Otani Kogyo Co.,Ltd.
Otani Kogyo Co.,Ltd. Fundamental Analysis
Otani Kogyo Co.,Ltd. (5939.T) shows weak financial fundamentals with a PE ratio of 15.27, profit margin of 3.54%, and ROE of 6.47%. The company generates $7.7B in annual revenue with weak year-over-year growth of -0.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -550.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 5939.T's fundamental strength across five key dimensions:
Efficiency Score
Weak5939.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent5939.T trades at attractive valuation levels.
Growth Score
Moderate5939.T shows steady but slowing expansion.
Financial Health Score
Excellent5939.T maintains a strong and stable balance sheet.
Profitability Score
Weak5939.T struggles to sustain strong margins.
Key Financial Metrics
Is 5939.T Expensive or Cheap?
P/E Ratio
5939.T trades at 15.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 5939.T's PEG of -3.80 indicates potential undervaluation.
Price to Book
The market values Otani Kogyo Co.,Ltd. at 0.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.01 times EBITDA. This is generally considered low.
How Well Does 5939.T Make Money?
Net Profit Margin
For every $100 in sales, Otani Kogyo Co.,Ltd. keeps $3.54 as profit after all expenses.
Operating Margin
Core operations generate 4.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.47 in profit for every $100 of shareholder equity.
ROA
Otani Kogyo Co.,Ltd. generates $3.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Otani Kogyo Co.,Ltd. generates limited operating cash flow of $122.22M, signaling weaker underlying cash strength.
Free Cash Flow
Otani Kogyo Co.,Ltd. generates weak or negative free cash flow of $-305.32M, restricting financial flexibility.
FCF Per Share
Each share generates $-391.86 in free cash annually.
FCF Yield
5939.T converts -7.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.80
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.44
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 5939.T Stacks Against Its Sector Peers
| Metric | 5939.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.27 | 25.85 | Better (Cheaper) |
| ROE | 6.47% | 1270.00% | Weak |
| Net Margin | 3.54% | -41768.00% (disorted) | Weak |
| Debt/Equity | 0.18 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.44 | 10.04 | Strong Liquidity |
| ROA | 3.42% | -1493983.00% (disorted) | Weak |
5939.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 Otani Kogyo Co.,Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
31.37%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
66.25%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
1350.43%
Industry Style: Cyclical, Value, Infrastructure
High Growth