Nitto Denko Corporation
Nitto Denko Corporation Fundamental Analysis
Nitto Denko Corporation (6988.T) shows moderate financial fundamentals with a PE ratio of 16.38, profit margin of 13.14%, and ROE of 12.74%. The company generates $1021.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.4/100 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 6988.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6988.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate6988.T shows balanced valuation metrics.
Growth Score
Moderate6988.T shows steady but slowing expansion.
Financial Health Score
Excellent6988.T maintains a strong and stable balance sheet.
Profitability Score
Weak6988.T struggles to sustain strong margins.
Key Financial Metrics
Is 6988.T Expensive or Cheap?
P/E Ratio
6988.T trades at 16.38 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 6988.T's PEG of 2.19 indicates potential overvaluation.
Price to Book
The market values Nitto Denko Corporation at 1.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.96 times EBITDA. This is generally considered low.
How Well Does 6988.T Make Money?
Net Profit Margin
For every $100 in sales, Nitto Denko Corporation keeps $13.14 as profit after all expenses.
Operating Margin
Core operations generate 18.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.74 in profit for every $100 of shareholder equity.
ROA
Nitto Denko Corporation generates $9.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nitto Denko Corporation produces operating cash flow of $192.92B, showing steady but balanced cash generation.
Free Cash Flow
Nitto Denko Corporation produces free cash flow of $90.87B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $134.90 in free cash annually.
FCF Yield
6988.T converts 4.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.005
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How 6988.T Stacks Against Its Sector Peers
| Metric | 6988.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.38 | 24.91 | Better (Cheaper) |
| ROE | 12.74% | 840.00% | Weak |
| Net Margin | 13.14% | -105381.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 3.56 | 4.94 | Strong Liquidity |
| ROA | 9.74% | -4176.00% (disorted) | Weak |
6988.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 Nitto Denko Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value