Tokyo Rakutenchi Co.,Ltd. Fundamental Analysis (JPX: 8842.T)
Tokyo Rakutenchi Co.,Ltd. Fundamental Analysis (JPX: 8842.T)
Tokyo Rakutenchi Co.,Ltd. (JPX: 8842.T) shows weak financial fundamentals with a PE ratio of 53.27, profit margin of 7.91%, and ROE of 2.32%. The company generates $9.5B 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 33.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 8842.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8842.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate8842.T shows balanced valuation metrics.
Growth Score
Moderate8842.T shows steady but slowing expansion.
Financial Health Score
Excellent8842.T maintains a strong and stable balance sheet.
Profitability Score
Weak8842.T struggles to sustain strong margins.
Key Financial Metrics
Is 8842.T Expensive or Cheap?
P/E Ratio
8842.T trades at 53.27 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 8842.T's PEG of -1.03 indicates potential undervaluation.
Price to Book
The market values Tokyo Rakutenchi Co.,Ltd. at 1.23 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.67 times EBITDA. This signals the market has high growth expectations.
How Well Does 8842.T Make Money?
Net Profit Margin
For every $100 in sales, Tokyo Rakutenchi Co.,Ltd. keeps $7.91 as profit after all expenses.
Operating Margin
Core operations generate 11.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.32 in profit for every $100 of shareholder equity.
ROA
Tokyo Rakutenchi Co.,Ltd. generates $1.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tokyo Rakutenchi Co.,Ltd. produces operating cash flow of $1.86B, showing steady but balanced cash generation.
Free Cash Flow
Tokyo Rakutenchi Co.,Ltd. generates weak or negative free cash flow of $-22.31M, restricting financial flexibility.
FCF Per Share
Each share generates $-3.72 in free cash annually.
FCF Yield
8842.T converts -0.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
53.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How 8842.T Stacks Against Its Sector Peers
| Metric | 8842.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 53.27 | 25.83 | Worse (Expensive) |
| ROE | 2.32% | 801.00% | Weak |
| Net Margin | 7.91% | 2686.00% | Weak |
| Debt/Equity | 0.09 | -37.24 (disorted) | Distorted |
| Current Ratio | 1.06 | 39.42 | Neutral |
| ROA | 1.81% | 275.00% | Weak |
8842.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 Tokyo Rakutenchi Co.,Ltd.'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: Income, Inflation Hedge, REIT
EPS CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
FCF CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT