Nippon Steel Corporation Fundamental Analysis
Nippon Steel Corporation (NPSCY) shows weak financial fundamentals with a PE ratio of 411.37, profit margin of 0.21%, and ROE of 0.40%. The company generates $10207.1B in annual revenue with weak year-over-year growth of -1.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NPSCY's fundamental strength across five key dimensions:
Efficiency Score
WeakNPSCY struggles to generate sufficient returns from assets.
Valuation Score
ModerateNPSCY shows balanced valuation metrics.
Growth Score
WeakNPSCY faces weak or negative growth trends.
Financial Health Score
ExcellentNPSCY maintains a strong and stable balance sheet.
Profitability Score
WeakNPSCY struggles to sustain strong margins.
Key Financial Metrics
Is NPSCY Expensive or Cheap?
P/E Ratio
NPSCY trades at 411.37 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NPSCY's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Nippon Steel Corporation at 1.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.80 times EBITDA. This is generally considered low.
How Well Does NPSCY Make Money?
Net Profit Margin
For every $100 in sales, Nippon Steel Corporation keeps $0.21 as profit after all expenses.
Operating Margin
Core operations generate 2.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.40 in profit for every $100 of shareholder equity.
ROA
Nippon Steel Corporation generates $0.14 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nippon Steel Corporation generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Nippon Steel Corporation 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
NPSCY converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
411.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.004
vs 25 benchmark
ROA
Return on assets percentage
0.001
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How NPSCY Stacks Against Its Sector Peers
| Metric | NPSCY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 411.37 | 25.01 | Worse (Expensive) |
| ROE | 0.40% | 1002.00% | Weak |
| Net Margin | 0.21% | -107149.00% (disorted) | Weak |
| Debt/Equity | 0.94 | 0.38 | Weak (High Leverage) |
| Current Ratio | 1.78 | 6.20 | Neutral |
| ROA | 0.14% | -5669.00% (disorted) | Weak |
NPSCY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nippon Steel Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.68%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
183.84%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
104.48%
Industry Style: Cyclical, Commodity, Value
High Growth