Gakken Holdings Co., Ltd. Fundamental Analysis (JPX: 9470.T)
Gakken Holdings Co., Ltd. Fundamental Analysis (JPX: 9470.T)
Gakken Holdings Co., Ltd. (JPX: 9470.T) shows moderate financial fundamentals with a PE ratio of 12.49, profit margin of 1.68%, and ROE of 6.66%. The company generates $208.0B in annual revenue with moderate year-over-year growth of 7.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.0/100 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 9470.T's fundamental strength across five key dimensions:
Efficiency Score
Weak9470.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent9470.T trades at attractive valuation levels.
Growth Score
Excellent9470.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent9470.T maintains a strong and stable balance sheet.
Profitability Score
Weak9470.T struggles to sustain strong margins.
Key Financial Metrics
Is 9470.T Expensive or Cheap?
P/E Ratio
9470.T trades at 12.49 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 9470.T's PEG of 1.00 indicates fair valuation.
Price to Book
The market values Gakken Holdings Co., Ltd. at 0.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.87 times EBITDA. This is generally considered low.
How Well Does 9470.T Make Money?
Net Profit Margin
For every $100 in sales, Gakken Holdings Co., Ltd. keeps $1.68 as profit after all expenses.
Operating Margin
Core operations generate 4.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.66 in profit for every $100 of shareholder equity.
ROA
Gakken Holdings Co., Ltd. generates $2.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gakken Holdings Co., Ltd. generates limited operating cash flow of $7.80B, signaling weaker underlying cash strength.
Free Cash Flow
Gakken Holdings Co., Ltd. generates weak or negative free cash flow of $4.20B, restricting financial flexibility.
FCF Per Share
Each share generates $101.15 in free cash annually.
FCF Yield
9470.T converts 9.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.004
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How 9470.T Stacks Against Its Sector Peers
| Metric | 9470.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.49 | 21.73 | Better (Cheaper) |
| ROE | 6.66% | 661.00% | Weak |
| Net Margin | 1.68% | -2335.00% (disorted) | Weak |
| Debt/Equity | 0.76 | 0.81 | Neutral |
| Current Ratio | 1.66 | 2.28 | Neutral |
| ROA | 2.42% | 313.00% | Weak |
9470.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 Gakken Holdings Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.49%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
37.16%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
16.53%
Industry Style: Defensive, Dividend, Low Volatility
High Growth