Zenken Corporation
Zenken Corporation Fundamental Analysis
Zenken Corporation (7371.T) shows weak financial fundamentals with a PE ratio of 22.88, profit margin of 6.79%, and ROE of 3.03%. The company generates $5.5B in annual revenue with weak year-over-year growth of -1.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 7371.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7371.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate7371.T shows balanced valuation metrics.
Growth Score
Moderate7371.T shows steady but slowing expansion.
Financial Health Score
Excellent7371.T maintains a strong and stable balance sheet.
Profitability Score
Weak7371.T struggles to sustain strong margins.
Key Financial Metrics
Is 7371.T Expensive or Cheap?
P/E Ratio
7371.T trades at 22.88 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 7371.T's PEG of 2.30 indicates potential overvaluation.
Price to Book
The market values Zenken Corporation at 0.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 21.63 times EBITDA. This signals the market has high growth expectations.
How Well Does 7371.T Make Money?
Net Profit Margin
For every $100 in sales, Zenken Corporation keeps $6.79 as profit after all expenses.
Operating Margin
Core operations generate 7.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.03 in profit for every $100 of shareholder equity.
ROA
Zenken Corporation generates $2.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zenken Corporation generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Zenken Corporation generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
7371.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.004
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How 7371.T Stacks Against Its Sector Peers
| Metric | 7371.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.88 | 25.83 | Better (Cheaper) |
| ROE | 3.03% | 1278.00% | Weak |
| Net Margin | 6.79% | -43774.00% (disorted) | Weak |
| Debt/Equity | 0.04 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 4.00 | 10.63 | Strong Liquidity |
| ROA | 2.55% | -1539613.00% (disorted) | Weak |
7371.T outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zenken Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-7.54%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-11.73%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-16.03%
Industry Style: Cyclical, Value, Infrastructure
Declining