Keyence Corporation
Keyence Corporation Fundamental Analysis
Keyence Corporation (6861.T) shows moderate financial fundamentals with a PE ratio of 42.12, profit margin of 38.07%, and ROE of 13.44%. The company generates $1169.3B in annual revenue with moderate year-over-year growth of 9.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.9/100 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 6861.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent6861.T demonstrates superior asset utilization.
Valuation Score
Weak6861.T trades at a premium to fair value.
Growth Score
Moderate6861.T shows steady but slowing expansion.
Financial Health Score
Excellent6861.T maintains a strong and stable balance sheet.
Profitability Score
Moderate6861.T maintains healthy but balanced margins.
Key Financial Metrics
Is 6861.T Expensive or Cheap?
P/E Ratio
6861.T trades at 42.12 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 6861.T's PEG of 3.61 indicates potential overvaluation.
Price to Book
The market values Keyence Corporation at 5.40 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 30.22 times EBITDA. This signals the market has high growth expectations.
How Well Does 6861.T Make Money?
Net Profit Margin
For every $100 in sales, Keyence Corporation keeps $38.07 as profit after all expenses.
Operating Margin
Core operations generate 50.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.44 in profit for every $100 of shareholder equity.
ROA
Keyence Corporation generates $12.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Keyence Corporation generates strong operating cash flow of $396.78B, reflecting robust business health.
Free Cash Flow
Keyence Corporation generates strong free cash flow of $378.13B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1559.14 in free cash annually.
FCF Yield
6861.T converts 2.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
42.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
16.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
10.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How 6861.T Stacks Against Its Sector Peers
| Metric | 6861.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 42.12 | 36.95 | Worse (Expensive) |
| ROE | 13.44% | 980.00% | Weak |
| Net Margin | 38.07% | 5932929733.00% | Weak |
| Debt/Equity | 0.00 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 10.54 | 5.07 | Strong Liquidity |
| ROA | 12.13% | -296005.00% (disorted) | Strong |
6861.T outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Keyence Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
91.93%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
101.22%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
101.31%
Industry Style: Growth, Innovation, High Beta
High Growth