Daiwa Securities Group Inc. Fundamental Analysis (JPX: 8601.T)
Daiwa Securities Group Inc. Fundamental Analysis (JPX: 8601.T)
Daiwa Securities Group Inc. (JPX: 8601.T) shows moderate financial fundamentals with a PE ratio of 12.55, profit margin of 12.70%, and ROE of 11.52%. The company generates $1580.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.6/100 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 8601.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8601.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent8601.T trades at attractive valuation levels.
Growth Score
Moderate8601.T shows steady but slowing expansion.
Financial Health Score
Moderate8601.T shows balanced financial health with some risks.
Profitability Score
Weak8601.T struggles to sustain strong margins.
Key Financial Metrics
Is 8601.T Expensive or Cheap?
P/E Ratio
8601.T trades at 12.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 8601.T's PEG of 0.48 indicates potential undervaluation.
Price to Book
The market values Daiwa Securities Group Inc. at 1.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 35.03 times EBITDA. This signals the market has high growth expectations.
How Well Does 8601.T Make Money?
Net Profit Margin
For every $100 in sales, Daiwa Securities Group Inc. keeps $12.70 as profit after all expenses.
Operating Margin
Core operations generate 15.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.52 in profit for every $100 of shareholder equity.
ROA
Daiwa Securities Group Inc. generates $0.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Daiwa Securities Group Inc. generates strong operating cash flow of $453.93B, reflecting robust business health.
Free Cash Flow
Daiwa Securities Group Inc. generates strong free cash flow of $385.25B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $277.45 in free cash annually.
FCF Yield
8601.T converts 15.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.007
vs 25 benchmark
How 8601.T Stacks Against Its Sector Peers
| Metric | 8601.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.55 | 21.07 | Better (Cheaper) |
| ROE | 11.52% | 647.00% | Weak |
| Net Margin | 12.70% | -1593.00% (disorted) | Strong |
| Debt/Equity | 3.50 | 0.90 | Weak (High Leverage) |
| Current Ratio | 6.80 | 911.99 | Strong Liquidity |
| ROA | 0.50% | -578.00% (disorted) | Weak |
8601.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 Daiwa Securities Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical