SPARX Group Co., Ltd.
SPARX Group Co., Ltd. Fundamental Analysis
SPARX Group Co., Ltd. (8739.T) shows strong financial fundamentals with a PE ratio of 11.87, profit margin of 34.24%, and ROE of 18.55%. The company generates $18.7B in annual revenue with moderate year-over-year growth of 8.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.7/100 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 8739.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent8739.T demonstrates superior asset utilization.
Valuation Score
Excellent8739.T trades at attractive valuation levels.
Growth Score
Moderate8739.T shows steady but slowing expansion.
Financial Health Score
Excellent8739.T maintains a strong and stable balance sheet.
Profitability Score
Moderate8739.T maintains healthy but balanced margins.
Key Financial Metrics
Is 8739.T Expensive or Cheap?
P/E Ratio
8739.T trades at 11.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 8739.T's PEG of 1.23 indicates fair valuation.
Price to Book
The market values SPARX Group Co., Ltd. at 2.05 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.72 times EBITDA. This is generally considered low.
How Well Does 8739.T Make Money?
Net Profit Margin
For every $100 in sales, SPARX Group Co., Ltd. keeps $34.24 as profit after all expenses.
Operating Margin
Core operations generate 48.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.55 in profit for every $100 of shareholder equity.
ROA
SPARX Group Co., Ltd. generates $12.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SPARX Group Co., Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
SPARX Group Co., 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
8739.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How 8739.T Stacks Against Its Sector Peers
| Metric | 8739.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.87 | 18.59 | Better (Cheaper) |
| ROE | 18.55% | 801.00% | Weak |
| Net Margin | 34.24% | -421.00% (disorted) | Strong |
| Debt/Equity | 0.27 | 0.98 | Strong (Low Leverage) |
| Current Ratio | 2.65 | 661.40 | Strong Liquidity |
| ROA | 12.02% | -21302.00% (disorted) | Strong |
8739.T outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SPARX 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
45.23%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
130.26%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
12.62%
Industry Style: Value, Dividend, Cyclical
High Growth