Nichicon Corporation
Nichicon Corporation Fundamental Analysis
Nichicon Corporation (6996.T) shows weak financial fundamentals with a PE ratio of 46.43, profit margin of 1.64%, and ROE of 2.44%. The company generates $167.3B in annual revenue with weak year-over-year growth of -3.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 6996.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6996.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate6996.T shows balanced valuation metrics.
Growth Score
Weak6996.T faces weak or negative growth trends.
Financial Health Score
Excellent6996.T maintains a strong and stable balance sheet.
Profitability Score
Moderate6996.T maintains healthy but balanced margins.
Key Financial Metrics
Is 6996.T Expensive or Cheap?
P/E Ratio
6996.T trades at 46.43 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 6996.T's PEG of -2.46 indicates potential undervaluation.
Price to Book
The market values Nichicon Corporation at 1.10 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.52 times EBITDA. This is generally considered low.
How Well Does 6996.T Make Money?
Net Profit Margin
For every $100 in sales, Nichicon Corporation keeps $1.64 as profit after all expenses.
Operating Margin
Core operations generate 3.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.44 in profit for every $100 of shareholder equity.
ROA
Nichicon Corporation generates $1.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nichicon Corporation generates limited operating cash flow of $12.50B, signaling weaker underlying cash strength.
Free Cash Flow
Nichicon Corporation produces free cash flow of $5.76B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $85.72 in free cash annually.
FCF Yield
6996.T converts 4.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
46.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 6996.T Stacks Against Its Sector Peers
| Metric | 6996.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 46.43 | 34.43 | Worse (Expensive) |
| ROE | 2.44% | 1135.00% | Weak |
| Net Margin | 1.64% | -134663.00% (disorted) | Weak |
| Debt/Equity | 0.21 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 2.15 | 5.77 | Strong Liquidity |
| ROA | 1.39% | -310462.00% (disorted) | Weak |
6996.T outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nichicon Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.94%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
111.97%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
286.75%
Industry Style: Growth, Innovation, High Beta
High Growth