Fast Retailing Co., Ltd.
Fast Retailing Co., Ltd. Fundamental Analysis
Fast Retailing Co., Ltd. (FRCOF) shows moderate financial fundamentals with a PE ratio of 436.49, profit margin of 12.69%, and ROE of 19.74%. The company generates $3531.3B in annual revenue with strong year-over-year growth of 12.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.7/100 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 FRCOF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentFRCOF demonstrates superior asset utilization.
Valuation Score
ModerateFRCOF shows balanced valuation metrics.
Growth Score
ExcellentFRCOF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentFRCOF maintains a strong and stable balance sheet.
Profitability Score
ModerateFRCOF maintains healthy but balanced margins.
Key Financial Metrics
Is FRCOF Expensive or Cheap?
P/E Ratio
FRCOF trades at 436.49 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FRCOF's PEG of 0.77 indicates potential undervaluation.
Price to Book
The market values Fast Retailing Co., Ltd. at 78.27 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 224.44 times EBITDA. This signals the market has high growth expectations.
How Well Does FRCOF Make Money?
Net Profit Margin
For every $100 in sales, Fast Retailing Co., Ltd. keeps $12.69 as profit after all expenses.
Operating Margin
Core operations generate 17.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.74 in profit for every $100 of shareholder equity.
ROA
Fast Retailing Co., Ltd. generates $10.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fast Retailing Co., Ltd. produces operating cash flow of $684.39B, showing steady but balanced cash generation.
Free Cash Flow
Fast Retailing Co., Ltd. generates strong free cash flow of $531.23B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $173.14 in free cash annually.
FCF Yield
FRCOF converts 0.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
436.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
78.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
55.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How FRCOF Stacks Against Its Sector Peers
| Metric | FRCOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 436.49 | 23.78 | Worse (Expensive) |
| ROE | 19.74% | 1098.00% | Weak |
| Net Margin | 12.69% | -626.00% (disorted) | Strong |
| Debt/Equity | 0.28 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 2.75 | 2.64 | Strong Liquidity |
| ROA | 10.48% | -8081.00% (disorted) | Strong |
FRCOF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fast Retailing Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.25%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
128.39%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
116.41%
Industry Style: Cyclical, Growth, Discretionary
High Growth