Daiwa Industries Ltd. Fundamental Analysis (JPX: 6459.T)
Daiwa Industries Ltd. (JPX: 6459.T) shows weak financial fundamentals with a PE ratio of 16.49, profit margin of 10.63%, and ROE of 7.26%. The company generates $47.5B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.3/100 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 6459.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6459.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent6459.T trades at attractive valuation levels.
Growth Score
Moderate6459.T shows steady but slowing expansion.
Financial Health Score
Excellent6459.T maintains a strong and stable balance sheet.
Profitability Score
Weak6459.T struggles to sustain strong margins.
Key Financial Metrics
Is 6459.T Expensive or Cheap?
P/E Ratio
6459.T trades at 16.49 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 6459.T's PEG of -2.49 indicates potential undervaluation.
Price to Book
The market values Daiwa Industries Ltd. at 1.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.30 times EBITDA. This signals the market has high growth expectations.
How Well Does 6459.T Make Money?
Net Profit Margin
For every $100 in sales, Daiwa Industries Ltd. keeps $10.63 as profit after all expenses.
Operating Margin
Core operations generate 15.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.26 in profit for every $100 of shareholder equity.
ROA
Daiwa Industries Ltd. generates $5.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Daiwa Industries Ltd. generates limited operating cash flow of $3.63B, signaling weaker underlying cash strength.
Free Cash Flow
Daiwa Industries Ltd. produces free cash flow of $2.79B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $56.88 in free cash annually.
FCF Yield
6459.T converts 3.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How 6459.T Stacks Against Its Sector Peers
| Metric | 6459.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.49 | 30.52 | Better (Cheaper) |
| ROE | 7.26% | 1172.00% | Weak |
| Net Margin | 10.63% | -20786.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.38 | Strong (Low Leverage) |
| Current Ratio | 3.02 | 24.22 | Strong Liquidity |
| ROA | 5.46% | -1311221.00% (disorted) | Weak |
6459.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 Daiwa Industries Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure