Aichi Financial Group, Inc. Fundamental Analysis (JPX: 7389.T)
Aichi Financial Group, Inc. Fundamental Analysis (JPX: 7389.T)
Aichi Financial Group, Inc. (JPX: 7389.T) shows strong financial fundamentals with a PE ratio of 13.84, profit margin of 24.00%, and ROE of 7.59%. The company generates $135.4B in annual revenue with strong year-over-year growth of 20.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.4/100 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 7389.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7389.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent7389.T trades at attractive valuation levels.
Growth Score
Moderate7389.T shows steady but slowing expansion.
Financial Health Score
Excellent7389.T maintains a strong and stable balance sheet.
Profitability Score
Weak7389.T struggles to sustain strong margins.
Key Financial Metrics
Is 7389.T Expensive or Cheap?
P/E Ratio
7389.T trades at 13.84 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 7389.T's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Aichi Financial Group, Inc. at 0.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.70 times EBITDA. This signals the market has high growth expectations.
How Well Does 7389.T Make Money?
Net Profit Margin
For every $100 in sales, Aichi Financial Group, Inc. keeps $24.00 as profit after all expenses.
Operating Margin
Core operations generate 30.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.59 in profit for every $100 of shareholder equity.
ROA
Aichi Financial Group, Inc. generates $0.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aichi Financial Group, Inc. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Aichi Financial Group, Inc. 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
7389.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How 7389.T Stacks Against Its Sector Peers
| Metric | 7389.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.84 | 21.08 | Better (Cheaper) |
| ROE | 7.59% | 658.00% | Weak |
| Net Margin | 24.00% | -1621.00% (disorted) | Strong |
| Debt/Equity | 0.81 | 0.92 | Neutral |
| Current Ratio | 5.41 | 927.71 | Strong Liquidity |
| ROA | 0.46% | -588.00% (disorted) | Weak |
7389.T outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aichi 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
46.61%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-76.65%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
23.89%
Industry Style: Value, Dividend, Cyclical
High Growth