Descente Ltd.
Descente Ltd. Fundamental Analysis
Descente Ltd. (8114.T) shows weak financial fundamentals with a PE ratio of 27.25, profit margin of 9.46%, and ROE of 11.29%. The company generates $127.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 8114.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8114.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate8114.T shows balanced valuation metrics.
Growth Score
Moderate8114.T shows steady but slowing expansion.
Financial Health Score
Excellent8114.T maintains a strong and stable balance sheet.
Profitability Score
Weak8114.T struggles to sustain strong margins.
Key Financial Metrics
Is 8114.T Expensive or Cheap?
P/E Ratio
8114.T trades at 27.25 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 8114.T's PEG of 0.27 indicates potential undervaluation.
Price to Book
The market values Descente Ltd. at 2.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.84 times EBITDA. This signals the market has high growth expectations.
How Well Does 8114.T Make Money?
Net Profit Margin
For every $100 in sales, Descente Ltd. keeps $9.46 as profit after all expenses.
Operating Margin
Core operations generate 6.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.29 in profit for every $100 of shareholder equity.
ROA
Descente Ltd. generates $7.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Descente Ltd. generates limited operating cash flow of $7.40B, signaling weaker underlying cash strength.
Free Cash Flow
Descente Ltd. produces free cash flow of $5.83B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $77.18 in free cash annually.
FCF Yield
8114.T converts 1.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How 8114.T Stacks Against Its Sector Peers
| Metric | 8114.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.25 | 23.72 | Worse (Expensive) |
| ROE | 11.29% | 1091.00% | Weak |
| Net Margin | 9.46% | -627.00% (disorted) | Weak |
| Debt/Equity | 0.07 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 3.29 | 2.64 | Strong Liquidity |
| ROA | 7.99% | 1053.00% | Weak |
8114.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 Descente Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary