Daiwa Securities Living Investment Corporation Fundamental Analysis (JPX: 8986.T)
Daiwa Securities Living Investment Corporation Fundamental Analysis (JPX: 8986.T)
Daiwa Securities Living Investment Corporation (JPX: 8986.T) shows moderate financial fundamentals with a PE ratio of 16.96, profit margin of 24.76%, and ROE of 7.17%. The company generates $54.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.7/100 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 8986.T's fundamental strength across five key dimensions:
Efficiency Score
Weak8986.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate8986.T shows balanced valuation metrics.
Growth Score
Moderate8986.T shows steady but slowing expansion.
Financial Health Score
Weak8986.T carries high financial risk with limited liquidity.
Profitability Score
Moderate8986.T maintains healthy but balanced margins.
Key Financial Metrics
Is 8986.T Expensive or Cheap?
P/E Ratio
8986.T trades at 16.96 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 8986.T's PEG of 14.98 indicates potential overvaluation.
Price to Book
The market values Daiwa Securities Living Investment Corporation at 1.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.93 times EBITDA. This is generally considered low.
How Well Does 8986.T Make Money?
Net Profit Margin
For every $100 in sales, Daiwa Securities Living Investment Corporation keeps $24.76 as profit after all expenses.
Operating Margin
Core operations generate 29.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.17 in profit for every $100 of shareholder equity.
ROA
Daiwa Securities Living Investment Corporation generates $3.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Daiwa Securities Living Investment Corporation generates strong operating cash flow of $43.32B, reflecting robust business health.
Free Cash Flow
Daiwa Securities Living Investment Corporation generates strong free cash flow of $18.76B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7860.92 in free cash annually.
FCF Yield
8986.T converts 8.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
14.98
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.61
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 8986.T Stacks Against Its Sector Peers
| Metric | 8986.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.96 | 26.30 | Better (Cheaper) |
| ROE | 7.17% | 808.00% | Weak |
| Net Margin | 24.76% | 2704.00% | Weak |
| Debt/Equity | 1.09 | -37.38 (disorted) | Distorted |
| Current Ratio | 0.61 | 39.56 | Weak Liquidity |
| ROA | 3.36% | 277.00% | Weak |
8986.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 Daiwa Securities Living Investment Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
EPS CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
FCF CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT