Sotetsu Holdings, Inc.
Sotetsu Holdings, Inc. Fundamental Analysis
Sotetsu Holdings, Inc. (9003.T) shows moderate financial fundamentals with a PE ratio of 15.11, profit margin of 6.77%, and ROE of 10.61%. The company generates $291.4B in annual revenue with moderate year-over-year growth of 8.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 9003.T's fundamental strength across five key dimensions:
Efficiency Score
Weak9003.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent9003.T trades at attractive valuation levels.
Growth Score
Excellent9003.T delivers strong and consistent growth momentum.
Financial Health Score
Moderate9003.T shows balanced financial health with some risks.
Profitability Score
Weak9003.T struggles to sustain strong margins.
Key Financial Metrics
Is 9003.T Expensive or Cheap?
P/E Ratio
9003.T trades at 15.11 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 9003.T's PEG of -62.18 indicates potential undervaluation.
Price to Book
The market values Sotetsu Holdings, Inc. at 1.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.29 times EBITDA. This is generally considered low.
How Well Does 9003.T Make Money?
Net Profit Margin
For every $100 in sales, Sotetsu Holdings, Inc. keeps $6.77 as profit after all expenses.
Operating Margin
Core operations generate 12.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.61 in profit for every $100 of shareholder equity.
ROA
Sotetsu Holdings, Inc. generates $2.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sotetsu Holdings, Inc. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Sotetsu Holdings, Inc. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
9003.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-62.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How 9003.T Stacks Against Its Sector Peers
| Metric | 9003.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.11 | 25.96 | Better (Cheaper) |
| ROE | 10.61% | 1263.00% | Weak |
| Net Margin | 6.77% | -41827.00% (disorted) | Weak |
| Debt/Equity | 2.33 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.15 | 10.05 | Neutral |
| ROA | 2.54% | -1497918.00% (disorted) | Weak |
9003.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 Sotetsu Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.28%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
53.24%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
6.93%
Industry Style: Cyclical, Value, Infrastructure
Growing