Nippon Gear Co., Ltd.
Nippon Gear Co., Ltd. Fundamental Analysis
Nippon Gear Co., Ltd. (6356.T) shows moderate financial fundamentals with a PE ratio of 12.51, profit margin of 15.76%, and ROE of 11.46%. The company generates $9.5B in annual revenue with weak year-over-year growth of -0.69%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 6356.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6356.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate6356.T shows balanced valuation metrics.
Growth Score
Weak6356.T faces weak or negative growth trends.
Financial Health Score
Excellent6356.T maintains a strong and stable balance sheet.
Profitability Score
Weak6356.T struggles to sustain strong margins.
Key Financial Metrics
Is 6356.T Expensive or Cheap?
P/E Ratio
6356.T trades at 12.51 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 6356.T's PEG of 13.27 indicates potential overvaluation.
Price to Book
The market values Nippon Gear Co., Ltd. at 1.37 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.97 times EBITDA. This is generally considered low.
How Well Does 6356.T Make Money?
Net Profit Margin
For every $100 in sales, Nippon Gear Co., Ltd. keeps $15.76 as profit after all expenses.
Operating Margin
Core operations generate 21.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.46 in profit for every $100 of shareholder equity.
ROA
Nippon Gear Co., Ltd. generates $9.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nippon Gear Co., Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Nippon Gear 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
6356.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
13.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.006
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How 6356.T Stacks Against Its Sector Peers
| Metric | 6356.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.51 | 23.86 | Better (Cheaper) |
| ROE | 11.46% | 1107.00% | Weak |
| Net Margin | 15.76% | -612.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 6.14 | 2.66 | Strong Liquidity |
| ROA | 9.25% | -30467.00% (disorted) | Weak |
6356.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 Nippon Gear Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.79%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
290.92%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
1113.76%
Industry Style: Cyclical, Growth, Discretionary
High Growth