Oki Electric Industry Co., Ltd.
Oki Electric Industry Co., Ltd. Fundamental Analysis
Oki Electric Industry Co., Ltd. (6703.T) shows moderate financial fundamentals with a PE ratio of 13.45, profit margin of 4.18%, and ROE of 12.24%. The company generates $427.7B in annual revenue with moderate year-over-year growth of 7.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.8/100 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 6703.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6703.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent6703.T trades at attractive valuation levels.
Growth Score
Moderate6703.T shows steady but slowing expansion.
Financial Health Score
Excellent6703.T maintains a strong and stable balance sheet.
Profitability Score
Weak6703.T struggles to sustain strong margins.
Key Financial Metrics
Is 6703.T Expensive or Cheap?
P/E Ratio
6703.T trades at 13.45 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 6703.T's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values Oki Electric Industry Co., Ltd. at 1.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.89 times EBITDA. This is generally considered low.
How Well Does 6703.T Make Money?
Net Profit Margin
For every $100 in sales, Oki Electric Industry Co., Ltd. keeps $4.18 as profit after all expenses.
Operating Margin
Core operations generate 3.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.24 in profit for every $100 of shareholder equity.
ROA
Oki Electric Industry Co., Ltd. generates $4.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Oki Electric Industry Co., Ltd. generates limited operating cash flow of $29.95B, signaling weaker underlying cash strength.
Free Cash Flow
Oki Electric Industry Co., Ltd. produces free cash flow of $20.09B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $231.60 in free cash annually.
FCF Yield
6703.T converts 8.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How 6703.T Stacks Against Its Sector Peers
| Metric | 6703.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.45 | 33.94 | Better (Cheaper) |
| ROE | 12.24% | 1002.00% | Weak |
| Net Margin | 4.18% | -48794.00% (disorted) | Weak |
| Debt/Equity | 0.72 | 0.44 | Weak (High Leverage) |
| Current Ratio | 1.28 | 5.74 | Neutral |
| ROA | 4.27% | -288341.00% (disorted) | Weak |
6703.T outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Oki Electric Industry Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-1.25%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-11.58%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
20.38%
Industry Style: Growth, Innovation, High Beta
High Growth