Square Enix Holdings Co., Ltd. Fundamental Analysis (JPX: 9684.T)
Square Enix Holdings Co., Ltd. Fundamental Analysis (JPX: 9684.T)
Square Enix Holdings Co., Ltd. (JPX: 9684.T) shows moderate financial fundamentals with a PE ratio of 27.98, profit margin of 12.01%, and ROE of 11.04%. The company generates $316.8B in annual revenue with weak year-over-year growth of -8.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 9684.T's fundamental strength across five key dimensions:
Efficiency Score
Weak9684.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate9684.T shows balanced valuation metrics.
Growth Score
Moderate9684.T shows steady but slowing expansion.
Financial Health Score
Excellent9684.T maintains a strong and stable balance sheet.
Profitability Score
Weak9684.T struggles to sustain strong margins.
Key Financial Metrics
Is 9684.T Expensive or Cheap?
P/E Ratio
9684.T trades at 27.98 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 9684.T's PEG of 0.27 indicates potential undervaluation.
Price to Book
The market values Square Enix Holdings Co., Ltd. at 3.01 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.02 times EBITDA. This signals the market has high growth expectations.
How Well Does 9684.T Make Money?
Net Profit Margin
For every $100 in sales, Square Enix Holdings Co., Ltd. keeps $12.01 as profit after all expenses.
Operating Margin
Core operations generate 19.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.04 in profit for every $100 of shareholder equity.
ROA
Square Enix Holdings Co., Ltd. generates $8.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Square Enix Holdings Co., Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Square Enix Holdings Co., Ltd. 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
9684.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.005
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How 9684.T Stacks Against Its Sector Peers
| Metric | 9684.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.98 | 35.30 | Better (Cheaper) |
| ROE | 11.04% | 752.00% | Weak |
| Net Margin | 12.01% | -2918.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 5.90 | 6.15 | Strong Liquidity |
| ROA | 8.83% | 323.00% | Weak |
9684.T outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Square Enix 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
21.51%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
13.61%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
136.02%
Industry Style: Growth, Innovation, High Beta
High Growth