Hi-Lex Corporation
Hi-Lex Corporation Fundamental Analysis
Hi-Lex Corporation (7279.T) shows moderate financial fundamentals with a PE ratio of 2.87, profit margin of 12.35%, and ROE of 22.33%. The company generates $332.2B in annual revenue with weak year-over-year growth of -1.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.6/100 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 7279.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent7279.T demonstrates superior asset utilization.
Valuation Score
Excellent7279.T trades at attractive valuation levels.
Growth Score
Weak7279.T faces weak or negative growth trends.
Financial Health Score
Excellent7279.T maintains a strong and stable balance sheet.
Profitability Score
Moderate7279.T maintains healthy but balanced margins.
Key Financial Metrics
Is 7279.T Expensive or Cheap?
P/E Ratio
7279.T trades at 2.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 7279.T's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Hi-Lex Corporation at 0.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.20 times EBITDA. This is generally considered low.
How Well Does 7279.T Make Money?
Net Profit Margin
For every $100 in sales, Hi-Lex Corporation keeps $12.35 as profit after all expenses.
Operating Margin
Core operations generate 0.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.33 in profit for every $100 of shareholder equity.
ROA
Hi-Lex Corporation generates $11.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hi-Lex Corporation generates limited operating cash flow of $12.02B, signaling weaker underlying cash strength.
Free Cash Flow
Hi-Lex Corporation generates weak or negative free cash flow of $3.68B, restricting financial flexibility.
FCF Per Share
Each share generates $99.55 in free cash annually.
FCF Yield
7279.T converts 3.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.007
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How 7279.T Stacks Against Its Sector Peers
| Metric | 7279.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.87 | 25.83 | Better (Cheaper) |
| ROE | 22.33% | 1278.00% | Weak |
| Net Margin | 12.35% | -43774.00% (disorted) | Strong |
| Debt/Equity | 0.16 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.88 | 10.63 | Neutral |
| ROA | 11.07% | -1539613.00% (disorted) | Strong |
7279.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 Hi-Lex Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
57.73%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
343.37%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-4.44%
Industry Style: Cyclical, Value, Infrastructure
Declining