Hankyu Hanshin REIT, Inc. Fundamental Analysis (JPX: 8977.T)
Hankyu Hanshin REIT, Inc. (JPX: 8977.T) shows moderate financial fundamentals with a PE ratio of 20.25, profit margin of 35.48%, and ROE of 5.34%. The company generates $13.1B in annual revenue with moderate year-over-year growth of 6.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 8977.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8977.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate8977.T shows balanced valuation metrics.
Growth Score
Excellent8977.T delivers strong and consistent growth momentum.
Financial Health Score
Moderate8977.T shows balanced financial health with some risks.
Profitability Score
Moderate8977.T maintains healthy but balanced margins.
Key Financial Metrics
Is 8977.T Expensive or Cheap?
P/E Ratio
8977.T trades at 20.25 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 8977.T's PEG of 58.42 indicates potential overvaluation.
Price to Book
The market values Hankyu Hanshin REIT, Inc. at 1.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.14 times EBITDA. This is generally considered low.
How Well Does 8977.T Make Money?
Net Profit Margin
For every $100 in sales, Hankyu Hanshin REIT, Inc. keeps $35.48 as profit after all expenses.
Operating Margin
Core operations generate 44.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.34 in profit for every $100 of shareholder equity.
ROA
Hankyu Hanshin REIT, Inc. generates $2.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hankyu Hanshin REIT, Inc. generates strong operating cash flow of $10.03B, reflecting robust business health.
Free Cash Flow
Hankyu Hanshin REIT, Inc. generates strong free cash flow of $4.41B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6348.11 in free cash annually.
FCF Yield
8977.T converts 4.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
58.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How 8977.T Stacks Against Its Sector Peers
| Metric | 8977.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.25 | 26.30 | Better (Cheaper) |
| ROE | 5.34% | 808.00% | Weak |
| Net Margin | 35.48% | 2704.00% | Weak |
| Debt/Equity | 1.00 | -37.38 (disorted) | Distorted |
| Current Ratio | 2.14 | 39.56 | Strong Liquidity |
| ROA | 2.54% | 277.00% | Weak |
8977.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 Hankyu Hanshin REIT, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
4.12%
Industry Style: Income, Inflation Hedge, REIT
GrowingEPS CAGR
6.99%
Industry Style: Income, Inflation Hedge, REIT
GrowingFCF CAGR
87.96%
Industry Style: Income, Inflation Hedge, REIT
High Growth