Maruichi Steel Tube Ltd. Fundamental Analysis
Maruichi Steel Tube Ltd. (MCHIF) shows moderate financial fundamentals with a PE ratio of 9.76, profit margin of 10.95%, and ROE of 7.86%. The company generates $242.4B in annual revenue with weak year-over-year growth of -3.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MCHIF's fundamental strength across five key dimensions:
Efficiency Score
WeakMCHIF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMCHIF trades at attractive valuation levels.
Growth Score
WeakMCHIF faces weak or negative growth trends.
Financial Health Score
ExcellentMCHIF maintains a strong and stable balance sheet.
Profitability Score
WeakMCHIF struggles to sustain strong margins.
Key Financial Metrics
Is MCHIF Expensive or Cheap?
P/E Ratio
MCHIF trades at 9.76 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MCHIF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Maruichi Steel Tube Ltd. at 0.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.43 times EBITDA. This signals the market has high growth expectations.
How Well Does MCHIF Make Money?
Net Profit Margin
For every $100 in sales, Maruichi Steel Tube Ltd. keeps $10.95 as profit after all expenses.
Operating Margin
Core operations generate 13.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.86 in profit for every $100 of shareholder equity.
ROA
Maruichi Steel Tube Ltd. generates $6.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Maruichi Steel Tube Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Maruichi Steel Tube Ltd. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
MCHIF converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How MCHIF Stacks Against Its Sector Peers
| Metric | MCHIF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.76 | 25.01 | Better (Cheaper) |
| ROE | 7.86% | 1002.00% | Weak |
| Net Margin | 10.95% | -107149.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.38 | Strong (Low Leverage) |
| Current Ratio | 4.83 | 6.20 | Strong Liquidity |
| ROA | 6.31% | -5669.00% (disorted) | Weak |
MCHIF 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 Maruichi Steel Tube Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
74.88%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
340.54%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-2.01%
Industry Style: Cyclical, Commodity, Value
Declining