KDDI Corporation
KDDI Corporation Fundamental Analysis
KDDI Corporation (KDDIY) shows weak financial fundamentals with a PE ratio of 34.14, profit margin of 10.78%, and ROE of 9.84%. The company generates $2785.6B in annual revenue with weak year-over-year growth of 2.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KDDIY's fundamental strength across five key dimensions:
Efficiency Score
WeakKDDIY struggles to generate sufficient returns from assets.
Valuation Score
ModerateKDDIY shows balanced valuation metrics.
Growth Score
ModerateKDDIY shows steady but slowing expansion.
Financial Health Score
WeakKDDIY carries high financial risk with limited liquidity.
Profitability Score
WeakKDDIY struggles to sustain strong margins.
Key Financial Metrics
Is KDDIY Expensive or Cheap?
P/E Ratio
KDDIY trades at 34.14 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KDDIY's PEG of -0.16 indicates potential undervaluation.
Price to Book
The market values KDDI Corporation at 3.45 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.74 times EBITDA. This is generally considered low.
How Well Does KDDIY Make Money?
Net Profit Margin
For every $100 in sales, KDDI Corporation keeps $10.78 as profit after all expenses.
Operating Margin
Core operations generate 18.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.84 in profit for every $100 of shareholder equity.
ROA
KDDI Corporation generates $2.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
KDDI Corporation generates strong operating cash flow of $845.33B, reflecting robust business health.
Free Cash Flow
KDDI Corporation generates strong free cash flow of $624.35B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $158.22 in free cash annually.
FCF Yield
KDDIY converts 10.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How KDDIY Stacks Against Its Sector Peers
| Metric | KDDIY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.14 | 21.66 | Worse (Expensive) |
| ROE | 9.84% | 1190.00% | Weak |
| Net Margin | 10.78% | -55754.00% (disorted) | Strong |
| Debt/Equity | 1.09 | 1.32 | Neutral |
| Current Ratio | 0.56 | 1.59 | Weak Liquidity |
| ROA | 2.78% | -202359.00% (disorted) | Weak |
KDDIY outperforms its industry in 1 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 KDDI Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.52%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
22.84%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
17.74%
Industry Style: Growth, Technology, Streaming
High Growth