NTT UD REIT Investment Corporation Fundamental Analysis (JPX: 8956.T)
NTT UD REIT Investment Corporation Fundamental Analysis (JPX: 8956.T)
NTT UD REIT Investment Corporation (JPX: 8956.T) shows moderate financial fundamentals with a PE ratio of 21.42, profit margin of 25.28%, and ROE of 6.13%. The company generates $35.6B in annual revenue with strong year-over-year growth of 65.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.8/100 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 8956.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8956.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate8956.T shows balanced valuation metrics.
Growth Score
Moderate8956.T shows steady but slowing expansion.
Financial Health Score
Moderate8956.T shows balanced financial health with some risks.
Profitability Score
Moderate8956.T maintains healthy but balanced margins.
Key Financial Metrics
Is 8956.T Expensive or Cheap?
P/E Ratio
8956.T trades at 21.42 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 8956.T's PEG of 13.02 indicates potential overvaluation.
Price to Book
The market values NTT UD REIT Investment Corporation at 1.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.38 times EBITDA. This is generally considered low.
How Well Does 8956.T Make Money?
Net Profit Margin
For every $100 in sales, NTT UD REIT Investment Corporation keeps $25.28 as profit after all expenses.
Operating Margin
Core operations generate 28.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.13 in profit for every $100 of shareholder equity.
ROA
NTT UD REIT Investment Corporation generates $2.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NTT UD REIT Investment Corporation generates strong operating cash flow of $22.21B, reflecting robust business health.
Free Cash Flow
NTT UD REIT Investment Corporation generates strong free cash flow of $18.32B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12476.54 in free cash annually.
FCF Yield
8956.T converts 9.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
13.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 8956.T Stacks Against Its Sector Peers
| Metric | 8956.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.42 | 26.30 | Better (Cheaper) |
| ROE | 6.13% | 808.00% | Weak |
| Net Margin | 25.28% | 2704.00% | Weak |
| Debt/Equity | 1.00 | -37.38 (disorted) | Distorted |
| Current Ratio | 1.13 | 39.56 | Neutral |
| ROA | 2.93% | 277.00% | Weak |
8956.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 NTT UD REIT Investment Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
88.15%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-1.01%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
89.29%
Industry Style: Income, Inflation Hedge, REIT
High Growth