KFC Holdings Japan, Ltd.
KFC Holdings Japan, Ltd. Fundamental Analysis
KFC Holdings Japan, Ltd. (9873.T) shows weak financial fundamentals with a PE ratio of 33.48, profit margin of 3.91%, and ROE of 14.67%. The company generates $110.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.8/100 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 9873.T's fundamental strength across five key dimensions:
Efficiency Score
Weak9873.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate9873.T shows balanced valuation metrics.
Growth Score
Moderate9873.T shows steady but slowing expansion.
Financial Health Score
Excellent9873.T maintains a strong and stable balance sheet.
Profitability Score
Weak9873.T struggles to sustain strong margins.
Key Financial Metrics
Is 9873.T Expensive or Cheap?
P/E Ratio
9873.T trades at 33.48 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 9873.T's PEG of 0.33 indicates potential undervaluation.
Price to Book
The market values KFC Holdings Japan, Ltd. at 4.65 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.57 times EBITDA. This signals the market has high growth expectations.
How Well Does 9873.T Make Money?
Net Profit Margin
For every $100 in sales, KFC Holdings Japan, Ltd. keeps $3.91 as profit after all expenses.
Operating Margin
Core operations generate 5.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.67 in profit for every $100 of shareholder equity.
ROA
KFC Holdings Japan, Ltd. generates $7.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
KFC Holdings Japan, Ltd. produces operating cash flow of $12.90B, showing steady but balanced cash generation.
Free Cash Flow
KFC Holdings Japan, Ltd. generates strong free cash flow of $11.61B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $519.49 in free cash annually.
FCF Yield
9873.T converts 8.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How 9873.T Stacks Against Its Sector Peers
| Metric | 9873.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.48 | 24.43 | Worse (Expensive) |
| ROE | 14.67% | 1154.00% | Weak |
| Net Margin | 3.91% | -609.00% (disorted) | Weak |
| Debt/Equity | 0.10 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.80 | 2.61 | Neutral |
| ROA | 7.04% | -8416.00% (disorted) | Weak |
9873.T outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews KFC Holdings Japan, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary