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Aichi Corporation

6345.TJPX
Industrials
Agricultural - Machinery
¥1333.00
¥13.00(0.98%)
Japanese Market opens in 0h 13m

Aichi Corporation Fundamental Analysis

Aichi Corporation (6345.T) shows moderate financial fundamentals with a PE ratio of 14.14, profit margin of 10.85%, and ROE of 8.21%. The company generates $56.1B in annual revenue with strong year-over-year growth of 11.63%.

Key Strengths

Cash Position25.19%
Current Ratio4.13

Areas of Concern

ROE8.21%
PEG Ratio6.12
We analyze 6345.T's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of -47.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.

Fundamental Health Score

F
-47.0/100

We analyze 6345.T's fundamental strength across five key dimensions:

Efficiency Score

Weak

6345.T struggles to generate sufficient returns from assets.

ROA > 10%
7.05%

Valuation Score

Moderate

6345.T shows balanced valuation metrics.

PE < 25
14.14
PEG Ratio < 2
6.12

Growth Score

Excellent

6345.T delivers strong and consistent growth momentum.

Revenue Growth > 5%
11.63%
EPS Growth > 10%
20.92%

Financial Health Score

Excellent

6345.T maintains a strong and stable balance sheet.

Debt/Equity < 1
0.00
Current Ratio > 1
4.13

Profitability Score

Weak

6345.T struggles to sustain strong margins.

ROE > 15%
8.21%
Net Margin ≥ 15%
10.85%
Positive Free Cash Flow
No

Key Financial Metrics

Is 6345.T Expensive or Cheap?

P/E Ratio

6345.T trades at 14.14 times earnings. This suggests potential undervaluation.

14.14

PEG Ratio

When adjusting for growth, 6345.T's PEG of 6.12 indicates potential overvaluation.

6.12

Price to Book

The market values Aichi Corporation at 1.20 times its book value. This may indicate undervaluation.

1.20

EV/EBITDA

Enterprise value stands at 12.90 times EBITDA. This signals the market has high growth expectations.

12.90

How Well Does 6345.T Make Money?

Net Profit Margin

For every $100 in sales, Aichi Corporation keeps $10.85 as profit after all expenses.

10.85%

Operating Margin

Core operations generate 12.54 in profit for every $100 in revenue, before interest and taxes.

12.54%

ROE

Management delivers $8.21 in profit for every $100 of shareholder equity.

8.21%

ROA

Aichi Corporation generates $7.05 in profit for every $100 in assets, demonstrating efficient asset deployment.

7.05%

Following the Money - Real Cash Generation

Operating Cash Flow

Aichi Corporation generates limited operating cash flow of $363.20M, signaling weaker underlying cash strength.

$363.20M

Free Cash Flow

Aichi Corporation generates weak or negative free cash flow of $-4.52B, restricting financial flexibility.

$-4.52B

FCF Per Share

Each share generates $-69.94 in free cash annually.

$-69.94

FCF Yield

6345.T converts -5.25% of its market value into free cash.

-5.25%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

14.14

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

6.12

vs 25 benchmark

P/B Ratio

Price to book value ratio

1.20

vs 25 benchmark

P/S Ratio

Price to sales ratio

1.53

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

0.002

vs 25 benchmark

Current Ratio

Current assets to current liabilities

4.13

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.08

vs 25 benchmark

ROA

Return on assets percentage

0.07

vs 25 benchmark

ROCE

Return on capital employed

0.09

vs 25 benchmark

How 6345.T Stacks Against Its Sector Peers

Metric6345.T ValueSector AveragePerformance
P/E Ratio14.1425.96 Better (Cheaper)
ROE8.21%1263.00% Weak
Net Margin10.85%-41827.00% (disorted) Strong
Debt/Equity0.000.79 Strong (Low Leverage)
Current Ratio4.1310.05 Strong Liquidity
ROA7.05%-1497918.00% (disorted) Weak

6345.T outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.

Historical Growth Performance

5-Year Growth Trajectory

This section reviews Aichi Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.

Revenue CAGR

5.84%

Industry Style: Cyclical, Value, Infrastructure

Growing

EPS CAGR

33.96%

Industry Style: Cyclical, Value, Infrastructure

High Growth

FCF CAGR

35.42%

Industry Style: Cyclical, Value, Infrastructure

High Growth

Fundamental Analysis FAQ