Hotel Newgrand Co.,Ltd.
Hotel Newgrand Co.,Ltd. Fundamental Analysis
Hotel Newgrand Co.,Ltd. (9720.T) shows weak financial fundamentals with a PE ratio of 32.55, profit margin of 3.13%, and ROE of 5.42%. The company generates $6.5B in annual revenue with moderate year-over-year growth of 9.00%.
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 9720.T's fundamental strength across five key dimensions:
Efficiency Score
Weak9720.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate9720.T shows balanced valuation metrics.
Growth Score
Moderate9720.T shows steady but slowing expansion.
Financial Health Score
Excellent9720.T maintains a strong and stable balance sheet.
Profitability Score
Weak9720.T struggles to sustain strong margins.
Key Financial Metrics
Is 9720.T Expensive or Cheap?
P/E Ratio
9720.T trades at 32.55 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 9720.T's PEG of -0.83 indicates potential undervaluation.
Price to Book
The market values Hotel Newgrand Co.,Ltd. at 1.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.75 times EBITDA. This signals the market has high growth expectations.
How Well Does 9720.T Make Money?
Net Profit Margin
For every $100 in sales, Hotel Newgrand Co.,Ltd. keeps $3.13 as profit after all expenses.
Operating Margin
Core operations generate 4.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.42 in profit for every $100 of shareholder equity.
ROA
Hotel Newgrand Co.,Ltd. generates $2.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hotel Newgrand Co.,Ltd. produces operating cash flow of $682.43M, showing steady but balanced cash generation.
Free Cash Flow
Hotel Newgrand Co.,Ltd. generates weak or negative free cash flow of $192.09M, restricting financial flexibility.
FCF Per Share
Each share generates $162.70 in free cash annually.
FCF Yield
9720.T converts 2.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How 9720.T Stacks Against Its Sector Peers
| Metric | 9720.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.55 | 23.72 | Worse (Expensive) |
| ROE | 5.42% | 1091.00% | Weak |
| Net Margin | 3.13% | -627.00% (disorted) | Weak |
| Debt/Equity | 0.65 | 0.72 | Neutral |
| Current Ratio | 1.14 | 2.64 | Neutral |
| ROA | 2.30% | 1053.00% | Weak |
9720.T outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hotel Newgrand Co.,Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.75%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
778.10%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-28.94%
Industry Style: Cyclical, Growth, Discretionary
Declining