AreaLink Co., Ltd. Fundamental Analysis (JPX: 8914.T)
AreaLink Co., Ltd. (JPX: 8914.T) shows moderate financial fundamentals with a PE ratio of 12.43, profit margin of 13.91%, and ROE of 13.50%. The company generates $28.7B in annual revenue with moderate year-over-year growth of 6.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -31.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 8914.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8914.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent8914.T trades at attractive valuation levels.
Growth Score
Excellent8914.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent8914.T maintains a strong and stable balance sheet.
Profitability Score
Weak8914.T struggles to sustain strong margins.
Key Financial Metrics
Is 8914.T Expensive or Cheap?
P/E Ratio
8914.T trades at 12.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 8914.T's PEG of 1.13 indicates fair valuation.
Price to Book
The market values AreaLink Co., Ltd. at 1.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.90 times EBITDA. This is generally considered low.
How Well Does 8914.T Make Money?
Net Profit Margin
For every $100 in sales, AreaLink Co., Ltd. keeps $13.91 as profit after all expenses.
Operating Margin
Core operations generate 22.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.50 in profit for every $100 of shareholder equity.
ROA
AreaLink Co., Ltd. generates $5.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AreaLink Co., Ltd. generates limited operating cash flow of $1.41B, signaling weaker underlying cash strength.
Free Cash Flow
AreaLink Co., Ltd. generates weak or negative free cash flow of $-2.83B, restricting financial flexibility.
FCF Per Share
Each share generates $-55.75 in free cash annually.
FCF Yield
8914.T converts -5.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.89
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 8914.T Stacks Against Its Sector Peers
| Metric | 8914.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.43 | 26.30 | Better (Cheaper) |
| ROE | 13.50% | 808.00% | Weak |
| Net Margin | 13.91% | 2704.00% | Weak |
| Debt/Equity | 0.89 | -37.38 (disorted) | Distorted |
| Current Ratio | 4.22 | 39.56 | Strong Liquidity |
| ROA | 5.93% | 277.00% | Weak |
8914.T outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AreaLink Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
16.86%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
65.55%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
105.84%
Industry Style: Income, Inflation Hedge, REIT
High Growth