Nippon Ceramic Co., Ltd. Fundamental Analysis (JPX: 6929.T)
Nippon Ceramic Co., Ltd. Fundamental Analysis (JPX: 6929.T)
Nippon Ceramic Co., Ltd. (JPX: 6929.T) shows moderate financial fundamentals with a PE ratio of 13.29, profit margin of 18.33%, and ROE of 10.88%. The company generates $27.0B in annual revenue with moderate year-over-year growth of 9.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.8/100 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 6929.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6929.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent6929.T trades at attractive valuation levels.
Growth Score
Excellent6929.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent6929.T maintains a strong and stable balance sheet.
Profitability Score
Moderate6929.T maintains healthy but balanced margins.
Key Financial Metrics
Is 6929.T Expensive or Cheap?
P/E Ratio
6929.T trades at 13.29 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 6929.T's PEG of -0.54 indicates potential undervaluation.
Price to Book
The market values Nippon Ceramic Co., Ltd. at 1.42 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.36 times EBITDA. This signals the market has high growth expectations.
How Well Does 6929.T Make Money?
Net Profit Margin
For every $100 in sales, Nippon Ceramic Co., Ltd. keeps $18.33 as profit after all expenses.
Operating Margin
Core operations generate 22.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.88 in profit for every $100 of shareholder equity.
ROA
Nippon Ceramic Co., Ltd. generates $9.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nippon Ceramic Co., Ltd. produces operating cash flow of $6.28B, showing steady but balanced cash generation.
Free Cash Flow
Nippon Ceramic Co., Ltd. generates strong free cash flow of $5.29B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $261.53 in free cash annually.
FCF Yield
6929.T converts 8.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
11.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How 6929.T Stacks Against Its Sector Peers
| Metric | 6929.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.29 | 32.45 | Better (Cheaper) |
| ROE | 10.88% | 794.00% | Weak |
| Net Margin | 18.33% | -4303.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.95 | Strong (Low Leverage) |
| Current Ratio | 11.89 | 12.20 | Strong Liquidity |
| ROA | 9.39% | 1073031.00% | Weak |
6929.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 Nippon Ceramic Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
92.08%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
295.08%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
101.54%
Industry Style: Growth, Innovation, High Beta
High Growth