Koito Manufacturing Co., Ltd. Fundamental Analysis
Koito Manufacturing Co., Ltd. (KOTMY) shows weak financial fundamentals with a PE ratio of 47.89, profit margin of 1.73%, and ROE of 2.66%. The company generates $890.1B in annual revenue with weak year-over-year growth of -3.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KOTMY's fundamental strength across five key dimensions:
Efficiency Score
WeakKOTMY struggles to generate sufficient returns from assets.
Valuation Score
ModerateKOTMY shows balanced valuation metrics.
Growth Score
ModerateKOTMY shows steady but slowing expansion.
Financial Health Score
ExcellentKOTMY maintains a strong and stable balance sheet.
Profitability Score
ModerateKOTMY maintains healthy but balanced margins.
Key Financial Metrics
Is KOTMY Expensive or Cheap?
P/E Ratio
KOTMY trades at 47.89 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KOTMY's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Koito Manufacturing Co., Ltd. at 1.29 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.85 times EBITDA. This is generally considered low.
How Well Does KOTMY Make Money?
Net Profit Margin
For every $100 in sales, Koito Manufacturing Co., Ltd. keeps $1.73 as profit after all expenses.
Operating Margin
Core operations generate 5.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.66 in profit for every $100 of shareholder equity.
ROA
Koito Manufacturing Co., Ltd. generates $1.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Koito Manufacturing Co., Ltd. produces operating cash flow of $93.23B, showing steady but balanced cash generation.
Free Cash Flow
Koito Manufacturing Co., Ltd. produces free cash flow of $42.63B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $161.97 in free cash annually.
FCF Yield
KOTMY converts 6.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
47.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.003
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How KOTMY Stacks Against Its Sector Peers
| Metric | KOTMY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 47.89 | 23.82 | Worse (Expensive) |
| ROE | 2.66% | 1185.00% | Weak |
| Net Margin | 1.73% | 2545.00% | Weak |
| Debt/Equity | 0.00 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 2.88 | 2.82 | Strong Liquidity |
| ROA | 1.83% | -8457.00% (disorted) | Weak |
KOTMY 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 Koito Manufacturing Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.52%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-13.30%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
13.14%
Industry Style: Cyclical, Growth, Discretionary
High Growth