TRANSACTION CO.,Ltd.
TRANSACTION CO.,Ltd. Fundamental Analysis
TRANSACTION CO.,Ltd. (7818.T) shows moderate financial fundamentals with a PE ratio of 15.13, profit margin of 15.03%, and ROE of 21.80%. The company generates $14.4B in annual revenue with moderate year-over-year growth of 9.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.6/100 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 7818.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent7818.T demonstrates superior asset utilization.
Valuation Score
Moderate7818.T shows balanced valuation metrics.
Growth Score
Moderate7818.T shows steady but slowing expansion.
Financial Health Score
Excellent7818.T maintains a strong and stable balance sheet.
Profitability Score
Excellent7818.T achieves industry-leading margins.
Key Financial Metrics
Is 7818.T Expensive or Cheap?
P/E Ratio
7818.T trades at 15.13 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 7818.T's PEG of 3.05 indicates potential overvaluation.
Price to Book
The market values TRANSACTION CO.,Ltd. at 3.29 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.88 times EBITDA. This is generally considered low.
How Well Does 7818.T Make Money?
Net Profit Margin
For every $100 in sales, TRANSACTION CO.,Ltd. keeps $15.03 as profit after all expenses.
Operating Margin
Core operations generate 21.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.80 in profit for every $100 of shareholder equity.
ROA
TRANSACTION CO.,Ltd. generates $18.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TRANSACTION CO.,Ltd. produces operating cash flow of $2.16B, showing steady but balanced cash generation.
Free Cash Flow
TRANSACTION CO.,Ltd. generates strong free cash flow of $2.01B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $69.85 in free cash annually.
FCF Yield
7818.T converts 12.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How 7818.T Stacks Against Its Sector Peers
| Metric | 7818.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.13 | 22.36 | Better (Cheaper) |
| ROE | 21.80% | 1238.00% | Weak |
| Net Margin | 15.03% | -5096.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 1.23 | Strong (Low Leverage) |
| Current Ratio | 4.83 | 2.47 | Strong Liquidity |
| ROA | 18.04% | -191998.00% (disorted) | Strong |
7818.T outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TRANSACTION CO.,Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-24.73%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
25.01%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
33.36%
Industry Style: Defensive, Dividend, Low Volatility
High Growth