Renesas Electronics Corporation
Renesas Electronics Corporation Fundamental Analysis
Renesas Electronics Corporation (6723.T) shows weak financial fundamentals with a PE ratio of -589.07, profit margin of -0.69%, and ROE of -0.42%. The company generates $1392.2B in annual revenue with weak year-over-year growth of -2.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 6723.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6723.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate6723.T shows balanced valuation metrics.
Growth Score
Weak6723.T faces weak or negative growth trends.
Financial Health Score
Excellent6723.T maintains a strong and stable balance sheet.
Profitability Score
Weak6723.T struggles to sustain strong margins.
Key Financial Metrics
Is 6723.T Expensive or Cheap?
P/E Ratio
6723.T trades at -589.07 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 6723.T's PEG of 2.39 indicates potential overvaluation.
Price to Book
The market values Renesas Electronics Corporation at 2.23 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.80 times EBITDA. This signals the market has high growth expectations.
How Well Does 6723.T Make Money?
Net Profit Margin
For every $100 in sales, Renesas Electronics Corporation keeps $-0.69 as profit after all expenses.
Operating Margin
Core operations generate 21.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.42 in profit for every $100 of shareholder equity.
ROA
Renesas Electronics Corporation generates $-0.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Renesas Electronics Corporation generates strong operating cash flow of $424.75B, reflecting robust business health.
Free Cash Flow
Renesas Electronics Corporation generates strong free cash flow of $339.51B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $187.23 in free cash annually.
FCF Yield
6723.T converts 6.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-589.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.00
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How 6723.T Stacks Against Its Sector Peers
| Metric | 6723.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -589.07 | 35.06 | Better (Cheaper) |
| ROE | -0.42% | 1033.00% | Weak |
| Net Margin | -0.69% | 5926886629.00% | Weak |
| Debt/Equity | 0.47 | 0.46 | Neutral |
| Current Ratio | 1.23 | 5.04 | Neutral |
| ROA | -0.23% | -294529.00% (disorted) | Weak |
6723.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 Renesas Electronics Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
75.68%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-207.96%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
91.10%
Industry Style: Growth, Innovation, High Beta
High Growth