United Arrows Ltd. Fundamental Analysis (JPX: 7606.T)
United Arrows Ltd. (JPX: 7606.T) shows moderate financial fundamentals with a PE ratio of 10.22, profit margin of 4.07%, and ROE of 16.47%. The company generates $166.3B in annual revenue with moderate year-over-year growth of 9.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.5/100 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 7606.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7606.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent7606.T trades at attractive valuation levels.
Growth Score
Excellent7606.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent7606.T maintains a strong and stable balance sheet.
Profitability Score
Moderate7606.T maintains healthy but balanced margins.
Key Financial Metrics
Is 7606.T Expensive or Cheap?
P/E Ratio
7606.T trades at 10.22 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 7606.T's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values United Arrows Ltd. at 1.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.04 times EBITDA. This is generally considered low.
How Well Does 7606.T Make Money?
Net Profit Margin
For every $100 in sales, United Arrows Ltd. keeps $4.07 as profit after all expenses.
Operating Margin
Core operations generate 5.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.47 in profit for every $100 of shareholder equity.
ROA
United Arrows Ltd. generates $9.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
United Arrows Ltd. generates limited operating cash flow of $8.99B, signaling weaker underlying cash strength.
Free Cash Flow
United Arrows Ltd. produces free cash flow of $5.35B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $193.65 in free cash annually.
FCF Yield
7606.T converts 7.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How 7606.T Stacks Against Its Sector Peers
| Metric | 7606.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.22 | 25.68 | Better (Cheaper) |
| ROE | 16.47% | 970.00% | Weak |
| Net Margin | 4.07% | -4902.00% (disorted) | Weak |
| Debt/Equity | 0.12 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 1.83 | 2.33 | Neutral |
| ROA | 9.63% | 321.00% | Weak |
7606.T outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews United Arrows Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
39.46%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
187.57%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
233.83%
Industry Style: Cyclical, Growth, Discretionary
High Growth