Kadokawa Corporation
Kadokawa Corporation Fundamental Analysis
Kadokawa Corporation (KDKWF) shows weak financial fundamentals with a PE ratio of 215.37, profit margin of 1.05%, and ROE of 0.89%. The company generates $210.4B in annual revenue with moderate year-over-year growth of 7.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.9/100 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 KDKWF's fundamental strength across five key dimensions:
Efficiency Score
WeakKDKWF struggles to generate sufficient returns from assets.
Valuation Score
ModerateKDKWF shows balanced valuation metrics.
Growth Score
ModerateKDKWF shows steady but slowing expansion.
Financial Health Score
ExcellentKDKWF maintains a strong and stable balance sheet.
Profitability Score
ModerateKDKWF maintains healthy but balanced margins.
Key Financial Metrics
Is KDKWF Expensive or Cheap?
P/E Ratio
KDKWF trades at 215.37 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KDKWF's PEG of -0.02 indicates potential undervaluation.
Price to Book
The market values Kadokawa Corporation at 1.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 33.24 times EBITDA. This signals the market has high growth expectations.
How Well Does KDKWF Make Money?
Net Profit Margin
For every $100 in sales, Kadokawa Corporation keeps $1.05 as profit after all expenses.
Operating Margin
Core operations generate 2.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.89 in profit for every $100 of shareholder equity.
ROA
Kadokawa Corporation generates $0.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kadokawa Corporation generates limited operating cash flow of $11.36B, signaling weaker underlying cash strength.
Free Cash Flow
Kadokawa Corporation produces free cash flow of $8.86B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $60.48 in free cash annually.
FCF Yield
KDKWF converts 1.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
215.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.009
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How KDKWF Stacks Against Its Sector Peers
| Metric | KDKWF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 215.37 | 22.91 | Worse (Expensive) |
| ROE | 0.89% | 1005.00% | Weak |
| Net Margin | 1.05% | -60132.00% (disorted) | Weak |
| Debt/Equity | 0.05 | 1.28 | Strong (Low Leverage) |
| Current Ratio | 2.28 | 1.65 | Strong Liquidity |
| ROA | 0.56% | -581836.00% (disorted) | Weak |
KDKWF outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kadokawa Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.17%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-17.20%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-23.99%
Industry Style: Growth, Technology, Streaming
Declining