Hagihara Industries Inc.
Hagihara Industries Inc. Fundamental Analysis
Hagihara Industries Inc. (7856.T) shows weak financial fundamentals with a PE ratio of 21.03, profit margin of 3.75%, and ROE of 3.88%. The company generates $31.5B in annual revenue with moderate year-over-year growth of 5.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.3/100 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 7856.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7856.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent7856.T trades at attractive valuation levels.
Growth Score
Moderate7856.T shows steady but slowing expansion.
Financial Health Score
Excellent7856.T maintains a strong and stable balance sheet.
Profitability Score
Weak7856.T struggles to sustain strong margins.
Key Financial Metrics
Is 7856.T Expensive or Cheap?
P/E Ratio
7856.T trades at 21.03 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 7856.T's PEG of -0.61 indicates potential undervaluation.
Price to Book
The market values Hagihara Industries Inc. at 0.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.09 times EBITDA. This is generally considered low.
How Well Does 7856.T Make Money?
Net Profit Margin
For every $100 in sales, Hagihara Industries Inc. keeps $3.75 as profit after all expenses.
Operating Margin
Core operations generate 4.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.88 in profit for every $100 of shareholder equity.
ROA
Hagihara Industries Inc. generates $2.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hagihara Industries Inc. produces operating cash flow of $4.49B, showing steady but balanced cash generation.
Free Cash Flow
Hagihara Industries Inc. produces free cash flow of $2.04B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $145.00 in free cash annually.
FCF Yield
7856.T converts 8.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 7856.T Stacks Against Its Sector Peers
| Metric | 7856.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.03 | 23.78 | Better (Cheaper) |
| ROE | 3.88% | 1098.00% | Weak |
| Net Margin | 3.75% | -626.00% (disorted) | Weak |
| Debt/Equity | 0.14 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 2.65 | 2.64 | Strong Liquidity |
| ROA | 2.76% | -8081.00% (disorted) | Weak |
7856.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 Hagihara Industries Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
17.76%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-20.54%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
29.15%
Industry Style: Cyclical, Growth, Discretionary
High Growth