JAFCO Group Co., Ltd. Fundamental Analysis (JPX: 8595.T)
JAFCO Group Co., Ltd. Fundamental Analysis (JPX: 8595.T)
JAFCO Group Co., Ltd. (JPX: 8595.T) shows moderate financial fundamentals with a PE ratio of 24.25, profit margin of 28.63%, and ROE of 3.72%. The company generates $17.6B in annual revenue with weak year-over-year growth of -26.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 8595.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8595.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent8595.T trades at attractive valuation levels.
Growth Score
Weak8595.T faces weak or negative growth trends.
Financial Health Score
Excellent8595.T maintains a strong and stable balance sheet.
Profitability Score
Moderate8595.T maintains healthy but balanced margins.
Key Financial Metrics
Is 8595.T Expensive or Cheap?
P/E Ratio
8595.T trades at 24.25 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 8595.T's PEG of -0.48 indicates potential undervaluation.
Price to Book
The market values JAFCO Group Co., Ltd. at 0.91 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 42.25 times EBITDA. This signals the market has high growth expectations.
How Well Does 8595.T Make Money?
Net Profit Margin
For every $100 in sales, JAFCO Group Co., Ltd. keeps $28.63 as profit after all expenses.
Operating Margin
Core operations generate 26.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.72 in profit for every $100 of shareholder equity.
ROA
JAFCO Group Co., Ltd. generates $3.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
JAFCO Group Co., Ltd. produces operating cash flow of $2.04B, showing steady but balanced cash generation.
Free Cash Flow
JAFCO Group Co., Ltd. generates strong free cash flow of $2.03B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $38.67 in free cash annually.
FCF Yield
8595.T converts 1.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
454.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How 8595.T Stacks Against Its Sector Peers
| Metric | 8595.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.25 | 21.07 | Worse (Expensive) |
| ROE | 3.72% | 647.00% | Weak |
| Net Margin | 28.63% | -1593.00% (disorted) | Strong |
| Debt/Equity | 0.11 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 454.93 | 911.99 | Strong Liquidity |
| ROA | 3.19% | -578.00% (disorted) | Weak |
8595.T outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews JAFCO Group Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
75.26%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-70.31%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
44160.40%
Industry Style: Value, Dividend, Cyclical
High Growth