Japan Airlines Co., Ltd.
Japan Airlines Co., Ltd. Fundamental Analysis
Japan Airlines Co., Ltd. (JPNRF) shows moderate financial fundamentals with a PE ratio of 9.67, profit margin of 6.53%, and ROE of 11.38%. The company generates $1999.0B in annual revenue with strong year-over-year growth of 11.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.2/100 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 JPNRF's fundamental strength across five key dimensions:
Efficiency Score
WeakJPNRF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentJPNRF trades at attractive valuation levels.
Growth Score
ExcellentJPNRF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentJPNRF maintains a strong and stable balance sheet.
Profitability Score
WeakJPNRF struggles to sustain strong margins.
Key Financial Metrics
Is JPNRF Expensive or Cheap?
P/E Ratio
JPNRF trades at 9.67 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, JPNRF's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Japan Airlines Co., Ltd. at 1.03 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.50 times EBITDA. This is generally considered low.
How Well Does JPNRF Make Money?
Net Profit Margin
For every $100 in sales, Japan Airlines Co., Ltd. keeps $6.53 as profit after all expenses.
Operating Margin
Core operations generate 10.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.38 in profit for every $100 of shareholder equity.
ROA
Japan Airlines Co., Ltd. generates $4.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Japan Airlines Co., Ltd. produces operating cash flow of $352.53B, showing steady but balanced cash generation.
Free Cash Flow
Japan Airlines Co., Ltd. produces free cash flow of $154.42B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $354.36 in free cash annually.
FCF Yield
JPNRF converts 12.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.71
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How JPNRF Stacks Against Its Sector Peers
| Metric | JPNRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.67 | 26.71 | Better (Cheaper) |
| ROE | 11.38% | 1311.00% | Weak |
| Net Margin | 6.53% | -29317.00% (disorted) | Weak |
| Debt/Equity | 0.71 | 0.75 | Neutral |
| Current Ratio | 1.47 | 10.53 | Neutral |
| ROA | 4.29% | -1537638.00% (disorted) | Weak |
JPNRF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Japan Airlines Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2.68%
Industry Style: Cyclical, Value, Infrastructure
GrowingEPS CAGR
75.01%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
392.07%
Industry Style: Cyclical, Value, Infrastructure
High Growth