Step Co.,Ltd. Fundamental Analysis (JPX: 9795.T)
Step Co.,Ltd. Fundamental Analysis (JPX: 9795.T)
Step Co.,Ltd. (JPX: 9795.T) shows moderate financial fundamentals with a PE ratio of 12.59, profit margin of 17.53%, and ROE of 10.35%. The company generates $16.3B in annual revenue with moderate year-over-year growth of 4.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 9795.T's fundamental strength across five key dimensions:
Efficiency Score
Weak9795.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent9795.T trades at attractive valuation levels.
Growth Score
Weak9795.T faces weak or negative growth trends.
Financial Health Score
Excellent9795.T maintains a strong and stable balance sheet.
Profitability Score
Moderate9795.T maintains healthy but balanced margins.
Key Financial Metrics
Is 9795.T Expensive or Cheap?
P/E Ratio
9795.T trades at 12.59 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 9795.T's PEG of 1.10 indicates fair valuation.
Price to Book
The market values Step Co.,Ltd. at 1.29 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.21 times EBITDA. This is generally considered low.
How Well Does 9795.T Make Money?
Net Profit Margin
For every $100 in sales, Step Co.,Ltd. keeps $17.53 as profit after all expenses.
Operating Margin
Core operations generate 24.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.35 in profit for every $100 of shareholder equity.
ROA
Step Co.,Ltd. generates $9.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Step Co.,Ltd. produces operating cash flow of $3.38B, showing steady but balanced cash generation.
Free Cash Flow
Step Co.,Ltd. generates strong free cash flow of $3.11B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $200.64 in free cash annually.
FCF Yield
9795.T converts 8.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How 9795.T Stacks Against Its Sector Peers
| Metric | 9795.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.59 | 21.73 | Better (Cheaper) |
| ROE | 10.35% | 661.00% | Weak |
| Net Margin | 17.53% | -2335.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 3.88 | 2.28 | Strong Liquidity |
| ROA | 9.47% | 313.00% | Weak |
9795.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 Step Co.,Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.60%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
109.34%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
89.29%
Industry Style: Defensive, Dividend, Low Volatility
High Growth