Japan Eyewear Holdings Co., Ltd. Fundamental Analysis (JPX: 5889.T)
Japan Eyewear Holdings Co., Ltd. Fundamental Analysis (JPX: 5889.T)
Japan Eyewear Holdings Co., Ltd. (JPX: 5889.T) shows moderate financial fundamentals with a PE ratio of 15.43, profit margin of 21.07%, and ROE of 23.05%. The company generates $19.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.2/100 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 5889.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent5889.T demonstrates superior asset utilization.
Valuation Score
Moderate5889.T shows balanced valuation metrics.
Growth Score
Moderate5889.T shows steady but slowing expansion.
Financial Health Score
Excellent5889.T maintains a strong and stable balance sheet.
Profitability Score
Excellent5889.T achieves industry-leading margins.
Key Financial Metrics
Is 5889.T Expensive or Cheap?
P/E Ratio
5889.T trades at 15.43 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 5889.T's PEG of 44.67 indicates potential overvaluation.
Price to Book
The market values Japan Eyewear Holdings Co., Ltd. at 3.43 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.99 times EBITDA. This is generally considered low.
How Well Does 5889.T Make Money?
Net Profit Margin
For every $100 in sales, Japan Eyewear Holdings Co., Ltd. keeps $21.07 as profit after all expenses.
Operating Margin
Core operations generate 32.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.05 in profit for every $100 of shareholder equity.
ROA
Japan Eyewear Holdings Co., Ltd. generates $10.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Japan Eyewear Holdings Co., Ltd. generates strong operating cash flow of $5.54B, reflecting robust business health.
Free Cash Flow
Japan Eyewear Holdings Co., Ltd. generates strong free cash flow of $4.70B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $194.31 in free cash annually.
FCF Yield
5889.T converts 7.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
44.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.89
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How 5889.T Stacks Against Its Sector Peers
| Metric | 5889.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.43 | 32.13 | Better (Cheaper) |
| ROE | 23.05% | 552.00% | Weak |
| Net Margin | 21.07% | 30215.00% | Weak |
| Debt/Equity | 0.89 | 0.56 | Weak (High Leverage) |
| Current Ratio | 1.41 | 5.70 | Neutral |
| ROA | 10.25% | 8.00% | Excellent |
5889.T outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Japan Eyewear Holdings Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation