Asahi Kagaku Kogyo Co.,Ltd. Fundamental Analysis (JPX: 7928.T)
Asahi Kagaku Kogyo Co.,Ltd. Fundamental Analysis (JPX: 7928.T)
Asahi Kagaku Kogyo Co.,Ltd. (JPX: 7928.T) shows weak financial fundamentals with a PE ratio of 40.23, profit margin of 0.58%, and ROE of 0.90%. The company generates $8.6B in annual revenue with weak year-over-year growth of 0.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -221.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 7928.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7928.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate7928.T shows balanced valuation metrics.
Growth Score
Weak7928.T faces weak or negative growth trends.
Financial Health Score
Excellent7928.T maintains a strong and stable balance sheet.
Profitability Score
Weak7928.T struggles to sustain strong margins.
Key Financial Metrics
Is 7928.T Expensive or Cheap?
P/E Ratio
7928.T trades at 40.23 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 7928.T's PEG of 0.23 indicates potential undervaluation.
Price to Book
The market values Asahi Kagaku Kogyo Co.,Ltd. at 0.34 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.90 times EBITDA. This is generally considered low.
How Well Does 7928.T Make Money?
Net Profit Margin
For every $100 in sales, Asahi Kagaku Kogyo Co.,Ltd. keeps $0.58 as profit after all expenses.
Operating Margin
Core operations generate 0.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.90 in profit for every $100 of shareholder equity.
ROA
Asahi Kagaku Kogyo Co.,Ltd. generates $0.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Asahi Kagaku Kogyo Co.,Ltd. generates limited operating cash flow of $137.71M, signaling weaker underlying cash strength.
Free Cash Flow
Asahi Kagaku Kogyo Co.,Ltd. generates weak or negative free cash flow of $-513.20M, restricting financial flexibility.
FCF Per Share
Each share generates $-168.85 in free cash annually.
FCF Yield
7928.T converts -26.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.009
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.007
vs 25 benchmark
How 7928.T Stacks Against Its Sector Peers
| Metric | 7928.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.23 | 30.52 | Worse (Expensive) |
| ROE | 0.90% | 1172.00% | Weak |
| Net Margin | 0.58% | -20786.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.38 | Strong (Low Leverage) |
| Current Ratio | 2.75 | 24.22 | Strong Liquidity |
| ROA | 0.68% | -1311221.00% (disorted) | Weak |
7928.T outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Asahi Kagaku Kogyo Co.,Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
12.54%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
1.81%
Industry Style: Cyclical, Value, Infrastructure
GrowingFCF CAGR
-69.44%
Industry Style: Cyclical, Value, Infrastructure
Declining