Zeta Inc. Fundamental Analysis (JPX: 6031.T)
Zeta Inc. (JPX: 6031.T) shows strong financial fundamentals with a PE ratio of 26.98, profit margin of 12.43%, and ROE of 26.69%. The company generates $1.5B in annual revenue with strong year-over-year growth of 36.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.3/100 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 6031.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6031.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate6031.T shows balanced valuation metrics.
Growth Score
Moderate6031.T shows steady but slowing expansion.
Financial Health Score
Moderate6031.T shows balanced financial health with some risks.
Profitability Score
Moderate6031.T maintains healthy but balanced margins.
Key Financial Metrics
Is 6031.T Expensive or Cheap?
P/E Ratio
6031.T trades at 26.98 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 6031.T's PEG of -1.27 indicates potential undervaluation.
Price to Book
The market values Zeta Inc. at 8.72 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.19 times EBITDA. This signals the market has high growth expectations.
How Well Does 6031.T Make Money?
Net Profit Margin
For every $100 in sales, Zeta Inc. keeps $12.43 as profit after all expenses.
Operating Margin
Core operations generate 21.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.69 in profit for every $100 of shareholder equity.
ROA
Zeta Inc. generates $8.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zeta Inc. produces operating cash flow of $232.57M, showing steady but balanced cash generation.
Free Cash Flow
Zeta Inc. generates strong free cash flow of $204.45M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.01 in free cash annually.
FCF Yield
6031.T converts 4.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How 6031.T Stacks Against Its Sector Peers
| Metric | 6031.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.98 | 19.41 | Worse (Expensive) |
| ROE | 26.69% | 578.00% | Weak |
| Net Margin | 12.43% | 922.00% | Weak |
| Debt/Equity | 2.09 | -0.50 (disorted) | Distorted |
| Current Ratio | 2.51 | 1.90 | Strong Liquidity |
| ROA | 8.58% | 257.00% | Weak |
6031.T outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zeta Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.92%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
404.66%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
337.91%
Industry Style: Growth, Technology, Streaming
High Growth