Aozora Bank, Ltd. Fundamental Analysis (JPX: 8304.T)
Aozora Bank, Ltd. (JPX: 8304.T) shows weak financial fundamentals with a PE ratio of 15.19, profit margin of 12.95%, and ROE of 6.44%. The company generates $238.2B in annual revenue with weak year-over-year growth of -0.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 8304.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8304.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent8304.T trades at attractive valuation levels.
Growth Score
Weak8304.T faces weak or negative growth trends.
Financial Health Score
Moderate8304.T shows balanced financial health with some risks.
Profitability Score
Weak8304.T struggles to sustain strong margins.
Key Financial Metrics
Is 8304.T Expensive or Cheap?
P/E Ratio
8304.T trades at 15.19 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 8304.T's PEG of 0.25 indicates potential undervaluation.
Price to Book
The market values Aozora Bank, Ltd. at 0.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.54 times EBITDA. This signals the market has high growth expectations.
How Well Does 8304.T Make Money?
Net Profit Margin
For every $100 in sales, Aozora Bank, Ltd. keeps $12.95 as profit after all expenses.
Operating Margin
Core operations generate 13.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.44 in profit for every $100 of shareholder equity.
ROA
Aozora Bank, Ltd. generates $0.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aozora Bank, Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Aozora Bank, Ltd. 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
8304.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.004
vs 25 benchmark
How 8304.T Stacks Against Its Sector Peers
| Metric | 8304.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.19 | 21.08 | Better (Cheaper) |
| ROE | 6.44% | 658.00% | Weak |
| Net Margin | 12.95% | -1621.00% (disorted) | Strong |
| Debt/Equity | 2.63 | 0.92 | Weak (High Leverage) |
| Current Ratio | 2.94 | 927.71 | Strong Liquidity |
| ROA | 0.36% | -588.00% (disorted) | Weak |
8304.T outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aozora Bank, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
540.09%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
155.44%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
30.36%
Industry Style: Value, Dividend, Cyclical
High Growth