Murata Manufacturing Co., Ltd.
Murata Manufacturing Co., Ltd. Fundamental Analysis
Murata Manufacturing Co., Ltd. (MRAAY) shows weak financial fundamentals with a PE ratio of 61.63, profit margin of 6.01%, and ROE of 4.20%. The company generates $1816.8B in annual revenue with moderate year-over-year growth of 6.29%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.6/100 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 MRAAY's fundamental strength across five key dimensions:
Efficiency Score
WeakMRAAY struggles to generate sufficient returns from assets.
Valuation Score
ModerateMRAAY shows balanced valuation metrics.
Growth Score
ExcellentMRAAY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentMRAAY maintains a strong and stable balance sheet.
Profitability Score
WeakMRAAY struggles to sustain strong margins.
Key Financial Metrics
Is MRAAY Expensive or Cheap?
P/E Ratio
MRAAY trades at 61.63 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MRAAY's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Murata Manufacturing Co., Ltd. at 2.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.61 times EBITDA. This signals the market has high growth expectations.
How Well Does MRAAY Make Money?
Net Profit Margin
For every $100 in sales, Murata Manufacturing Co., Ltd. keeps $6.01 as profit after all expenses.
Operating Margin
Core operations generate 16.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.20 in profit for every $100 of shareholder equity.
ROA
Murata Manufacturing Co., Ltd. generates $3.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Murata Manufacturing Co., Ltd. produces operating cash flow of $292.08B, showing steady but balanced cash generation.
Free Cash Flow
Murata Manufacturing Co., Ltd. produces free cash flow of $155.88B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $42.40 in free cash annually.
FCF Yield
MRAAY converts 2.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
61.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How MRAAY Stacks Against Its Sector Peers
| Metric | MRAAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 61.63 | 35.62 | Worse (Expensive) |
| ROE | 4.20% | 1161.00% | Weak |
| Net Margin | 6.01% | -126170.00% (disorted) | Weak |
| Debt/Equity | 0.04 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 4.97 | 5.83 | Strong Liquidity |
| ROA | 3.50% | -308589.00% (disorted) | Weak |
MRAAY 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 Murata 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
16.71%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
31.21%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
36.93%
Industry Style: Growth, Innovation, High Beta
High Growth