Keyence Corporation
Keyence Corporation Fundamental Analysis
Keyence Corporation (KYCCF) shows moderate financial fundamentals with a PE ratio of 35.13, profit margin of 37.38%, and ROE of 12.98%. The company generates $1122.9B in annual revenue with moderate year-over-year growth of 9.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.5/100 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 KYCCF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentKYCCF demonstrates superior asset utilization.
Valuation Score
ModerateKYCCF shows balanced valuation metrics.
Growth Score
ModerateKYCCF shows steady but slowing expansion.
Financial Health Score
ExcellentKYCCF maintains a strong and stable balance sheet.
Profitability Score
ModerateKYCCF maintains healthy but balanced margins.
Key Financial Metrics
Is KYCCF Expensive or Cheap?
P/E Ratio
KYCCF trades at 35.13 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KYCCF's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Keyence Corporation at 4.42 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 31.82 times EBITDA. This signals the market has high growth expectations.
How Well Does KYCCF Make Money?
Net Profit Margin
For every $100 in sales, Keyence Corporation keeps $37.38 as profit after all expenses.
Operating Margin
Core operations generate 50.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.98 in profit for every $100 of shareholder equity.
ROA
Keyence Corporation generates $12.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Keyence Corporation generates strong operating cash flow of $606.40B, reflecting robust business health.
Free Cash Flow
Keyence Corporation generates strong free cash flow of $580.46B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2393.42 in free cash annually.
FCF Yield
KYCCF converts 3.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
13.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How KYCCF Stacks Against Its Sector Peers
| Metric | KYCCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.13 | 35.62 | Neutral |
| ROE | 12.98% | 1161.00% | Weak |
| Net Margin | 37.38% | -126170.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 13.55 | 5.83 | Strong Liquidity |
| ROA | 12.05% | -308589.00% (disorted) | Strong |
KYCCF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Keyence Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
91.93%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
101.22%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
101.31%
Industry Style: Growth, Innovation, High Beta
High Growth