Micronics Japan Co., Ltd. Fundamental Analysis (JPX: 6871.T)
Micronics Japan Co., Ltd. (JPX: 6871.T) shows strong financial fundamentals with a PE ratio of 28.05, profit margin of 21.74%, and ROE of 25.99%. The company generates $86.3B in annual revenue with strong year-over-year growth of 26.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.2/100 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 6871.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent6871.T demonstrates superior asset utilization.
Valuation Score
Moderate6871.T shows balanced valuation metrics.
Growth Score
Excellent6871.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent6871.T maintains a strong and stable balance sheet.
Profitability Score
Moderate6871.T maintains healthy but balanced margins.
Key Financial Metrics
Is 6871.T Expensive or Cheap?
P/E Ratio
6871.T trades at 28.05 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 6871.T's PEG of 0.32 indicates potential undervaluation.
Price to Book
The market values Micronics Japan Co., Ltd. at 5.76 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.23 times EBITDA. This signals the market has high growth expectations.
How Well Does 6871.T Make Money?
Net Profit Margin
For every $100 in sales, Micronics Japan Co., Ltd. keeps $21.74 as profit after all expenses.
Operating Margin
Core operations generate 28.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.99 in profit for every $100 of shareholder equity.
ROA
Micronics Japan Co., Ltd. generates $13.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Micronics Japan Co., Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Micronics Japan Co., Ltd. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
6871.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How 6871.T Stacks Against Its Sector Peers
| Metric | 6871.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.05 | 34.93 | Better (Cheaper) |
| ROE | 25.99% | 750.00% | Weak |
| Net Margin | 21.74% | -3058.00% (disorted) | Strong |
| Debt/Equity | 0.07 | 0.65 | Strong (Low Leverage) |
| Current Ratio | 1.78 | 6.21 | Neutral |
| ROA | 13.51% | 308.00% | Weak |
6871.T outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Micronics Japan Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
73.47%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
44.80%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
72.83%
Industry Style: Growth, Innovation, High Beta
High Growth