Kowa Co.,Ltd.
Kowa Co.,Ltd. Fundamental Analysis
Kowa Co.,Ltd. (7807.T) shows moderate financial fundamentals with a PE ratio of 7.87, profit margin of 6.87%, and ROE of 14.53%. The company generates $6.4B in annual revenue with weak year-over-year growth of -0.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 7807.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7807.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate7807.T shows balanced valuation metrics.
Growth Score
Weak7807.T faces weak or negative growth trends.
Financial Health Score
Excellent7807.T maintains a strong and stable balance sheet.
Profitability Score
Weak7807.T struggles to sustain strong margins.
Key Financial Metrics
Is 7807.T Expensive or Cheap?
P/E Ratio
7807.T trades at 7.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 7807.T's PEG of 7.80 indicates potential overvaluation.
Price to Book
The market values Kowa Co.,Ltd. at 1.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.20 times EBITDA. This is generally considered low.
How Well Does 7807.T Make Money?
Net Profit Margin
For every $100 in sales, Kowa Co.,Ltd. keeps $6.87 as profit after all expenses.
Operating Margin
Core operations generate 10.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.53 in profit for every $100 of shareholder equity.
ROA
Kowa Co.,Ltd. generates $8.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kowa Co.,Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Kowa Co.,Ltd. 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
7807.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.80
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How 7807.T Stacks Against Its Sector Peers
| Metric | 7807.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.87 | 23.72 | Better (Cheaper) |
| ROE | 14.53% | 1091.00% | Weak |
| Net Margin | 6.87% | -629.00% (disorted) | Weak |
| Debt/Equity | 0.06 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 2.88 | 2.64 | Strong Liquidity |
| ROA | 8.93% | 1050.00% | Weak |
7807.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 Kowa Co.,Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
6.67%
Industry Style: Cyclical, Growth, Discretionary
GrowingEPS CAGR
267.54%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
719.91%
Industry Style: Cyclical, Growth, Discretionary
High Growth