GMO Financial Holdings, Inc. Fundamental Analysis (JPX: 7177.T)
GMO Financial Holdings, Inc. Fundamental Analysis (JPX: 7177.T)
GMO Financial Holdings, Inc. (JPX: 7177.T) shows moderate financial fundamentals with a PE ratio of 12.61, profit margin of 20.64%, and ROE of 19.75%. The company generates $52.1B in annual revenue with weak year-over-year growth of -7.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -74.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 7177.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7177.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent7177.T trades at attractive valuation levels.
Growth Score
Weak7177.T faces weak or negative growth trends.
Financial Health Score
Moderate7177.T shows balanced financial health with some risks.
Profitability Score
Moderate7177.T maintains healthy but balanced margins.
Key Financial Metrics
Is 7177.T Expensive or Cheap?
P/E Ratio
7177.T trades at 12.61 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 7177.T's PEG of 0.87 indicates potential undervaluation.
Price to Book
The market values GMO Financial Holdings, Inc. at 2.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.60 times EBITDA. This is generally considered low.
How Well Does 7177.T Make Money?
Net Profit Margin
For every $100 in sales, GMO Financial Holdings, Inc. keeps $20.64 as profit after all expenses.
Operating Margin
Core operations generate 30.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.75 in profit for every $100 of shareholder equity.
ROA
GMO Financial Holdings, Inc. generates $0.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GMO Financial Holdings, Inc. generates limited operating cash flow of $-8.51B, signaling weaker underlying cash strength.
Free Cash Flow
GMO Financial Holdings, Inc. generates weak or negative free cash flow of $-8.62B, restricting financial flexibility.
FCF Per Share
Each share generates $-73.07 in free cash annually.
FCF Yield
7177.T converts -6.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How 7177.T Stacks Against Its Sector Peers
| Metric | 7177.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.61 | 21.07 | Better (Cheaper) |
| ROE | 19.75% | 647.00% | Weak |
| Net Margin | 20.64% | -1593.00% (disorted) | Strong |
| Debt/Equity | 4.17 | 0.90 | Weak (High Leverage) |
| Current Ratio | 1.45 | 911.99 | Neutral |
| ROA | 0.82% | -578.00% (disorted) | Weak |
7177.T outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GMO Financial Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.54%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
42.06%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
257.19%
Industry Style: Value, Dividend, Cyclical
High Growth