Tachikawa Corporation
Tachikawa Corporation Fundamental Analysis
Tachikawa Corporation (7989.T) shows weak financial fundamentals with a PE ratio of 15.81, profit margin of 7.60%, and ROE of 5.93%. The company generates $42.6B in annual revenue with weak year-over-year growth of 0.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.8/100 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 7989.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7989.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate7989.T shows balanced valuation metrics.
Growth Score
Weak7989.T faces weak or negative growth trends.
Financial Health Score
Excellent7989.T maintains a strong and stable balance sheet.
Profitability Score
Weak7989.T struggles to sustain strong margins.
Key Financial Metrics
Is 7989.T Expensive or Cheap?
P/E Ratio
7989.T trades at 15.81 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 7989.T's PEG of 12.09 indicates potential overvaluation.
Price to Book
The market values Tachikawa Corporation at 0.91 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.25 times EBITDA. This signals the market has high growth expectations.
How Well Does 7989.T Make Money?
Net Profit Margin
For every $100 in sales, Tachikawa Corporation keeps $7.60 as profit after all expenses.
Operating Margin
Core operations generate 9.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.93 in profit for every $100 of shareholder equity.
ROA
Tachikawa Corporation generates $4.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tachikawa Corporation produces operating cash flow of $4.52B, showing steady but balanced cash generation.
Free Cash Flow
Tachikawa Corporation produces free cash flow of $3.71B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $184.76 in free cash annually.
FCF Yield
7989.T converts 7.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
12.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.003
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How 7989.T Stacks Against Its Sector Peers
| Metric | 7989.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.81 | 23.72 | Better (Cheaper) |
| ROE | 5.93% | 1091.00% | Weak |
| Net Margin | 7.60% | -629.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 4.76 | 2.64 | Strong Liquidity |
| ROA | 4.78% | 1050.00% | Weak |
7989.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 Tachikawa Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1.61%
Industry Style: Cyclical, Growth, Discretionary
GrowingEPS CAGR
4.70%
Industry Style: Cyclical, Growth, Discretionary
GrowingFCF CAGR
-40.87%
Industry Style: Cyclical, Growth, Discretionary
Declining