Fukuoka Financial Group, Inc. Fundamental Analysis (JPX: 8354.T)
Fukuoka Financial Group, Inc. Fundamental Analysis (JPX: 8354.T)
Fukuoka Financial Group, Inc. (JPX: 8354.T) shows weak financial fundamentals with a PE ratio of 16.03, profit margin of 14.55%, and ROE of 8.55%. The company generates $627.6B in annual revenue with weak year-over-year growth of 1.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 8354.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8354.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent8354.T trades at attractive valuation levels.
Growth Score
Moderate8354.T shows steady but slowing expansion.
Financial Health Score
Moderate8354.T shows balanced financial health with some risks.
Profitability Score
Weak8354.T struggles to sustain strong margins.
Key Financial Metrics
Is 8354.T Expensive or Cheap?
P/E Ratio
8354.T trades at 16.03 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 8354.T's PEG of 0.69 indicates potential undervaluation.
Price to Book
The market values Fukuoka Financial Group, Inc. at 1.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -9.14 times EBITDA. This is generally considered low.
How Well Does 8354.T Make Money?
Net Profit Margin
For every $100 in sales, Fukuoka Financial Group, Inc. keeps $14.55 as profit after all expenses.
Operating Margin
Core operations generate 20.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.55 in profit for every $100 of shareholder equity.
ROA
Fukuoka Financial Group, Inc. generates $0.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fukuoka Financial Group, Inc. generates limited operating cash flow of $28.65B, signaling weaker underlying cash strength.
Free Cash Flow
Fukuoka Financial Group, Inc. generates weak or negative free cash flow of $18.03B, restricting financial flexibility.
FCF Per Share
Each share generates $95.43 in free cash annually.
FCF Yield
8354.T converts 1.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
8.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How 8354.T Stacks Against Its Sector Peers
| Metric | 8354.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.03 | 21.08 | Better (Cheaper) |
| ROE | 8.55% | 658.00% | Weak |
| Net Margin | 14.55% | -1621.00% (disorted) | Strong |
| Debt/Equity | 8.02 | 0.92 | Weak (High Leverage) |
| Current Ratio | 1.05 | 927.71 | Neutral |
| ROA | 0.28% | -588.00% (disorted) | Weak |
8354.T outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fukuoka Financial Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
19.50%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-34.42%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
62132.23%
Industry Style: Value, Dividend, Cyclical
High Growth