Shinkin Central Bank Fundamental Analysis (JPX: 8421.T)
Shinkin Central Bank (JPX: 8421.T) shows weak financial fundamentals with a PE ratio of 36.42, profit margin of 6.47%, and ROE of 2.79%. The company generates $707.3B in annual revenue with strong year-over-year growth of 12.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 8421.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8421.T struggles to generate sufficient returns from assets.
Valuation Score
Weak8421.T trades at a premium to fair value.
Growth Score
Moderate8421.T shows steady but slowing expansion.
Financial Health Score
Moderate8421.T shows balanced financial health with some risks.
Profitability Score
Moderate8421.T maintains healthy but balanced margins.
Key Financial Metrics
Is 8421.T Expensive or Cheap?
P/E Ratio
8421.T trades at 36.42 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 8421.T's PEG of 2.19 indicates potential overvaluation.
Price to Book
The market values Shinkin Central Bank at 0.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -21.11 times EBITDA. This is generally considered low.
How Well Does 8421.T Make Money?
Net Profit Margin
For every $100 in sales, Shinkin Central Bank keeps $6.47 as profit after all expenses.
Operating Margin
Core operations generate 8.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.79 in profit for every $100 of shareholder equity.
ROA
Shinkin Central Bank generates $0.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shinkin Central Bank produces operating cash flow of $122.92B, showing steady but balanced cash generation.
Free Cash Flow
Shinkin Central Bank generates strong free cash flow of $117.38B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $13479.79 in free cash annually.
FCF Yield
8421.T converts 7.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
8.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.001
vs 25 benchmark
ROCE
Return on capital employed
0.002
vs 25 benchmark
How 8421.T Stacks Against Its Sector Peers
| Metric | 8421.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.42 | 21.08 | Worse (Expensive) |
| ROE | 2.79% | 658.00% | Weak |
| Net Margin | 6.47% | -1621.00% (disorted) | Weak |
| Debt/Equity | 8.34 | 0.92 | Weak (High Leverage) |
| Current Ratio | 1.19 | 927.71 | Neutral |
| ROA | 0.10% | -588.00% (disorted) | Weak |
8421.T outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shinkin Central Bank's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.78%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-18.71%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
399.76%
Industry Style: Value, Dividend, Cyclical
High Growth