MegaChips Corporation
MegaChips Corporation Fundamental Analysis
MegaChips Corporation (6875.T) shows moderate financial fundamentals with a PE ratio of 10.41, profit margin of 35.20%, and ROE of 8.51%. The company generates $36.8B in annual revenue with weak year-over-year growth of -26.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 6875.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6875.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent6875.T trades at attractive valuation levels.
Growth Score
Moderate6875.T shows steady but slowing expansion.
Financial Health Score
Excellent6875.T maintains a strong and stable balance sheet.
Profitability Score
Moderate6875.T maintains healthy but balanced margins.
Key Financial Metrics
Is 6875.T Expensive or Cheap?
P/E Ratio
6875.T trades at 10.41 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 6875.T's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values MegaChips Corporation at 0.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 55.04 times EBITDA. This signals the market has high growth expectations.
How Well Does 6875.T Make Money?
Net Profit Margin
For every $100 in sales, MegaChips Corporation keeps $35.20 as profit after all expenses.
Operating Margin
Core operations generate 3.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.51 in profit for every $100 of shareholder equity.
ROA
MegaChips Corporation generates $5.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MegaChips Corporation produces operating cash flow of $5.91B, showing steady but balanced cash generation.
Free Cash Flow
MegaChips Corporation generates strong free cash flow of $4.04B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $260.83 in free cash annually.
FCF Yield
6875.T converts 3.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How 6875.T Stacks Against Its Sector Peers
| Metric | 6875.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.41 | 33.94 | Better (Cheaper) |
| ROE | 8.51% | 1002.00% | Weak |
| Net Margin | 35.20% | -48086.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 3.82 | 5.74 | Strong Liquidity |
| ROA | 5.05% | -288351.00% (disorted) | Weak |
6875.T outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MegaChips Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-20.14%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
471.92%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-116.36%
Industry Style: Growth, Innovation, High Beta
Declining