Japan Hotel REIT Investment Corporation
Japan Hotel REIT Investment Corporation Fundamental Analysis
Japan Hotel REIT Investment Corporation (8985.T) shows strong financial fundamentals with a PE ratio of 14.36, profit margin of 54.19%, and ROE of 9.53%. The company generates $50.1B in annual revenue with strong year-over-year growth of 25.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -11361.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 8985.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8985.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent8985.T trades at attractive valuation levels.
Growth Score
Excellent8985.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent8985.T maintains a strong and stable balance sheet.
Profitability Score
Weak8985.T struggles to sustain strong margins.
Key Financial Metrics
Is 8985.T Expensive or Cheap?
P/E Ratio
8985.T trades at 14.36 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 8985.T's PEG of 0.96 indicates potential undervaluation.
Price to Book
The market values Japan Hotel REIT Investment Corporation at 1.33 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.29 times EBITDA. This is generally considered low.
How Well Does 8985.T Make Money?
Net Profit Margin
For every $100 in sales, Japan Hotel REIT Investment Corporation keeps $54.19 as profit after all expenses.
Operating Margin
Core operations generate 61.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.53 in profit for every $100 of shareholder equity.
ROA
Japan Hotel REIT Investment Corporation generates $4.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Japan Hotel REIT Investment Corporation generates strong operating cash flow of $33.75B, reflecting robust business health.
Free Cash Flow
Japan Hotel REIT Investment Corporation generates weak or negative free cash flow of $-38.82B, restricting financial flexibility.
FCF Per Share
Each share generates $-7615.71 in free cash annually.
FCF Yield
8985.T converts -9.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How 8985.T Stacks Against Its Sector Peers
| Metric | 8985.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.36 | 22.46 | Better (Cheaper) |
| ROE | 9.53% | 681.00% | Weak |
| Net Margin | 54.19% | -37308.00% (disorted) | Strong |
| Debt/Equity | 0.92 | -20.87 (disorted) | Distorted |
| Current Ratio | 1.39 | 1953.63 | Neutral |
| ROA | 4.71% | -1226.00% (disorted) | Weak |
8985.T outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Japan Hotel 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
3.02%
Industry Style: Income, Inflation Hedge, REIT
GrowingEPS CAGR
3.98%
Industry Style: Income, Inflation Hedge, REIT
GrowingFCF CAGR
-0.99%
Industry Style: Income, Inflation Hedge, REIT
Declining