Recruit Holdings Co., Ltd.
Recruit Holdings Co., Ltd. Fundamental Analysis
Recruit Holdings Co., Ltd. (RCRRF) shows moderate financial fundamentals with a PE ratio of 20.69, profit margin of 12.84%, and ROE of 30.60%. The company generates $3584.0B in annual revenue with weak year-over-year growth of -0.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.8/100 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 RCRRF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRCRRF demonstrates superior asset utilization.
Valuation Score
ExcellentRCRRF trades at attractive valuation levels.
Growth Score
ModerateRCRRF shows steady but slowing expansion.
Financial Health Score
ExcellentRCRRF maintains a strong and stable balance sheet.
Profitability Score
ModerateRCRRF maintains healthy but balanced margins.
Key Financial Metrics
Is RCRRF Expensive or Cheap?
P/E Ratio
RCRRF trades at 20.69 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RCRRF's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Recruit Holdings Co., Ltd. at 6.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.29 times EBITDA. This signals the market has high growth expectations.
How Well Does RCRRF Make Money?
Net Profit Margin
For every $100 in sales, Recruit Holdings Co., Ltd. keeps $12.84 as profit after all expenses.
Operating Margin
Core operations generate 15.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.60 in profit for every $100 of shareholder equity.
ROA
Recruit Holdings Co., Ltd. generates $17.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Recruit Holdings Co., Ltd. produces operating cash flow of $620.41B, showing steady but balanced cash generation.
Free Cash Flow
Recruit Holdings Co., Ltd. generates strong free cash flow of $610.50B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $434.45 in free cash annually.
FCF Yield
RCRRF converts 6.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.30
vs 25 benchmark
How RCRRF Stacks Against Its Sector Peers
| Metric | RCRRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.69 | 25.84 | Better (Cheaper) |
| ROE | 30.60% | 1279.00% | Weak |
| Net Margin | 12.84% | -43714.00% (disorted) | Strong |
| Debt/Equity | 0.21 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.73 | 10.62 | Neutral |
| ROA | 17.19% | -1537441.00% (disorted) | Strong |
RCRRF 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 Recruit Holdings Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
57.85%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
116.65%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
106.38%
Industry Style: Cyclical, Value, Infrastructure
High Growth