The market values NETSTARS Co.,Ltd. at 1.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 79.35 times EBITDA. This signals the market has high growth expectations.
How Well Does 5590.T Make Money?
Net Profit Margin
For every $100 in sales, NETSTARS Co.,Ltd. keeps $10.13 as profit after all expenses.
Operating Margin
Core operations generate 6.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.63 in profit for every $100 of shareholder equity.
ROA
NETSTARS Co.,Ltd. generates $1.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NETSTARS Co.,Ltd. generates strong operating cash flow of $2.63B, reflecting robust business health.
Free Cash Flow
NETSTARS Co.,Ltd. generates strong free cash flow of $2.62B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $156.28 in free cash annually.
FCF Yield
5590.T converts 19.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 5590.T Stacks Against Its Sector Peers
| Metric | 5590.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.35 | 18.66 | Worse (Expensive) |
| ROE | 6.63% | 806.00% | Weak |
| Net Margin | 10.13% | -451.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 1.21 | 662.02 | Neutral |
| ROA | 1.26% | -24409.00% (disorted) | Weak |
5590.T outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NETSTARS Co.,Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
98.58%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
96.31%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
6.28%
Industry Style: Value, Dividend, Cyclical
Growing