Japan Prime Realty Investment Corporation Fundamental Analysis (JPX: 8955.T)
Japan Prime Realty Investment Corporation Fundamental Analysis (JPX: 8955.T)
Japan Prime Realty Investment Corporation (JPX: 8955.T) shows moderate financial fundamentals with a PE ratio of 20.58, profit margin of 35.16%, and ROE of 6.67%. The company generates $54.2B in annual revenue with strong year-over-year growth of 41.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 8955.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8955.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent8955.T trades at attractive valuation levels.
Growth Score
Moderate8955.T shows steady but slowing expansion.
Financial Health Score
Excellent8955.T maintains a strong and stable balance sheet.
Profitability Score
Moderate8955.T maintains healthy but balanced margins.
Key Financial Metrics
Is 8955.T Expensive or Cheap?
P/E Ratio
8955.T trades at 20.58 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 8955.T's PEG of -0.35 indicates potential undervaluation.
Price to Book
The market values Japan Prime Realty Investment Corporation at 1.39 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.28 times EBITDA. This is generally considered low.
How Well Does 8955.T Make Money?
Net Profit Margin
For every $100 in sales, Japan Prime Realty Investment Corporation keeps $35.16 as profit after all expenses.
Operating Margin
Core operations generate 39.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.67 in profit for every $100 of shareholder equity.
ROA
Japan Prime Realty Investment Corporation generates $3.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Japan Prime Realty Investment Corporation generates strong operating cash flow of $36.11B, reflecting robust business health.
Free Cash Flow
Japan Prime Realty Investment Corporation produces free cash flow of $4.71B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1164.30 in free cash annually.
FCF Yield
8955.T converts 1.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.85
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 8955.T Stacks Against Its Sector Peers
| Metric | 8955.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.58 | 26.30 | Better (Cheaper) |
| ROE | 6.67% | 808.00% | Weak |
| Net Margin | 35.16% | 2704.00% | Weak |
| Debt/Equity | 0.85 | -37.38 (disorted) | Distorted |
| Current Ratio | 1.32 | 39.56 | Neutral |
| ROA | 3.38% | 277.00% | Weak |
8955.T outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Japan Prime Realty Investment Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.13%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
25.76%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
60.43%
Industry Style: Income, Inflation Hedge, REIT
High Growth