Nichiha Corporation
Nichiha Corporation Fundamental Analysis
Nichiha Corporation (7943.T) shows weak financial fundamentals with a PE ratio of 32.02, profit margin of 2.39%, and ROE of 2.87%. The company generates $145.6B in annual revenue with moderate year-over-year growth of 3.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 7943.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7943.T struggles to generate sufficient returns from assets.
Valuation Score
Weak7943.T trades at a premium to fair value.
Growth Score
Weak7943.T faces weak or negative growth trends.
Financial Health Score
Excellent7943.T maintains a strong and stable balance sheet.
Profitability Score
Weak7943.T struggles to sustain strong margins.
Key Financial Metrics
Is 7943.T Expensive or Cheap?
P/E Ratio
7943.T trades at 32.02 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 7943.T's PEG of 5.58 indicates potential overvaluation.
Price to Book
The market values Nichiha Corporation at 0.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.83 times EBITDA. This is generally considered low.
How Well Does 7943.T Make Money?
Net Profit Margin
For every $100 in sales, Nichiha Corporation keeps $2.39 as profit after all expenses.
Operating Margin
Core operations generate 5.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.87 in profit for every $100 of shareholder equity.
ROA
Nichiha Corporation generates $2.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nichiha Corporation generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Nichiha Corporation 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
7943.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.58
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How 7943.T Stacks Against Its Sector Peers
| Metric | 7943.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.02 | 25.96 | Worse (Expensive) |
| ROE | 2.87% | 1263.00% | Weak |
| Net Margin | 2.39% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.13 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.72 | 10.05 | Strong Liquidity |
| ROA | 2.04% | -1497918.00% (disorted) | Weak |
7943.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 Nichiha Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.30%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-73.16%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-38.18%
Industry Style: Cyclical, Value, Infrastructure
Declining