H.I.S. Co., Ltd.
H.I.S. Co., Ltd. Fundamental Analysis
H.I.S. Co., Ltd. (9603.T) shows moderate financial fundamentals with a PE ratio of 17.18, profit margin of 1.22%, and ROE of 8.37%. The company generates $381.0B in annual revenue with strong year-over-year growth of 36.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 9603.T's fundamental strength across five key dimensions:
Efficiency Score
Weak9603.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent9603.T trades at attractive valuation levels.
Growth Score
Moderate9603.T shows steady but slowing expansion.
Financial Health Score
Weak9603.T carries high financial risk with limited liquidity.
Profitability Score
Weak9603.T struggles to sustain strong margins.
Key Financial Metrics
Is 9603.T Expensive or Cheap?
P/E Ratio
9603.T trades at 17.18 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 9603.T's PEG of -9.20 indicates potential undervaluation.
Price to Book
The market values H.I.S. Co., Ltd. at 1.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.52 times EBITDA. This is generally considered low.
How Well Does 9603.T Make Money?
Net Profit Margin
For every $100 in sales, H.I.S. Co., Ltd. keeps $1.22 as profit after all expenses.
Operating Margin
Core operations generate 3.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.37 in profit for every $100 of shareholder equity.
ROA
H.I.S. Co., Ltd. generates $1.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
H.I.S. Co., Ltd. generates limited operating cash flow of $21.22B, signaling weaker underlying cash strength.
Free Cash Flow
H.I.S. Co., Ltd. produces free cash flow of $14.07B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $188.19 in free cash annually.
FCF Yield
9603.T converts 17.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-9.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.96
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How 9603.T Stacks Against Its Sector Peers
| Metric | 9603.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.18 | 23.72 | Better (Cheaper) |
| ROE | 8.37% | 1091.00% | Weak |
| Net Margin | 1.22% | -627.00% (disorted) | Weak |
| Debt/Equity | 2.96 | 0.72 | Weak (High Leverage) |
| Current Ratio | 0.83 | 2.64 | Weak Liquidity |
| ROA | 1.17% | 1053.00% | Weak |
9603.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 H.I.S. Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-67.41%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-45.39%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-42.95%
Industry Style: Cyclical, Growth, Discretionary
Declining