Shoei Co., Limited
Shoei Co., Limited Fundamental Analysis
Shoei Co., Limited (7839.T) shows moderate financial fundamentals with a PE ratio of 14.87, profit margin of 18.69%, and ROE of 19.84%. The company generates $31.8B in annual revenue with weak year-over-year growth of -9.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.1/100 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 7839.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent7839.T demonstrates superior asset utilization.
Valuation Score
Excellent7839.T trades at attractive valuation levels.
Growth Score
Weak7839.T faces weak or negative growth trends.
Financial Health Score
Excellent7839.T maintains a strong and stable balance sheet.
Profitability Score
Excellent7839.T achieves industry-leading margins.
Key Financial Metrics
Is 7839.T Expensive or Cheap?
P/E Ratio
7839.T trades at 14.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 7839.T's PEG of -2.87 indicates potential undervaluation.
Price to Book
The market values Shoei Co., Limited at 3.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.46 times EBITDA. This signals the market has high growth expectations.
How Well Does 7839.T Make Money?
Net Profit Margin
For every $100 in sales, Shoei Co., Limited keeps $18.69 as profit after all expenses.
Operating Margin
Core operations generate 26.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.84 in profit for every $100 of shareholder equity.
ROA
Shoei Co., Limited generates $17.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shoei Co., Limited generates strong operating cash flow of $9.68B, reflecting robust business health.
Free Cash Flow
Shoei Co., Limited generates strong free cash flow of $8.38B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $161.08 in free cash annually.
FCF Yield
7839.T converts 9.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How 7839.T Stacks Against Its Sector Peers
| Metric | 7839.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.87 | 23.72 | Better (Cheaper) |
| ROE | 19.84% | 1091.00% | Weak |
| Net Margin | 18.69% | -627.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 7.31 | 2.64 | Strong Liquidity |
| ROA | 17.68% | 1053.00% | Weak |
7839.T outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shoei Co., Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
70.88%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
94.08%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
120.94%
Industry Style: Cyclical, Growth, Discretionary
High Growth