Japan Display Inc. Fundamental Analysis (JPX: 6740.T)
Japan Display Inc. Fundamental Analysis (JPX: 6740.T)
Japan Display Inc. (JPX: 6740.T) shows weak financial fundamentals with a PE ratio of 612.50, profit margin of -2.43%, and ROE of 86.70%. The company generates $82.2B in annual revenue with weak year-over-year growth of -21.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -5.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 6740.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6740.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate6740.T shows balanced valuation metrics.
Growth Score
Weak6740.T faces weak or negative growth trends.
Financial Health Score
Weak6740.T carries high financial risk with limited liquidity.
Profitability Score
Weak6740.T struggles to sustain strong margins.
Key Financial Metrics
Is 6740.T Expensive or Cheap?
P/E Ratio
6740.T trades at 612.50 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 6740.T's PEG of 1.18 indicates fair valuation.
Price to Book
The market values Japan Display Inc. at 86.66 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.76 times EBITDA. This signals the market has high growth expectations.
How Well Does 6740.T Make Money?
Net Profit Margin
For every $100 in sales, Japan Display Inc. keeps $-2.43 as profit after all expenses.
Operating Margin
Core operations generate -8.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $86.70 in profit for every $100 of shareholder equity.
ROA
Japan Display Inc. generates $-2.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Japan Display Inc. generates limited operating cash flow of $-13.73B, signaling weaker underlying cash strength.
Free Cash Flow
Japan Display Inc. generates weak or negative free cash flow of $-14.64B, restricting financial flexibility.
FCF Per Share
Each share generates $-3.43 in free cash annually.
FCF Yield
6740.T converts -10.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
612.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
86.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
14.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.87
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
-1.51
vs 25 benchmark
How 6740.T Stacks Against Its Sector Peers
| Metric | 6740.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 612.50 | 34.86 | Worse (Expensive) |
| ROE | 86.70% | 709.00% | Weak |
| Net Margin | -2.43% | -1416.00% (disorted) | Weak |
| Debt/Equity | 14.05 | 0.22 | Weak (High Leverage) |
| Current Ratio | 0.64 | 6.00 | Weak Liquidity |
| ROA | -2.83% | 255.00% | Weak |
6740.T outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Japan Display Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-94.76%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
89.16%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
95.89%
Industry Style: Growth, Innovation, High Beta
High Growth