East Japan Railway Company
East Japan Railway Company Fundamental Analysis
East Japan Railway Company (EJPRY) shows weak financial fundamentals with a PE ratio of 18.10, profit margin of 7.58%, and ROE of 7.77%. The company generates $3030.7B in annual revenue with moderate year-over-year growth of 5.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EJPRY's fundamental strength across five key dimensions:
Efficiency Score
WeakEJPRY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEJPRY trades at attractive valuation levels.
Growth Score
ExcellentEJPRY delivers strong and consistent growth momentum.
Financial Health Score
WeakEJPRY carries high financial risk with limited liquidity.
Profitability Score
WeakEJPRY struggles to sustain strong margins.
Key Financial Metrics
Is EJPRY Expensive or Cheap?
P/E Ratio
EJPRY trades at 18.10 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, EJPRY's PEG of -0.08 indicates potential undervaluation.
Price to Book
The market values East Japan Railway Company at 1.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.93 times EBITDA. This is generally considered low.
How Well Does EJPRY Make Money?
Net Profit Margin
For every $100 in sales, East Japan Railway Company keeps $7.58 as profit after all expenses.
Operating Margin
Core operations generate 12.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.77 in profit for every $100 of shareholder equity.
ROA
East Japan Railway Company generates $2.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
East Japan Railway Company generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
East Japan Railway Company 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
EJPRY converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How EJPRY Stacks Against Its Sector Peers
| Metric | EJPRY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.10 | 25.96 | Better (Cheaper) |
| ROE | 7.77% | 1263.00% | Weak |
| Net Margin | 7.58% | -41827.00% (disorted) | Weak |
| Debt/Equity | 1.70 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.88 | 10.05 | Weak Liquidity |
| ROA | 2.20% | -1497918.00% (disorted) | Weak |
EJPRY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews East Japan Railway Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.09%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
12.94%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
33.34%
Industry Style: Cyclical, Value, Infrastructure
High Growth