Fast Retailing Co., Ltd.
Fast Retailing Co., Ltd. Fundamental Analysis
Fast Retailing Co., Ltd. (6288.HK) shows moderate financial fundamentals with a PE ratio of 41.04, profit margin of 12.71%, and ROE of 19.94%. The company generates $3564.1B in annual revenue with strong year-over-year growth of 12.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.9/100 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 6288.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent6288.HK demonstrates superior asset utilization.
Valuation Score
Moderate6288.HK shows balanced valuation metrics.
Growth Score
Excellent6288.HK delivers strong and consistent growth momentum.
Financial Health Score
Excellent6288.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate6288.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 6288.HK Expensive or Cheap?
P/E Ratio
6288.HK trades at 41.04 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 6288.HK's PEG of -0.07 indicates potential undervaluation.
Price to Book
The market values Fast Retailing Co., Ltd. at 7.43 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.34 times EBITDA. This signals the market has high growth expectations.
How Well Does 6288.HK Make Money?
Net Profit Margin
For every $100 in sales, Fast Retailing Co., Ltd. keeps $12.71 as profit after all expenses.
Operating Margin
Core operations generate 17.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.94 in profit for every $100 of shareholder equity.
ROA
Fast Retailing Co., Ltd. generates $10.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fast Retailing Co., Ltd. produces operating cash flow of $690.50B, showing steady but balanced cash generation.
Free Cash Flow
Fast Retailing Co., Ltd. generates strong free cash flow of $536.62B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $17.49 in free cash annually.
FCF Yield
6288.HK converts 2.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How 6288.HK Stacks Against Its Sector Peers
| Metric | 6288.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.04 | 23.86 | Worse (Expensive) |
| ROE | 19.94% | 1107.00% | Weak |
| Net Margin | 12.71% | -612.00% (disorted) | Strong |
| Debt/Equity | 0.28 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 2.75 | 2.66 | Strong Liquidity |
| ROA | 10.58% | -30467.00% (disorted) | Strong |
6288.HK outperforms its industry in 4 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 Fast Retailing Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.25%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
128.39%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
116.41%
Industry Style: Cyclical, Growth, Discretionary
High Growth