Nippon Light Metal Holdings Company, Ltd.
Nippon Light Metal Holdings Company, Ltd. Fundamental Analysis
Nippon Light Metal Holdings Company, Ltd. (5703.T) shows moderate financial fundamentals with a PE ratio of 11.83, profit margin of 2.60%, and ROE of 6.34%. The company generates $575.5B in annual revenue with moderate year-over-year growth of 5.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 5703.T's fundamental strength across five key dimensions:
Efficiency Score
Weak5703.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent5703.T trades at attractive valuation levels.
Growth Score
Excellent5703.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent5703.T maintains a strong and stable balance sheet.
Profitability Score
Weak5703.T struggles to sustain strong margins.
Key Financial Metrics
Is 5703.T Expensive or Cheap?
P/E Ratio
5703.T trades at 11.83 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 5703.T's PEG of 1.21 indicates fair valuation.
Price to Book
The market values Nippon Light Metal Holdings Company, Ltd. at 0.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.88 times EBITDA. This is generally considered low.
How Well Does 5703.T Make Money?
Net Profit Margin
For every $100 in sales, Nippon Light Metal Holdings Company, Ltd. keeps $2.60 as profit after all expenses.
Operating Margin
Core operations generate 4.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.34 in profit for every $100 of shareholder equity.
ROA
Nippon Light Metal Holdings Company, Ltd. generates $2.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nippon Light Metal Holdings Company, Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Nippon Light Metal Holdings Company, 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
5703.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.95
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How 5703.T Stacks Against Its Sector Peers
| Metric | 5703.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.83 | 24.08 | Better (Cheaper) |
| ROE | 6.34% | 921.00% | Weak |
| Net Margin | 2.60% | -113338.00% (disorted) | Weak |
| Debt/Equity | 0.76 | 0.53 | Weak (High Leverage) |
| Current Ratio | 1.95 | 5.09 | Neutral |
| ROA | 2.63% | -9816.00% (disorted) | Weak |
5703.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 Nippon Light Metal Holdings Company, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.17%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
65.66%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-75.21%
Industry Style: Cyclical, Commodity, Value
Declining