Heiwa Real Estate REIT, Inc. Fundamental Analysis (JPX: 8966.T)
Heiwa Real Estate REIT, Inc. Fundamental Analysis (JPX: 8966.T)
Heiwa Real Estate REIT, Inc. (JPX: 8966.T) shows moderate financial fundamentals with a PE ratio of 16.18, profit margin of 48.36%, and ROE of 7.58%. The company generates $22.4B in annual revenue with moderate year-over-year growth of 6.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -11399.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 8966.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8966.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent8966.T trades at attractive valuation levels.
Growth Score
Moderate8966.T shows steady but slowing expansion.
Financial Health Score
Excellent8966.T maintains a strong and stable balance sheet.
Profitability Score
Weak8966.T struggles to sustain strong margins.
Key Financial Metrics
Is 8966.T Expensive or Cheap?
P/E Ratio
8966.T trades at 16.18 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 8966.T's PEG of 1.67 indicates fair valuation.
Price to Book
The market values Heiwa Real Estate REIT, Inc. at 1.25 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.79 times EBITDA. This is generally considered low.
How Well Does 8966.T Make Money?
Net Profit Margin
For every $100 in sales, Heiwa Real Estate REIT, Inc. keeps $48.36 as profit after all expenses.
Operating Margin
Core operations generate 55.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.58 in profit for every $100 of shareholder equity.
ROA
Heiwa Real Estate REIT, Inc. generates $3.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Heiwa Real Estate REIT, Inc. generates strong operating cash flow of $18.46B, reflecting robust business health.
Free Cash Flow
Heiwa Real Estate REIT, Inc. generates weak or negative free cash flow of $-10.25B, restricting financial flexibility.
FCF Per Share
Each share generates $-7629.09 in free cash annually.
FCF Yield
8966.T converts -5.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.96
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How 8966.T Stacks Against Its Sector Peers
| Metric | 8966.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.18 | 26.30 | Better (Cheaper) |
| ROE | 7.58% | 808.00% | Weak |
| Net Margin | 48.36% | 2704.00% | Weak |
| Debt/Equity | 0.96 | -37.38 (disorted) | Distorted |
| Current Ratio | 1.02 | 39.56 | Neutral |
| ROA | 3.70% | 277.00% | Weak |
8966.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 Heiwa Real Estate REIT, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.80%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
34.24%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
10.86%
Industry Style: Income, Inflation Hedge, REIT
High Growth