Nippon Gas Co., Ltd.
Nippon Gas Co., Ltd. Fundamental Analysis
Nippon Gas Co., Ltd. (8174.T) shows moderate financial fundamentals with a PE ratio of 24.51, profit margin of 6.50%, and ROE of 20.44%. The company generates $201.7B in annual revenue with weak year-over-year growth of 2.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.6/100 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 8174.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8174.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent8174.T trades at attractive valuation levels.
Growth Score
Weak8174.T faces weak or negative growth trends.
Financial Health Score
Excellent8174.T maintains a strong and stable balance sheet.
Profitability Score
Moderate8174.T maintains healthy but balanced margins.
Key Financial Metrics
Is 8174.T Expensive or Cheap?
P/E Ratio
8174.T trades at 24.51 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 8174.T's PEG of -129.87 indicates potential undervaluation.
Price to Book
The market values Nippon Gas Co., Ltd. at 5.21 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.47 times EBITDA. This is generally considered low.
How Well Does 8174.T Make Money?
Net Profit Margin
For every $100 in sales, Nippon Gas Co., Ltd. keeps $6.50 as profit after all expenses.
Operating Margin
Core operations generate 10.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.44 in profit for every $100 of shareholder equity.
ROA
Nippon Gas Co., Ltd. generates $8.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nippon Gas Co., Ltd. produces operating cash flow of $25.77B, showing steady but balanced cash generation.
Free Cash Flow
Nippon Gas Co., Ltd. produces free cash flow of $19.46B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $182.22 in free cash annually.
FCF Yield
8174.T converts 6.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-129.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How 8174.T Stacks Against Its Sector Peers
| Metric | 8174.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.51 | 19.72 | Worse (Expensive) |
| ROE | 20.44% | 908.00% | Weak |
| Net Margin | 6.50% | 8804.00% | Weak |
| Debt/Equity | 0.81 | 1.80 | Strong (Low Leverage) |
| Current Ratio | 1.17 | 1.50 | Neutral |
| ROA | 8.64% | -6152.00% (disorted) | Weak |
8174.T outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nippon Gas Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
67.00%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
64.97%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
93.33%
Industry Style: Defensive, Dividend, Income
High Growth