Fanuc Corporation
Fanuc Corporation Fundamental Analysis
Fanuc Corporation (6954.T) shows weak financial fundamentals with a PE ratio of 35.23, profit margin of 19.35%, and ROE of 9.23%. The company generates $835.4B in annual revenue with weak year-over-year growth of -6.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 6954.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6954.T struggles to generate sufficient returns from assets.
Valuation Score
Weak6954.T trades at a premium to fair value.
Growth Score
Weak6954.T faces weak or negative growth trends.
Financial Health Score
Excellent6954.T maintains a strong and stable balance sheet.
Profitability Score
Weak6954.T struggles to sustain strong margins.
Key Financial Metrics
Is 6954.T Expensive or Cheap?
P/E Ratio
6954.T trades at 35.23 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 6954.T's PEG of 13.24 indicates potential overvaluation.
Price to Book
The market values Fanuc Corporation at 3.17 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.00 times EBITDA. This signals the market has high growth expectations.
How Well Does 6954.T Make Money?
Net Profit Margin
For every $100 in sales, Fanuc Corporation keeps $19.35 as profit after all expenses.
Operating Margin
Core operations generate 21.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.23 in profit for every $100 of shareholder equity.
ROA
Fanuc Corporation generates $7.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fanuc Corporation generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Fanuc Corporation 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
6954.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
13.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.009
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 6954.T Stacks Against Its Sector Peers
| Metric | 6954.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.23 | 25.83 | Worse (Expensive) |
| ROE | 9.23% | 1278.00% | Weak |
| Net Margin | 19.35% | -43774.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 6.86 | 10.63 | Strong Liquidity |
| ROA | 7.99% | -1539613.00% (disorted) | Weak |
6954.T outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fanuc Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.57%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-13.32%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-3.02%
Industry Style: Cyclical, Value, Infrastructure
Declining