Yokohama Financial Group, Inc. Fundamental Analysis (JPX: 7186.T)
Yokohama Financial Group, Inc. Fundamental Analysis (JPX: 7186.T)
Yokohama Financial Group, Inc. (JPX: 7186.T) shows moderate financial fundamentals with a PE ratio of 19.38, profit margin of 22.43%, and ROE of 7.93%. The company generates $497.1B in annual revenue with moderate year-over-year growth of 6.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 7186.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7186.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent7186.T trades at attractive valuation levels.
Growth Score
Excellent7186.T delivers strong and consistent growth momentum.
Financial Health Score
Moderate7186.T shows balanced financial health with some risks.
Profitability Score
Moderate7186.T maintains healthy but balanced margins.
Key Financial Metrics
Is 7186.T Expensive or Cheap?
P/E Ratio
7186.T trades at 19.38 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 7186.T's PEG of 0.63 indicates potential undervaluation.
Price to Book
The market values Yokohama Financial Group, Inc. at 1.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.68 times EBITDA. This signals the market has high growth expectations.
How Well Does 7186.T Make Money?
Net Profit Margin
For every $100 in sales, Yokohama Financial Group, Inc. keeps $22.43 as profit after all expenses.
Operating Margin
Core operations generate 32.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.93 in profit for every $100 of shareholder equity.
ROA
Yokohama Financial Group, Inc. generates $0.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Yokohama Financial Group, Inc. generates strong operating cash flow of $192.15B, reflecting robust business health.
Free Cash Flow
Yokohama Financial Group, Inc. generates strong free cash flow of $178.28B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $160.39 in free cash annually.
FCF Yield
7186.T converts 8.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.007
vs 25 benchmark
How 7186.T Stacks Against Its Sector Peers
| Metric | 7186.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.38 | 21.08 | Neutral |
| ROE | 7.93% | 658.00% | Weak |
| Net Margin | 22.43% | -1621.00% (disorted) | Strong |
| Debt/Equity | 1.76 | 0.92 | Weak (High Leverage) |
| Current Ratio | 7.24 | 927.71 | Strong Liquidity |
| ROA | 0.44% | -588.00% (disorted) | Weak |
7186.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 Yokohama Financial Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.79%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
85.64%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
146.93%
Industry Style: Value, Dividend, Cyclical
High Growth