ShinMaywa Industries, Ltd. Fundamental Analysis
ShinMaywa Industries, Ltd. (7224.T) shows weak financial fundamentals with a PE ratio of 11.76, profit margin of 4.04%, and ROE of 9.86%. The company generates $285.1B 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 65.4/100 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 7224.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7224.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent7224.T trades at attractive valuation levels.
Growth Score
Moderate7224.T shows steady but slowing expansion.
Financial Health Score
Excellent7224.T maintains a strong and stable balance sheet.
Profitability Score
Weak7224.T struggles to sustain strong margins.
Key Financial Metrics
Is 7224.T Expensive or Cheap?
P/E Ratio
7224.T trades at 11.76 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 7224.T's PEG of 0.42 indicates potential undervaluation.
Price to Book
The market values ShinMaywa Industries, Ltd. at 1.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.34 times EBITDA. This is generally considered low.
How Well Does 7224.T Make Money?
Net Profit Margin
For every $100 in sales, ShinMaywa Industries, Ltd. keeps $4.04 as profit after all expenses.
Operating Margin
Core operations generate 5.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.86 in profit for every $100 of shareholder equity.
ROA
ShinMaywa Industries, Ltd. generates $3.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ShinMaywa Industries, Ltd. generates limited operating cash flow of $24.37B, signaling weaker underlying cash strength.
Free Cash Flow
ShinMaywa Industries, Ltd. produces free cash flow of $15.01B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $226.92 in free cash annually.
FCF Yield
7224.T converts 11.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How 7224.T Stacks Against Its Sector Peers
| Metric | 7224.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.76 | 30.74 | Better (Cheaper) |
| ROE | 9.86% | 1123.00% | Weak |
| Net Margin | 4.04% | -21189.00% (disorted) | Weak |
| Debt/Equity | 0.39 | 0.47 | Neutral |
| Current Ratio | 1.67 | 24.77 | Neutral |
| ROA | 3.89% | -1311246.00% (disorted) | Weak |
7224.T outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ShinMaywa Industries, Ltd.'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, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure