ZERO Co., Ltd.
ZERO Co., Ltd. Fundamental Analysis
ZERO Co., Ltd. (9028.T) shows moderate financial fundamentals with a PE ratio of 8.79, profit margin of 4.64%, and ROE of 15.59%. The company generates $144.7B in annual revenue with moderate year-over-year growth of 5.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.6/100 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 9028.T's fundamental strength across five key dimensions:
Efficiency Score
Weak9028.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent9028.T trades at attractive valuation levels.
Growth Score
Excellent9028.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent9028.T maintains a strong and stable balance sheet.
Profitability Score
Moderate9028.T maintains healthy but balanced margins.
Key Financial Metrics
Is 9028.T Expensive or Cheap?
P/E Ratio
9028.T trades at 8.79 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 9028.T's PEG of -1.95 indicates potential undervaluation.
Price to Book
The market values ZERO Co., Ltd. at 1.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.09 times EBITDA. This is generally considered low.
How Well Does 9028.T Make Money?
Net Profit Margin
For every $100 in sales, ZERO Co., Ltd. keeps $4.64 as profit after all expenses.
Operating Margin
Core operations generate 6.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.59 in profit for every $100 of shareholder equity.
ROA
ZERO Co., Ltd. generates $8.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ZERO Co., Ltd. produces operating cash flow of $14.99B, showing steady but balanced cash generation.
Free Cash Flow
ZERO Co., Ltd. produces free cash flow of $12.51B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $744.74 in free cash annually.
FCF Yield
9028.T converts 21.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How 9028.T Stacks Against Its Sector Peers
| Metric | 9028.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.79 | 23.52 | Better (Cheaper) |
| ROE | 15.59% | 1156.00% | Weak |
| Net Margin | 4.64% | 670.00% | Weak |
| Debt/Equity | 0.29 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 1.67 | 2.56 | Neutral |
| ROA | 8.97% | -8289.00% (disorted) | Weak |
9028.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 ZERO Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
62.73%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
197.82%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
93.73%
Industry Style: Cyclical, Growth, Discretionary
High Growth