Aichi Tokei Denki Co., Ltd.
Aichi Tokei Denki Co., Ltd. Fundamental Analysis
Aichi Tokei Denki Co., Ltd. (7723.T) shows moderate financial fundamentals with a PE ratio of 10.67, profit margin of 7.68%, and ROE of 9.13%. The company generates $57.0B in annual revenue with moderate year-over-year growth of 5.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.7/100 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 7723.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7723.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent7723.T trades at attractive valuation levels.
Growth Score
Excellent7723.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent7723.T maintains a strong and stable balance sheet.
Profitability Score
Weak7723.T struggles to sustain strong margins.
Key Financial Metrics
Is 7723.T Expensive or Cheap?
P/E Ratio
7723.T trades at 10.67 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 7723.T's PEG of 0.89 indicates potential undervaluation.
Price to Book
The market values Aichi Tokei Denki Co., Ltd. at 0.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.38 times EBITDA. This is generally considered low.
How Well Does 7723.T Make Money?
Net Profit Margin
For every $100 in sales, Aichi Tokei Denki Co., Ltd. keeps $7.68 as profit after all expenses.
Operating Margin
Core operations generate 8.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.13 in profit for every $100 of shareholder equity.
ROA
Aichi Tokei Denki Co., Ltd. generates $6.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aichi Tokei Denki Co., Ltd. generates limited operating cash flow of $1.31B, signaling weaker underlying cash strength.
Free Cash Flow
Aichi Tokei Denki Co., Ltd. generates weak or negative free cash flow of $919.50M, restricting financial flexibility.
FCF Per Share
Each share generates $59.70 in free cash annually.
FCF Yield
7723.T converts 1.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How 7723.T Stacks Against Its Sector Peers
| Metric | 7723.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.67 | 34.43 | Better (Cheaper) |
| ROE | 9.13% | 1135.00% | Weak |
| Net Margin | 7.68% | -134663.00% (disorted) | Weak |
| Debt/Equity | 0.01 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 3.67 | 5.77 | Strong Liquidity |
| ROA | 6.74% | -310462.00% (disorted) | Weak |
7723.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 Aichi Tokei Denki Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
12.99%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
50.31%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-50.29%
Industry Style: Growth, Innovation, High Beta
Declining