Nikko Co., Ltd.
Nikko Co., Ltd. Fundamental Analysis
Nikko Co., Ltd. (6306.T) shows moderate financial fundamentals with a PE ratio of 16.39, profit margin of 3.92%, and ROE of 5.31%. The company generates $47.3B in annual revenue with strong year-over-year growth of 11.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 6306.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6306.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate6306.T shows balanced valuation metrics.
Growth Score
Excellent6306.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent6306.T maintains a strong and stable balance sheet.
Profitability Score
Weak6306.T struggles to sustain strong margins.
Key Financial Metrics
Is 6306.T Expensive or Cheap?
P/E Ratio
6306.T trades at 16.39 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 6306.T's PEG of 10.07 indicates potential overvaluation.
Price to Book
The market values Nikko Co., Ltd. at 0.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.82 times EBITDA. This is generally considered low.
How Well Does 6306.T Make Money?
Net Profit Margin
For every $100 in sales, Nikko Co., Ltd. keeps $3.92 as profit after all expenses.
Operating Margin
Core operations generate 4.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.31 in profit for every $100 of shareholder equity.
ROA
Nikko Co., Ltd. generates $2.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nikko Co., Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Nikko Co., 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
6306.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How 6306.T Stacks Against Its Sector Peers
| Metric | 6306.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.39 | 25.96 | Better (Cheaper) |
| ROE | 5.31% | 1263.00% | Weak |
| Net Margin | 3.92% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.23 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.91 | 10.05 | Neutral |
| ROA | 2.95% | -1497918.00% (disorted) | Weak |
6306.T outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nikko Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.45%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
27.04%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-21.07%
Industry Style: Cyclical, Value, Infrastructure
Declining