Japan Communications Inc.
Japan Communications Inc. Fundamental Analysis
Japan Communications Inc. (9424.T) shows moderate financial fundamentals with a PE ratio of 27.00, profit margin of 6.57%, and ROE of 17.53%. The company generates $11.6B in annual revenue with strong year-over-year growth of 25.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.9/100 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 9424.T's fundamental strength across five key dimensions:
Efficiency Score
Weak9424.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate9424.T shows balanced valuation metrics.
Growth Score
Moderate9424.T shows steady but slowing expansion.
Financial Health Score
Moderate9424.T shows balanced financial health with some risks.
Profitability Score
Moderate9424.T maintains healthy but balanced margins.
Key Financial Metrics
Is 9424.T Expensive or Cheap?
P/E Ratio
9424.T trades at 27.00 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 9424.T's PEG of -2.52 indicates potential undervaluation.
Price to Book
The market values Japan Communications Inc. at 4.46 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.16 times EBITDA. This signals the market has high growth expectations.
How Well Does 9424.T Make Money?
Net Profit Margin
For every $100 in sales, Japan Communications Inc. keeps $6.57 as profit after all expenses.
Operating Margin
Core operations generate 9.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.53 in profit for every $100 of shareholder equity.
ROA
Japan Communications Inc. generates $6.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Japan Communications Inc. produces operating cash flow of $1.31B, showing steady but balanced cash generation.
Free Cash Flow
Japan Communications Inc. produces free cash flow of $982.44M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.89 in free cash annually.
FCF Yield
9424.T converts 4.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How 9424.T Stacks Against Its Sector Peers
| Metric | 9424.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.00 | 24.69 | Neutral |
| ROE | 17.53% | 985.00% | Weak |
| Net Margin | 6.57% | -67600.00% (disorted) | Weak |
| Debt/Equity | 1.24 | 3.03 | Strong (Low Leverage) |
| Current Ratio | 3.46 | 1.71 | Strong Liquidity |
| ROA | 6.37% | -6271.00% (disorted) | Weak |
9424.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 Japan Communications Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
227.99%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
375.32%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
-100.00%
Industry Style: Growth, Technology, Streaming
Declining